Month Long Observances
• Hi Neighbor Month
• National Stress Free Family Holiday Month
• Read A New Book Month
• Safe Toy and Gift Month
• Universal Human Rights Month
• Write to a Friend Month
December 1st
• Eat A Red Apple Day
• National Pie Day
• Rosa Park's Day
• World AIDS Day
December 2nd
• National Fritters Day
December 3rd
• International Day of the Disabled Person
• National Roof-Over-Your-Head Day
December 4th
• Hanukkah Begins at Sunset
• National Cookie Day
• Wear Brown Shoes Day
December 6th
• Mitten Tree Day
• St. Nicholas Day
December 7th
• National Cotton Candy Day
• Pearl Harbor Day
December 8th
• National Brownie Day
December 10th
• Human Rights Day
• Nobel Peace Prize Awarded
December 11th
• National Noodle Ring Day
December 12th
• Golf Tee Patented
• Poinsettia Day
December 13th
• National Cocoa Day
December 14th
• South Pole Discovered In 1911.
December 16th
• Boston Tea Party Anniversary
• Las Posadas
• National Chocolate Covered Anything Day
December 17th
• National Maple Syrup Day
• Underdog Day
• Wright Brother's Day
December 18th
• Wear a Plunger On Your Head Day
December 19th
• Oatmeal Muffin Day
December 20th
• Games Day
December 21st
• First Crossword Puzzle in a Newspaper
• First Day of Winter
• Humbug Day
• Look at the Bright Side Day
• National Flashlight Day
December 23rd
• Roots Day
December 24th
• National Egg Nog Day
December 25th
• Christmas
• National Pumpkin Pie Day
December 26th
• Boxing Day
• Kwanzaa Begins
• National Whiners Day
December 27th
• Visit the Zoo Day
December 28th
• Card Playing Day
• National Chocolate Day
December 31st
• New Year's Eve
Sunday, December 2, 2007
Tri-Valley Housing Markets at a Glance
The following Housing Market Summaries were compiled from Southland Regional and Greater Antelope Valley Associations of REALTORS.
San Fernando Valley home sales fall to record low as buyers wait for price declines that may never materialize
Home sales in the San Fernando Valley plunged during October as buyers waited to see what will happen in the home loan market and for resale prices to fall, although there is still no indication that prices will tumble nearly as much as buyers expect.
Single-family home sales throughout the San Fernando Valley during October plunged 54.1 percent compared to the prior year, the Southland Regional Association of Realtors reported on Wednesday, Nov. 28.
A total of 354 homes changed owners, off 417 sales from the 771 total reported in October 2006. Sales also declined on a month-to-month basis, down 2.2 percent. The 354 sales was the lowest total on record, surpassing the prior low of 362 sales set this September. The third lowest tally of 391 sales came in February 1991.
That compares to the record high of 1,648 home sales, which was set in August 1988. The closest the San Fernando Valley came to that record high during the most recent sellers’ boom market was 1,321 sales in June 2002.
Condominium sales fell 48.6 percent from the prior year with this October’s 128 transactions off 121 sales from the 249 sales of October 2006. Condo sales fell 17.4 percent on a month-to-month basis. The 128 sales was not the lowest on record: that distinction came in February 1993 when 80 condos changed owners. The condo record high of 526 sales was set in August 1988 with the next highest tally of 524 sales appearing in July 2004.
While many buyers think prices should be down dramatically, the reality is that resale prices are holding relatively steady in large measure because even with more properties listed for sale there still are not enough homes throughout the region to satisfy demand.
The median price of single-family homes sold during October fell a modest 3.3 percent to $590,000, down $20,000 from a year ago when the median was $610,000. It was the first time in six months that the median fell below the $600,000 mark. The record high of $655,000 was set in June.
The decline in the condo median price was steeper, falling 7.3 percent from $410,000 a year ago to this October’s median of $380,000. It was the lowest median reported since the record high of $415,000 of February 2006.
Home owners who do not have to sell and purchased prior to the recent peak in the market will weather this cycle. Even if they had to sell now, they still would reap a handsome profit, although not as much as a year ago.
