Real Estate Snapshot

Pending home sales in California rose in February and increased from the previous month and year according to C.A.R.’s Pending Home Sales Index, based on signed contracts. The index also was up from data recorded in February 2011, marking the tenth month in a row that pending sales were higher than the previous year. C.A.R. President LeFrancis Arnold stated “A lack of inventory in the bank-owned (REO) and short sale market was a contributing factor to the decline in share of distressed sales in February,” “In fact, REO inventory declined 24 percent in February from the previous year, while short sale inventory dropped 17 percent during the same period.”

After declining for two consecutive months, equity sales (homes that are not distress sales or “upside down”) increased in February, making up 51.1 percent of sales in February. In January 2012 and February 2011, equity sales consisted of 49.9 and 44.8 percent respectively of all sales.

Statewide, the total share of all distressed property types sold went down in February to 48.9 percent, down from January’s 50.1 percent and from 55.2 percent in February 2011.

The share of short sales dipped slightly in February. Of the distressed properties sold statewide in January, 23 percent were short sales, down from the previous month’s share of 23.8 percent but increased from last February’s share of 22.9 percent.

The share of REO sales also edged down in February to 25.2 percent, down from January’s 25.9 percent and down from the 31.9 percent recorded in February 2011.

Locally, in Ventura County, we’ve seen prices increase slightly in the low end price range. Much of this is being driven by investors, though first time home buyers are a large part of the market too. A listing in the under $350,000 range is sure to sell fairly quickly if priced right and in decent condition with multiple offers not uncommon. The mid range homes seem to have stabilized and high end single family homes are still constricting somewhat.

Income property, particularly multiple units, are flying off the shelves as well since those with money in the bank are not getting a good return on their money.

Real Estate Snapshot

The number of American buyers who signed offers to purchase homes went up in January to the highest point in almost two years sustaining the platform that our real estate market is showing increasing improvement.

Last Monday the National Association of Realtors stated that its index of sales agreements went up 2 percent last month to a reading of 97. That's the best reading since April 2010, which was the last month that buyers could cash in on the federal home-buying tax credit and the last time the reading was over 100.

A reading of 100 is considered healthy.

The NAR also released revised data for 2011. That decreased November's initial 19-month high of 100.1 to 96.9. However, contracts have been noticeably higher since summer when many were concerned that a second recession was imminent.

Contract signings are usually a bellweather of how the housing market is developing. The time frame between an accepted offer and closing escrow is generally one to two months.
This increase in accepted offers sustains other evidence of recovery in the housing market.

An economist at Decision Economics, Pierre Ellis, says home sales and building are in the process of “ongoing general, but gentle, progress.”

While we are no doubt a few years from a full recovery, housing prices are more affordable than they've been in decades and mortgage rates at all time historical lows.

If you’ve been thinking about buying a home or investment property, I’m happy to help you in the decision making process and consider your options. The window of opportunity is still open!

Detect, Prevent and Report Real Estate Fraud

If you know of anyone who is struggling to keep or has lost their home, you may want to read on. It’s easy to be vulnerable when under financial distress and there are people who will prey on those who are.

Enter “The Real Estate Fraud Advisory Team” (REFAT) which is a unique collaboration between the Ventura County District Attorney’s Real Estate Fraud Unit and Ventura County real estate professionals. The knowledge and expertise of this volunteer team assists in identify various frauds taking place and stays on top of the ever changing tactics of scammers who seek to take advantage of Ventura County residents.

REFAT has done such an outstanding job of finding and prosecuting scammers that they’ve successfully prosecuted over a dozen people for real estate fraud over the last year. Other DA offices throughout California and further have begun doing the same and are using us a model.

Here’s some practical advice to prevent consumers from falling victim to a scam:
Never pay an upfront fee for loan modification services. These fees are illegal.
Watch out for promises or guarantees of any sort. No one can promise that a loan modification will be successful.

Anyone offering to take over your payments in exchange for a fee is likely committing fraud. Homes have been lost and life savings have been wiped out.
Contact a HUD-approved counseling agency that can provide loan modification services for free.

If you think you’ve been approached in this manner or have been a victim of a loan modification or other scam, report it to the DRE, the FTC, the Attorney General, and the Ventura County District Attorney’s Real Estate Fraud Unit. We can’t do it without your help!

Check out the REFAT website – you’ll be surprised what’s been accomplished and they’ve only just begun. http://www.refat.org/home Or you can call their hotline at
(805) 751-5899.

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New Listing Above the College

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A Shred of Good News

Pending Home Sales in California Higher for Seventh Month in a Row

California Association of Realtors reported that pending home sales fell 9.1% in November 2011, but were up from a year ago. Based on contracts signed in November, the index came in at 109.8 (down from October’s revised index of 120.9). The index was up 11%, however, from November of 2010.

This marked the seventh month in a row that pending sales were up from last year. Equity sales (as opposed to short pays or bank owned homes)) accounted for more than half (55.1%) of sold homes in November, up from 53.9% in October and 54.4 % in November 2010.

New Listing!

This 2 bedroom home is a treasure! 2 bedrooms on a large lot with hardwood floors (under the carpet) and dual pane windows. It's been well cared for (not a fixer). Located in a nice neighborhood on a large lot! $269,000. Contact me for details.

Lynn Kenton, 805-901-5444, Lynn@LynnKenton.com, www.LynnKenton.com