Beverly's Blog

FDIC lawsuit against Appraisal Management Companies

Beverly Bayer (BAYER APPRAISALS) — Fri, 13 May 2011 19:36:51 -0400

FDIC is going after Appraisal Management Coupanies for Appraisal Deficiencies - mostly work from the height of the market.

List of some problems found:

1) inadequate analysis of a purchase contract, or failure to report prior listings.

2) Failure to report prior sales within 3-year of the subject property

3) use of improper comps or avoiding better comps

4) applying improper or inconsistent adjustments to comparables

5) omits or misrepresnets significant physical or locational characteristics of the propety

6) Appraiser reported "stable" prices when prices were declining.

75% of the appraisals reviewed - provided - were found to contain multiple egregious violations of USPAP and applicable industry standards. I recognized a few appraiser names on the list - and one property was in my town.

New rules for Appraising - coming 9/1/2011

Beverly Bayer (BAYER APPRAISALS) — Wed, 13 Apr 2011 16:32:46 -0400

Our Friends at Fannie and Freddie, have decided to change the way appraisers describe the quality and condition of homes we appraise and the comparables we use.

Since I started appraising in 1977 - we described properties as being: Good, Average, Fair or Poor - sometimes adding "very good" or "excellent" or fudging with "low-average" or "average-" - knowing if you determined the condition or quality of the home as fair or poor - you probably killed the deal. So many appraisers pre-set "average" in their appraisals for the subject & comps. Which I will admit is a problem.

On 9/1/2011 and beyond we will need to define condition on a C1 - to - C6 scale and quality on a Q1 to Q6 scale. 1 is considered the best - for condition a new or unlived in dwelling. A C6 condition is a property with substantial damage or defered maintenance.

For views we will need to use the following codes: A, B or N -- what do they mean: A = adverse (hurts value or marketability); B = Beneficial (that's good) and N = Neutral. and if it is a view lot - how about B;MTn;Wtr -- what? that is a beneficial view of mountains and water - not just for the subject, but also the comps get these codes and abbrevations. Are you confused yet?

Now if you have 2 and 1/2 baths the correct way to show the count will be 2.1 and if the house has 2 1/2 baths = 2.2

For Kitchens and baths we will need to report if they have been "updated" "not updated" or "remodeled" and if the work was done in less than 1-year; 1-5 years, 6-10 years, 11-15 years ago or unknown. An updated bath might have a new toilet, and remodeled bath an all new shower.

We will need the have a cheat sheet to fill out our appraisals (no pre-set - boiler plate will do), and provide definations for all the abbreviations. And will be clients be confused - yes, Sir!

This all is going to add to the write up time of appraisals, coming in on the heels of a majority of our work coming from low paying AMCs who want the appraisals back in 2-days time.

I understand the need for more specific information and by using numbers and not wiggle words like "average" will help in underwritting loans, but it will be a tough transition.

Appraisers are already upset with the reasonable and customary fee requirements that started April 1 - as the AMCs think they can continue paying 40% of the appraisal fee to their appraisers - and not bump up to what we were paid before HVCC. And there is still anger about the time needed to do the 1004MC report.

We have already lost about 1/3 of appraisers in California - who is going to do the valuation work. Yes, there are BPOs - but they are paying too low for an agent who has enough real work. And the AVMs never did address quality and condition - just did some kind of averaging.

Beverly A. Bayer, SRA

Murrieta - Temecula, CA - Real Estate Market Conditions: February 2011

Beverly Bayer (BAYER APPRAISALS) — Mon, 14 Feb 2011 18:36:16 -0500

Temecula - Murrieta, CA * Real Estate Market Conditions: February 2011

Sales for Temecula and Murrieta - between January 14 to February 14 for the years 2010 and 2011. Except for the Standard Sales the median prices per square foot are up in both Cities. Data shows homes in Temecula sell for more, Standard sales pull the highest prices.

Temcula (standard sale prices per square foot) 2010 @ $163 vs. 2011@ $138

Temecula (REO) 2010 @ $113.50 vs. 2011 @ $115

Temecula (short sale) 2010 @ $123 vs. 2011 @ $124

Murrieta (standard sales) 2010 @ $111 vs. 2011 @ $112

Murrieta (REO) 2010 @ $104 vs. 2011 @ $106

Murrieta (short sale) 2010 @ $94 vs. 2011 @ $95

Based on the same 1-month period (as above) for 2010 and 2011 - there was a decline in the number of homes sold:

Temecula 139 in 2010 119 in 2011

Murrieta 170 in 2010 141 in 2011

Year over year shows prices up, however comparing the most recent 3-month period vs. the prior 3-month period.

Temecula saw home prices on average go down: $45 per day

Murrieta saw home prices on average go down: $87 per day

Average difference in prices for the difference in square footages

Temecula for the current 3-month time period $70 per square foot

Temecula for the prior 3-month time period $78 per square foot

Murrieta for the current 3-month time period $59 per square foot

Murrieta for the prior 3-month time period $72 per square foot

Based on pending sales in 1-month vs. the current number of homes listed for sale - the months of inventory is:

Temecula 3.7 months vs. 2 months on 2/25/2010

Murrieta 4.6 months vs. 2.3 months on 2/25/2010

Murrieta California January 2011 Market Conditons

Beverly Bayer (BAYER APPRAISALS) — Wed, 05 Jan 2011 16:19:21 -0500

Appraiser Adjustment Matrix

Area Murrieta Date 1/5/2011

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$275,000	$289,500	$-14,500
2600-2800	$255,800	$275,000	$-19,200
difference	$19,200	$14,500	//////////////////
2400-2600	$263,000	$265,000	$-2000
difference	$-7200	$10,000	//////////////////
2200-2400	$248,300	$246,600	$1700
difference	$14,700	$18,400	//////////////////
2000-2200	$225,000	$235,000	$-10,000
Difference	$23,300	$11,600	//////////////////
1800-2000	$234,175	$225,000	$9175
Difference	$-9175	$10,000	//////////////////
1600-1800	$210,000	$214,750	$-4750
Difference	$24,175	$10,250	//////////////////
1400-1600	$195,000	$199,900	$-4900
difference	$15,000	$14,850	//////////////////
1200-1400	$175,500	$178,000	$-2500
difference	$19,500	$21,900	//////////////////
Difference TOTAL	$99,500	$111,500	$-46,975
Divide by 8	$12,437	$13,937	//////////////////
Divide by 9	//////////////////	/////////////////	$-5219
Divide by 200 sq'	= $ per Sq' $62	= $ per Sq' $70	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-58

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Data indicates the current 3-month period found homes sold on average $62 difference per square foot (in the prior 3-month period the difference was: $70 per square foot). Between the median prices for the most recent 3-month period vs. the prior 3-month period median home prices went down on average $58 per day.

