How much impact has the tax credit had on the market?
Here is the summary of detached sales and avg. $$ per square foot in the same zip codes combined from yesterday, for the January 1st through April 15th period:
Sales above $800,000 have increased sharply (+42% YOY) without the government cheese – but the lower pricing must be a contributing factor.
The scorecards are out for Bank of America’s REO agents, and I got whacked again, achieving a score of 80, out of a possible 95, for the three closings between November and January.
My sales price-to-last BPO was 107%, so they deducted 5 points, and my average market time was 8 days when the goal for list date-to-accepted offer is 39 days for the state. Ten points off for that sub-standard work.
But in spite of that performance, they keep me hanging around – perhaps they’ll need all hands on deck in the coming months? The REO tsunami/trickle spewed another listing my way today, a condo in Oceanside worth about a buck and a half. I expect more of the same – an overall increase REO listings coming to market, but none too special.
Closed sales have been booming compared to the same January 1st – April 15th period in 2009.
Though the pending category looks somewhat healthy, it does include the contingents too, so you can figure the fall-out rate to be at least 20-30%.
Detached listings over $700,000:
|Town or Area||Zip Code||ACT||PEND||SOLD/$psf 2010||SOLD/$psf 2009||diff # of Sales|
|PB / MB||92019||75||12|
Let’s check the $800,001+ market next, to see if these numbers are smothered in cheese.
The Blog Talk Radio was a disappointment…again.
It was probably my fault, but it couldn’t be any less user-friendly. We’ll will re-group and try it again to see if we can ever get to the point of making it work right.
Here were the highlights:
Special guest Mark Elkins from Wells Fargo Bank described their policy on waiving the right to pursue a deficiency judgement on short sales. He said that it depends on who owns the paper. On the WFB-owned paper, generally they ARE waiving the right to pursue deficiency judgements. But he also mentioned that over the last two years they have sold 90% of their loans to Fannie/Freddie/FHA/VA – who also are waiving their pursuit of deficiencies via the HAFA program.
But it is hard to tell who owns what, so borrowers will have to run their case through the usual channels to find out if the deficiency judgement will apply (they aren’t going to make it easy).
I blabbed on about remodeling. You can recoup dollar for dollar if you do the kitchen and baths plus carpet and paint before you sell, otherwise just do it for yourself and if it adds value when you sell, oh happy day. But go all out, the half-baked remodels are a waste of money.
Lowballing is more likely to work from mid-summer on, when it is obvious to sellers that their price ain’t working. Their listing goes stale after two weeks, and they really start to notice the inactivity after 30 days. Hit ’em hard after 2-3 months on the market.
The recent action has been tepid – only the hot listings with a good price on an attractive home in a good location are generating the bidding wars. The listings of inferior homes in so-so locations are getting no offers, and little attention. Buyers remain very picky.
I don’t see any changes – no flood of REO listings, and overall a very low inventory of quality homes. Buyers are patient, and as a result, the market is likely to be stagnant for the next 30-60 days while sellers wait to see if anyone feels like paying their price. There is a good chance that many buyers will write off the whole year.
The Bank of America REO assignments have not increased, I haven’t gotten any, and JimG said he had received 6, but those were December and January.
A caller from Santa Barbara asked about where buyers can look for additional inventory. I mentioned the current escrow I have where we followed up on a trustee sale that was purchased by a flipper, and got to him and made the deal before he put it on the open market. But second angle is to lowball the old stale listings, which could be a treasure trove.
We also covered the car coming later this week. It’s a 1979 Cadillac Seville, an identical match to the one I owned when we lived in La Jolla. It is a sentimental buy, admittedly, and probably just a way to relive the past – but much cheaper than moving back to the Jewel! The photo isn’t the exact car, but similar image from google.
Thanks to all who participated – we’ll do it again! Click on the arrow to hear the tape (after the commercial), this is the edited version which cuts about 15 minutes off the original:
It’s showtime! If you want to call the talk show, dial 1-877-483-3063
If you just want to listen, click on the arrow/link below:
Hat tip to shadash, who is fuming:
Bank of America wants to give struggling mortgage customers who are collecting unemployment benefits up to nine months with no mortgage payment.
That’s right. Zero payment.
Customers would have to agree that, if they haven’t found a job within the nine months, they will sign over their house to the bank. The Charlotte bank would give them at least $2,000 to help with moving expenses.
The proposal needs regulatory approval, and the bank doesn’t know when, or if, that will happen.
Some experts say the plan could become an industry model and is the most substantial, creative approach yet to addressing the fallout from stubbornly high unemployment, which is driving mortgage delinquencies and foreclosures.
The plan also could provide families with faster relief, allow them to save money and provide a timetable for making decisions. The bank could avoid millions in collection and foreclosure expenses.
“It’s an innovative way for Bank of America to demonstrate it’s working with its customers,” said Mark Williams, a former Federal Reserve bank examiner. “Regulators should view this as a positive step as well.”
We’re fired up about the next try at talk radio tonight at 7:30pm!
If you have a question that you’d like to hear discussed, leave it in the comment section here, or call in. The first 500 minutes of call time are free to you. For those who can’t make it, there will be a copy available later.
I think there has been some problems with youtube today, uploading has been spotty, and the videos aren’t playing smoothly – please endure or come back tomorrow? Here is the second sorta-custom house off Lansdale, north of Del Mar Heights Rd. and not far from Torrey Pines HS: