In my recent post on this series, San Jacinto Market Analysis - SOLD 5/20/09 - 6/20/09 I shared insight to the overall San Jacinto real estate market by providing a brief synopsis of current market conditions by analyzing all of the 136 residential real estate homes that closed escrow between May 20th and June 20th, 2009. In this segment, I will look closely at San Jacinto homes for sale that sold to owner occupied buyers with a minimal down payment using the government sponsored FHA loan program.
FHA Financing is the dominate method to purchase and finance a home in the current market. 67, or nearly one in two of the 136 San Jacinto home buyers, 49.26%, used the government sponsored FHA loan program that only requires a minimum of 3.5% down payment. FHA Financing has established standards that the home being purchased must adhere to in order to qualify for financing. So, the San Jacinto CA home buyers not only had to qualify for an FHA Home Loan but the home they want to purchase must also qualify for the financing. The other important provision of this loan program is that it is exclusively available to owner occupied purchases - which cuts out the investors.
The homes continue to grow in size as we shift from Investor type financing to a more traditional home buyer. When the end home buyer wants to buy a San Jacinto, CA home for sale they want more of just about everything. The 2,211 square foot of living space with the 3.88 bedrooms and 2.45 baths on the 9,569 sq ft lot screams that BIGGER IS BETTER! They like newer, too - the average FHA Home Loan in San Jacinto from May 20, 2009 until June 20, 2009 was built in the year 2000.
It should not be a big surprise then that the price went up for the owner occupied homes in San Jacinto and the FHA home buyer paid more per square foot than any other buyer in San Jacinto, during the same period.
When analyzing the raw data, perhaps the most important aspect is that the purchase price was, on average, higher than the list price. That's right, the Average List Price for a home that sold with FHA Financing was $142,408 and it sold for 101.02% more, or $143,525...and yes the cost per square foot also increased to $66.70.
Of the 67 properties sold with Conventional Financing, 63 were bank owned, REO homes for sale directly from the bank; three were short sales and one was reported (or misreported) as a standard sale and there was one probate sale.
The collective marketing time was on average 83.85 days on market and 50.27 days in escrow. Perhaps the reason it took so long for these to sell was that there were only, on average, 6.24 pictures per listing in the MLS. Looking at only the REO sales with FHA Financing in San Jacinto CA the DOM is reduced to 75.18 and the days it takes to close an escrow is also reduced - this time down to 49.77 days.
BE SURE TO READ THE OTHER SEGMENTS OF THIS SPECIAL MARKET REPORT ON SOLD LISTINGS IN SAN JACINTO, CA
Financing - CASH
Financing - CONVENTIONAL
Financing - FHA
Financing - VA
Financing - LAND CONTRACT
FINANCING OBSERVATIONS
Market Summary - Why local is Important
Blessings to all who read,
John Occhi, REALTOR®
www.JohnOcchi.Com
Hemet - San Jacinto Valley
951-6564-5550
Servicing THE REO Needs of Asset Managers, Servicers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above phone number.
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