So here is some spooktacular news, now read carefully and really take it inâ€¦. ALL homes on the market are NOT distressed. There are plenty of regular sales that do no â€œneedâ€ to sellâ€¦ simply the homeowners realize that their dream home is more affordable than ever! OR they realize it is a great time to down-size and enjoy an extremely low mortgage payment into retirement. So buyers please hear thisâ€¦ you canâ€™t just offer what you think you feel like it on these homes. Sellers of any kind want market value and while that depends on a HUGE number of factors Iincluding location, deferred maintenance, amenities, upgrades, schoolsâ€¦etc).
There are truly some great deals out there and I think the investors are the ones laughing all of the way to the bank. Whether they are making decent profits flipping them or making money on renting them outâ€¦. they know it is a great time to buy or sell. Please donâ€™t let the local or nation news effect your daily perceptionâ€¦ talk to us or get out there and see some homesâ€¦. find out for yourself!
Here is another something to SERIOUSLY consider, this was shared with me by another contact;
My parents bought their home in 1987 for $250,000 at 17.5% interest. There monthly payment was $3,265.99/month.
My parents sold the house in 2005 for $820,000 to a buyer who paid 6.5% interest for a monthly payment of: $5,239/month
There same model just sold for $595,000 at 3.94% interest rate. These buyers monthly payment will be: $3,049.39/month
Now that is some crazy Math! Home prices are back to 2001 levels, but with interest rates as low as they are, the monthly payments are down pre-1987. WOW
Letâ€™s see how the market faired in September;
Brea has 6 (down 1) bank owned properties (REOs) and 32 (up 1) short sale listings. 28 (down 1) properties went into escrow.
Placentia has 11 (up 1) REOs and 64 (up 11) active short sale listings. 50 (up 10) properties went into escrow.
Yorba Linda has 10 (down REOs and 98 (up 16) short sale. 89 (up 14) properties went into escrow in August!
Anaheim Hills has 13 (up 1) REOs and 52 (up 4) short sale listings. Another 51 (down 2) properties went into escrow!
Tustin has 22 (up 1) REOs and 88 (up 5) short sale listings. Another 70 (up 25) properties went into escrow.
Irvine has 36 (down 3) REOs and 180 (up 12) short sale listings. Another 175 (down 21) properties went into escrow!
Orange has 32 (up 7) REOs and 126 (down 22) short sale properties. 103 (up 6) properties went into escrow.
Chino Hills has 37 (up 6) active REOs and 119 (down active short sales. 73 (up 13) properties opened escrow in August.
Newport Coast has 6 (up 2) REOs and 6 (down 3) short sale listings. 23 (up 4) properties opened escrow.
Newport Beach has 9 (down 6) REOs and 42 (up 9) short sale listings. 62 (down 12) properties opened escrow!
Corona has 108 (down 12) REOs and 486 (up 11) short sale listings. Another 352 (up 11) properties went in escrow.
To sum up the activity seen in the market, inventory numbers are still down and sales are still happening. Foreclosures are down and short sales are showing encouraging signs.
The Office of the Comptroller of the Currency released their Second Quarter 2011 Mortgage Metrics Report last week. In the report, they covered the success the banking industry is having in each of several categories regarding the current housing crisis. Here is what they found:
Loan modifications -
These are â€œactions that contractually change the terms of mortgages with respect to interest rates, maturity, principal, or other terms of the loan.â€
Down 18.1% from the first quarter and down 19.5% from last year.
Completed foreclosures -
Where â€œownership of properties transferred to servicers or investors. The ultimate result is the loss of borrowersâ€™ homes because of nonpayment.â€
Up 1.2% from the first quarter but down 30.7% from last year.
Newly initiated foreclosures -
â€œMortgages for which the servicers initiate formal foreclosure proceedings during the month. Many newly initiated foreclosures do not result in the loss of borrowersâ€™ homes because servicers simultaneously pursue other loss mitigation actions, and borrowers may act to return their mortgages to current and performing status.â€
Down 8% from the first quarter and down 1.7% from last year.
Short sales -
â€œSales of the mortgaged properties at prices that net less than the total amount due on the mortgages. Servicers and borrowers negotiate repayment programs, forbearance, or forgiveness for any remaining deficiency on the debt. Short sales typically have a less adverse impact than foreclosures on borrowersâ€™ credit records.â€
Up 12.6% from the first quarter and up 1.7% from last year.
Here is a recent blog post of mine about the declining inventory and recent numbers on actual foreclosures.
Last but not leastâ€¦ I wish youâ€¦â€¦â€¦â€¦â€¦â€¦
A VERY SAFE AND HAPPY HALLOWEEN!!!!!!!!!!
At your service,
The Ervin Group