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September, 2009:

Monday Morning Market Update September 28, 2009 Wk#39

Sep 28th, 2009
by Kathy Rain.
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Our Fall Selling Season is in full swing as Pending sales are consistent in Pacifica and increasing from Half Moon Bay to Montara with last week’s sales being the highest in the last 30 days.  The under $700,000 market is the most active. 
The homes that closed this week were evenly divided with half that were listed over 1 Million and half listed between $550,000-$750,000.  Pacifica had no closed sales this week but did have 6 properties go sale pending.  Both Pacifica and the Half Moon Bay to Montara areas each had 6 new listings.
In talking to buyers at open houses this weekend, the price ranges they are looking in are up to 1 Million.  Good news for the large number of sellers of high end properties.
 
Still a Buyers Market – HALF MOON BAY through MONTARA, CALIFORNIA with 14.7 months supply.  This is a continuing decrease from past weeks.
Still, just under half of the listings are listed at over 1 Million and 10% at $600,000 or less.  The low end of those listings are located at Martins Beach which continues to attract buyers even though the properties will have to be abandonded in 12 years.  7 new Pending Sales this week.
Active Listings-130 Single Family Homes with 55 listed at $1 Million or more.
6 New Listings this week with 4 listed for over $1,000,000.
Pending Sales-38 Single Family Homes with 12 listed for under $600,000 and 5 over 1 Million.
7 Properties went Sale Pending this week.
80 Homes Closed since January 1, 2009 with only 14 that closed over $1,000,000 and 15 between $800,000 and 1 Million and 11 listed at $500,000 or less. 7 homes closed this week with 4 listed over 1 Million.
Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA with 2.7 months supply.  Inventory held steady this week.

Statistics remain consistent another week with the current number of Active Listings divided by the average number of homes sold YTD, there is 2.7 months of inventory of Active listings.  6 new listings this week half listed under $600,000.
Active Listings-51 Single Family Homes. 11 listed at $900,000 or higher and 11 listed under $600,000.
Pending Sales-56 Single Family Homes with 19 listed under $500,000 and 20 listed between $500,000 and $600,000.
6 Properties went Sale Pending this week with4 listed under $600,000
172 Closed Sales since January 1, 2009 with 6 that were listed for over 1 Million. 74 sales were from homes listed at $500,000 or less.
NO new sales this week.
ABSORPTION RATE
Absorption Rate is the number of months it takes to sell the current inventory at the present rate of sales.

6 months supply is a balanced market.
Less than 6 months supply is a Sellers market.
More than 6 months supply is a Buyers market

Monday Morning Market Update September 21, 2009 Wk#38

Sep 21st, 2009
by Kathy Rain.
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This is our Fall Selling Season and statistics have been really consistent since Labor Day.  Any sales have been replaced with new listings which are being priced to sell.  Buyers have been out at Open Houses and many are looking for their second or third home as they think about coming to the coast.   Yesterday, in the Real Estate section of the Sunday San Francisco Chronicle, several buyers that came in to our open houses quoted an article that suggested there is going to be another wave of homes that will be in default as their interest rates adjust.  Yes, this is sometime next year, however, it suggests that we have a new bottom to our market in the future.  The story continues to remain the same as it always has, if you don’t plan on a purchase for the short term, then you won’t need to worry.  As for sellers, if you’re moving up or even in the same geographic area, you will benefit from a new purchase which will make up for any loss on your sale.
 
Still a Buyers Market – HALF MOON BAY through MONTARA, CALIFORNIA with 15.7 months supply.  This is a decrease from past weeks.
Still, just under half of the listings are listed at over 1 Million and 10% at $600,000 or less.  The low end of those listings are located at Martins Beach which continues to attract buyers even though the properties will have to be abandonded in 12 years.  Only 2 new Pending Sales this week again, same as last week.  
Active Listings-134 Single Family Homes with 54 listed at $1 Million or more.
10 New Listings this week with 6 listed for over $900,000.
Pending Sales-37 Single Family Homes with 7 listed for under $500,000 and 5 over 1 Million.
2 Properties went Sale Pending this week.
76 Homes Closed since January 1, 2009 with only 13 that closed over $1,000,000 and 8 between $900,000 and 1 Million and 11 listed at $500,000 or less. 5 homes closed this week once again with 4 listed between $660,000-$815,000.
Sellers Market with few Homes for Sale – PACIFICA, CALIFORNIA with 2.7 months supply.  Inventory held steady this week.

