The following information is from the local MLS database, as of July 9,2008 and is compared to (May 29,2008). If you are interested in a little more market information feel free to give us a call, we are always happy to talk about the market.
Summary:
The sales are up and prices are down. This is a good sign. We are close to hitting bottom on the housing market. Seven out of ten buyers are using F.H.A* financing, asking for 6% credit back from the bank selling the REO* home. Most homes will have more than one offer on it within days of hitting the market if it does not need a ton of work. The sellers, the banks, are looking for a “down payment” from the buyer. They are frowning on F.H.A loans that are asking for 3% back towards a down payment. If there is no other offer with a down payment they will then consider a buyer with a F.H.A loan. The lenders feel we are heading for the same problem if there is not some type of commitment from the buyer (I.e., down payment from the buyers in the range of 3%; the lowest to the best in lenders eyes is 20%.) Buyers have to be patient, this is not a regular market. It is a market controlled by the banks because they set the prices, which as of the last sixty days have been very aggressive price adjustments. Some buyers still don’t realize this and try low ball offers and find out the lenders do not go back and forth on counter offers. They usually will counter the highest and best to all offers. Which means the buyer has one chance to increase their offer. After that, the lender will not counter back. They will not do business with you anymore on that home. There are simply so many other buyers out there. The prices and the interest rates are at all time lows and many buyers are taking advantage of these prices. It’s that simple this market is driven and controlled by the banks!
But there is a lot of inventory to compare, 75% of homes need exterior and interior paint, carpet, and new front and back landscaping. The other 25% are short sales and they are simply a waste of time. The lenders are overwhelmed with the amount of homes they have that are actually owned by the bank. Their eight hour shifts are spent selling their already bank owned homes and will spend little or no time on short sales. This means that a buyer may wait sixty days for an answer to their offer, and most buyers are not willing to that when there are so many other homes to buy that get a quicker response. Also, the banks know that the short sale homes are still occupied and maintained and usually “show” a lot better than the REO’s, so they will also want a premium price for short sales. Another reason buyers do not want to get involved with the short sales!
The sales are up and prices are down. This is a good sign. We are close to hitting bottom on the housing market. Seven out of ten buyers are using F.H.A* financing, asking for 6% credit back from the bank selling the REO* home. Most homes will have more than one offer on it within days of hitting the market if it does not need a ton of work. The sellers, the banks, are looking for a “down payment” from the buyer. They are frowning on F.H.A loans that are asking for 3% back towards a down payment. If there is no other offer with a down payment they will then consider a buyer with a F.H.A loan. The lenders feel we are heading for the same problem if there is not some type of commitment from the buyer (I.e., down payment from the buyers in the range of 3%; the lowest to the best in lenders eyes is 20%.) Buyers have to be patient, this is not a regular market. It is a market controlled by the banks because they set the prices, which as of the last sixty days have been very aggressive price adjustments. Some buyers still don’t realize this and try low ball offers and find out the lenders do not go back and forth on counter offers. They usually will counter the highest and best to all offers. Which means the buyer has one chance to increase their offer. After that, the lender will not counter back. They will not do business with you anymore on that home. There are simply so many other buyers out there. The prices and the interest rates are at all time lows and many buyers are taking advantage of these prices. It’s that simple this market is driven and controlled by the banks!
But there is a lot of inventory to compare, 75% of homes need exterior and interior paint, carpet, and new front and back landscaping. The other 25% are short sales and they are simply a waste of time. The lenders are overwhelmed with the amount of homes they have that are actually owned by the bank. Their eight hour shifts are spent selling their already bank owned homes and will spend little or no time on short sales. This means that a buyer may wait sixty days for an answer to their offer, and most buyers are not willing to that when there are so many other homes to buy that get a quicker response. Also, the banks know that the short sale homes are still occupied and maintained and usually “show” a lot better than the REO’s, so they will also want a premium price for short sales. Another reason buyers do not want to get involved with the short sales!
Get the “Pros” in your corner and contact the Barringer Team.
E-mail us at tiger@bpbarringer.com or call us at 1-800-894-7282.
* F.H.A– federal housing authority
* REO– “real estate owned” means a bank owned home
Tracy, CA
ACTIVE Status
Total # of residential properties for sale in the city of Tracy: 712 (762)
#of REO (foreclosures): 283 (294)
# of Short Sales: 329 (342)
Average # of days on market: 84 (88)
#of REO (foreclosures): 283 (294)
# of Short Sales: 329 (342)
Average # of days on market: 84 (88)
The median price of all homes for sale in Tracy: $279,000 ($299,000)
The average price of all homes for sale in Tracy: $295,631 ($319,241)
Lowest priced home: 1bd/1ba/502 sq. ft./$89,000
Highest priced home: 6bd/8ba/4,508 sq. ft./$1,299,900
PENDING Status
Number of properties currently under agreement: 426 (376)
# of REO: 334 (300)
# of Short Sales: 47 (29)
Average pending price: $290,236 ($297,597)
# of REO: 334 (300)
# of Short Sales: 47 (29)
Average pending price: $290,236 ($297,597)
Average pending home is 4bedrooms, 3 baths, 2,089 square feet at a price of $297,597 that stays 51 days on the market.
SOLD Status
Residential property sold over previous 30 days: 153 homes or $44,961,773 in sales (113 homes or $33,257,113 in sales)
REO’s sold in the last month: 138 (96)
Average sale price: $289,825 ($294,311)
Median sale price: $270,000 ($300,000)
High: 900K (6bd/5ba, 5,064 sq. ft. home)
Low: 149.9K (2bd/1ba 840 sq. ft. home)
Average sale price: $289,825 ($294,311)
Median sale price: $270,000 ($300,000)
High: 900K (6bd/5ba, 5,064 sq. ft. home)
Low: 149.9K (2bd/1ba 840 sq. ft. home)
1 comments:
I guess only time will tell. I have a gut feeling rates will start shooting up after the new president is elected, which will drive prices down even more down. Additionally, we have another huge ARM reset expected to occur in 2011 which is supposed to be double what we are experiencing.
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