Imperial Valley real estate sales show positive signs
by Frederic Din, REALTOR(r), Your Imperial Valley Housing Specialist.
I'm often asked "how is the market doing?" or when someone hears I'm a REALTOR or knows I'm in the real estate business, they say with a concerned voice "how is it going for you?". My reply and responses are the typically the same, I say "the market is great, prices are affordable and interest rates are at all time lows, whats not to like about this market, when are you going to sell or buy a home?".
I can help you buy ANY home you see listed for sale in the Imperial Valley contact me anytime for prompt attention and professional service. Start your search for homes here by going to http://imperialvalleyreo.com
If you need to sell your home or are UPSIDE down on your home loan, talk to me about protecting your credit history and getting out from under your debt and walking away while you try to avoid foreclosure.
Recently Imperial County, also known as the Imperial Valley and the El Centro, CA MSA (metropolitan statistical area) received some less than flattering press regarding having the highest unemployment in the nation, currently at just under 28% and El Centro, CA was ranked as one of the top ten worst places to live according to http://www.walletpop.com/blog/2010/08/05/10-worst-places-to-live/
As interesting as these items are, the focus of this article is to talk about Imperial Valley real estates sales and provide proof that there are positive signs happening in our neck of the woods, a place that I call home in Imperial Valley.
During 2009 (I reviewed and analyzed information on our Imperial Valley MLS), there were a total of 1,505 residential sales, including single family detached, attached, condo/townhouses through the Imperial Valley. The Average sales price was $130,200 while the Median sales price was $129,642. These properties had an Average DOM (Days on Market, from listing date to contact acceptance) of 63 days. Sales for the year averaged approximately 125 housing units per month.
Out of the 1505 sales that took place in 2009, approximately 79% were REO or bank owned property sales, while 14% were short sales (where a seller has to sell for less than what they owe on the mortgage to pay it off) and about 7% were fair market sales, which could include probate or estate sales.
What has the market done so far in 2010?
During the first seven months of 2010, through July 2010, there have been a total of 771 residential sales in the Imperial Valley. The Average sales price was $129,376 while the Median sales price was $130,583, which is just about the same as it was for all of 2009. These properties had an Average DOM of 42 days and sales have averaged 110 housing units per month.
Out of the 771 sales that have taken place so far in 2010, approximately 68% were REO or bank owned properties, while 19% were short sales and 13% were fair market sales.
Although a bit premature, these numbers point to the fact that on an average basis the market appears to be stabilizing with respect to average and median sales prices.
Based on the sales in 2009 and 2010 reviewed and analyzed, it appears as if the REO, bank owned market segment seems to have shrunk by 14% and short sales have increased by 32% and fair market sales have nearly doubled.
Another interesting fact is the Days on Market have dropped by nearly 1/3, meaning homes are coming on the market and being placed under contact faster than they were in 2009, also an indicator of shrinking inventory.
Speaking of home inventory, let's talk about how many listings are on the market as of June 17, 2010. I selected that date to target approximately 90 days of inventory and to use a number in which homes are more than likely to sell.
Currently there are a total of 402 listings on the market which encompass, Active, Pending and Contingent listings.
An Active listing is one that has hit the open market and has not been placed under contract, while a Pending or Contingent listing indicates the property is under contract or is under contract subject to some other terms and conditions and is off market.
Of the 402 listings, 156 or 39% are Active listings, homes on the market and available for sale, out of these numbers 61 are REO, bank owned listings, 56 are short sales and 39 are fair market listings.
There are currently 155 listings or 39% that are Pending listings, homes placed under contract, out of these numbers 95 are REO, bank owned listings, 29 are short sales, and 31 are fair market listings.
There are currently 90 listings or 22% that are Contingent listings, homes placed under contract based on a specific outcome or decision, typically homes in this category are short sales, while the seller accepted the offer, the short sale lender has to make the final decision and are categorized as contingent offers. There are other circumstances as well that may be used for this category. Out of the 90 listings in this category, 26 are REO, bank owned listings, while 58 are short sales and 7 listings are fair market.
Out of the total number of listings, 45% are REO, bank owned listings, 36% are short sale and 19% are fair market listings.
These facts further point to a slight decrease in the dominance of REO, bank owned properties and an increase in short sales property transactions and fair market sales.
What does all of this have to do with you, the Home Buyer?
Plenty! Start your search for homes here by going to http://imperialvalleyreo.com
Home prices are currently at levels not seen since the early part of the decade and home loan, mortgage interest rates are at all time lows for fixed rate mortgages, which means you're able to get more home for less money.
Before you rush out and start looking at home, I have a few strong recommendations to make to help you become Happy Home Buyers!
1) Get pre-approved for a mortgage BEFORE you start looking at homes. Why? simple, if there is a home you like and you want to make an offer on it, chances are the sellers will demand you have a loa pre-approval to send with your offer, if you don't you're out! Don't let that happen to you, make sure you know exactly what you can afford to buy!
2) Make sure you have SOME money available for a down payment, closing costs, repairs/inspections or a combination of all. While you may be able to get ZERO down payment financing through USDA or other specialty programs, it's best to have some money set aside for these items. The important thing is to be prepared and by having some resources on your side will go along way to making you a Happy Home Buyer!
3) Make sure you have your home buying ZONE narrowed down. You should have a good idea of where you want to live, if not your real estate agent (or me) will ask you plenty of questions to make sure you're buying in an area you want to be in and can afford. While its great to think about homes in Heber and Brawley, make sure you find out where you really want to live. What is closer to work, school, parents, family or friends? How about shopping and freeway access, etc.
4) Lastly, don't be afraid of repairs. Just about ALL homes need something fixed, don't expect a brand new home if you're buying a foreclosure, REO or bank owned home, even some short sales need fixing up. The truth is, just about any home on the market today needs something, its just that some need more than others.
Remember, I can help you buy ANY home you see listed for sale in the Imperial Valley contact me anytime for prompt attention and professional service. If you need to sell your home or are UPSIDE on your home loan, talk to me about protecting your credit history and getting out from under your debt and walking away while avoid foreclosure.
Feel free to contact me at any time to discuss your person home buying or home selling needs, I can assist you in all areas of the home buying process. I will perform a BPO (brokers price opinion) when putting together an offer for a home to ensure you are offering the right price, while having the opportunity to "win" the bid to purchase.
A broker price opinion (BPO) is used by banks, lenders, servicing companies (like FannieMae and FreddieMac) to determine the market value range for a given property over a specified period of time. These valuation reports are often referred to as a CMA (current market analysis or comparative market analysis) and are typically a bit more detailed. Frederic has performed nearly 2,000 BPO reports in the Imperial Valley since July 2008. His valuations are trusted by local real estate professionals, mortgage companies, servicing agents and lenders nationally.
If anyone knows Imperial Valley real estate value trends, its Frederic Din, Your Imperial Valley Housing Specialist! Start your search for homes for sale here by going to http://imperialvalleyreo.com
We can work together to make the Imperial Valley an even better place to live, work, and raise a family. I should know, I've been here my whole life, well except for a few years of college out of the area.
Information contained in this article is Copyright (c)2010 Frederic Din, all rights reserved.
Logos and photos used by permission and/or credit given to their use. Thank you!
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