by Jim the Realtor | Aug 14, 2013 | Jim's Take on the Market, Market Buzz, Market Conditions, The Future, Thesis, Thinking of Buying?, Thinking of Selling?, Why You Should List With Jim |
Home buyers are hoping that higher rates will cause prices to come down, and while it could certainly happen – here are reasons why they won’t:
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Prices have increased so much, so fast, that sellers are emboldened. If it would have taken the 5-10 years to bottom out like many predicted, there would be more seller fatigue. But today’s disappointed sellers will be more likely to think that the next rise in prices in right around the corner – and they will wait, rather than dump.
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Rents are rising; which puts pressure on buyers to buy and sellers to stay.
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Loan mods are working. They might be temporary, and there are probably a number of defaulters getting a free ride, but with higher prices, those psuedo-homeowners will do whatever it takes to hold out longer to see if they can cash in…again.
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The media keeps saying that it is still cheap, historically.
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Lenders keep getting more creative. The mortgage industry is known for its hybrids – you hear them pushing more of the 5, 7, & 10-year adjustable loans now, and the piggybacks (where the buyer gets a 1st and 2nd mortgage to lower the down payment required) are back!
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REOs and short sales are over, and nobody is going to ‘give it away’ now.
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How homes are sold is changing. You saw on video where Spencer said that his Zillow is already the national MLS, and other players have to be licking their chops when they see the buffoons at NAR stumbling all over themselves. Google could be a game-changer too – click
HERE to see their patent for ‘software applications for real estate multiple listing services’. The excitement will help to propel sales.
- Inventories may be up, but you don’t see many quality buys.
All factions are lined up in support of housing, and today’s buyers are comfortable with looking long-term.
The higher prices/rates are reasoned away by the pull of the ultimate goal – owning a home in which to raise the family. The most-motivated buyers are the ones buying, and with prices only going up at 1% at a time, a few more bucks won’t slow them down.
by Jim the Realtor | Aug 13, 2013 | Bubbleinfo TV, Carmel Valley |
Here are two Carmel Valley houses for sale that look similar on paper – but the market says they aren’t. What are the differences that matter?
by Jim the Realtor | Aug 13, 2013 | Fraud, Scams, Short Sales, Short Selling |
This is a typical bank form that all parties are required to sign in order to close a short sale:
BofA short-sale addendum-broker cert
The form requires that the deal is an arm’s length transaction – and now we have some enforcement, at least in Nevada:
A Henderson couple could face up to 30 years in prison and a $1 million fine if convicted of bank fraud allegations in the short sale of their home.
Cynthia Hosbrook, 41, a licensed realtor, and her husband, Robert Hosbrook, 51, were indicted in U.S. District Court on Wednesday after authorities alleged they made false statements to Wells Fargo Bank to obtain approval of the short sale on their house.
They were charged with one count of conspiracy to commit bank fraud and one count of bank fraud.
According to the indictment, the couple asked a relative to act as a straw buyer for the purchase of their home in the 2700 block of Mallard Landing in Henderson in March 2010. The couple then submitted paperwork to Wells Fargo indicating that the sale would be between unrelated parties.
The Hosbrooks also allegedly asked the straw buyer to sign paperwork indicating that the buyer would be living in the property, which was untrue.
The form also tries to impose broker-agency (on page two) by having the agent agent certify that the property was:
‘….listed on the local Multiple Listing Service at fair market value to provide open market competitive bids to present to seller as per terms of the seller/agent listing agreement and that the marketing is in fact and “in spirit” seeking to maximize the selling price of the property.’
Hopefully there will be more convictions that draw attention to the crime – I’m not sure that all realtors recognize that they are committing felonies!
by Jim the Realtor | Aug 12, 2013 | Forecasts, Same-House Sales |
“It’s on the way up now, and I’ll bet it will go up for a while, but you can never be too sure” – Robert Shiller
Blackstone and other investors will likely learn the lesson from the lenders that it is better to drip out the inventory in small increments. They can monitor the values of each property easily enough, and sell at peaks.
by Jim the Realtor | Aug 12, 2013 | Short Sales, Short Selling
It sounds like this erases the record altogether – from C.A.R.
Effective January 1, 2014, California’s anti-deficiency laws that generally prohibit a foreclosing lender from obtaining a deficiency against a borrower have been expanded to also prohibit the lender from claiming that a deficiency is owed or collecting on a deficiency.
Existing law already generally prohibits a short sale lender from claiming a deficiency is owed or from collecting a deficiency. Currently, certain lenders and debt collectors contact borrowers after foreclosure in an attempt to collect on deficiencies claimed to be due and owing.
The new law, Senate Bill 426, will generally prohibit a lender from claiming that a deficiency is owed, such as on a credit report, or from collecting a deficiency.
The new law applies to loans foreclosed upon by a trustee’s sale, as well as loans secured by purchase-money, owner-occupied, one-to-four residential unit properties (including refinances with no cash out). A lender, however, can pursue a deficiency against a guarantor or other surety (such as a mortgage insurer), or pursue other security for a cross-collateralized loan.
(more…)
by Jim the Realtor | Aug 12, 2013 | Inventory |
Buyers on the lower end can rejoice that there is more inventory – there are 50% more houses for sale under $1,200,000 then there were in early May.
