Waiting to sell?

Some Realtors will tell you that its better to sell your home in the spring or summer.  Home buyers have a different view.   

If you’re waiting until spring to put your home on the market, you’re going to want to take a look at these numbers. Redfin analyzed homes listed from March 22, 2011 through March 21, 2013, and found that those listed in winter have a 9 percentage point greater likelihood of selling, sell a week faster, and sell for 1.2 percentage points more relative to list price than homes listed in any other season.

The data contradicts the popular sentiment that selling a home during winter is more difficult because there are fewer people looking to buy. Further, the advantage of selling a home in winter holds true in temperate climates as well as those with harsh winters. In each of the 19 markets analyzed in this report, including Boston and Chicago, home sellers were better off listing their homes in the winter than during any other season.

Good time to buy, really?

Home prices are expected to continue to grow.  That and a bump in interest rates will mean higher monthly payments for buyers.   Some believe the longer you wait, the more you will pay.  If you know someone who is thinking of buying please share this article and have them call me with questions.

Happy Thanksgiving

Wishing you, your family, and friends a most wonderful Thanksgiving.

May everyone be happy, healthy and safe.

Thankful to have helped so many buy and sell this year.  And for the one that is now in escrow!

Thank you!

More distressed homes coming to Inland Empire

Many areas in Southern California are experiencing a low inventory of foreclosures, short sales and bank owned homes for sale.  In Orange County distressed properties account for less than 7% of listings.

Its a different story in the east valley.   Distressed homes represent 15% of listings in San Bernardino, Highland, Redlands and Yucaipa. 103 of 722 in the MLS are distressed.  More importantly, more than 425 foreclosure properties are set to be sold at action in the next 90 days in these east valley cities.

This creates a golden opportunity for investors poised to buy, renovate and hold or flip.  And for first time buyers who are frustrated by the regions low inventories.

East Valley home prices headed south

Its a sellers market in most of the San Bernardino valley.  Home sales and prices have risen steadily for the past year.   Current market conditions make it difficult to believe news that home prices are expected to drop in the next year - 3% in Redlands and 15% in San Bernardino.

A report published last week in the Redlands Daily Facts cites research by the University of Redlands that predicts the downturn in home prices -- blamed on continued higher than average unemployment and rising mortgage interest rates.

According to the newspaper, the college’s Institute for Spatial Economic Analysis studied three years of data in six cities — Redlands, San Bernardino, Corona, Riverside, Irvine and Anaheim — to form its conclusions.

While prices increased during the past three years, unemployment decreased — from 19.6 percent to 14 percent in San Bernardino and 10.9 percent to 7.5 percent in Redlands.

Meanwhile, the 30-year fixed mortgage rate fell from 5.1 percent to 3.47percent, according to the study.

For this study, researchers predict that unemployment will remain steady but mortgage rates will rise sharply once the FED tappers its purchases of mortgaged backed securities.

The study reports the price of a home in Redlands to decrease by 3 percent during the next year.

“San Bernardino’s prices are the lowest and most volatile in all six cities included in this study and are therefore expected to be the most impacted by economic conditions,” the study says.

In San Bernardino home prices will plummet 15 percent, according to the report.

All of this is tough news for home sellers who may be waiting for prices to rise before selling their homes.  It also signals a transition from a market that favors sellers to one that gives buyers the advantage.

Currently, low inventories make it easier for sellers to sell their homes quickly and without the need to negotiate or make a lot of improvements.   When prices stall we usually see more homes on the market.  An increase in inventory drives down prices and gives buyers the advantage because they have more choices.

If you are thinking of selling your home call and find out what your home will sell for in today's market.  That way you can make informed decisions that are right for you.

River runs through it

New listing on Mill Creek Road in upper Mentone sports a tranquil setting on a private half acre lot, two homes and a creek that flows year round.

Enjoy the peace and quiet in the shade along the creek or entertain on the large flagstone patio and built in BBQ area.

Main house is 3 bedrooms, 2 bath, just over 1,250 sq. ft.  The second unit is 1 bedroom, 1 bath.

Beautiful views of San Bernardino mountains.. Already generating many showings and positive buyer feedback.

Offered at $299,900.

