HAROLD PENNER: Fresno Real Estate Market Analysis Tax Credit Extended!
The big real estate news this month is the extension of the federal tax credit for first-time home buyers from November 30, 2009 to April 30, 2010. A first time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.
Now even more interesting for many of my sellers/buyers is a new tax credit that was added for repeat buyers. Buyers who already own a home and have lived in the home for five consecutive years are eligible for up to a $6,500 tax credit on their next home purchase. Whether you are interested in moving up or downsizing from your current home, you qualify as long as the new home will be your future primary residence.
So, those are some incentives for buying, but the question I am often asked is whether now the right time to buy in Fresno and Clovis, California. Well, I prefer to let the numbers do the talking when it comes to answering that. There are certainly fewer choices of homes available today than a year ago. 5,010 homes were for sale in October 2008 in Fresno and Madera Counties. Today the number of active properties averages around 2,500. So, there are 50% fewer homes for sale today than a year ago. The primary reason for this is the reduction of foreclosures. The number of foreclosures for sale today have decreased by about by an astounding two-thirds since the beginning of the calendar year.
Many buyers may be waiting for those foreclosures to come back and flood the market with bargains thereby driving the overall price down. But, by looking at the statistics from this past year and by referencing the historical trends of the Fresno market, I don't anticipate any significant price drops. During the height of active foreclosures, the average selling price was $156,256 (January 2009). With 50% fewer homes to choose from the average pricing this year has inched up to $174,867 (October 2009).
Now, it's possible that if foreclosures returned with a vengeance, Fresno and Madera counties' prices would decrease. But, in the past year the demand for homes has also increased. First time home buyers have now seen prices that are affordable and within reach. Out of town investors have again returned to buy rental properties. The overall number of sales has been steadily increasing instead of decreasing.
So, in short, I am advising clients that with historically low loan rates, low prices and this newest tax credit extension this is truly an excellent time to buy.
OCTOBER MARKET STATISTICS* - Fresno and Madera Counties
Average Price of Sold Homes in August '08 vs. '09 -$190,044 vs. $175,036 (8% Decrease)
Sold Homes in August '08 vs. '09 -907 vs. 891 (2% Decrease)
# of Foreclosures and Pre-Foreclosures Sold in August '08 vs. '09 - 595 vs. 577 (3% Decrease)
FEATURED LISTING 2765 Rialto Avenue, Clovis, CA 93611
$312,000
4 Bedrooms
2 1/2 Bathrooms
2,489 sq. ft.
Three Car Garage! Lovely Clovis home with fenced pool and 4 bedrooms plus a loft! This pristine Seller-owned home features hand scraped maple hardwood floors in downstairs entry, hallway, kitchen, nook & bathroom. The kitchen includes granite countertops, built-in gas range & breakfast bar.
HAROLD PENNER: Fresno Real Estate Market Analysis First Time Home Buyers - Cashing In!
Tax Credit Deadline Approaching!
The clock is ticking and the rush is on for first time home buyers to cash in on the $8000 federal tax credit. They must close escrow by November 30, 2009. With escrows typically lasting a minimum of 30 days, the next few weeks are critical for anyone interested in squeaking in before the deadline!
Here are a few of our recent clients that took advantage of these credits to buy their very first home!
Mike Bone
"I wasn't even thinking about house hunting until I heard about that $8,000 tax credit," remarked first time home buyer Mike Bone. He had heard that Harold Penner was an agent with the connections and knowledge to get people into homes fast and thought he would see what was out there. Initially interested in only the 93710 and 93726 area but discouraged by having only fixer-uppers in his price range, the Penner Team steered Mike towards a Cambridge built home in Northwest Fresno near Polk and Herndon.
"I absolutely love the home and the neighborhood. It's hard to believe that this is all mine," says Mike. Still at a loss with how to fill 1,600 square feet of space, this bachelor is looking forward to spending some of that $8,000 on home improvement projects this winter.
Mike Bone relaxing at home in his kitchen!