Data below finds most of the current listings in Murrieta are short sales, while most of the sales are REOs (for the current 1-month period and the same time frame from 1-year ago). There has been a slight drop in the number of homes sold (188 in the current period vs. 194 in the same time period from 1-year ago). The standard sales continue to pull the highest prices per square foot, while the REOs sell the fastest. Note the average days on the market is growing, with the short sales taking the longest time to sell.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	653	35%	16%	44%
Pending Sales	120	22.5%	44%	29%
Closed Sales	188	33%	36%	25.5%
Sold 1-year ago	194	24%	44%	29%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$122	$104	$97	35 days	23 days	102 days
2010	$122	$97	$107	91 days	51 days	121 days

Not only are fewer homes selling and prices declining - I am also seeing the months of inventory grow (based on the current number of listings vs. 1-month of pending sales) - which is most recently at 5+ months, while just back to April 29, 2010 the months of inventory was at 2 and 1/2 months.

Often in prior years the number of homes listed for sale drops between Thanksgiving and the early part of the next year (I believe because occupants don't want potential home buyers coming into their homes during holidays). And as the new year comes along - new and older home sellers put their properties back on the market -- growing the inventory. Unless, buyers come back soon - 2011 will not get off to a good start. Prices might continue to drop as the inventory grows. And if interest rates go up, lenders remain cautious, and heaven forbid they try to take away the mortgage interest IRS deduction -- things could be very bad.

Temecula, California real estate market conditions: January 2011

Beverly Bayer (BAYER APPRAISALS) — Wed, 05 Jan 2011 15:49:33 -0500

Appraiser Adjustment Matrix

Area Temecula Date 1/5/2011

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$322,500	$325,000	$-2500
2600-2800	$308,000	$315,000	$-7000
difference	$14,500	$10,000	//////////////////
2400-2600	$295,000	$297,250	$-2250
difference	$13,000	$17,750	//////////////////
2200-2400	$280,000	$276,000	$4000
difference	$15,000	$21,250	//////////////////
2000-2200	$255,500	$269,500	$-14,000
Difference	$24,500	$6500	//////////////////
1800-2000	$242,000	$245,000	$-3000
Difference	$13,500	$24,500	//////////////////
1600-1800	$237,000	$231,500	$5500
Difference	$5000	$13,500	//////////////////
1400-1600	$215,000	$215,000	$0
difference	$22,000	$16,500	//////////////////
1200-1400	$200,000	$195,000	$5000
difference	$15,000	$20,000	//////////////////
Difference TOTAL	$122,500	$130,000	$-14,250
Divide by 8	$15,312	$16,250	//////////////////
Divide by 9	//////////////////	/////////////////	$-1583
Divide by 200 sq'	= $ per Sq' $77	= $ per Sq' $81	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-17.50

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Data indicates the difference in prices per square foot on average in the most recent 3-month period was $77 ($81 per square foot in the prior 3-month period). Prices have also declined at an average rate of $17.50 per day. Data below finds about the same number of homes in Temecula sold in the most recent 30-day period vs. the same time frame from 1-year ago; but the largest percentage recently was standard sales, while most of the current listings are short sales - which take the longest to sell.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	521	34%	21%	42%
Pending Sales	89	26%	37%	37%
Closed Sales	141	41%	25%	31%
Sold 1-year ago	140	31%	30%	34%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$143	$135	$118	36 days	30 days	132 days
2010	$128	$121	$130	45 days	38 days	143 days

Hemet - San Jacinto, California December 2010 Market Conditions

Beverly Bayer (BAYER APPRAISALS) — Wed, 15 Dec 2010 17:36:34 -0500

Appraiser Adjustment Matrix

Area Hemet - San Jacinto Date 12/15/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$175,000	$166,500	$8500
2600-2800	$165,000	$168,000	$-3000
difference	$10,000	$-1500	//////////////////
2400-2600	$162,000	$165,000	$-3000
difference	$3000	$3000	//////////////////
2200-2400	$155,000	$155,000	$0
difference	$7000	$10,000	//////////////////
2000-2200	$149,900	$150,000	$-100
Difference	$5100	$5000	//////////////////
1800-2000	$138,950	$143,500	$-4550
Difference	$10,950	$6500	//////////////////
1600-1800	$128,000	$130,000	$-2000
Difference	$10,950	$10,950	//////////////////
1400-1600	$120,000	$115,000	$5000
difference	$8000	$15,000	//////////////////
1200-1400	$101,000	$106,000	$-5000
difference	$19,000	$9000	//////////////////
Difference TOTAL	$74,000	$60,500	$-4150
Divide by 8	$9250	$7562	//////////////////
Divide by 9	//////////////////	/////////////////	$-46
Divide by 200 sq'	= $ per Sq' $46	= $ per Sq' $38	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-5

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. The difference in median sale prices per square foot was $46 in the most recent 3-month period ($48 in the prior 3-month period). Prices for the current 3-months vs. the prior 3-months finds prices on average going down $5 per day (or about: $150 per month). The number of single family homes sold in the past month was 200 this year vs. 251 last year. Most of the homes sold this year and last were REOs, The standard sales pull the highest prices, the REOs sell the fastest and the short sales are most of the current listings and take the longest to sell. Listings vs. 1-month of pending sales found we now have a standing inventory of 4.5 months - and this has been increasing over time.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	854	15%	22%	49%
Pending Sales	187	12%	52%	23%
Closed Sales	200	14%	55.5%	21%
Sold 1-year ago	251	8%	67%	15.5%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$71	$65	$62	49	34	138
2010	$78	$65	$68	57	49	159

