Realty World – Lake Tahoe

Image by respres via Flickr

There is a new may of thinking about foreclosure for the American homeowner,  especially the homeowner who is not in financial distress and is able to pay the mortgage payment.  These homeowners are viewing their homes as bad investments and are choosing to walk away rather than pay for years on a property that may never be worth what they owe.  Take a look at this video from the Today Show where homeowners who are doing just that, and notice the shift from the “guilty feelings” that generally go along with such a decision.  http://today.msnbc.msn.com/id/26184891/vp/36661157#36661157
I am not advocating a position either way on a “Strategic Foreclosure”, but rather, just wanted to make note of this amazing paradigm shift and what it may mean in this economic crisis.

                                                                                                                                                                                                                                                                                                                                                                     Sold Stats for March 2010

 37 Total Sold Listings in March                  
 14 REO (37.8%% of total March sales)
  7 Short Sales (18.9% of total March sales
  Distressed Properties Comprising 37.8% of total homes sold in March

Active Listings Stats

306 Single Family Properties Currently Listed (Not in Escrow)

  19   REO (.063% of total)

  35  Short Sales (11.44% of total)

 Distressed Properties Comprising 17.65% of Market Total

Pending Listing Stats (Homes in Escrow)

 110 Currently in Escrow  
   20 REO (18%)
   53 Short Sales (48%)
  REO & Short Sales Comprising 66.3% of the Total Homes in Escrow

Average Number of Days on Market (DOM) From Listing to Close of Escrow

 96 DOM for REO Sales
204 DOM for Short Sales
232 DOM for Non Distressed Properties

These numbers still show that homes that are a better value are selling quickly, as any of you who have attempted to get an offer accepted on any of these well priced homes can attest. 
The Average sales price for March was $407,790 which is up slightly from February, whose average sales price was $401,652.  Does that mean the end is near, I think not with the number of notices of defaults and notices of sales still out there.  What it does means is that there is still plenty of opportunity for people who are in a position to purchase these homes.  With the threat of increasing interest rates, things could heat up in the buying arena.  Stay tuned for more updates.

As I scan the Internet for information on the current Real Estate Market – I am seeing more encouraging policy changes and proposals that encourage home buyers.  This bit of news was gleaned from the California Association of Realtors.
“The Dept. of Housing and Urban Development (HUD) announced Friday, January 15, that it is instituting a one-year moratorium on the Federal Housing Administration (FHA) 90-day anti-flipping rule.
With certain exceptions, such as HUD-owned and bank-owned properties, FHA currently prohibits insuring a mortgage on a home owned by the seller for less than 90 days. However, beginning Feb. 1, buyers may use FHA-insured financing to purchase properties resold through private developers and investors, providing access to a broader array of recently foreclosed properties.
Under the temporary waiver, all transactions must be arm’s-length, and most properties will require additional documentation of improvements and justification of the price increase. Additional documentation may include a second appraisal and a property inspection ordered by the lender.
C.A.R. recently submitted a letter to FHA Commissioner David Stevens detailing the challenges facing many home buyers using FHA loans, such as the lack of housing inventory available to FHA buyers, and the need for this rule to be revised to reflect current market conditions. The reexamination of the 90-day anti-flipping rule was passed as an action item during C.A.R.’s board of directors meetings in October.”
Thank You C.A.R.