The Downs Family
Brian Downs, a local Fresno firefighter, and his family were on the hunt for months to find the perfect first home. In addition to Brian and Yvonne's three kids, they are committed to opening their home to invest in the lives of college students. The addition of these boarders/adopted family members meant that plenty of bedrooms were required! They also wanted to keep their kids in Clovis school district and were interested in having a pool.
After being outbid on a few foreclosures, the Penner Team led them to 2,468 square foot home with a pool near Shepherd and Chestnut that was a perfect fit! "Working with Harold and his son Jesse was wonderful and we know we would have never found this place without them," said Brian. Even better, the Downs were one of the lucky few in which the wait for an offer on a "short sale" was actually short! "After waiting so many years to buy, it is amazing to be able to own something like this," remarks Brian.
Enjoy the latest family photo of this lively bunch!
FEATURED LISTING 2676 E. Muncie Ave., Fresno, CA 93723
$274,000
3 Bedrooms
2 Bathrooms
1,858 sq. ft.
Three Car Garage! Granville home featuring three bedrooms including spacious master suite sitting room. Upgraded options include tile flooring, upgraded carpet and fully landscaped backyard with covered patio. Located in the new Clovis North High School area. Neutral and attractive decor throughout this seller owned home make it ideal for move in. Come see today!
HAROLD PENNER: Fresno Real Estate Market Analysis Appraisals in Fresno - Challenging Times
Appraisal Update
In May 2009, the "Home Valuation Code of Conduct" was adopted by all Freddie Mac and Fannie Mae backed loans (which accounts for over half of the loans in the United States). These regulations were created out of a concern that a lender who directly hires the appraiser for a property could unduly influence or pressure the appraiser to adjust the price. So, the government backed a new policy that appraisals must now be ordered through a third-party company in order to limit communication between the appraiser and the lender or realtor.
The act has had some negative consequences. Local lenders were previously able to choose their appraisers based on quality, knowledge and experience. Now the decision of who completes an appraisal is left to a national or regional appraisal company who often assigns the job to the lowest bidder regardless of experience and expertise. Additionally, many independent appraisers with years of experience in the local market now must join a third party company in order to continue to do business.
Here are some recent news stories covering this issue:
These regulations come at a time of change in Fresno/Clovis real estate which makes accurate appraisals all the more critical. In the past 3 months, the average price of sold homes, the speed of selling the home and the number of homes selling above the asking price have all inched up. One reason for this is that there are less homes available today than there were 3 months ago due to a decrease in the number of foreclosures. The other reason is qualified buyers taking advantage of current tax credits (only available until November 30, 2009) and low prices.
Here are the latest statistics for residential homes sold in Fresno and Madera Counties:
Average Selling Price - All Homes - $167,346 (July 2009) vs. $155,875 (April 2009) - Foreclosures Only - $130,899 (July 2009) vs. $123,477 (April 2009)
Days on Market - All Homes - 50% sold in 1-30 Days (July 2009) vs. 30% (April 2009) - Foreclosures Only - 61% sold 1-30 Days (July 2009) vs. 40% (April 2009)
Listing Price vs. Selling Price - - All Homes - 101% over asking price (July 2009) vs. 99% (April 2009) - Foreclosures - 105% over asking price (July 2009) vs. 100% (April 2009)
So, in other words, the majority of houses listed in Fresno and Madera counties are currently selling above asking price. This is especially true in north Fresno and Clovis as well as homes priced under $200,000.
Consequently, the latest challenge in Fresno real estate is not finding a buyer for a home but instead having the house appraise for the sold price. I have seen more and more cases of buyers involved in a bidding war for a house and then the sale being cancelled because a seller cannot afford to lower the purchase price to the appraised value. Or there have been more cases of sellers choosing to sell to a cash buyer for a lower price instead of a buyer with a conventional loan to avoid any appraisal concerns. This makes qualified appraisers all the more important.