A total of 7,730 properties were listed for sale at the end of October. That was up 13.8 percent from a year ago. Even with the increase, the current inventory is far below the record high of 14,976 active listings set in July 1992 when a recession swept the nation and Southern California’s economy was in the process of a total restructuring.
At the current pace of sales, the inventory represents a 16.0-month supply, the highest total since the early 1990s and an indicator of a pure buyers’ market.
The record high sales-to-inventory tally of 23 months was set in February 1993. A year ago it was 6.1-months. The record low of a 1.0-month sales to inventory total came in March 2004.
Real estate experts say the market is in balance, with neither buyer nor seller holding un upper hand in negotiations, with a 5- to 6-month sales to inventory ratio.
Santa Clarita Valley home sales off by 42%, resale prices down 4%
Single-family home sales during October in the Santa Clarita Valley fell 42.3 percent compared to the prior year, the Southland Regional Association of Realtors reported Wednesday, Nov. 28.
A total of 116 homes closed escrow, off 85 sales from the 201 transactions of October 2006.
However, homes sales were up 10.5 percent from September following what appears to be a pattern of a slight surge in sales as each year draws to a close and a record low sales total reported in September. It was just three years ago in June 2005 when the record high of 405 sales was reported.
Condominium sales were off 52.3 percent compared to the prior year. Forty-two condos changed owners, down from 88 transactions from a year ago October. The condo total was down 19.2 percent on a month-to-month basis. It was the lowest monthly total on record, beating the prior low of 43 condo sales set in January 1999. The record high of 204 sales was set in April 2003.
Buyer hesitation is based on continued negative reports from the lending industry. Some of the hesitation is unwarranted because the current turmoil hits some segments of the market differently than others.
The median price of single-family homes sold during October throughout the Santa Clarita Valley was $555,000, down 3.5 percent or $20,000 from the prior year. The record high of $643,000 was established in April 2006.
The condominium median price fell 16.2 percent to $310,000, off $60,000 from the $370,000 median of October 2006. The condo record high of $397,000 was set in January 2006.
There were 2,443 active listings throughout the Santa Clarita Valley at the end of October, up 1.6 percent from a year ago, but down 2.0 percent from this September.
At the current pace of sales the inventory represents a 15.5-month supply – a pure buyers’ market as compared to a balanced market that would have a 5- to 6-month supply. During the height of the sellers’ market the inventory frequently hovered below a 1-month supply.
If you need to buy a house, buy it and don’t try to time the market. There are incredible opportunities out there now, a wide selection and attractive financing available if you have what used to be the traditional requirements – a good credit history, documentation and a reasonable downpayment.
AV listings increased 13% from October to November
As of early November, the Antelope Valley had 5702 residential listings up from 4950 listings at the same time in October (an increase of 13%). Other figures usually found in this column, such as average sold price and market time, have not yet been published by the Greater Antelope Valley Association of REALTORS as of my deadline. Look for these figures as soon as they are available at http://changhomesnews.blogspot.com/.
San Fernando Valley home sales fall to record low as buyers wait for price declines that may never materialize
Home sales in the San Fernando Valley plunged during October as buyers waited to see what will happen in the home loan market and for resale prices to fall, although there is still no indication that prices will tumble nearly as much as buyers expect.
Single-family home sales throughout the San Fernando Valley during October plunged 54.1 percent compared to the prior year, the Southland Regional Association of Realtors reported on Wednesday, Nov. 28.
A total of 354 homes changed owners, off 417 sales from the 771 total reported in October 2006. Sales also declined on a month-to-month basis, down 2.2 percent. The 354 sales was the lowest total on record, surpassing the prior low of 362 sales set this September. The third lowest tally of 391 sales came in February 1991.
That compares to the record high of 1,648 home sales, which was set in August 1988. The closest the San Fernando Valley came to that record high during the most recent sellers’ boom market was 1,321 sales in June 2002.
Condominium sales fell 48.6 percent from the prior year with this October’s 128 transactions off 121 sales from the 249 sales of October 2006. Condo sales fell 17.4 percent on a month-to-month basis. The 128 sales was not the lowest on record: that distinction came in February 1993 when 80 condos changed owners. The condo record high of 526 sales was set in August 1988 with the next highest tally of 524 sales appearing in July 2004.