Of course, all that means is that more buyers are holding back, and sellers aren’t adjusting fast enough:
The UNDER-$1,200,000 Market:
| Date |
NSDCC Active Listings |
Avg. LP/sf |
DOM |
Avg SF |
| April 29 |
201 |
$384/sf |
36 |
2,599sf |
| May 5 |
195 |
$381/sf |
36 |
2,633sf |
| May 9 |
207 |
$387/sf |
35 |
2,624sf |
| May 18 |
241 |
$397/sf |
33 |
2,566sf |
| May 23 |
236 |
$397/sf |
34 |
2,529sf |
| May 30 |
230 |
$391/sf |
35 |
2,591sf |
| June 5 |
229 |
$393/sf |
35 |
2,577sf |
| June 11 |
239 |
$390/sf |
34 |
2,569sf |
| June 17 |
246 |
$389/sf |
36 |
2,577sf |
| June 24 |
255 |
$397/sf |
36 |
2,535sf |
| July 1 |
244 |
$401/sf |
38 |
2,526sf |
| July 8 |
256 |
$398/sf |
38 |
2,530sf |
| July 15 |
269 |
$403/sf |
38 |
2,486sf |
| July 22 |
258 |
$401/sf |
39 |
2,442sf |
| July 29 |
262 |
$386/sf |
39 |
2,493sf |
| Aug 5 |
287 |
$393/sf |
38 |
2,495sf |
| Aug 12 |
300 |
$391/sf |
40 |
2,521sf |
The OVER-$1,200,000 Market:
| Date |
NSDCC Active Listings |
Avg. LP/sf |
DOM |
Avg SF |
| April 29 |
620 |
$806/sf |
94 |
5,183sf |
| May 5 |
606 |
$806/sf |
93 |
5,223sf |
| May 9 |
628 |
$808/sf |
93 |
5,150sf |
| May 18 |
653 |
$807/sf |
92 |
5,161sf |
| May 23 |
661 |
$814/sf |
92 |
5,141sf |
| May 30 |
659 |
$805/sf |
95 |
5,222sf |
| June 5 |
663 |
$794/sf |
96 |
5,185sf |
| June 11 |
672 |
$779/sf |
96 |
5,163sf |
| June 17 |
661 |
$787/sf |
99 |
5,164sf |
| June 24 |
679 |
$791/sf |
98 |
5,097sf |
| July 1 |
705 |
$785/sf |
94 |
5,084sf |
| July 8 |
702 |
$779/sf |
95 |
5,100sf |
| July 15 |
736 |
$776/sf |
94 |
5,038sf |
| July 22 |
748 |
$782/sf |
96 |
5,043sf |
| July 29 |
736 |
$782/sf |
100 |
5,057sf |
| Aug 5 |
754 |
$765/sf |
100 |
5,024sf |
| Aug 12 |
750 |
$767/sf |
102 |
5,032sf |
On the higher end, even though average list pricing has come down 5% since early May, greed and ego can’t get out of their own way – inventory is +21%.
New-listing counts are bouncing around, but the new pendings have been fairly steady – realtors have to eat:
Weekly NSDCC New Listings and New Pendings
| Week |
New Listings |
New Pendings |
| May 30 |
70 |
84 |
| June 5 |
87 |
64 |
| June 11 |
77 |
69 |
| June 17 |
73 |
66 |
| June 24 |
100 |
69 |
| July 1 |
86 |
64 |
| July 8 |
81 |
53 |
| July 15 |
106 |
54 |
| July 22 |
105 |
89 |
| July 29 |
71 |
74 |
| Aug 5 |
105 |
64 |
| Aug 5 |
77 |
61 |
by Jim the Realtor | Aug 11, 2013 | Vendors
Are you thinking of dressing your house up with some new hardware? Maybe new door knobs, towel racks, or cabinet pulls? Here is a good source:
by Jim the Realtor | Aug 11, 2013 | Bubbleinfo TV, Why You Should Hire Jim as your Buyer's Agent |
I wouldn’t blame those who watch the videos here for thinking that I was a grumpy old guy who complains a lot, but the vast majority of the homes seen on bubbleinfo.com are the duds. They are on display to help viewers learn about the marketplace, and demonstrate how I critique a home so you have assurance that I don’t push people into the first house they see.
Our other videos provide convenience to our buyers who have a full work schedule, or are out-of-town. I liked this house but didn’t sell it, and it has now closed escrow – so take a look at a nice one:
by Jim the Realtor | Aug 11, 2013 | Bubbleinfo TV, Carmel Valley |
If the market keeps booming, it’s because ones like this keep selling:
by Jim the Realtor | Aug 10, 2013 | Boomers |
As the Colorado housing market rebounds, baby boomers are becoming a key player.
Housing prices are up, and interest rates are low which makes this the perfect time for many baby boomers to sell those big houses they raised their families in and downsize into much smaller homes. And in Denver, one new trend among baby boomers is moving downtown.
Cindy and her husband, Cisco Uribe are among those empty-nesters who are giving up life in the suburbs for a new lifestyle downtown.
“We went from a big kitchen to a little galley kitchen,” Cisco says as he shows CBS4 around the couple’s new condo in Brooks Tower in downtown Denver.
The condominium is 600 square feet, which is roughly one-sixth the size of the home they used to own in Thornton. Everything is smaller in the condo, including a cabin bedroom and closet space. They went from having three bathrooms to having just one.
The couple bought the condo fully furnished, so all they brought with them is some clothes and personal items. The rest of their stuff they sold or put into storage.
“It feels a lot lighter … and easier,” Cindy told CBS4.
“I feel younger,” Cisco added.
(more…)