JULY MARKET STATISTICS* - Fresno and Madera Counties
Average Price of Sold Homes in July '08 vs. '09 -$224,822 vs. $167,374 (25% Decrease)
Sold Homes in July '08 vs. '09 -773 vs. 953 (23% Increase)
# of Foreclosures and Pre-Foreclosures Sold in July '08 vs. '09 - 371 vs. 639 (72% Increase)
FEATURED LISTING 4665 N. Bryan Ave., Fresno, CA 93723
$540,000
4 Bedrooms
2.75 Bathrooms
2,543 sq. ft.
2 Acres! This lovely two-story custom built home features extra-deep 3-car garage, covered RV parking with tack area, pool with deck jets & large horse set up with sprinkled sand arena. Also includes detached mother-in-law quarters with access to a 1-car garage, & include a bedroom, living area & half bathroom.
HAROLD PENNER: Fresno Real Estate Market Analysis Holding Pattern in Fresno Real Estate
For the past few months, the local Fresno real estate market has been in a type of holding pattern. The number of active foreclosures reduced by over two-thirds in the past six months leveling out around 450 active foreclosures beginning in May 2009. Pricing in homes under $250,000 has been slightly rising, but overall the number of sold properties and the average pricing of those homes has remained relatively steady for the past 4 months.
There is plenty of chatter and predictions for when the flood of foreclosures will return. But, for now, one of the points for first time homebuyers to remember is that federal tax credits will only apply for homes purchased before November, 30, 2009. The reduction in foreclosures has meant increased competition for homes coming on the market. Buyers need to act fast and aggressively in order to get the homes they are interested in before they miss this window.
For sellers interested in taking advantage of this time, here are some suggestions for enhancing your home (excerpt from RealtyTimes.com):
1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.
2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn't draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.
3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don't get carried away with a color you love (e.g. purple walls-I've seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple-and then change it when it comes time to sell it!
4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you'll get the opposite reaction from buyers. They'll think your home hasn't been cared for properly which could result in a lower offer -- or no sale at all.
FEATURED LISTING 2243 W. Magill Ave., Fresno, CA 93711
$850,000
5 Bedrooms
4.5 Bathrooms
4,175 sq. ft.
Over Half Acre! Prime northwest Fresno location near Herndon and Van Ness, this 1991 built home includes 3 car garage, RV access and huge yard with pool. With over 4,000 square feet of living space, vaulted ceilings, marble flooring and open layout, this home is ideal for entertaining.
HAROLD PENNER: Fresno Real Estate Market Analysis Fresno Real Estate - Bottoming Out?
During the past 30 days, there has been a marked change in Fresno and Clovis, California real estate. Most notable is the marked decrease in homes for sale in Fresno County in all categories (short sale, foreclosure and seller-owned homes). The most dramatic is the reduction of foreclosure properties which have been steadily rising for the past 2 years. The average number of available foreclosures in Fresno and Madera County climbed throughout 2008 and in January 2009 averaged 1500 homes on the market. In February, that number dropped to 1,231 homes and in March it dropped further to 884 homes.
Now, there are some national trends that could have effected this drop and it is possible that this is just a blip in our real estate numbers. One of those trends is that some major banks had implemented a "foreclosure moratorium" in which they temporarily delayed processing upcoming foreclosure properties while determining if new legislation would be beneficial for their bank and their homeowners. So, the drop in foreclosures could be attributed to that. These moratoriums have concluded so we will be watching next month how that effects our foreclosure numbers.
Another uncertainty is how federal incentives such as the first time home buyer tax credit, loan modification assistance and other upcoming programs will impact local real estate.
But, here are the reasons for why I'm becoming increasingly convinced that Fresno real estate has reached the bottom.
First, there are less homes available in all categories, not just foreclosure properties.
Second, even though there are less homes available, the number of sales in all categories is increasing. In February 2009, there were 457 foreclosures, 52 short sales and 119 seller-owned homes that were sold in Fresno County. In March 2009, despite there being fewer choices, there were 536 foreclosures, 73 short sales and 203 seller-owned homes sold in Fresno County. Even more telling, there are more pending properties in escrow today than have been sold in the past 3 months combined. So, this trend of increased sales is continuing.
So, what does this mean for you?
