The median home sales price increased for March to $165,900, a 1.8% increase from the $163,000 median sales price of February. The $200,000 – $249,999 price range still accounts for the majority of the 1,704 total sales this month (17.1% or 291 units), while homes under $100,000 totaled 285 (16.7%) units. Closed escrows from conventional financing (614 units or 33.1% of all sales) increased 3.1%, cash buyers decreased 5% (595 units or 32%) and FHA financing increased 1.8% (504 or 27.2%). These numbers include the 153 condo sales this month. The average amount of days spent on the market (from list date to opening escrow) was 64 days; the median DOM remained at 46.
Sales increased for the month to 1,704 units sold, up 22.2% from the 1,394 closed escrows in February. Year-to-year closed escrows were down 2.6% from the 1,750 units sold March 2011. Making up the closed escrows this month were 508 REOs (29.8%), 495 short sales (29%) and 478 conventional sales (41.1%). Compared with last month, REO sales are down 11.8%, short sales are down 9% and conventional sales up 19.8%.
The Total Listing Inventory has been split to more accurately reflect the current market. Active Listings numbered 1,791 properties, with 481 Active Short Sales making up 26.8% of that number. Active Short Sales Contingent properties totaled 2,579. Active Short Sale Contingent properties are those short sale properties on which initial offers have been made and are not therefore entirely “active.” Breaking down Total Listing Inventory results in a more accurate Housing Market Supply figure. The Housing Market Supply figure (inventory) for March was 1.1 months – a 31.1% decrease from February. This figure represents the number of months it would take to deplete the Active Listing Inventory (1,791), given the current number of closed escrows (1,704). This figure is down from the 2.5 months of inventory that was available in March 2011. 2012 SAR President Patrick Lieuw commented: “The low inventory levels are making competition tougher between buyers and resulting in multiple bids on individual properties. Those with more buying power, often times investors, are succeeding. This means it can be for difficult potential buyers, including first time homebuyers.” Lieuw continues, mentioning the shadow inventory of houses that are not available to sell, “Given the low inventory and increase in demand, the median price has remained relatively stable, but has yet to show a significant turn-around. The economy is not going to pick up when we have all those nonperforming assets out there.”
According to MetroList® MLS data, the average home sold this month was 1,719 square feet. Of the 1,704 sales this month, 153 (8.9%) had 2 bedrooms or fewer, 927 (54.4%) had 3 bedrooms, 494 (28.9%) were 4 bedroom properties and 130 properties (7.6%) had 5+ bedrooms.
The median home sales price increased for April to $169,000, a 1.9% increase from the $165,900 median sales price of March. The $200,000 – $249,999 price range still accounts for the majority of the 1,633 total sales this month (15.1% or 246 units), while homes under $100,000 totaled 269 (16.4%) units. Closed escrows from conventional financing (576 units or 32.4% of all sales) decreased 1.8%, cash buyers remained at 32% (569 units) and FHA financing decreased slightly by .3% (482 or 27.1%). These numbers include the 147 condo sales this month. The average amount of days spent on the market (from list date to opening escrow) was 66 days; the median DOM decreased to 29.
Sales decreased for the month to 1,633 units sold, down 4.2% from the 1,704 closed escrows in March. Year-to-year closed escrows were up 7.2% from the 1,524 units sold April 2011. Making up the closed escrows this month were 491 REOs (30.1%), 498 short sales (30.5%) and 644 conventional sales (39.4%). Compared with last month, REO sales are up 1%, short sales are up 5.1% and conventional sales down 4.1%.
The Total Listing Inventory has been split to more accurately reflect the current market. Active Listings numbered 1,539 properties, with 390 Active Short Sales making up 26.8% of that number. Active Short Sales Contingent properties totaled 2,536. Active Short Sale Contingent properties are those short sale properties on which initial offers have been made and are not therefore entirely “active.” Breaking down Total Listing Inventory results in a more accurate Housing Market Supply figure. The Housing Market Supply figure (inventory) for April was .9 months – a 18% decrease from March. This figure represents the number of months it would take to deplete the Active Listing Inventory (1,539), given the current number of closed escrows (1,633). This figure is down from the 2.9 months of inventory that was available in April 2011.
