Downtown Huntington Beach, next to the Huntington Beach pier is the site of Nike US Surf Open. Check the best surfers this weekend with live entertainment and freebies. For more information watch video and view link.
Let’s first talk about why most people feel that the market is NOT stabilizing. The number one reason is people don’t have jobs and therefore cannot consume. Second, the media keeps reporting the doom and gloom of more foreclosures and short sales. Simple economics, supply will continue to out way demand. So with increased inventory and no people to buy, the market should continue to trend downward, right?
Those of us who are actually in the market 24/7 should be reporting more often. Not those who report the same news about Casey Anthony. So allow me to dissect what the experts in the industry are seeing, that includes us.
The Wall Street Journal recently posted an article that home sales in Orange County CA actually saw an increase in the median home price over the past few months. This is not the compelling aspect of the artice. Anyone worth their salt will respond correspodingly “It’s the summer selling season skewing the numbers and median has very little statistical weight.” I would agree with that statement. What is more interesting is the report that 25% of purchases were made by investors. The fact is, large corporations are doing well and the private sector is making money, they just don’t need any additional employees to run their businesses. Those with cash are getting richer and are eating up these Real Estate and Financing opportunities (4.5% Fixed 30 year loans with 0 points or underwriting fees). So much so, that they boosted the median numbers. I know what you are thinking “Separation of classes” absolutely.
Now let’s address the second and probably the most significant element determining the stabilization of Real Estate, inventory. What everyone is saying “The banks are holding all of this inventory and they are going to let it all go.” Why would they do that? All of the big banks are showing earnings and have learned to balance their books with distressed property as a liability. I can only speculate, but it seems that the bank chooses based on how much they can absorb monthly which properties to foreclose on. This is why some people hang out for 2 years without making payments and others get tagged in 3 months. It appears to be random, but I cannot confirm that. It is a simple system of checks and balances. It is working! Banks are profitable. Furthermore, and this I can confirm, banks have developed much more efficient systems for the short sale and foreclosure process. Banks are sending out multiple appraisals in some cases to determine the values of short sales before they approve them. Meaning, the smoking deals and huge losses by banks are eroding almost completely. Short sales used to take 6 months, we just closed 3 in under 90 days. Foreclosures are flying off the shelves as they come on. Everyone knows that a foreclosure is going to be fairly easy to negotiate, the banks set the price off the bat! Pay this get this! It is simple, fast and there are some good deals as a result of the risk taken for “As Is” no disclosure.
The wrap up is that there are buyers and the banks have become efficient liability balancing, short sale and foreclosure processing machines. Before you say “The banks are going to foreclose in 2012 in drones” ask yourself. Why would the banks disrupt their check books?
These two elements, supply and demand and lack of buyers has destabilized our market for the past 4 years. The changes in the market that I have addressed in this blog are what lead me to believe that the market is stabilizing.
Scott explains that it is our policy to sit down in person, with the lender and go over all closing costs for your home purchase transaction. Is this a customer service that would add value to your Real Estate experience?
While in Palm Springs for the Fourth of July, I read a great interview with CEO Robert Toll of Toll Brothers,
one of the country’s biggest home builders. His insights on where the market is ..and is going are very insightful. Here’s my take on this for our local market, watch the video…………………
If you’re staying home, why not start your Holiday weekend off with a FREE docent led tour of our own natural gem by the sea? I am talking about the beautiful, restored Bolsa Chica Wetlands Ecological Preserve. Did you know that this preserve is an historical treasure trove of geographical info, more bird and wildlife species than I can mention, and gorgeous views of water, sea and sky.
According to the Amigos de Bolsa Chica, a volunteer group who is partially responsible for the bounty of land and wildlife we see at the wetlands: “The Bolsa Chica includes over 1,200 acres of undeveloped wetlands, lowlands and lower mesa. This area is rich with history beginning with the Native Americans who lived atop the mesas to the oil production in the twentieth century. The Bolsa Chica is also an important stop for migratory birds along the Pacific Flyway, including some endangered species and threatened species.” Click here to check out the “First Saturday” Walk schedule.
If you do nothing else, take a few minutes to read about these two organizations that have helped restore and preserve a piece of our local history. We are lucky to have this open space in an increasing urban environment.
It is pretty amazing, and I’m grateful I can enjoy this beauty every day on my way to and from the office.
Like the Wetlands? How about checking out some of the homes that back up to this natural beauty. Click here to see what the ”Bolsa Landmark” neighborhood is like:
Showing properties
1 - 4 of 4.
See more HB Bolsa Landmark.
(all data current as of
5/18/2012)
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