Sellers - This is the ideal time to upgrade your home. In the past months I have advised sellers to wait until their house sells to begin looking to buy. There wasn't enough demand for houses to ensure that homes would sell quickly.
But, with the current market conditions you can now search for homes and sell your own concurrently. You will be selling your home for a lower price, but then buying another for a similarly low price. The difference is that right now, you can sell with ease.
This will not always be true. Historically, the Fresno market experiences sharp increases or decreases in prices and then settles into a plateau in which price and demand do not adjust for between 5-10 years. While we cannot guarantee that this pattern will repeat for this real estate cycle, it is likely to do so. Right now sellers will sell and buy low, but they can do so quickly with minimal carrying costs. Once our market reaches that price plateau, there will be increased competition, longer amounts of time on the market and more incentives offered by sellers in order to attract buyers.
Buyers - I am advising all my buyers to actively look and buy quickly to take advantage of the current prices. This is especially true for first time home buyers who qualify for the federal tax credits. Those will only apply to homes purchased and closed before November 2009.
FEATURED LISTING 3594 W. Buena Vista Avenue, Fresno, CA 93711
$945,000
4 Bedrooms
3.5 Bathrooms
3,528 sq. ft.
Sweeping Views! Featuring spectacular views of the bluffs and meticulous greens of the San Joaquin Country Club this home is a rare find. In addition to three spacious bedrooms, this home features private guest quarters with a separate entrance. Large picture windows provide ample opportunity to appreciate the nearly ½ acre lot featuring pool and multiple entertaining areas. A comfortable and peaceful escape that should not be missed.
HAROLD PENNER: Fresno, California Real Estate Market Analysis
Obama Policy Implications for Fresno Homeowners
On March 4, 2009, the U.S. Treasury Department released guidelines for a new program to assist homeowners. Here are some of the basics of that program:
Typically, owners cannot refinance unless their loan is 80% or lower of current market value. So, for example, if your home is currently worth $200,000, you need to owe less than $160,000 in order to refinance. With this new program, some homeowners with Freddie Mac or Fannie Mae loans who are current with their payments may be able to refinance as long as their first mortgage is similar or lower than the current market value. This is possible between now and July 2010.
Assists up to 3 to 4 million at risk homeowners by reducing monthly mortgage payments through interest rate reduction, extension of the term of loan (i.e. 40 year loan instead of 30) or reducing the principal balance. The government will be sharing some of the costs for modifying the loan. The goal would be to adjust payments to between 31% and 38% of the homeowner’s gross income. So, for example, if homeowners currently earn $50,000 annually, the bank and government may be able to adjust your payments to as low as $1,300 per month (PITI).
The key to this program is that each lender must voluntarily choose to participate. Banks may or may not determine that there are sufficient government incentives provided to justify refinancing. And homeowners must request to be reviewed for this program and demonstrate a financial hardship to qualify. If you feel you qualify, you should contact your lender directly. You can also speak to a HUD approved counselor for free. Click here to find Fresno HUD approved counselors
FEBRUARY REAL ESTATE MARKET STATISTICS* - Fresno County, California and Madera County, California
* Average Price of Sold Homes in February '08 vs. '09 - $256,519 vs. $148,749 (43% Decrease)
* Sold Homes in February '08 vs. '09 - 388 vs. 716 (Almost Double)
* # of Foreclosures and Pre-Foreclosures Sold in February '08 vs. '09 - 139 vs. 608 (Increased over 4 times)
* Avg. Loan Percentage Rate in March '09 – 5.0% (30 Year Fixed)
*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
3 Car Garage! Built in 2000, this Gary McDonald home is located on a Clovis corner lot near Buchanan High School. Recently updated and freshly painted interior with mature landscaping and fruit trees, this is a comfortable, seller-owned home that is available for move-in!
HAROLD PENNER: Fresno Real Estate Market Analysis Stars are Aligned For Buyers: Fresno and Clovis Real Estate Market Conditions
2009 is going to be one interesting year for Fresno and Clovis Real Estate. Looking at the local statistics, while I can't predict that the bottom of the market has come, I do know that 2009 buyers are going to look back at this time and be thankful that they bought.