Perris - Nuevo, California December 2010 Market Conditions

Beverly Bayer (BAYER APPRAISALS) — Wed, 15 Dec 2010 16:02:58 -0500

Appraiser Adjustment Matrix

Area Perris - Nuevo Date 12/14/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$198,500	$192,000	$6500
2600-2800	$193,500	$200,000	$-6500
difference	$5000	$-8000	//////////////////
2400-2600	$186,000	$185,000	$1000
difference	$7500	$15,000	//////////////////
2200-2400	$170,000	$172,450	$-2450
difference	$16,000	$12,550	//////////////////
2000-2200	$170,000	$165,000	$5000
Difference	$0	$7450	//////////////////
1800-2000	$150,900	$158,000	$-7100
Difference	$19,100	$7000	//////////////////
1600-1800	$145,000	$150,000	$-5000
Difference	$5900	$8000	//////////////////
1400-1600	$136,950	$143,250	$-6300
difference	$8050	$6750	//////////////////
1200-1400	$127,375	$125,000	$2375
difference	$9575	$18,250	//////////////////
Difference TOTAL	$71,125	$67,000	$-12,475
Divide by 8	$8890	$8375	//////////////////
Divide by 9	//////////////////	/////////////////	$-1386
Divide by 200 sq'	= $ per Sq' $44	= $ per Sq' $42	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-15

	Total Number	% Standard	% REO	% Short Sales
Active Listings	507	14%	21%	58%
Pending Sales	111	13.5%	60%	25%
Closed Sales	110	18%	47%	34%
Sold 1-year ago	188	19%	60%	17%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$91.50	$73	$75	61	30	163
2010	$96	$76	$79	54	48	112

Data indicates the difference in price per square foot was $44 for the 3 most current months (and $42 per square foot for the 3-month prior period) - this is a market driven amount - or an adjustment an appraiser should be using. Homes are losing value at the current rate of $15 per day (between the most recent 3-months vs. the prior 3-month period).

Next we see there are 507 single family homes currently listed for sale (with 111 pending sales and 110 closed sales in 1-month): most of the listings are short sales, most of the pending and closed sales are the REOs. Year-over-year there has been a significant drop in the number of homes sold (110 in 2010 vs. 188 in the same 1-month period in 2009), but prices have move up (year-over-year) but not 3-months vs. 3-months. The standard sales pull the highest prices per square foot and the short sales take the longest time to sell.

Based on 1-month of pending sales and current number of MLS single family home listings - there is now 4.6 months of standing inventory. About 1-year ago there was about 2.4 months of inventory. About 1-year ago (1/13/2009) prices per a Matrix at that time indicated home prices were moving up at a daily rate of: $67 - now they are going down at a daily rate of $15.

City of Riverside California: November 2010 Market Conditions

Beverly Bayer (BAYER APPRAISALS) — Wed, 24 Nov 2010 13:34:17 -0500

Appraiser Adjustment Matrix

Area Riverside Date 11/24/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$332,500	$320,000	$12,500
2600-2800	$301,500	$317,500	$-16,000
difference	$31,000	$2500	//////////////////
2400-2600	$293,000	$315,000	$-22,000
difference	$8500	$2500	//////////////////
2200-2400	$276,500	$287,450	$-10,950
difference	$16,500	$27,550	//////////////////
2000-2200	$246,000	$250,750	$-4750
Difference	$30,500	$36,700	//////////////////
1800-2000	$231,500	$235,500	$-4000
Difference	$14,500	$15,250	//////////////////
1600-1800	$217,000	$215,000	$2000
Difference	$14,500	$20,500	//////////////////
1400-1600	$199,000	$201,000	$-2000
difference	$18,000	$14,000	//////////////////
1200-1400	$172,000	$170,000	$2000
difference	$27,000	$31,000	//////////////////
Difference TOTAL	$160,500	$150,000	$-43200
Divide by 8	$20,062	$18,750	//////////////////
Divide by 9	//////////////////	/////////////////	$-4800
Divide by 200 sq'	= $ per Sq' $100	= $ per Sq' $94	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-53

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Data indicates the difference in price per square foot difference was: $100 in the most recent 3-month period ($94 in the prior 3-month period) - this would be a drive derived adjustment per square foot. Data shows median prices dropped an average of %53 per day between the prior 3-month period to the most recent 3-month period (that would be a loss of value of almost $1600 per month). Data below show the drop in 1-month of sales in 2009 (@ 381) vs. 2010 (@ 314) in the same time period. In 2010 about 1/3 of the sales were Standard sales, REO sales and short sales - in 2009 52% of the sales were REOs.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	1299	33%	16%	46%
Pending Sales	318	27%	44%	27%
Closed Sales	314	30%	31%	32%
Sold 1-year ago	381	28%	52%	17%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$140	$111	$115	54	30	127
2010	$136	$117	$117	49	44	105

Moreno Valley - California: Real Estate Market Conditions in November 2010

Beverly Bayer (BAYER APPRAISALS) — Tue, 23 Nov 2010 13:53:41 -0500

Appraiser Adjustment Matrix

Area Moreno Valley Date 11/23/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$235,000	$230,950	$4050
2600-2800	$223,000	$227,500	$-4500
difference	$12,000	$3450	//////////////////
2400-2600	$198,250	$216,000	$-17,750
difference	$24,750	$11,500	//////////////////
2200-2400	$206,000	$196,400	$9600
difference	$-7750	$19,600	//////////////////
2000-2200	$184,250	$188,950	$-4700
Difference	$21,750	$7450	//////////////////
1800-2000	$168,000	$172,500	$-4500
Difference	$16,250	$16,450	//////////////////
1600-1800	$165,500	$160,000	$5000
Difference	$2500	$12,500	//////////////////
1400-1600	$143,300	$140,000	$3300
difference	$22,200	$20,000	//////////////////
1200-1400	$130,000	$131,000	$-1000
difference	$13,300	$9000	//////////////////
Difference TOTAL	$105,000	$99,950	$-10,500
Divide by 8	$13,125	$12,494	//////////////////
Divide by 9	//////////////////	/////////////////	$-1167
Divide by 200 sq'	= $ per Sq' $66	= $ per Sq' $62	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-13

