Average # of days on market: 78 (74)
Average price of all Homes for sale in Tracy: 487,734 ($500,130)
(PENDING), Number of properties currently under agreement: 58 (52) Avr. pending home is 4bd, 2.5ba, 2003 sq.ft at a price of $423,042 and 63 days on the market
(SOLD), Residential property over previous 30 days: 26 homes or $10,908,570 (58) Highest sale price was 597K for a 5/4bd 3000 sq.ft home. Lowest was a 3bd/1ba 936 sq.ft home for 271K.
SUMMERY:Numbers still reflect a slow market. There is an increase in pending sales which might suggest a slight pick up. Foreclosures continue to lead the market in the pricing category. Also the amount of short sales on the market is an indication that there is another wave of foreclosures yet to come over the next 4 months. My prediction is we are going to see one huge push of foreclosures and then they should taper down to half of what it is now and gradually be reduced as the number of sub prime loan adjustments reduce. Please read below for more information.
SUMMERY:Numbers still reflect a slow market. There is an increase in pending sales which might suggest a slight pick up. Foreclosures continue to lead the market in the pricing category. Also the amount of short sales on the market is an indication that there is another wave of foreclosures yet to come over the next 4 months. My prediction is we are going to see one huge push of foreclosures and then they should taper down to half of what it is now and gradually be reduced as the number of sub prime loan adjustments reduce. Please read below for more information.
From a weekly newsletter by John Mauldin’ From the Front Lines:
As Mauldin puts it:
This shows the amount of adjustable rate mortgages that reset each month for the first half of this year and will reset for the next 18 months. Note that these reset numbers are a driving factor in the increasing rise in foreclosures. Pay attention to the numbers I highlight in red for January through June of 2008. The largest portion of mortgage resets is not until next year.
We have just seen $197 billion of mortgage resets so far this year. That is less than we will see in two months (February and March) of next year. The first six months of next year will see more than the total for 2007 or $521 billion. This suggests to me that the number of foreclosures is due to rise dramatically from the already high current levels, putting more homes into a weak housing environment.
These homes that are going to see reset prices are for the most part not going to be able to be rolled over into a traditional 30 year mortgage because there is not going to be enough equity to get a traditional mortgage. While the total increase in payments is an estimated $42 billion, which is not all that large in the grand scheme of things, to the individuals who are paying the increase it is a large increase in their housing costs. My estimate is that this is about one-half of 1% of total consumer spending. Along with inflationary rises in food and energy, this is going to continue to put pressure on consumer spending.
As Mauldin puts it:This shows the amount of adjustable rate mortgages that reset each month for the first half of this year and will reset for the next 18 months. Note that these reset numbers are a driving factor in the increasing rise in foreclosures. Pay attention to the numbers I highlight in red for January through June of 2008. The largest portion of mortgage resets is not until next year.
We have just seen $197 billion of mortgage resets so far this year. That is less than we will see in two months (February and March) of next year. The first six months of next year will see more than the total for 2007 or $521 billion. This suggests to me that the number of foreclosures is due to rise dramatically from the already high current levels, putting more homes into a weak housing environment.
These homes that are going to see reset prices are for the most part not going to be able to be rolled over into a traditional 30 year mortgage because there is not going to be enough equity to get a traditional mortgage. While the total increase in payments is an estimated $42 billion, which is not all that large in the grand scheme of things, to the individuals who are paying the increase it is a large increase in their housing costs. My estimate is that this is about one-half of 1% of total consumer spending. Along with inflationary rises in food and energy, this is going to continue to put pressure on consumer spending.
Previous Tracy california Market Reports:
Made by Brian Barringer
for The Tracy Real Estate blog.
800.894.7282
