|
Signs That Indicate Change
Are we there yet? Everyone wants to know when home market values will hit bottom. Buyers are eager to get the best deal and sellers are conflicted between accepting a low offer now, or risk selling for even less if they wait a few months.
No one knows the answer – and “expert” predictions vary widely – but home market observers can see some encouraging signs. The federal bail-out of the financial market is expected to open opportunities for qualified home buyers and the Housing Stimulus Bill passed in July is encouraging lenders to work out loan modifications with distressed homeowners.
Locally, the weekly market reports I prepare can help you track how the housing market is changing in your city. I study a variety of factors to ensure my clients get what they want and publish my findings on my website, www.ilajosephs.com for those readers who want to follow the market with me.
My website contains market reports for each of the 10 cities in my service area: Chino, Claremont, Fontana, La Verne, Montclair, Ontario, Pomona, Rancho Cucamonga, San Dimas and Upland.
There are five key indicators to changes in the lnland Empire home market, in my opinion. They are:
Foreclosures – A huge number of homes are currently in the foreclosure process. Lenders are now required to make three attempts to help home owners who owe more than their home is worth find a way to stay in that home. If successful, the huge number of Inland Empire homes now in the foreclosure process would be reduced.
Supply – The number of homes listed for sale has been dropping in most cities, as homeowners who do not need to sell in the next few months are deciding to wait for prices to climb again. The majority of homes now for sale are either in the foreclosure process or have been foreclosed. The bank-owned properties are being priced to sell quickly, pushing sales prices down.
Pending Sales – The number of pending sales is increasing, signaling greater interest from home buyers. While the home is in escrow, buyers have an opportunity to examine the house more closely, finalize a home loan, and be assured of a clear property title. With a plentiful supply of homes, many buyers are walking away from homes that need considerable repairs.
Number of Sales – The number of home sales also are rising. With prices dipping below 2002 levels, Californians unable to buy homes in the past few years are able to write successful purchase offers. Down payment assistance programs for first-time home buyers offer additional financing.
Sale Prices – The median sales price in Inland Empire cities has been falling all year, compared to a year ago. I’ve prepared charts for each of the 10 cities in my service area that show changes in local median prices throughout the year. The charts put in perspective the monthly statistics comparing sales prices to the same month a year ago.
I provide personal real estate services to home buyers and sellers. If you are planning to buy or sell a home, I would appreciate an opportunity to discuss how I can help you reach your goals. Call me directly at (909) 261-3541.
Ila
|