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Data results: the difference in the most recent 3-month period per square foot was $66 (for the prior 3-month period $62 per square foot (= market derived square footage adjustment). And the data is showing homes are losing value between the 2 time periods at the rate of $13 per day (= a loss of almost $400 per month). Next chart shows the decline in the most recent 1-month period in the number of homes sold in 2009 (351) vs. 2010 (229) in Moreno Valley. Most of the current listings (50%) are short sales; last year in the same time period most of the sales were REOs - this year most sales are short sales. Short sales take the longest to sell, and the standard sales pull the highest prices. Prices year-over-year have increased; but the most recent data shows prices declining. Other research (listings vs. pending sales) finds we are approaching 5 months of standing inventory - about 1-year ago (12.7.2009) we had 2 months of inventory.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	847	19%	24%	50%
Pending Sales	177	22%	49%	26%
Closed Sales	229	24%	31%	38%
Sold 1-year ago	351	15%	58%	24%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$97	$82	$82	31	24	137
2010	$101	$89	$86	38	55	121

Murrieta - California: Real Estate Market Conditions: November 2010

Beverly Bayer (BAYER APPRAISALS) — Tue, 23 Nov 2010 13:48:34 -0500

Appraiser Adjustment Matrix

Area Murrieta, CA Date 11/23/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$286,350	$275,000	$11,350
2600-2800	$261,000	$265,100	$-4100
difference	$25,350	$9900	//////////////////
2400-2600	$264,000	$260,000	$4000
difference	$-3000	$5100	//////////////////
2200-2400	$252,000	$245,000	$7000
difference	$12,000	$15,000	//////////////////
2000-2200	$230,000	$249,000	$-19,000
Difference	$22,000	$-4000	//////////////////
1800-2000	$221,000	$223,000	$-2000
Difference	$9000	$26,000	//////////////////
1600-1800	$215,000	$205,000	$10,000
Difference	$6000	$18,000	//////////////////
1400-1600	$198,750	$200,000	$-1250
difference	$16,250	$5000	//////////////////
1200-1400	$175,000	$192,500	$-17,500
difference	$23,750	$7500	//////////////////
Difference TOTAL	$111,350	$82,500	$-11,500
Divide by 8	$13,919	$10,312.5	//////////////////
Divide by 9	//////////////////	/////////////////	$-1278
Divide by 200 sq'	= $ per Sq' $70	= $ per Sq' $52	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-14

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Data shows the difference in prices per square foot in the most recent 3-month period in Murrieta was $70 (that is a market derived adjustment per square foot). Between the 2... 3-month periods the median prices went down on average $14 per day (that is a loss of over $400 per month).

	Total Number	% Standard	% REO	% Short Sales
Active Listings	689	37%	16%	43%
Pending Sales	140	36%	41%	22%
Closed Sales	147	39%	29%	29%
Sold 1-year ago	236	29%	45%	25%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$116	$103	$98	45	21	123
2010	$122	$95	$101	50	52	106

Chart above show the decline in the number of homes sold in a 1-month period in 2009 (236) vs. 2010 (147) that is a decline of almost 38%. Most sales last year were REOs - this year most sales are standard sales. Most of the current listings are short sales, with the short sales taking the longest to sale. Additional research between listings and 1-month of pending sales were now have about 4.5 months of standing inventory; there was about 2.5 months of inventory at the end of April 2010. So we have dropping prices, increasing inventory and fewer sales.

Temecula, California: Market Conditions for 11/19/2010

Beverly Bayer (BAYER APPRAISALS) — Fri, 19 Nov 2010 12:39:04 -0500

Appraiser Adjustment Matrix

Area Temecula Date 11/19/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$325,000	$330,000	$-5000
2600-2800	$315,000	$315,000	$0
difference	$10,000	$15,000	//////////////////
2400-2600	$295,000	$295,000	$0
difference	$20,000	$20,000	//////////////////
2200-2400	$285,000	$278,450	$6550
difference	$10,000	$16,550	//////////////////
2000-2200	$263,000	$267,500	$-4500
Difference	$22,000	$10,950	//////////////////
1800-2000	$242,950	$245,000	$-2050
Difference	$20,050	$22,500	//////////////////
1600-1800	$238,000	$232,900	$5100
Difference	$4950	$12,100	//////////////////
1400-1600	$210,000	$217,800	$-7800
difference	$28,000	$15,100	//////////////////
1200-1400	$200,000	$200,000	$0
difference	$10,000	$17,800	//////////////////
Difference TOTAL	$125,000	$130,000	$-7700
Divide by 8	$15,625	$16,250	//////////////////
Divide by 9	//////////////////	/////////////////	$-85
Divide by 200 sq'	= $ per Sq' $78	= $ per Sq' $81	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-9.50

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. The market driven difference in median price per square foot was $78 in the most recent 3-month period ($81 in the prior 3-month period) - this is an indication of a square footage adjustment. Data indicates prices are in decline between the most recent 3-months vs. the prior 3-month period at the rate of $9.50 per day or about $285 per month. Data below is for a 1-month period (this year vs. last year) note the number of sales are down, median prices for distress sales are down, and it is taking longer for properties to sell.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	471	38%	20%	39%
Pending Sales	124	36%	31%	32%
Closed Sales	157	39%	24%	33%
Sold 1-year ago	190	33%	30%	34%

Median sold prices

Standard Sq'

REO per Sq'

Short per Sq'