According to MetroList® MLS data, the average home sold this month was 1,746 square feet. Of the 1,633 sales this month, 152 (9.3%) had 2 bedrooms or fewer, 858 (52.5%) had 3 bedrooms, 508 (31.1%) were 4 bedroom properties and 115 properties (7%) had 5+ bedrooms.
As you know, C.A.R.’s Leadership Team met last month with members of California’s congressional delegation and federal housing regulators to express our concern with the implementation of the Federal Housing Finance Agency’s (FHFA) REO bulk sale pilot program, which calls for more than 600 Fannie Mae-owned foreclosed homes in Los Angeles and Riverside counties to be sold in one large block to an institutional investor. While the program may be beneficial in some markets, C.A.R. believes it is not beneficial in California because housing inventory here is extremely low and demand is high.
As a result of the meetings, Congressman Gary Miller, along with 18 other members of California’s congressional delegation, issued a letter last week to Edward J. DeMarco, acting director of the Federal Housing Finance Agency (FHFA), urging DeMarco to refrain from implementing the agency’s “REO Initiative” pilot program in California because it would negatively impact California’s housing market and raise costs for taxpayers. The letter states, “We are concerned that including California counties in this initiative is in direct conflict with your duty as conservator to preserve and conserve the Company’s assets… In California, there is no question that disposing properties through bulk sales will yield a lower return for the GSEs and taxpayers than through traditional disposition methods. This means that such a program will increase losses to the taxpayer and GSEs,” the letter concludes.
C.A.R. commends the 19 California Congressional members who backed the letter including Gary Miller, Jerry Lewis, Ken Calvert, Jeff Denham, Elton Gallegly, Dana Rohrabacher, Buck McKeon, Duncan Hunter, Brian Bilbray, Mary Bono Mack, Susan Davis, Brad Sherman, Joe Baca, Grace Napolitano, Judy Chu, Jim Costa, Adam Schiff, Barbara Lee, and Howard Berman.
In case you missed it, read an editorial piece that appeared in the Sacramento Bee expressing C.A.R.’s viewpoint on FHFA’s REO Initiative program.
As you know, C.A.R. has been working on numerous fronts to address your concerns related to short sale transactions. Over the past year, we have made significant improvements through discussions with legislators, housing regulators, and lenders.
I’m happy to inform you of the most recent improvements, which resulted from our recommendations to Bank of America (BofA). The changes will enable BofA short sale specialists to complete tasks such as document collection, valuations and underwriting at the same time, reducing the time from initiation to closing.
Here are some specific changes that are effective April 14:
In line with C.A.R.’s request and recommendation, BofA’s Short Sale Purchase Contract Addendum will no longer include the agent/broker language, and agents and brokers are no longer required to sign it.
Changes are being made to the Equator system so that multiple tasks can be done at once. Most importantly, property valuation can start earlier to expedite the short sale process. Some of the “task names” will be changed, so expect a learning curve.
If a buyer walks away on a short sale, the amount of time to submit a backup offer will be shortened to five business days.
2012 SAR President Patrick Lieuw featured on KCRA last night in a report on housing affordability in Sacramento and how Buying is more favorable than renting. See video here.
Find out at the California REALTOR® Showcase luncheon on May 3 during the May business meetings in Sacramento.
Register now for the California REALTOR® Showcase Luncheon, Thursday, May 3, at the Sacramento Convention Center. C.A.R. CEO will offer instructive insight to help you sell smarter to today’s clients in “The New Real Estate Consumer.” During the luncheon, Singer will profile today’s home buyers and sellers, and will touch on specific issues, including:
The changing home buying landscape
What today’s buyers are looking for
How buyers utilize online resources to conduct their own property searches
How REALTORS® can appeal to these new consumers
Discounted luncheon tickets will be available for purchase through Friday, April 27, for $55 each. Tickets may still be available on-site at the registration booth, but hurry! This event is expected to sell out.
The median home sales price increased in February to $163,000, a 1.9% increase from the $160,000 median sales price of January. The $200,000 – $249,999 price range still accounts for the majority of the 1,394 total sales this month (14.2% or 198 units), while homes under $100,000 totaled 272 (19.5%) units. Closed escrows from conventional financing (487 units or 32.1% of all sales) decreased 3%, cash buyers increased 4% (512 units or 33.7%) and FHA financing decreased 1.1% (404 or 26.6%). These numbers include the 128 condo sales this month. The average amount of days spent on the market (from list date to opening escrow) 69 days; the median DOM remained at 44.
