Tag Archives: investors

Housing Recovery Is Sustainable

“Despite a number of potentially damaging headwinds, the ongoing housing recovery will remain sustainable for the foreseeable future, analysts for Capital Economics say in a recently released report.

The housing industry’s rapid rebound took many experts by surprise-even the researchers who authored the report admit they “have been slightly taken aback” by the recovery’s speed. However, they point to several major indicators that show the current upturn is more than a temporary blip or a false recovery.

Sustained rises in demand, home prices, homebuilding activity, and new and existing-home sales all demonstrate that the market is seeing a lasting recovery, they say. They also forecast further price growth of 5 percent in each of 2013 and 2014.

What’s more, even as prices rise, valuation and affordability-“the cornerstone on which the improvement in housing is being built”-remain very favorable.

The major threats to the market at this juncture, the analysts say, are the potential for a new American recession (brought on by complications from the fiscal cliff and the potential of a partial euro-zone break-up) and the risk that properties in the shadow inventory will flood the market and drive prices down…”

This article is from DSNews.com; read the rest of it here: “Housing Recovery Is Sustainable, According to Market Analysts”.

Fewer foreclosures in San Diego county

Foreclosure investors face slimmer pickings

Home buyers, particularly investors, in San Diego County have fewer foreclosed homes to choose from these days.

Properties that were foreclosed upon in the past year and resold in San Diego County made up 20 percent of total home resales in June, matching the recorded low in September 2007, DataQuick stats show. Their share of the resale market was 21.3 percent in May, 28.5 percent a year ago and had peaked at 55 percent three-and-a-half years ago. In other words, bank-owned resales are making up a smaller share of the total market as time passes…

Read the rest of this article by U~T San Diego here: “Foreclosure investors face slimmer pickings”.

Record rate of cash buyers hit SD home market

April was a record month for cash buyers in San Diego County, the latest DataQuick numbers show.

One-third of last month’s sales were done in cash, breaking the previous record of 31.4 percent set in February. The historical monthly average of cash deals in the county is 16.7 percent, based on a data set that starts in 1998.

San Diego’s cash-buyer percentage is in line with Southern California’s, at 31.5 percent.

Activity from cash buyers and investors continues to be “robust” locally and in neighboring counties, DataQuick president John Walsh said on Wednesday. Investors, also known as “absentee buyers,” made up 27.8 percent of total buyers in San Diego County last month, up from 25.7 percent a year ago…

Read the rest of this article by the Union Tribune San Diego: “Record rate of cash buyers hit SD home markets”.

Local pending home sales up 12.3%

Local pending home sales up 12.3%

San Diego nearly same as April,state up for 12th straight month

pending sales“San Diego County pending home sales rose 12.3 percent in April from year-ago levels as completed sales nationally increased nearly as much.

The chief economist for the National Association of Realtors, Lawrence Yun, interpreted the results as indicative of demand extending beyond the investor community looking for bargains in the still-depressed housing market.

“A return of normal home buying for occupancy is helping home sales across all price points, and now the recovery appears to be extending to home prices,” Yun said.

The San Diego Association of Realtors said there were 5,697 pending sales as of Tuesday, up slightly from 5,654 a month ago and up 12.3 percent from 5,075 a year ago…”

Read the rest of this article by the Union Tribune, San Diego here: “Local pending home sales up 12.3%“.

It’s safe to sell your home again

It’s safe to sell your home again
While analysts debate when the housing market will hit bottom, for a surprising number of cities the turnaround has already begun.  In December, prices rose in 109 of the 384 metro areas tracked by data firm CoreLogic. 

Making sense of the story

  • There are certain signs to help determine if a particular neighborhood is on the verge of a rebound.  For instance is local employment on the upswing?  That’s a critical factor for a region to get itself on the path to recovery.  Improving jobs picture has led to shrinking housing stock across the country, as investors and bargain hunters have started buying up foreclosures that have been preventing a recovery.
  • For years, buyers were scared of overpaying for a home, but less so now.  Many buyers have grown accustomed to thinking they’ll score deals, so they tend to act slowly, and typically start bidding around 10 percent to 15 percent below list price.  However, a growing number of buyers are beginning to realize that if they wait too long in this market, they may miss out.
  • Sellers can hold firm on price if they’re patient.  The days of having to deal with low-ball offers are coming to an end.  The higher the price, the more patient the seller must be.  Cheaper homes are affordable to more buyers and appealing to investors, so recoveries usually start there. 
  • Sellers should keep in mind that while they don’t have to placate low-ball offers anymore, they also can’t shoot for the moon either.  Working with a REALTOR® and setting a realistic price from the get-go is key.
  • Sellers should know what they’re competing against.  Homeowners should let their home’s value dictate the price.  While this may seem self-evident, some owners may have lost sight of it during the bust.  On the one hand, some sellers clung to the false hope of a return to boom prices, so they set prices unrealistically high.  Others may have gone too far the other way, and set their price too low.
  • It’s also important that sellers understand they’re no longer competing with gutted foreclosures.  Buyers are tired of looking at worn-down, neglected, distressed properties and often don’t have much extra money to do a lot of fixing up.  REALTORS® often report their clients are willing to pay a little more for a home that’s ready to move into.