Standard DOM

REO DOM

Short sales

DOM

2009

$134

$122

$119

111

2010

$136

$121

$118

124

Market Conditions: 11/18/2010 for Sun City / Menifee, California

Beverly Bayer (BAYER APPRAISALS) — Thu, 18 Nov 2010 18:54:45 -0500

Appraiser Adjustment Matrix

Area Sun City - Menifee Date 11/18/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$230,000	$234,500	$-4500
2600-2800	$225,000	$228,000	$-3000
difference	$5000	$6500	//////////////////
2400-2600	$225,000	$225,000	$0
difference	$0	$3000	//////////////////
2200-2400	$220,000	$208,451	$11,549
difference	$5000	$16,549	//////////////////
2000-2200	$195,000	$209,000	$-14,000
Difference	$25,000	$-549	//////////////////
1800-2000	$189,000	$187,000	$2000
Difference	$6000	$22,000	//////////////////
1600-1800	$174,500	$174,450	$50
Difference	$14,500	$12,550	//////////////////
1400-1600	$149,000	$155,000	$-6000
difference	$25,500	$19,450	//////////////////
1200-1400	$130,000	$143,900	$-13,900
difference	$19,000	$11,100	//////////////////
Difference TOTAL	$100,000	$90,600	$-27,801
Divide by 8	$12,500	$11,325	//////////////////
Divide by 9	//////////////////	/////////////////	$-3089
Divide by 200 sq'	= $ per Sq' $62.5	= $ per Sq' $57	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-34

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Data indicates the difference in median sales prices was $62.50 in the most recent 3-month period, in the prior 3-month period the difference was $57 per square foot (= market derived adjustment for square feet). Between the 2 time periods prices were found to be dropping at $34 per day (= about a $1000 per month loss of value). Data below indicates an increase in short sales in the current market and the difference in median prices between standard sales and distress sales, per square foot.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	426	27%	20%	47%
Pending Sales	245	23%	31%	40%
Closed Sales	148	36%	40%	19%
Sold 1-year ago	146	36%	45%	15%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$100	$85	$83	62	24	151
2010	$97	$87	$84	58	49	161

Banning, Beaumont - California: Market Codnitions 11.18.2010

Beverly Bayer (BAYER APPRAISALS) — Thu, 18 Nov 2010 15:14:25 -0500

Appraiser Adjustment Matrix

Area Banning - Beaumont Date 11-18-2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$220,750	$232,450	$-11,700
2600-2800	$221,250	$225,000	$-3750
difference	$-500	$7450	//////////////////
2400-2600	$193,000	$211,000	$-18,000
difference	$28,250	$14,000	//////////////////
2200-2400	$194,185	$204,100	$-9915
difference	$-1185	$6900	//////////////////
2000-2200	$187,200	$197,000	$-9800
Difference	$6985	$7100	//////////////////
1800-2000	$180,000	$185,000	$-5000
Difference	$7200	$12,000	//////////////////
1600-1800	$160,000	$170,000	$-10,000
Difference	$20,000	$15,000	//////////////////
1400-1600	$139,900	$150,000	$-10,100
difference	$20,100	$20,000	//////////////////
1200-1400	$120,000	$125,000	$-5000
difference	$19,900	$25,000	//////////////////
Difference TOTAL	$100,750	$107,450	$-83,265
Divide by 8	$12,594	$13,431	//////////////////
Divide by 9	//////////////////	/////////////////	$-9252
Divide by 200 sq'	= $ per Sq' $63	= $ per Sq' $67	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-103

	Total Number	% Standard	% REO	% Short Sales
Active Listings	556	36%	21%	38%
Pending Sales	109	21%	50%	23%
Closed Sales	106	38%	38%	21%
Sold 1-year ago	130	25%	56%	15%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$100	$83	$86	135	57	134
2010	$100	$80	$83	89	58	116

Data above also reflects dropping prices, and fewer sales.

Listing numbers and trends vs. pending sales info over 1-month indicates about 5 months of standing inventory currently.

Beverly A. Bayer, SRA - local Real Estate Appraiser

Hemet & San Jacinto - California Real Estate Market Conditions: 11/17/2010

Beverly Bayer (BAYER APPRAISALS) — Wed, 17 Nov 2010 15:43:49 -0500

Appraiser Adjustment Matrix

Area Hemet - San Jacinto Date 11/17/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$172,500	$170,000	$2500
2600-2800	$160,000	$168,950	$-8950
difference	$12,500	$1050	//////////////////
2400-2600	$165,000	$165,000	$0
difference	$-5000	$3950	//////////////////
2200-2400	$155,000	$153,000	$2000
difference	$10,000	$12,000	//////////////////
2000-2200	$151,100	$150,000	$1100
Difference	$3900	$3000	//////////////////
1800-2000	$139,900	$144,750	$-4850
Difference	$11,200	$5250	//////////////////
1600-1800	$129,900	$133,000	$-3100
Difference	$10,000	$11,750	//////////////////
1400-1600	$120,000	$120,000	$0
difference	$9900	$13,000	//////////////////
1200-1400	$101,000	$106,000	$-5000
difference	$19,000	$14,000	//////////////////
Difference TOTAL	$71,500	$64,000	$-16,300
Divide by 8	$8937	$8000	//////////////////
Divide by 9	//////////////////	/////////////////	$-1811
Divide by 200 sq'	= $ per Sq' $45	= $ per Sq' $40	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $-20

	Total Number	% Standard	% REO	% Short Sales
Active Listings	852	16%	23%	47%
Pending Sales	187	10%	57%	16%
Closed Sales	206	21%	42%	23%
Sold 1-year ago	283	8%	65%	15%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$81	$64	$60	36	25	148
2010	$75	$66	$63	60	53	122

Data indicates most of the listings are now short sales (while in the same time period 1-year ago most sales were REOs). Fewer home are selling (206 in the past month, compared to 283 last year in the same time period), also note days on the market are increasing. Median prices have increased year-over-year, and the standard sales pull the highest prices per square foot.

