Dec. 10 - Ontario Home Market Report

Short sales - often called "pre-foreclosure" in listings - continue to drive the market down, but the effect is exaggerated by sellers who advertise a very low price to get attention and leave it to the lender to counter offers with a higher, more realistic price.

They are called short sales because the seller actually owes more than he expects to receive from the sale. In order to complete a transaction, the lender must either accept less than what is owed or proceed with foreclosure and essentially "repossess" the house. A lender often agrees to a short sale because writing off a portion of the balance owed would be a better option than taking possession of the house and then having the expense of maintaining it, without receiving any payments, until a buyer can found.

By the way, a seller who has stopped making house payments, but kept up credit card and other payments as scheduled, may be able to purchase another home immediately after losing the house. There are price limitations, as you might imagine, but it is possible! Such programs were created to help those sellers who fell behind only when teaser interest rates adjusted upward. Post-bankruptcy home loans are also available. Contact me for more information.

In Ontario, seven homes closed escrow during the week ending Dec. 9 and 75 homes were in escrow on Dec. 10, according to the Inland Multi-Regional Multiple Listing Service. The MLS said 41 new listings were added during the week, for a total inventory of 905 homes on Dec. 10, including 614 single-family homes with no monthly fees and 291 condominiums, townhomes and single-family homes in associations.

During the past month, 165 Ontario listings have expired. Some re-listed, but other sellers are waiting until after the holidays or until the market improves.

If you know someone who has decided to wait, please urge them to contact me. Contrary to what you might think, serious buyers don't take the month of December off. They continue to look, especially since holiday vacation time makes weekday home shopping possible and visiting family may be looking to relocate. I can place up to 25 pictures of the home on http://www.realtor.com/, the website most frequently viewed by home shoppers.  Serious prospective buyers then can be escorted through the home.

Contact me via email at ila@Tarbell.com, or call me directly at (909) 261-3541.