While many buyers think prices should be down dramatically, the reality is that resale prices are holding relatively steady in large measure because even with more properties listed for sale there still are not enough homes throughout the region to satisfy demand.
The median price of single-family homes sold during October fell a modest 3.3 percent to $590,000, down $20,000 from a year ago when the median was $610,000. It was the first time in six months that the median fell below the $600,000 mark. The record high of $655,000 was set in June.
The decline in the condo median price was steeper, falling 7.3 percent from $410,000 a year ago to this October’s median of $380,000. It was the lowest median reported since the record high of $415,000 of February 2006.
Home owners who do not have to sell and purchased prior to the recent peak in the market will weather this cycle. Even if they had to sell now, they still would reap a handsome profit, although not as much as a year ago.
A total of 7,730 properties were listed for sale at the end of October. That was up 13.8 percent from a year ago. Even with the increase, the current inventory is far below the record high of 14,976 active listings set in July 1992 when a recession swept the nation and Southern California’s economy was in the process of a total restructuring.
At the current pace of sales, the inventory represents a 16.0-month supply, the highest total since the early 1990s and an indicator of a pure buyers’ market.
The record high sales-to-inventory tally of 23 months was set in February 1993. A year ago it was 6.1-months. The record low of a 1.0-month sales to inventory total came in March 2004.
Real estate experts say the market is in balance, with neither buyer nor seller holding un upper hand in negotiations, with a 5- to 6-month sales to inventory ratio.
Santa Clarita Valley home sales off by 42%, resale prices down 4%
Single-family home sales during October in the Santa Clarita Valley fell 42.3 percent compared to the prior year, the Southland Regional Association of Realtors reported Wednesday, Nov. 28.
A total of 116 homes closed escrow, off 85 sales from the 201 transactions of October 2006.
However, homes sales were up 10.5 percent from September following what appears to be a pattern of a slight surge in sales as each year draws to a close and a record low sales total reported in September. It was just three years ago in June 2005 when the record high of 405 sales was reported.
Condominium sales were off 52.3 percent compared to the prior year. Forty-two condos changed owners, down from 88 transactions from a year ago October. The condo total was down 19.2 percent on a month-to-month basis. It was the lowest monthly total on record, beating the prior low of 43 condo sales set in January 1999. The record high of 204 sales was set in April 2003.
Buyer hesitation is based on continued negative reports from the lending industry. Some of the hesitation is unwarranted because the current turmoil hits some segments of the market differently than others.
The median price of single-family homes sold during October throughout the Santa Clarita Valley was $555,000, down 3.5 percent or $20,000 from the prior year. The record high of $643,000 was established in April 2006.
The condominium median price fell 16.2 percent to $310,000, off $60,000 from the $370,000 median of October 2006. The condo record high of $397,000 was set in January 2006.
There were 2,443 active listings throughout the Santa Clarita Valley at the end of October, up 1.6 percent from a year ago, but down 2.0 percent from this September.
At the current pace of sales the inventory represents a 15.5-month supply – a pure buyers’ market as compared to a balanced market that would have a 5- to 6-month supply. During the height of the sellers’ market the inventory frequently hovered below a 1-month supply.
If you need to buy a house, buy it and don’t try to time the market. There are incredible opportunities out there now, a wide selection and attractive financing available if you have what used to be the traditional requirements – a good credit history, documentation and a reasonable downpayment.
AV listings increased 13% from October to November
As of early November, the Antelope Valley had 5702 residential listings up from 4950 listings at the same time in October (an increase of 13%). Other figures usually found in this column, such as average sold price and market time, have not yet been published by the Greater Antelope Valley Association of REALTORS as of my deadline. Look for these figures as soon as they are available at http://changhomesnews.blogspot.com/.
FAQ: What is a Foreclosure?
You have no doubt heard in the news of all the properties around the United States “in foreclosure,” and how that is driving the current downturn in real estate. Foreclosure is a legal process in which the lender is able to take possession of the home in cases where the homeowner can no longer keep up with his mortgage payments.