I am also finding the inventory is growing - now at about 4.5 months, while about 6-months ago the inventory was at about 2.6 months. Data shows prices are declining - which often happens when the inventory grows and the number of sales decreases.

Beverly A. Bayer, SRA - Moreno Valley Real Estate Appraiser

Perris, California: Market Conditions on 11.17.2010

Beverly Bayer (BAYER APPRAISALS) — Wed, 17 Nov 2010 12:45:24 -0500

Appraiser Adjustment Matrix

Area Perris - Nuevo Date 11/17/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$195,000	$189,560	$5440
2600-2800	$191,000	$205,000	$-14,000
difference	$4000	$-15,440	//////////////////
2400-2600	$190,000	$177,900	$12,100
difference	$1000	$27,100	//////////////////
2200-2400	$170,000	$175,000	$5000
difference	$20,000	$2900	//////////////////
2000-2200	$170,000	$165,000	$5000
Difference	$0	$10,000	//////////////////
1800-2000	$150,000	$160,000	$-10,000
Difference	$20,000	$5000	//////////////////
1600-1800	$147,000	$145,000	$2000
Difference	$3000	$15,000	//////////////////
1400-1600	$140,000	$142,000	$-2000
difference	$7000	$3000	//////////////////
1200-1400	$125,000	$125,000	$0
difference	$15,000	$17,000	//////////////////
Difference TOTAL	$70,000	$64,560	$3540
Divide by 8	$8750	$8070	//////////////////
Divide by 9	//////////////////	/////////////////	$393
Divide by 200 sq'	= $ per Sq' $44	= $ per Sq' $40	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $4

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. The result is the difference in value per square foot is $44 / $42 (square footage adjustment - market driven). And the amount of price increases is a very low $4 per day (or about $120 per month) basically a stable market.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	507	14%	22%	57%
Pending Sales	321	11.5%	39%	46%
Closed Sales	111	24%	44%	27%
Sold 1-year ago	190	17%	61%	19%
Median sold prices	Standard Sq'	REO per Sq'	Short per Sq'	Standard DOM	REO DOM	Short sales DOM
2009	$84	$72	$74	44	25	121
2010	$85	$79	$80	52	50	126

Data here is the number of SFR listings and pending sales in 1-month, and sales from the same time period last year. Note the large drop in the number of sales (in 2009 190 sales in 2010 only 111 sales). Most of the sales now and last year are the REOs, but most of the current listings are short sales. Note median prices are up in 2010 over 2009 - but the days on the market (DOM) is increasing.

No chart provided: but my listing / 30 days of pending sales research (11/17/2010) for Perris - Nuevo, CA. found the inventory is growing and the number of sales is declining. Based on the number of single family home sales pending (in 1-month) vs. the number of listings we have over 4 months of inventory. About 1-month ago it was approaching 3.5 months of inventory. in contrast about 1-year ago the standing inventory was about 2 months.

A growing inventory of homes for sale, with fewer sales and a noticed reduction in the price increases (reported by the matrix research done in the Summer of 2010 - the rate of price increases over the spring was in the $77 per day range) - could indicate the beginning of price declines.

Beverly A. Bayer, SRA - Moreno Valley Real Estate Appraiser

Choosing comps for your BPO, CMA or Appraisal

Beverly Bayer (BAYER APPRAISALS) — Tue, 16 Nov 2010 17:10:58 -0500

Choosing Comparables for your BPO, CMA or Appraisal

Comparables are competing properties - based on the theory of substitution: "when several similar or commensurate commodities, goods or services are available, the one with the lowest price will attract the greatest demand and widest distribution". When a (homebuyer) consumer is looking to buy - they will have certain desires and limitations: such as where the property is located, what features does the property have and can they afford the "price". In their eyes the comparables are similar properties, typically with similar prices. The buyer may start with price; while the evaluator starts with characteristics hoping to end with a price or value.

If a property is a reasonable alternative property for a fictitious buyer (with specific needs and limitations) - it is a "comparable", be it a current competing listing or the sale of a similar property. A comparable sale is a historical fact: a price agreed upon between buyer and seller, but the potential buyer of a property today only has the current listings to choose from. Just because you could have purchased something in the past for $100, does not mean you can buy it today for $100.

Sometimes it is good to try to look at a property through the eyes of its potential buyer - what are the features of this property that will appeal to its fictitious buyer? Could it be "price", could it be "location" and / or could it be "features"? A property with a 10 horse barn, might not appeal to a person with no desire to own horses. And the person with a need for the barn might not care so much about the size or condition of the house that goes with it. Yet, someone with a limited budget might be considering similarity priced homes and Condos. In finding comparables the trick is to find a truly competing property - either a sale that has taken place or a current competing listing.

Things to compare: house size, lot size, lot utility, similar or near-by location, similar features (pools, barns, views) - and price (value) especially in the more "affordable" price ranges.

•· Bracketing is not a valuation guideline, but a great tool. If you have a superior property and an inferior property - you can fence in a potential value. If the range is narrow (within 20%) the valuation process will be easier.

•· The most recent sales tend to best reflect the current market conditions.

•· By staying in close proximity to the subject, you are not as likely to wander into superior or inferior areas - and make valuation mistakes because you are unaware of the difference in appeal (value) between different locations.

•· When in doubt - give more weight to the listing comparables, but remember there are always over-priced listings in the market (so don't get fooled).

•· If the subject home has been listed for sale recently - consider that in your valuation.

•· And remember, although you may know your market - the reader of your report may not, so be sure to explain why this comp or that comp is good or bad.

•· Sometimes things that are different does not mean there is a value difference - for example sometimes a smaller home in good condition will have more value than a larger home in inferior condition, sometimes older homes have more value than newer homes and sometimes added features do not add extra value. When the truth does not match expectations - you need to explain and possibly justify.

If you are doing a BPO and you know it is not an appraisal (and you may even state that) your report may be used like an appraisal. If your BPO is the only piece of data the client is using to make a pricing or lending decision - there is great responsibility. If you value too low - the client might lose potential money on a deal and if you value too high - the property may linger on the market.