There are a number of reasons for this:
Foreclosures Are Still Rising
2008 began with an average of 900 foreclosure properties on the market in Fresno and Madera , California and ended with nearly 1500. Even more telling, only 28% of sales in January 2008 were foreclosures. When we ended the year, December 2008 sales were comprised of 64% foreclosures.
Nationally, news has been buzzing with the latest in the search for the right approach to solve the problem of foreclosures. One particularly interesting report tracked the percentage of homeowners who continued to miss payments after receiving refinancing (lower interest rate, lower payments, etc.) from their banks. 37% had again missed one payment after 3 months and 55% missed at least one payment after six months. This would suggest that refinancing may not be the answer.
The bottom line is that as long as foreclosures increase the price of homes will continue to be affordable and now will be a wise time to buy.
Interest Rates Lowest in 37 Years
In an effort to encourage home buying and refinancing, home loans rates are now historically low and currently hover around 5.0% for your primary residence.
Consider Refinancing If you are currently at least 6.5% or higher on your rate and you intend to own your home for at least three more years, it may be wise to consider refinancing. First call the 800 number on your loan statements and ask for their refinancing department. You may get a better package by staying with your current bank and dealing with them directly. Then contact a lender and compare. If you would like a recommendation for a local lender, please let me know.
Consider Buying Rental Property Home prices have fallen in some areas to the pre-housing boom of 2002. Yet, rental rates remain steady in Fresno and Clovis. A high rate of foreclosures means that many new renters are looking for homes. At the same time, we are once again back to the days where purchasing an investment home means immediate cash flow from rental payments. This means an automatic and steady income for investors. If you would like to be emailed a selection of rental property investments, please contact me at the information below.
Check your Equity Lines For obvious reasons, many homeowners are considering buying an investment or rental home for supplemental income. In some cases, they intend to use an equity line from their current home as a down payment. What they don't realize is that many banks are removing that option based on adjusted values of the home. Check with your bank to see whether yours is still available. Otherwise, for an investment property, you will need a 20% down payment in almost all cases.
To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com
2008 STATISTICS AT A GLANCE*- Fresno and Madera Counties
Avg. Sales Price: Year Avg. 2008 - $191,451 Year Avg. 2007 - $292,000
City of Fresno Average - $277,090 (2007) vs. $214,208 (2008) City of Clovis Average $357,921 (2007) vs. 269,497 (2008)
Number of Active Bank-owned Properties March 2008 - 968 December 2008 - 1492
Number of Active Short Sales Properties March 2008 - 762 December 2008 - 940
Average Listing Price (Resale) March 2008 - $300,469 December 2008 - $264,640
Average Listing Price (Foreclosure) March 2008 - $241,728 December 2008 - $144,045
Average Selling Price (Resale) March 2008 - $ 282,361 December 2008 - $248,342
Average Selling Price (Foreclosure) March 2008 - $229,658 December 2008 - $140,868
Total Homes Sold Total Units Sold in 2008: 7,877 Total Units Sold in 2007: 5,528
2008 Summary 7,877 Total Units Sold: 3,975 Foreclosure Properties (50.5%) 403 Short Sale Properties (5%) 3499 Resale Properties (44.5%)
*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
Gorgeous Estate! This nearly half-acre estate brings new meaning to the term "outdoor living." Every inch of this stunning Gary McDonald built home exudes the highest level of custom, quality worksmanship. An infinity edge slated-lined pool with cascading waterfall, life sized chess set, custom built arbor, putting green, fire pit, outdoor kitchen, and sport court are just some of features offered.
HAROLD PENNER: Fresno Real Estate Market Analysis A Buyer's Market: Fresno and Clovis Real Estate
Despite a tough year for real estate, I have found many things to be thankful for this holiday season. For my office, work has been steady despite a rapidly changing local market. One of the primary reasons for that is the versality and expertise of my staff. In a world of job related lay-offs and declining business opportunities, the ability to maintain a full staff is a testament to their value in customer service and escrow management.