Remember that foreclosure is a legal process, like probate or divorce. Generally there are 2 ways lenders can take control of a property: a judicial process is conducted through the court system while a non-judicial process is not. California allows both processes, but the judicial process is hardly used.
In California, the process starts with a Notice of Default (NOD) that is filed with the county recorder. This occurs when the borrower misses 3 monthly mortgage payments. During the time of these missed payments, the lender has undoubtedly attempted contact with the owner by mail and phone to negotiate payment methods. The lender would have also given the owner a Notice of Intent to Foreclosure, which gives a deadline to cure the missed payments. The NOD is an official document that is filed after the deadline in the Notice of Intent to Foreclosure has passed.
Once the NOD is filed, the trustee notifies the homeowner and all parties with interest in the title. A sale date is set 3 months after NOD. (I have documents emphasizing that it’s 3 months and not 90 days as erroneously printed in many public outlets). The lender publishes a Notice of Sale (NOS) in approved newspapers once a week for 3 consecutive weeks and mails the NOS to homeowner and all parties with interest in the title.
At the appointed sale date, a Trustee Sale is held where the home goes to public auction. If there is no bidders willing to post the minimum bid on the property, the home is given to the lender as a Real Estate Owned (REO) property.
Foreclosed homes also offer an opportunity for those buyers looking for homes for themselves or for investment. The earliest opportunity is before the home is foreclosed on – during the pre-foreclosure period. You might see these homes as “short-sale” properties as well (please view last month’s FAQ regarding short sales at http://changhomes1.blogspot.com/2007/11/faq-what-are-short-sales.html). At this stage, which lasts through the Notice of Default or Lis Pendens, the potential buyer should approach the owner/seller and offer to buy the property directly or through a real estate agent. Sellers are motivated as they do not wish to have any negative marks on their credit report and would rather “wash their hands” of the home. By paying off what is owed (or less than what is owed in a short-sale situation), the owner can avoid the rest of the foreclosure process.
At the Notice of Trustee Sale, the home will go to auction. Public auctions require buyers to pay in cash, and the buyer may not have enough time to research the title and the condition of the property to satisfaction beforehand. You may be able to contact the owner if you catch the announcement right away to see if you can buy the property, otherwise, contact the trustee for potential deals.
If a property is not sold at an auction (doesn’t reach minimum bid), the bank takes ownership of the property. These properties are called “Real Estate Owned,” or REO. Lenders are not in the business to manage homes, so they are likely to sell the home to recover some of the unpaid loan amount. So contact the lender to get these homes. There is no set timeframe within which the banks must sell their REOs; however, banks often want to get REOs off their books rapidly. As a result, many REOs sell quickly. The only exception is if there is a "redemption period" (as in California) for the owner to buy back the property after it is repossessed by the bank. State law dictates if there is any redemption period. The bank will typically wait until the end of any redemption period to sell the property.
Keep in mind that sometimes contacting the lender can be frustrating, as the main purpose of a lender is to loan money, not to sell property. So even though the bank may have a department that handles bank-owned property for sale, that department may be hard to track down. If you need assistance, contact me as I have some ways I can reach these hard-to-find decisionmakers.
The bank will clear title and perform repairs, but at this stage, the bank would have already set a price at which they would want to sell the property to recoup all their losses. Hence, it leaves little room for negotiation, but often the home is priced about 65% of how much was owed on the property initially.
Notice throughout this process that you may get a good deal on the property, but as more homes in the neighborhood undergo the same foreclosure process, the market price of all these homes will go down to potentially this “65%” mark. Even though a home may be an REO, it might be selling for the current market prices of those homes in the neighborhood.
Before you buy foreclosure homes, you need to research foreclosure data. A good site I’ve found is RealtyTrac.com, but of course, I encourage you to contact me for a complete evaluation of the market and to help you evaluate potential homes you seek.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
Remember that foreclosure is a legal process, like probate or divorce. Generally there are 2 ways lenders can take control of a property: a judicial process is conducted through the court system while a non-judicial process is not. California allows both processes, but the judicial process is hardly used.