FHA makes it easier to buy after short sale or foreclosure

The Federal Housing Administration made it a lot easier this week for victims of foreclosure or short sale to buy a home again.

Now borrowers who meet certain requirements will only need to wait 1 year after bankruptcy, foreclosure or short sale before they may qualify for a FHA-backed loan.

The waiting period had been 2 years after the completion of a bankruptcy and 3 years after a foreclosure or short sale (For complete details on this story reported in the Chicago Tribune:  http://ow.ly/oeCa6).

The easing of requirements is great news for many in the Inland Empire who were hit hard by the recession, lost their jobs and then their homes.

Among the many stipulations, borrowers must be able to show their household income fell by 20 percent or more for at least six months and was tied to unemployment or another hardship beyond their control.  According to reports, they must also have completed at least one hour of approved housing counseling and can show they have had 12 months of on-time housing payments.

If you know someone who may qualify and wants more information, please have them contact us.  We'll help connect them with a local mortgage loan officer who can help them.

Free seminar for home buyers and sellers

Changing market conditions have many buyers and sellers wondering how they can time the market so they get the best value for their money.  We are proud to work with local real estate professionals including mortgage brokers, title, escrow and home warranty who share our goal to educate buyers and sellers in Redlands, Highland and Yucaipa.

RE cycle sees micro burst

Hosted a home seller seminar on August 7.  About 40 people attended. There were many questions about current market conditions. Mainly people want to know how long the sellers market will last. Conditions during the first four months of this year have been unusual.

In Orange County prices are up 30% home sales are skyrocketing. Normally we see a more gradual recovery but this year the trend went vertical. Now with more homes listed for sale buyers have more choices. Prices are moderating. The OC is in transition from strong sellers market to one that still favors sellers, but many homes are taking longer to sell.

In the Inland Empire homes are selling quickly.  Low listing volume has sellers in a strong position. Waiting to see more listings hit the market.

Will prices continue to rise? Some of that depends on the number of homes for sale and what happens with interest rates.

We're predicting home prices will increase more gradually for the rest of this year, probably more in the 10% range.  Sellers can wait to sell so they can get more money.  But if they are looking to sell and buy it may make more sense to act now to take advantage of the lower prices and interest rates.

A more gradual rise in prices is good news for buyers and sellers. Move-up buyers and empty-nesters can sell their home quickly and for more money then they could six months ago. First-time buyers can still get a good deal on a home and because of low interest rates have a relatively low monthly payment.

Of course, all of this is based on a continued improvement to employment and the economy. Let's hope for the best.

More new listings

The number of new listings in Redlands, Highland and Yucaipa was up sharply in July as more sellers decided to put their homes on the market.

That's good news for many home buyers who have found the pickings slim for most of this year.

The number of homes for sale still pales in comparison to 2011 when there were many more listings than there were buyers.

Here the market conditions still give great advantage to the seller.  Because of scarcity in many desirable neighborhoods many homes are selling quickly, for full price and without concessions.

However, nearby in Orange County the strong seller's market has already given way to a more balanced scenario.  A dramatic increase in homes listed for sale gives buyers more choices.  When that happens you can expect some price reductions, longer days to sell and buyers asking for help with closing costs.

Shortage of Short Sales

SoCal's Housing Recovery has made it hard for investors and savvy home buyers to find deals on Short Sales. 

Today in the East Valley (San Bernardino, Colton-Grand Terrace, Loma Linda, Highland, Redlands and Yucaipa) there are only 48 short sale listings compared to 449 standard listings.

Short sales often offer buyers the chance to buy homes below market value.  Often that's because the properties are distressed and need repairs or maintenance that may have been deferred.   

The inventory of short sales is back to normal levels even though there are many home owners who owe more than their home is worth.  One reason -- there are still many homes in some stage of foreclosure but the lenders are continuing to allow the owners to reside there even though they are in default.

With home prices up more than 30% since the first of the year many owners and lenders are waiting for home values to rise so that these homes have equity and eventually sold for more money. 

Also impacting the Short Sale Listing volume are bulk sales that lenders made during the past year to dump these "toxic" assets to companies that specialize in improving and selling them.

Buying or selling Short Sales is easier and less time consuming that it used to be.  Many lenders have streamlined the process so buyers can make offers, get them accepted and close in 60-90 days. Many lenders offer incentives to home owners who cooperatively participate in a Short Sale transaction. 

