Elaine King's Real Estate Blog

Per Foreclosure Radar, foreclosure activity slowed in April, with California Foreclosures down.  In Contra Costa county NOD’s were down 27% vs YAG *(year ago), notice of sale -31% vs YAG, Bank Cancellations +17% vs YAG, Back to Bank -18% va YAG and Sold to 3rd party (typically investors) -27% vs YAG.  For a link to the complete Foreclosure Radar report, click below:

http://www.foreclosureradar.com/california/contra-costa-county-foreclosures

I listened to a great interview conducted by Bruce Norris, from the Norris Group and Leslie Appleton Young, Chief Economist of CAR.  It was a 2-part interview and a very interesting view of the real estate market. 

Leslie believes that the “trade up” market has diminished in California.  31% of homes in California are “underwater”. The “Net to Seller” was a median of $205K in 2005 and down to $35K in 2010.  Sellers planning to re-purchase is down to 33% from 70% in 2010.  Investors have helped to move the market forward; 23% of sales in 2010 were CASH.  That number is higher in luxury markets.  The California median price is at $300K compared to nation at $150K. 

The $8,000 home buyer tax credits of 2010 was very effective at igniting buyers, and the data proves this motivation with higher sales in early 2010 compared to the 2^nd half of 2010.  However, 2011 will be left to its own devices on positive stimulus.  There is an urgency in 2011 to purchase before the $729K loan limit ends on Oct 1^st,  and going down to $625K.  Financing will be more expensive in the future and the direction to eliminate Fannie Mae/Freddie Mac and FHA changes will also change the landscape.  She also can’t imagine lower rates, monthly payments, and down payments. 

 Bruce and Leslie discussed that many people can’t buy now and are in “pause mode” until their credit can be repaired. Migration is also on “Pause” and construction is LOW.  Many families have also moved into together.  When these factors change, the demand for housing will be increased!

 Financing will be more expensive for down payments and rates.  However, the goal of households is to purchase their own home.  People do need a place to live.  We will see a world where financing will be a bigger consideration and burden than in the boom.  30 year mortgage could be an endangered species.  This will result in FEWER home owners.  Bruce talked of having a loan playbook that worked:  nothing down VA and FHA loans had VERY FEW foreclosures, we need to go back to that criteria!  FANNIE & FREDDIE worked prior to 2005; if they would have stayed with the loan criteria that they had, things would be different.

Great information is on this two- 30 minute radio broadcast.  Take time and listen to two great California real estate experts.  Here is the link to the broadcast.  (NOTE: To listen in order, the 1st broadcast is BELOW the 2nd) Check out this link for this and other real estate/investor information.  Tne Norris Group does hard money lending and investor training  in California.

CoreLogic has questioned the sales numbers being put out by the National Association of Realtors (NAR), saying they can be off by as much as 20%!  The Mortgage Bankers have also questioned NAR’s sales numbers.  (Click here to view article.)  Regardless of sales increasing or not, one thing is certain; home prices are not going up; as shown in the recent CCAR sales statistics.  It is a great time to be a buyer and if you are a seller, price it competitively because the number of days on market is going up.

Spring is here and welcome to the 2nd quarter 2011!  Currently, there are 113 homes for sale in Brentwood CA 94513,  priced under $350K!  The lowest priced home is $129K, the median priced home is $259K, and the average “days on market” DOM is 57 days for a home to sell in this market.  Here is a link to view the current homes for sale.

I love living in Brentwood, please call me with any questions.

Foreclosures in the state are still high. Sales of new homes are at historic lows. Millions of homeowners are underwater on their mortgages. So what’s the outlook for 2011 and beyond?  Click this link to hear what five California experts have to say.

First time this home is on the market in the desirable Eagle Ridge area of Antioch!

Priced at $215,000 (2010-2011 County Tax Record Value), this home has 4 bedrooms, 2 baths and 2152 square feet.  It has a newer AC/heater, water heater and stove, too.  The back yard has room for your hammock to enjoy a relaxful afternoon.  In addition is a covered patio and fruit trees.  Here is a link to more photos and information!

For more information, please call me at 925-852-1659.  This is a SHORT SALE with 2 lenders, and we’ve been working to obtain a HAFA Short Sale on this property.