Riverside, CA - August 2010 Real Estate Market Conditions

Beverly Bayer (BAYER APPRAISALS) — Thu, 26 Aug 2010 16:02:15 -0400

Prices in Riverside, California are moving up at an average rate of $52.50 per day; however, in the last 3-month period vs. the same 3-months from 2009 23% fewer homes sold, but current prices are higher per square foot than last year. The biggest change in 1-year is the shift from mostly REO sales to more of a balance between REO, standard and short sales. REO sales continue to sell the fastest and the Standard sales pull the highest prices.

City of Riverside, CA - real estate market conditions for August 2010

Beverly Bayer (BAYER APPRAISALS) — Thu, 26 Aug 2010 15:51:23 -0400

Area City of Riverside, CA Date 8/26/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$320,000	$325,000	$-5000
2600-2800	$322,500	$317,000	$5500
difference	$-2500	$8000	//////////////////
2400-2600	$315,000	$307,500	$7500
difference	$7500	$9500	//////////////////
2200-2400	$287,450	$270,000	$17,450
difference	$27,550	$37,500	//////////////////
2000-2200	$245,200	$254,250	$-9050
Difference	$42,250	$15,750	//////////////////
1800-2000	$235,000	$235,000	$0
Difference	$10,200	$19,250	//////////////////
1600-1800	$215,000	$210,000	$5000
Difference	$20,000	$25,000	//////////////////
1400-1600	$203,250	$187,000	$16,250
difference	$11,750	$23,000	//////////////////
1200-1400	$169,900	$165,000	$4900
difference	$33,350	$22,000	//////////////////
Difference TOTAL	$150,100	$160,000	$42,550
Divide by 8	$18,762	$20,000	//////////////////
Divide by 9	//////////////////	/////////////////	$4728
Divide by 200 sq’	= $ per Sq’ $94	= $ per Sq’ $100	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $52.50

Data used is median sales prices in the area – for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	1232	36%	13.5%	45%
Pending Sales	761	18%	29.5%	47%
Closed Sales	1155	32%	34%	29%
Sold 1-year ago	1497	17%	66.5%	13%

Median sold prices

Standard Sq’

REO per Sq’

Short per Sq’

Standard DOM

REO DOM

Short sales

DOM

2009

$139

$106.50

$116

148

2010

$139

$116

$118

100

Moreno Valley, California Matrix August 2010

Beverly Bayer (BAYER APPRAISALS) — Thu, 26 Aug 2010 10:59:18 -0400

Sorry I don't know what I am doing wrong - but gotta back to work, Beverly

Moreno Valley, California Matrix August 2010

Beverly Bayer (BAYER APPRAISALS) — Thu, 26 Aug 2010 10:57:34 -0400

Area Moreno Valley, CA Date 8/24/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$231,900	$231,500	$400
2600-2800	$227,500	$230,000	$-2500
difference	$4400	$1500	//////////////////
2400-2600	$216,000	$207,500	$9000
difference	$11,500	$22,500	//////////////////
2200-2400	$196,000	$190,000	$6000
difference	$20,000	$17,500	//////////////////
2000-2200	$188,950	$188,000	$950
Difference	$7050	$2000	//////////////////
1800-2000	$171,000	$168,000	$3000
Difference	$17,950	$20,000	//////////////////
1600-1800	$160,000	$160,000	$0
Difference	$11,000	$8000	//////////////////
1400-1600	$140,000	$146,450	$-6450
difference	$20,000	$13,550	//////////////////
1200-1400	$132,000	$125,900	$6100
difference	$8000	$20,550	//////////////////
Difference TOTAL	$99,900	$105,600	$16,500
Divide by 8	$12,487	$13,200	//////////////////
Divide by 9	//////////////////	/////////////////	$1833
Divide by 200 sq’	= $ per Sq’ $62	= $ per Sq’ $66	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $20

Moreno Valley, California Real Estate Market Conditions: August 2010

Beverly Bayer (BAYER APPRAISALS) — Thu, 26 Aug 2010 10:54:14 -0400

As of 8/24/2010 Moreno Valley home prices are going up only $20 per day based on the median prices for the most recent 3-month period vs. the prior 3-month period, based on house size comparisons. The difference in sales prices ranges from $62 to $66 per square foot. There has been about a 32% drop in the number of homes sold in the current 3-month period vs. the same 3-month period from 1-year ago. Home prices year over year are up; but now most of the listings are short sales, although most of the sales were the REOs. Average days on the market is less this year. Standard sales pull the highest prices.

Sorry this is such a mess.... I will try the Matrix next Beverly

	Total Number	% Standard	% REO	% Short Sales
Active Listings	655	20%	18%	53%
Pending Sales	440	20%	36.5%	40%
Closed Sales	801	25%	37%	33%
Sold 1-year ago	1172	11%	72%	15%

Median sold prices

Standard Sq’

REO per Sq’

Short per Sq’

Standard DOM

REO DOM

Short sales

DOM

2009

$97

$81

133

2010

$102

$89

$83

104

Is your Real Estate Market deteriorating, declining or just getting worse?

Beverly Bayer (BAYER APPRAISALS) — Wed, 25 Aug 2010 12:00:40 -0400

On the front page of the Wall Street Journal today (8/25/2010) is this: "Plunge in Home Sales Stokes Economic Fears". Quote from page C16: "July existing-home sales hit their lowest level since the National Association of Realtors began reporting the data in 1999." more quotes: "it would take nearly 13 months to absorb existing homes on the market. Six months is normal, and any number over eight seems to coincide with pressure on home prices."

I heard from an agent a few days ago that she was noticing fewer business cards left at a listing. Now NAR will tell you every market is local, but the reality is what happens in my neighborhood might expand into your neighborhood - and your neighborhood to the next.

Fewer people looking at homes = less offers; less offers = less sales and less sales = eventually lower prices.