Read the full story from CNN here: http://money.cnn.com/2012/04/19/real_estate/housing-market.moneymag/index.htm?iid=HP_River

Foreclosures Down to 69,000 in March, Inventory Also Down

“Year-over-year, the number of completed foreclosures decreased about 19 percent to 69,000 in March 2012 compared to 85,000 in March 2011, according to CoreLogic’s National Foreclosure Report for March. Month-over-month, with the number of completed foreclosures in February 2012 at 66,000, foreclosures increased about 4.5 percent in March 2012.
On a quarterly basis, foreclosures decreased to 198,000 in the first quarter of 2012 compared to 232,000 through the same quarter a year ago.
Overall, since the start of the financial crisis in September 2008, there have been approximately 3.5 million completed foreclosures.
In addition to the yearly and quarterly decreases in completed foreclosures, the number of loans in the foreclosure inventory decreased by nearly 6 percent, or 100,000, in March 2012 compared to the year before.
“Since the foreclosure inventory is also coming down, this suggests that loan modifications, short sales, deeds-in-lieu are increasingly being used as an alternative to foreclosures to clear distressed assets in our communities. This is what was envisioned with the recent National Foreclosure Settlement, and can often be a better outcome for both borrowers and investors,” said Anand Nallathambi, CEO of CoreLogic.
Out of all homes with a mortgage, approximately 1.4 million homes, or 3.4 percent were in the national foreclosure inventory as of March 2012 compared to 1.5 million, or 3.5 percent, the same month a year ago, and 1.4 million, or 3.4 percent, in the prior month of February.
Delinquencies are also down, with…”
Read the rest of this article by DSNews.com here: “Foreclosures Down to 69,000 in March, Inventory Also Down”.

CoreLogic: Number of Completed Foreclosures Down for February

The number of completed foreclosures in February 2012 was down on a monthly basis and slightly on a year-over-year comparison, but overall, foreclosure inventory has decreased compared to a year ago, according to CoreLogic’sNational Foreclosure report for February.

Completed foreclosures per thousand active loans for judicial vs. non-judicial states

Completed foreclosures are counted as properties that get auctioned off and purchased by a third party, such as an investor or lender.
 
For February 2012, 65,000 completed foreclosures were reported, compared to 66,000 in February 2011, and 71,000 in January 2012. The number of completed foreclosures over 12 months ending in February was 862,000. From the start of the financial crisis in September 2008, CoreLogic estimates 3.4 million completed foreclosures.
 
“Even though the pace of completed foreclosures has slowed, the overall foreclosure inventory is decreasing because REO sales were up in February,” said Mark Fleming, chief economist for CoreLogic. “With the spring buying season upon us, the inventory may decline further as the pace of distressed-asset sales rises along with the rest of the housing market.”
 
Approximately 1.4 million homes with a mortgage, or 3.4 percent, were in the foreclosure inventory as of February 2012. Nationally, the number of borrowers in the foreclosure inventory decreased by 115,000, a decline of 7.6 percent compared to February 2011. For the prior month of January 2012, no change was reported.
 
The share of borrowers nationally that were 90 or more days late on their mortgage payment fell to 7.3 percent in February 2012 from 7.8 percent in February 2011, but up slightly from the 7.2 percent in January 2012… Read the rest of this article by

Buying is winning the lottery

With the current residential real estate market for buyers in the throngs of a literal feeding frenzy, due to the rising infestation of investor buyers, the buyer looking to buy a home for their family to live in is having massive competition.

While inventory is currently contracting and sales are on the rise, six months from now we will know for sure if the market will be positive–meaning that values will finally be officially on the rise. There are some areas that are seeing an increase in values.

I have several listings that range in the low price ranges of $200’s, to $600K — and  these are seeing multiple offers from investors and owner-occupied buyers.  This makes it tough on the buyer purchasing for a family as a first-time buyer who do not have a lot of money to put down. There are up to 10 offers in a matter of a few days on almost all properties now.

This scenario should continue making this a very frustrating time for the first-time,  FHA government & conventional low down payment, or Military Veteran no down payment buyer. This group has to compete with the “all-cash” and 20%+ down payment conventional loan buyers, who usually win due to the restrictions on condition of property by the government loans like FHA and VA, or the low down conventional investor guidelines.

So, how does the low-money-down buyer get in a position to win the property for the buyer who has to compete with the big money buyer? Make sure you are interviewing your perspective agent on how this process will be handled. In this market, this is necessary not only for sellers, but also for buyers. Repairs or a price reduction in a short sale can be done and I can show you how.

Experience is GOLDEN!! Properties having no equity to several liens, a bankruptcy, etc. will not close with an average or most experienced agents, whether representing a buyer or a seller. I have helped several listing agents while I represent a buyer get the property sold in these scenarios.

Whether buying or selling, you owe it to yourself to call me now. The time is now to buy and you will have the most success and satisfaction with the agent who can maneuver through the maze while leveraging you the best deal. I am here to serve you to make sure you WIN the LOTTERY!

Thank you for reading and God Bless.