Let us know if you have questions about buying or selling Short Sales.

Timing the market

Timing is everything.  Buy low and sell high, right?

Let's look at Redlands where home prices jumped more than $30,000 or 10% in June.  And interest rates rose another 15%.  The time to buy is now.

But many buyers need to sell their home to move up, downsize or be closer to work.  Many sellers are watching home prices and are holding, anticipating continued increases. Waiting may make sense but its likely the cost of buying will go up too.

Inventories are improving and so are sales with 210 closed sales in Redlands in June.  There are similar success stories for Colton-Grand Terrace, Highland and Yucaipa.

  

Scarcity

Low inventories and high buyer demand have created scarcity in Southern California.

Besides the obvious - that sellers can expect more money for their homes - this imbalance has also made it easier to sell homes quickly and without much hassle.

Homes priced right will sell in almost any market condition.  But today and until scarcity ceases owners are able to sell homes that may not be in great condition or the best location.

The window of opportunity will close when more homes are listed for sale.  There are signs of that already happening.  The bump in interest rates and pent up demand for some owners to sell and buy their next home will cause more to list and sell.

What makes a strong offer?

Almost one-third of homes sold in today's market are going to cash buyers.  Homes are selling quickly with full price and back up offers.

What does that mean to you if you are a buyer who needs financing and want to get your offer accepted?

Work with a lender that will take the time to guide you through the loan pre-approval process.  If you don't know a lender, give us a call. We will be happy to refer you to reputable mortgage bankers that we know and trust.

Pre-qual vs. Pre-approval?

Pre-qualification letters are a dime a dozen and mean virtually nothing to a seller comparing your offer to others.  What you want is desk underwriter approval which requires that your lender collect and review your W-2s, pay stubs, tax returns, bank statements and other documents.  DU approval means that you will know in advance how much home you can afford, your loan options, your down payment, estimated closing costs, interest rate and monthly payment.  Get it in writing so your Realtor can help you find the home you want and help you get your offer accepted.

Choose a Realtor that will take the time to listen and understand your goals.  If you choose us to represent you you can count on us to:

• Hunt for homes that meet your needs 
• Arrange showings 
• Share comparable sales to assist you in making your offer 
• Communicate with the listing agent so the seller knows the value and strength of your offer 
• Negotiate in your behalf so that your offer is accepted. 

Questions?  Give us a call.  No strings, no obligation, and we promised not bother you with endless phone calls and emails.

Home seller tips for How to Time the Market.

Do short sales take forever to close?

Our team took this short sale 
from listed to closed in 60 days!
Yes, that's right!  2 bedroom, 2 bath town home near Cal State San Bernardino sold and closed in 60 days.   Our Real Estate Advantage team understands the short sale process, knows how to negotiate with the banks, and navigate through the complicated steps of a short sale.
Is your home worth less than you owe?  Are you ready to move on with your life?  We're here to help and our advice and service to you is free.

Mountain Home

This custom Log Home in Waterman Canyon with three levels of living area, has 3 bedrooms, 3.5 baths, with over sized garage and stunning views.  Minutes from Crestline and Lake Arrowhead and the valley below.

Dozens of showings and multiple offers are common these days and this listing attracted both.

We have experience in successfully listing and selling short sales.

Owe more than your home is worth?   Call us to discuss your situation to see if a short sale is right for you.

It is a seller's market

Dan and Paulette work as a team, helping clients with their real estate needs.  Their many years combined experience mean you will save time and money as you sell your current home and buy your next home. 

The current market favors sellers with market demand high for the scarce number of homes for sale.  That means that homes are selling quickly, often for more money that others sold recently in the neighborhood.  And it also means that buyers are facing stiff competition from other buyers.  Full price and over asking price offers are common.   Cash buyers are often beating those needing financing.  These conditions are often frustrating to first time and move up buyers.  But it doesn't have to be when you have the advantage of working with a team that understands the market, knows how to make your offer strong and is effective at negotiating with the listing agent so that your offer is the winning bid.

So whether you are buying or selling, take a few minutes to think about your goals.  Then pick up the phone and call so that we can help you get started.