Sales increased for the month to 1,394 units sold, up 8.1% from the 1,289 closed escrows in January. Year-to-year closed escrows were up 16.1% from the 1,201 units sold February 2011. Making up the closed escrows this month were 471 REOs (33.8%), 445 short sales (31.9%) and 478 conventional sales (34.3%).
The Total Listing Inventory has been split to more accurately reflect the current market. Active Listings numbered 2,194 properties, with 702 Active Short Sales making up 31.9% of that number. Active Short Sales Contingent properties totaled 2,447. Active Short Sale Contingent properties are those short sale properties on which initial offers have been made and are not therefore entirely “active.” Breaking down Total Listing Inventory results in a more accurate Housing Market Supply figure. The Housing Market Supply figure (inventory) for February was 1.6 months – a 20% decrease from January. This figure represents the number of months it would take to deplete the Active Listing Inventory (2,194), given the current number of closed escrows (1,394). This figure is down from the 4 months of inventory that was available in February 2011. These low inventory levels are resulting in more offers on individual properties as well as properties selling faster as buyers are making the decision to buy rather than rent.
According to MetroList® MLS data, the average home sold this month was 1,694 square feet. Of the 1,394 sales this month, 135 (9.6%) had 2 bedrooms or fewer, 762 (54.6%) had 3 bedrooms, 395 (28.3%) were 4 bedroom properties and 98 properties (7%) had 5+ bedrooms.
SAR Member Steve Ostrom, with Heather Ostrom, is featured in a video using TouchSign, which they do actually use it and love it. It’s the one of the only current (from their understanding) “real signature” apps allowed on tablets / iPads and authorized by C.A.R. Check out the video below:
C.A.R. is OPPOSING SB 1220 (DeSaulnier) which imposes a transfer tax to generate funds for affordable housing. C.A.R. is opposing SB 1220 because it will add to the cost of buying a home at a time when the housing market is struggling to recover. C.A.R. is urging REALTORS® in Senator Darrell Steinberg’s district to call him to urge him to work with Senator DeSaulnier to find a different funding source for this trust fund. While C.A.R. is an aggressive advocate for affordable housing, the association believes it sets bad precedent to fund affordable housing by making housing less affordable.
Senator DeSaulnier has introduced SB 1220 to permanently fund an affordable housing trust fund. Unfortunately, SB 1220 creates a real estate transfer tax of $75 per document to fund this program. In virtually all transactions a minimum of three documents are recorded – the grant deed, the release and reconveyance and a trust deed. SB 1220 will create a minimum $225 transfer tax and the amount may go higher depending on the number of documents recorded.
I hope you will join us for a celebration of diversity and fair housing on April 19 in the auditorium at SAR.
This month’s newsletter theme is “Focus on Diversity.” Our past president, Doug Covill, left a legacy of cultural diversity. My focus is on integration, assimilation, and collaboration. The many differences we embody don’t separate us from one another. They are exciting! I may be the first Asian-American president of SAR, but I want you all to remember that we are one “REALTOR® family” working together, to better our Association and our clients.
One way we focus on diversity is by working with different organizations. SAR has good working relationships with the Asian Real Estate Association of America (AREAA); the National Association of Hispanic Real Estate Professionals (NAHREP); the Realtists and Women’s Council of REALTORS® (WCR). We also support the Sacramento Asian Pacific Chamber of Commerce, the Sacramento Black Chamber of Commerce and the Sacramento Hispanic Chamber of Commerce.
On April 19, many of these organizations, plus the Greater Sacramento Vietnamese Chamber of Commerce, the Rainbow Chamber of Commerce and the Slavic-American Chamber of Commerce will gather at SAR for our Multi-Chamber Mixer.
April is Fair Housing Month, and I am very pleased that the Sacramento Human Rights/Fair Housing Commission is also partnering with us at the mixer to promote fair housing.
REALTORS® who represent or reach out to diverse constituencies have created more opportunities for themselves and their firms, brought new perspectives to their associations and demonstrated the positive role that REALTORS® can play in communities. Today’s real estate markets are changing rapidly, and to prosper, REALTORS® continue to need new skills for handling transactions that involve buyers or sellers from many cultural backgrounds.
Tuesday, May 15th, 2012
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