But, there have been some adjustments. During the past 20 years, my typical clientele has been comprised of approximately 70% sellers and 30% buyers. But, with the change to a buyer's market and the flood of bank-owned homes, we have been able to assist many first time home buyers and investors, which adjusted that ratio to 60% seller and 40% buyers. In addition, I developed a specialty in closing short sale (pre-foreclosure) homes.
There are clear reasons why investors and first time home buyers have been taking advantage of the current market:
Price: Between May 2008 and November 2008, the average price of sold homes in Fresno and Madera County has dropped from $243,899 to $178,769. This is a 27% decrease in six months.
Increasing Demand: There are over 1000 less homes on the market then in 2007. Yet, 30% more homes were sold in 2008 to date then last year. Demand has been building throughout 2008.
Low Interest Rates: Interest rates are currently at their lowest point since January 2008 and currently average 5.5%.
Click Here to view the latest news on interest rates.
Click Here if would like to sign up to have some home options emailed to you as they appear on the market.
Also, my January newsletter will be a 2008 year end analysis of Fresno and Clovis real estate conditions including expectations for the upcoming year.
To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com
NOVEMBER MARKET STATISTICS - Fresno and Madera Counties
Average Price of Sold Homes in November '07 vs. '08 - $294,407 vs. $178,196 (40% Decrease)
Sold Homes in November '07 vs. '08 - 329 vs. 642 (Nearly twice the amount of 2007)
# of Foreclosures and Pre-Foreclosures Sold in November '07 vs. '08 - 79 vs. 454 (Increased over 5 times)
HAROLD PENNER: Fresno Real Estate Market Analysis Positive News for Short Sales in Fresno and Clovis
There have been some interesting trends with the short sale market in the Fresno and Clovis area in the past few months.
Definitions:
Short Sale: Short Sales occur when a property is sold and the lender agrees to accept a discounted payoff, meaning the lender will release the lien that is secured to the property upon receipt of less money than is actually owed. The primary advantage of a short sale is that a borrower can typically has more protection against credit scores reductions and are eligible to purchase a home more quickly than those experiencing a foreclosure.
Foreclosure: Often referred to as an REO (Real Estate Owned), this status indicates the property is now owned by the lender or bank as a result of a foreclosure.
Current Market Trends:
There are some disadvantages to placing offers on short sales in the Fresno and Madera counties. In October 2008, in Fresno and Madera County, 31% of all listed foreclosures successfully closed versus only 6% of listed short sales.
The primary reason that short sales do not successfully close is due to delays in closings. Most banks are not currently equipped to process short sales quickly enough for buyers. By the time an acceptance has come the buyer has moved on to another property. But, if that processing time could be improved, short sales would be beneficial situation for banks, sellers and buyers given the alternative of foreclosures.
Click Here to view more details regarding advantages and disadvantages of purchasing short sales.
Fall 2008 Short Sale Trends: But, it would seem that those numbers may be improving in the future for a number of reasons:
Statewide Short Sale Statistics - The State of California requires mortgage companies operating in the state to submit results regarding the processing of foreclosure, short sale and refinancing claims. The most recent statistics published (September 2008) show a modest increase from 5% in January 2008 of loan adjustments being short sales to 13%.
The ratio of successful short sales vs. foreclosures is also improving with 7% ratio in January 2008 versus 28% ratio in September 2008. Banks are accepting more short sales on a statewide level.
Bank Short Sale Policy Improvements - Recently a loss mitigator from Wells Fargo spoke in Fresno regarding the current trends with short sales. One of the most interesting points was the efforts of Wells Fargo to increase the number of personnel and simplify the short sale process. The bank will be striving to shorten the response time from what was months to within 30 days of receiving an offer.
Legislative Changes - SB 1055 was passed recently by the State of California. It provides tax relief for short sales that close between January 1, 2007 and December 31, 2008. Sellers would not be responsible for paying the state taxes of the difference between their loan amount and the selling price of their short sale. For more details, please contact your tax professional.