On September 17, 2010, I again attended a fundraising event for the Susan G. Komen foundation at the Nixon Library.  This year the food was again incredible; prepared by White House catering!  A panel of  well- respected real estate professionals gathered to discuss the current real estate market and possible solutions to the perceived issues of the industry.  The panel consisted of  Bruce Norris (President of The Norris Group),  Christopher Thornberg ( Beacon Economics), Daniel Phelan (Mortgage Bankers Assoc.), Joseph Magdziarz (Appraisal Institute), Peter Wayman ( Freddie Mac), Sarah Letts (Fannie Mae), Sean O’ Toole ( Foreclosure Radar) and Tommy Williams (Williams & Williams Auctions)

This is my third year attending this breast cancer benefit.  I enjoyed the honest opinions of the panel on how they are dealing with this challenging market.  This is the first year that speakers from Fannie & Freddie attended talking about bulk REO purchases.

Please click on this link to hear this worthwhile program.  It is in five (5) segments which will allow you to digest all the meat of the discussions.  (Allow 4 hours to hear the total event.)  IT IS WELL WORTH IT!!!!

The Antioch, Brentwood, Oakley housing market has been tight, especially if you have been searching for investment property.   It has not been easy for investors to find properties that make the numbers work for them.  Typically, investors use the 70% of market value as a basis, minus repairs & expenses, to calculate if the home is a good purchase.  For East Contra Costa County investors, homes with those criteria have been limited.  However, be patient!  More homes may soon be coming on the market. 

New projections on the rate of homeownership are estimated to go as low as 62% by 2012; a rate not seen since 1960. Homeownership numbers have slid since 2006, and an interesting fact is that the numbers even slid during the recent government tax credit!  A new poll predicts that 6 million of the 8 million homeowners behind on their mortgage to lose their homes. This could result in more bargains for investors that are willing to take the plunge, and more prospective tenants for those rental properties.  (Click here for complete article)

Homes that are a good value and priced below $300,000 are moving quite quickly in Brentwood.  This bedroom town, known for its fertile land, currently has 185 homes FOR SALE; ranging from $109,000 to over $5 million dollars.  Interesting, both properties were built in the 1930’s.     Click here for a complete look at Brentwood single family properties FOR SALE.

Mark your calendar for the annual Brentwood CornFest  taking place  July 9, 10, and 11.  It is a 3-day weekend celebration of fun, food and entertainment, honoring Brentwood’s agricultural heritage and it is Brentwood Chamber of Commerce’s largest fundraiser of the year.

Bay Area East County homes are selling at 1999 pricing, and many investors are coming to Antioch, Brentwood and Oakley for a “deal” on a home.   I just completed an analysis of homes selling below $175,000 in Antioch, Brentwood and Oakley, and most homes are selling 10% above or 10% below list price.  

From Dec 2009 until today, in the below $175,000 category, 138 detached homes have sold in Antioch, Brentwood and Oakley.  The average list price was $146,712 and the average selling price was $148,173. That is 101% of selling price!  What a deal – you can buy a 3 bedroom, 2 bath home for $148,000!  This is a great deal,but not the thousands off list price that some are seeking!  The average days-on-market was 27 days!

 The 3 BEST DEAL homes (homes that sold for 40%, 52% and 79% of list price), all sold between Thanksgiving and Christmas and were on market an average of 30 days.  Two were ALL CASH deals and one was a conventional loan.  The BEST DEAL home was listed at $429,000 ($262 sq foot) and sold for $170,000 ($104 sq foot).  This home would have moved quicker if it was priced at at $130 sq foot range of the neighborhood.

The 3 WORST DEALS (homes that sold for 134%, 135% and 150% of list price) were on the market an average of 16 days.  Two were conventional and one was all cash.   The WORST DEAL that sold for 150% of list price was listed for $54,900, and sold for $82,100.  This home needed a roof, cabinets, flooring and some TLC.  The purchaser paid 150% of list and still bought a home for $54/ sq foot.  WOW – not a worst deal at all!!!!    Here are more statistics: 

• # Homes Sold from 12/09 – 3/25/10   138
• # Homes Sold ABOVE list price                 38
• # Homes Sold AT list price                          19
• # Homes Sold BELOW list price                 81
• Average Price                                      $146,712
• Highest % below list price                  40%
• Highest % above list price                  150%
• Average Cost per square foot           $108
• Average Days on Market                    27

This is a GREAT time to buy a home, but know there are many buyers searching for a home in the East County.  Buyers are competing against investors, all cash buyers and first time buyers. FHA deals are not impossible, but not the first offer that is accepted by the seller.  Priority is CASH, Conventional, and then FHA.  If you choose to purchase FHA, be prepared to pay closing costs.  Needing closing costs, lessens your chances of a purchase to near ZERO!

You have to be patient and need to move quickly.  For more information, please give me a call at 925-852-1659 or email me at elaine@elainekingsellshomes.com