We have a great opportunity here at ActiveRain to get the word out about our market areas. You know the lenders read and assorb whatever they see in the WSJ, and their response will (could) affect our livelihood if they paint a broad paint brush about the whole American Real Estate Market. We need to be able to tell the truth about our markets, and not allow others to assume generalities that may not apply. Will the line be drawn in the sand between the REAL ESATATE PROFESSIONALS and the Hacks?

Lets make it a habit to post market conditions in our areas - here is mine today for Moreno Valley, California

This is based on 3-months of data pulled on 8/24/2010 for a 3-month period Data indicates sales are down, but no prue evidance in a reduction in prices and time on the market seems to have inproved.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	655	20%	18%	53%
Pending Sales	440	20%	36.5%	40%
Closed Sales	801	25%	37%	33%
Sold 1-year ago	1172	11%	72%	15%

Median sold prices

Standard Sq’

REO per Sq’

Short per Sq’

Standard DOM

REO DOM

Short sales

DOM

2009

$97

$81

133

2010

$102

$89

$83

104

Temecula, CA listing / pending sale data August 2010 - just the facts

Beverly Bayer (BAYER APPRAISALS) — Tue, 24 Aug 2010 11:58:46 -0400

The number of homes for sale in Temecula is slowly increasing, while the number of pending sales in slightly decreasing - with an end result is an increase in the standing inventory. We are now at 3.4 months of inventory (still low), but about 1-month ago (7/23/2010) the standing inverntory was at 2.8 months. 6 months ago (2/25/2010) the standing inventory was only 2 months - which is the estimated time to sell the current number of listings, based on the monthly number of pending sales.

Per dqnews.com the median sales prices (median prices per square foot) and year over year change in 2 of Temecula's 3 zip codes

92591 July 2010 $260,000 ($121 per square foot) up 7% in 1-year

92591 April 2010 $253,000 ($122 per square foot) up 4.4% in 1-year

92592 Jan 2010 $257,000 ($117 per square foot) up 10.5% in 1-year

92592 July 2010 $291,000 ($132 per square foot) up 3.9% in 1-year

92592 April 2010 $272,000 ($122 per square foot) up 4.6% in 1-year

92592 Jan 2010 $260,000 ($126 per square foot) up 4% in 1-year

Year over year shows prices have increased, but more recent data does not confirm prices are moving up consistently. And with the months of inventory (although still low) growing - the end result could be a stablization of prices or possibly another round of declining prices.

Murrieta, CA listing and pending sales - just the numbers August 2010

Beverly Bayer (BAYER APPRAISALS) — Mon, 23 Aug 2010 14:03:51 -0400

In Murrieta, California the number of homes for sale has been increasing and the number of pending sales declining - with a current 4-months of standing inventory as of August 23, 2010. Compaired to 1-year ago (8/19/2009) where the months of inventory was about 2-months. In contrast in May (5/25/2010) there was about 3 months of inventory.

Per MLS the lowest current list price is: $131,000 for a 935sq' home on a standard residential sized lot.

The highest current listing is at $4,400,000 for a 10,784 square foot home on 4 and 1/2 acres.

Per dqnews.com the current median sales price (July 2010) for zip code 92562 was $251,000 ($114 per square foot) 3-months ago (April 2010) the median price was: $259,000 ($110 per square foot) and in January 2010 (6 months ago) the median sales price was $251,000 ($109 per square foot).

For zip code 92563 the median price for July was: $250,000 ($98 per Sq') in April 2010 $245,000 ($100 per Sq') and in January 2010 $250,000 ($98 per Sq').

Economics 101: an increase in supply and / or a decline in demand will (could) result in a reduction in prices.

Hemet - San Jacinto, CA Market Conditions for August 2010

Beverly Bayer (BAYER APPRAISALS) — Wed, 18 Aug 2010 12:25:44 -0400

Market Conditions: Hemet / San Jacinto, CA Date 8/18/2010

Square Footage	0-3 Months	4-6 Months	Difference
2800-3000	$167,750	$168,250	$-500
2600-2800	$169,900	$165,000	$4900
difference	$-2150	$3250	//////////////////
2400-2600	$165,000	$165,500	$-500
difference	$4900	$-500	//////////////////
2200-2400	$152,500	$159,900	$-7400
difference	$12,500	$5600	//////////////////
2000-2200	$150,000	$149,900	$100
Difference	$2500	$10,000	//////////////////
1800-2000	$145,000	$142,500	$2500
Difference	$5000	$7400	//////////////////
1600-1800	$133,000	$130,000	$3000
Difference	$12,000	$12,500	//////////////////
1400-1600	$120,000	$117,000	$3000
difference	$13,000	$13,000	//////////////////
1200-1400	$105,500	$105,250	$250
difference	$14,500	$11,750	//////////////////
Difference TOTAL	$62,250	$63,000	$5350
Divide by 8	$7781	$7875	//////////////////
Divide by 9	//////////////////	/////////////////	$594
Divide by 200 sq'	= $ per Sq' $39	= $ per Sq' $39	//////////////////
Divide by 90 days	//////////////////	/////////////////	= $ per day $6.60

Data used is median sales prices in the area - for either current to 3-months or 4-6 months; by house square footage ranges. In the gray boxes in the difference between the 2 median prices per the adjacent ranges. Here we see the difference in price per square foot (on average) is $39 and the amount of price increases per day (on average) is $6.60. Below we see most of the current listings are short sales, but most of the sales are the REOs. The percentage of short sales has doubled over last year, and now there are three times the number of standard sales. Standard sales pull the highest prices, and the short sales take the longest time to sell. We see homes are selling a little faster now and prices on average have moved up.

	Total Number	% Standard	% REO	% Short Sales
Active Listings	780	16%	22.5%	45.5%
Pending Sales	485	10.5%	34%	45%
Closed Sales	221	17%	47.5%	25%
SOLD 1-year ago	325	5%	79%	12%

	Standard sq'	REO per sq'	Short per sq'	Standard DOM	REO DOM	Short DOM
2009	$78	$62	$67	68	41	136
2010	$82	$68	$66	50	36	127