Personal Experience - Anecdotally, I have witnessed an encouraging change in the response time of banks in the past month or two. Short sales that have been lingering for months with offers are finally being given attention and are closing. This includes short sales with banks such as: Countrywide, Wells Fargo, Home Eq, Saxon Mortgage, Citimortgage and Indymac.
Click Here for free assessment of whether your home qualifies for a short sale.
To learn more about purchasing or selling a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com
OCTOBER MARKET STATISTICS - Fresno and Madera Counties
Average Price of Sold Homes in October '07 vs. '08 -$314,726 vs. $194,506 (38% Decrease)
Sold Homes in October '07 vs. '08 - 373 vs. 793 (Over twice the amount of 2007)
# of Foreclosures and Pre-Foreclosures Sold in October '07 vs. '08 - 79 vs. 532 (Increased over 6 times)
5 Car Garage! Nearly three acres at the corner of Shepherd and Sunnyside, this Clovis home features a horse stall, seasonal pond, and well. With over 3,000 square feet and 5 car garage, this is a home ideal for peaceful, country living with the conveniences of the city nearby.
HAROLD PENNER: Fresno Real Estate Market Analysis Refinancing Hope for Homeowners in Distress
New Refinancing Plan On October 1, 2008, the FHA "Hope for Homeowners" plan was implemented. If you meet the guidelines outlined below you may be eligible to refinance your current mortgage. One key condition, however, is that your current lender of your mortgage must agree to absorb the loss of the difference between the current loan balance and 90 % of the current market value.
Borrowers must meet the following eligibility criteria:
Home must be occupied by the owner of the property
Their mortgage must have originated on or before January 1, 2008;
Their mortgage debt-to-income must be at least 31 percent;
They cannot afford their current loan;
They did not intentionally miss mortgage payments; and
They do not own second homes.
Features of FHA-insured loans under the new program include:
30-year, fixed rate mortgage;
Maximum 90 percent loan-to-value ratio;
No prepayment penalties;
$550,440 maximum mortgage amount;
Extinguishment of any subordinate liens; and
New home appraisals from FHA-approved appraisers.
If you believe you may qualify for this refinancing opportunity, you should start by contacting your current lender. Explain why believe you qualify and ask whether they would consider this refinancing option.
FHA New Loan Changes For those interested in buying a home, October 1, 2008 brought changes to the minimum qualifications for new FHA loans. These changes include:
Minimum down payment for FHA Loans - raised to 3.5% from 3%
Currently up front mortgage insurance premiums raised to 1.5%. Previously, borrowers with good credit scores could qualify for 1.25%.
The largest change is the elimination of non-profit contributions being admissible for down payment assistance. While programs such as the Nehemiah program are actively lobbying against this change, these third party programs can no longer be combined with an FHA loan.
To receive recommendations regarding qualified FHA lenders or to learn more about purchasing a home, please contact our office at (559) 322-7777 or email hpinfo@homesinfresno.com
SEPTEMBER MARKET STATISTICS - Fresno and Madera Counties
Average Price of Sold Homes in September ‘07 vs. ‘08 -$315,940 vs. $206,451 (35% Decrease)
Sold Homes in September ‘07 vs. ‘08 - 724 vs. 350 (Over twice the amount of 2007)
# of Foreclosures and Pre-Foreclosures Sold in September ‘07 vs. ‘08 - 51 vs. 451 (Increased by 9 times)
Custom Backyard Landscaping! A Gary McDonald built home, with corian countertops and whirlpool tub, across from the community pool and spa. Elegant, solid oak front door, tile roof, custom backyard landscaping with 2 trellis, an arbor, fountain and tuff stuff custom shed.
Disclaimer: ActiveRain Corp. does not necessarily endorse the real estate agents, loan officers and brokers listed on this site. These real estate profiles, blogs and blog entries are provided here as a courtesy to our visitors to help them make an informed decision when buying or selling a house. ActiveRain Corp. takes no responsibility for the content in these profiles, that are written by the members of this community.
HAROLD PENNER: Fresno Real Estate Market Analysis
HAROLD PENNER: Fresno Real Estate Market Analysis
;)
;)