Statistics remain consistent another week with the current number of Active Listings divided by the average number of homes sold YTD, there is 2.7 months of inventory of Active listings.  8 new listings this week all listed betwen $500,000-$650,000.
Active Listings-53 Single Family Homes. 11 listed at $900,000 or higher and 15 listed under $600,000.
Pending Sales-50 Single Family Homes with 17 listed under $500,000 and 18 listed between $500,000 and $600,000.
6 Properties went Sale Pending this week with 5 listed under $550,000
172 Closed Sales since January 1, 2009 with 6 that were listed for over 1 Million. 74 sales were from homes listed at $500,000 or less.
2 Homes Closed this week listed under $569,000.
ABSORPTION RATE
Absorption Rate is the number of months it takes to sell the current inventory at the present rate of sales.

6 months supply is a balanced market.
Less than 6 months supply is a Sellers market.
More than 6 months supply is a Buyers market.

More Banking/Lending Changes-What do you think about this?

Sep 21st, 2009
by Kathy Rain.
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Susan O’Driscoll of Princeton Capital sent this.  After reading the information below, we are not sure that this is a good move.  Would not like to see more mistakes by the banks that will cause more Foreclosures and Short Sales down the road.  Let us know what you think.

“Friday, the FHA Commissioner announced that after January 1, the FHA will require appraisals to be ordered via HVCC, and that instead of a net worth of $250,000 lenders must have a net worth of $1 million sometime in the next year. The FHA sent out a Mortgagee Letter to all lenders that they are adopting HVCC in most of its current form – the same one adopted by Fannie & Freddie in May. Mortgage originators will no longer be able to order appraisals from appraisers, but instead use AMC’s, which contributed to some of the popularity of FHA loans. Appraisers stand to make a little more, brokers will have less control, FHA appraisals will only be good for 4 months and not 6, and the FHA will allow appraisals to be transferred to another lender. Realtors can still give appraisers comparable sales data, but just not value: a fine distinction. In addition, the FHA said it may fall below its mandated capital level (2% reserves) for the first time in its history, but it will not require a taxpayer bailout, and that they will be hiring a chief risk officer. (Talk about a piece of cake job, right?)


Mini-eagle questions? “Lenders seeking approval to originate, underwrite, or service an FHA loan must meet the eligibility criteria for a supervised or non-supervised mortgagee. Mortgagees with this approval status must assume liability for all the loans they originate and/or underwrite. Loan Correspondents (mortgage brokers) will continue to be able to originate FHA-insured loans through their relationships with approved mortgagees; however they will no longer receive independent FHA approval for origination eligibility. Much more stringent requirements. Check it all out at: http://portal.hud.gov/portal/page/portal/HUD/press/press_releases_media_advisories/HUDNo.09-177

Why the changes? According to the MBAA, almost 20% of FHA loans are delinquent in some form. The number of loans that they insure has grown from slightly more than 4 million 3 years ago to almost 5 ½ million now. Many originators view FHA loans as a substitute for the subprime loans from days gone by and some analysts feel that these loans will cause a huge negative impact on the industry and on the taxpayer. (Not everyone deserves a home loan, right? Why allow DTI’s above 36%? 3.5% or less down?)

PMI made some adjustments to their Distressed Markets List, at the same time increasing the maximum debt-to-income (DTI) ratios to 45% for all loans.  While this will allow more borrowers to qualify, “we caution our customers to carefully analyze the borrower’s ability to repay the loan using a higher ratio.  We will require that your submissions represent a balanced range of DTI ratios.”

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