The Hemet - San Jacinto, CA real estate market has remained flat as the summer buying season came to an end.

This report wants to look back from the period covering August 21st through September 20th, 2009.

In particular we will look exclusively at the impact that bank owned homes have had on the market and how each of the four dominant finance types have an effect on the bank owned real estate transactions.

The four finance types, of course, are:  Cash, Conventional - typically requiring 25% cash down by the borrower / investor, FHA which is predominately the first time home buyer market and requires a 3.5% down payment by the borrower and finally the VA Loan which limits the borrower from spending any more that $1 out of pocket for the home...including closing costs (which are often financed by the VA).

FINANCING TYPE

This chart shows that the largest percentage (43.48%) of closed transactions in San Jacinto, CA were with FHA Financing.  The Cash Driven Investor market was approximatly 30% less in the number of close real estate transactions, in San Jacinto, CA during the period of 8/21 through 9/20/2009.

LIST PRICE vs. SOLD PRICE

The next chart tells an interesting story in that the investor who spots a great opportunity is not afraid to spend above list price to take advantage of the market while buyers who must rely on a more traditional finance relationship with a lender must be more concerned with the list price and the appraised value. 

Bear in mind that this period is pre HVCC the new legistaltion that dictates changes in the appraisal process.

SIZE OF HOME BY FINANCING TYPE

In order to get a true feel for the market, it is important to see what type of financing is being yued for waht type of home.  although all homes in this study ard detached singe family residences and do not include any condos or mobile homes, there is still a big differance.  You'll see what I mean when you look at this next chart.