In California, the process starts with a Notice of Default (NOD) that is filed with the county recorder. This occurs when the borrower misses 3 monthly mortgage payments. During the time of these missed payments, the lender has undoubtedly attempted contact with the owner by mail and phone to negotiate payment methods. The lender would have also given the owner a Notice of Intent to Foreclosure, which gives a deadline to cure the missed payments. The NOD is an official document that is filed after the deadline in the Notice of Intent to Foreclosure has passed.
Once the NOD is filed, the trustee notifies the homeowner and all parties with interest in the title. A sale date is set 3 months after NOD. (I have documents emphasizing that it’s 3 months and not 90 days as erroneously printed in many public outlets). The lender publishes a Notice of Sale (NOS) in approved newspapers once a week for 3 consecutive weeks and mails the NOS to homeowner and all parties with interest in the title.
At the appointed sale date, a Trustee Sale is held where the home goes to public auction. If there is no bidders willing to post the minimum bid on the property, the home is given to the lender as a Real Estate Owned (REO) property.
Foreclosed homes also offer an opportunity for those buyers looking for homes for themselves or for investment. The earliest opportunity is before the home is foreclosed on – during the pre-foreclosure period. You might see these homes as “short-sale” properties as well (please view last month’s FAQ regarding short sales at http://changhomes1.blogspot.com/2007/11/faq-what-are-short-sales.html). At this stage, which lasts through the Notice of Default or Lis Pendens, the potential buyer should approach the owner/seller and offer to buy the property directly or through a real estate agent. Sellers are motivated as they do not wish to have any negative marks on their credit report and would rather “wash their hands” of the home. By paying off what is owed (or less than what is owed in a short-sale situation), the owner can avoid the rest of the foreclosure process.
At the Notice of Trustee Sale, the home will go to auction. Public auctions require buyers to pay in cash, and the buyer may not have enough time to research the title and the condition of the property to satisfaction beforehand. You may be able to contact the owner if you catch the announcement right away to see if you can buy the property, otherwise, contact the trustee for potential deals.
If a property is not sold at an auction (doesn’t reach minimum bid), the bank takes ownership of the property. These properties are called “Real Estate Owned,” or REO. Lenders are not in the business to manage homes, so they are likely to sell the home to recover some of the unpaid loan amount. So contact the lender to get these homes. There is no set timeframe within which the banks must sell their REOs; however, banks often want to get REOs off their books rapidly. As a result, many REOs sell quickly. The only exception is if there is a "redemption period" (as in California) for the owner to buy back the property after it is repossessed by the bank. State law dictates if there is any redemption period. The bank will typically wait until the end of any redemption period to sell the property.
Keep in mind that sometimes contacting the lender can be frustrating, as the main purpose of a lender is to loan money, not to sell property. So even though the bank may have a department that handles bank-owned property for sale, that department may be hard to track down. If you need assistance, contact me as I have some ways I can reach these hard-to-find decisionmakers.
The bank will clear title and perform repairs, but at this stage, the bank would have already set a price at which they would want to sell the property to recoup all their losses. Hence, it leaves little room for negotiation, but often the home is priced about 65% of how much was owed on the property initially.
Notice throughout this process that you may get a good deal on the property, but as more homes in the neighborhood undergo the same foreclosure process, the market price of all these homes will go down to potentially this “65%” mark. Even though a home may be an REO, it might be selling for the current market prices of those homes in the neighborhood.
Before you buy foreclosure homes, you need to research foreclosure data. A good site I’ve found is RealtyTrac.com, but of course, I encourage you to contact me for a complete evaluation of the market and to help you evaluate potential homes you seek.
Questions answered in this column were asked by my clients, past clients, or prospective buyers and sellers. The questions were answered when they were asked, and they were notified if the question is a candidate for the FAQ column. Questions are chosen based on interest to a wider audience, timeliness to the current market, and possibly other factors. Those whose questions are featured in this column get a gift card to their favorite store, restaurant, mall or movie theatre in the Tri-Valley area if they allow me to publish their name or initials and the city in which they live in this column. You can email your questions for a prompt response to changhomes@gmail.com.
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