May

6

First-time homebuyers priced out of the market during the frenzied 2001-2005 market are among those most attracted to real estate today.  In November 2007, 39 percent of buyers were first-timers, up from 36 percent in 2006, according to NAR.  The key impediment to buying?  Meeting tighter bank qualifying criteria.

International buyers increasingly are looking at opportunities in the U.S. real estate market.  Declines in the value of the dollar against other currencies and lower prices translate into a discount of up to 30 percent for some foreign buyers.

Investors from other states also are seeking bargains in those markets hardest hit by the real estate downturn.  Some are even buying properties sight-unseen for conversion to rentals until the market heats up again – a risky proposition, according to some observers.

Apr

25

With gas prices skyrocketing, more buyers are taking driving distance and the time they spent commuting into consideration when they look for a home. Some who bought homes in distant suburbs during the real estate boom because that’s where they could afford to buy underestimated the cost of commuting and are suffering both a decline in their home value and a more expensive daily commute.

Builders are shifting gears and building closer to metro areas, where empty-nesters and younger singles are more likely to buy.  This has created a renaissance in many downtown communities.  With the percentage of couples with children declining, the trend toward suburban living is expected by some to continue to moderate even after the housing market recovers.

Although real estate sales and prices are flat or down in dozens of metropolitan areas, micro-markets within them are performing very differently. We live in one of these markets, Conejo Valley and other parts of the Ventura County. Call us a real estate oasis where neighborhoods and ZIP codes defy national and regional downturns. We tend to be in the upper part of any market. Housing analysts say they can be found in most major markets whose local economies display moderate to strong fundamentals.

Some of these characteristics include, close-in, established neighborhoods convenient to the urban center’s employment and cultural attractions. They don’t require residents to make long commutes, sit in traffic for hours or worry about gas prices. They’re above-median-income areas, often well above, with home prices to match. Typically, these are not entry-level markets, nor do they have lots of new subdivision construction.

Educational levels of residents exceed regional norms, local school systems are highly regarded, and crime rates generally are low. Lastly, prime mortgage territories, with little to none of the negative neighborhood impacts of rising foreclosures caused by payment-shock loans going sour.

The bottom line here? Real estate value patterns and sales performances are uniquely localized, right down to ZIP Codes, neighborhoods and even individual streets. In the current national correction phase following the unprecedented boom years of 2001 to 2005, even adjacent micro-markets may be performing very differently. Smart buyers and sellers know that, and adjust their strategies on pricing, timing and bargaining with a micro perspective, no matter what the metropolitan headlines may be.

Apr

16

Currently, in our local market there is a good percentage of short sales or pre-foreclosure properties. These types of properties are becoming or already are GREAT buys. Get into the market now and purchase what would be a great future investment either for your family or as an income producing property. Investors are soaking up these properties now. Below are the percentages of total active (on the market) properties that are either short sale or REO (Real Estate/Bank Owned). Call us today to get a list of these properties for your preferred area. In addition, please read our April 11th blog as well.

% of Total Inventory that is Short Sale or REO (Real Estate Owned)

North Ventura County

Simi Valley 30.0%, Moorpark 29.2%, Fillmore/Santa Paula 41.4%

West Ventura County

Camarillo 21.9%, Oxnard/Port Hueneme 52.4%, Ventura 31.0%, Ojai/Oakview 14.5%

Conejo Valley

Agoura 8.1%, Newbury Park 21.5%, Thousand Oaks 20.6%, Westlake Village 4.6%

West San Fernando Valley

Calabasas 2.3%, Woodland Hills 7.6%, West Hills 8.6%

*This data is up-to-date as of 4/13. Display of MLS data is deemed reliable but is not guaranteed accurate by the MLS.

Apr

11

Former Federal Reserve Chief Alan Greenspan Tuesday said he expects the drop in U.S. home prices will probably end early in 2009 as housing inventory is reduced, and added that “…it is very likely that home prices will stabilize well before that.”   He noted that the damage from the subprime crisis won’t be fully apparent for months but called the current credit crisis the worst in 50 years.  Greenspan was speaking at a banking conference in Tokyo.  

Now understand that inventory as shown in our weekly and monthly Market Watch Reports seems to be around its peak and in some local areas dropping a bit. Here’s a little perspective, Conejo Valley in the 90’s housing slump had nearly 2,400 homes on the market and today there is roughly 1,100 single family residence and townhome/condo’s. We too, believe it is not fully apparent how the subprime crisis will play out. REO (Real Estate/Bank Owned) properties are a small percentage in our local market (majority is in Oxnard, Port Hueneme), but there is a higher percentage of short sales currently in our market that have yet to be foreclosed, if this happens at all. Sales for our local area have been increasing since March. People are buying properties that show drops to 2004/2005 prices and they are going fast with multiple offers at times. Most lenders/banks are negotiating and working within these short sales to everyone’s advantage. Buyer’s are getting great values on properties, seller’s are able to walk away from their property without a foreclosure on their records for near life and banks are not losing their shirts with the problematic foreclosure process.  

Today to next year is a great time to buy in our local market. There is no doubting that. If you’re waiting to see what happens that’s fine, but understand we are already in April and 2009 is right around the corner. If the deals are there now, take the time to talk with your real estate agent (us) and keep abreast of the inventory. You never know when you might come across that deal and that home you simply want for your primary residence or an investment. 

To understand the credit crisis look into the previous month (3/26) where we posted an article that helps explain the credit crisis. In addition, if you’re looking to better understand short sales or pre-foreclosures we have posted in our blog previously (2/21) some details explaining these type of transactions.  

Stop the negative media! Keep our economy strong!

The Federal Reserve System has created an online set of maps and data illustrating subprime and alt-A mortgage loan conditions across the United States. According to The Fed, the maps, which are maintained by the Federal Reserve Bank of New York, and their accompanying data may be used to assist in the identification of foreclosure hotspots; help community groups mobilize resources for financial counseling for homeowners and other programs; and assist policy makers with prioritizing expenditures for programs aimed at addressing the impact mortgage delinquencies and foreclosures may be having on their local economies.

http://www2.newyorkfed.org/mortgagemaps/

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