September 11, 2009
Housing Market Showing Some Signs of Recovery
For the first time in nearly 22 months, the Imperial Valley real estate market is posting increases in closed sales prices for the third straight month.
Housing inventory is down, which means agents are busy helping prospective buyers take advantage of the federal tax credit which is due to sunset November 30, 2009 with limited numbers of homes sitting on the market.
The average sales price of a single family home in May 2009 seems to have bottomed out at $127,463, while the median sales price was flat at $128,500 based on 144 sales, according to the MLS, the multiple listing service sales report analyzed for this report.
Statistics for both June and July showed sales price strength higher than in May, with the June and July figures coming in at $128,786 and $128,053 respectively. The median sales price for May was $128,500 compared with June at $125,000, however both July and August posted increases of $129,900 and $129,000 respectively.
Housing inventory is down, which means agents are busy helping prospective buyers take advantage of the federal tax credit which is due to sunset November 30, 2009 with limited numbers of homes sitting on the market. There are rumblings throughout the industry regarding a possible extension of the tax credit offered to first time home buyers who take advantage of the program this year with an extension through the next year.
The number of sold properties slid nearly 40% in August when compared to May's near record month for sold properties tracked locally on the MLS. April of this year held the highest number of monthly sales at 145. While it’s too early to tell just how the sales statistics for September will fare, the market is seeing a slight increase in housing inventory over the last month or so since the latest foreclosure moratorium was lifted.
Despite the federal attempts to twist arms regarding Notices of Default and Notice of Trustee Sales filings, banks and lenders are still posting notices and taking properties back. However, many lenders are also holding onto foreclosed properties and are strategically releasing them into the market place, perhaps in an attempt to create artificial demand.
“Mark”, who asked not to use his last name said “I moved here for my employer about three years ago and wanted to buy a home, but the payment was more than I wanted to pay or could really afford”. Now Mark is looking at homes nearly half the cost they were just a few years ago.Buyers are coming to the market in droves looking for homes to purchase in fear that housing prices will soon jump, pricing them out of the market yet again, and losing out on the limited supply of homes available here. Fueled in part by the tax credit incentive this year and ultra-low interest rates, currently in the mid 4% to low 5% range for FHA and conventional loans, home buyers have a much stronger mortgage market to rely upon.
FHA loans require a buyer contribute at least 3.50% towards the purchase, which is essentially the down payment, although home buyers are free to make a larger down payment.
While several industry analysts have indicated that the recession is over and a recovery is well on its way, the Imperial Valley real estate market still has a way to go. While battling a 30 percent unemployment rate, those workers with jobs in the El Centro metropolitan statistical area (MSA) are looking at home buying opportunities with open arms.
“Mark”, who asked not to use his last name said “I moved here for my employer about three years ago and wanted to buy a home, but the payment was more than I wanted to pay or could really afford.”
Now Mark is looking at homes at nearly half the cost of they were just a few years ago.
While sales prices have declined, home sales volumes are up and more buyers are hitting the streets and searching online sites such as http://imperialvalleyreo.com and http://trulia.com for their bargain property. The housing market has some shaking out to do before there can definitively be any real sales price appreciation brought back to the market as in previous years.
However, this could definitely the time for homes buyers who have been waiting for the right time to buy. There is an increased trend of “new” resale homes hitting the market, albeit at prices are slightly higher and are at full retail prices, compared with their bank owned or short sale cousins. New homes often come with many built-in upgrades to flooring, counter-tops and floors, as well as other amenities which appeal to many home buyers willing to pay a premium by making an offer, and also perhaps borrowing more than the sales price to obtain the home.
Housing inventory is down, which means agents are busy helping prospective buyers take advantage of the federal tax credit which is due to sunset November 30, 2009 with limited numbers of homes sitting on the market.
The average sales price of a single family home in May 2009 seems to have bottomed out at $127,463, while the median sales price was flat at $128,500 based on 144 sales, according to the MLS, the multiple listing service sales report analyzed for this report.
Statistics for both June and July showed sales price strength higher than in May, with the June and July figures coming in at $128,786 and $128,053 respectively. The median sales price for May was $128,500 compared with June at $125,000, however both July and August posted increases of $129,900 and $129,000 respectively.
Housing inventory is down, which means agents are busy helping prospective buyers take advantage of the federal tax credit which is due to sunset November 30, 2009 with limited numbers of homes sitting on the market. There are rumblings throughout the industry regarding a possible extension of the tax credit offered to first time home buyers who take advantage of the program this year with an extension through the next year.
The number of sold properties slid nearly 40% in August when compared to May's near record month for sold properties tracked locally on the MLS. April of this year held the highest number of monthly sales at 145. While it’s too early to tell just how the sales statistics for September will fare, the market is seeing a slight increase in housing inventory over the last month or so since the latest foreclosure moratorium was lifted.
Despite the federal attempts to twist arms regarding Notices of Default and Notice of Trustee Sales filings, banks and lenders are still posting notices and taking properties back. However, many lenders are also holding onto foreclosed properties and are strategically releasing them into the market place, perhaps in an attempt to create artificial demand.
“Mark”, who asked not to use his last name said “I moved here for my employer about three years ago and wanted to buy a home, but the payment was more than I wanted to pay or could really afford”. Now Mark is looking at homes nearly half the cost they were just a few years ago.Buyers are coming to the market in droves looking for homes to purchase in fear that housing prices will soon jump, pricing them out of the market yet again, and losing out on the limited supply of homes available here. Fueled in part by the tax credit incentive this year and ultra-low interest rates, currently in the mid 4% to low 5% range for FHA and conventional loans, home buyers have a much stronger mortgage market to rely upon.
FHA loans require a buyer contribute at least 3.50% towards the purchase, which is essentially the down payment, although home buyers are free to make a larger down payment.
While several industry analysts have indicated that the recession is over and a recovery is well on its way, the Imperial Valley real estate market still has a way to go. While battling a 30 percent unemployment rate, those workers with jobs in the El Centro metropolitan statistical area (MSA) are looking at home buying opportunities with open arms.
“Mark”, who asked not to use his last name said “I moved here for my employer about three years ago and wanted to buy a home, but the payment was more than I wanted to pay or could really afford.”
Now Mark is looking at homes at nearly half the cost of they were just a few years ago.
While sales prices have declined, home sales volumes are up and more buyers are hitting the streets and searching online sites such as http://imperialvalleyreo.com and http://trulia.com for their bargain property. The housing market has some shaking out to do before there can definitively be any real sales price appreciation brought back to the market as in previous years.
However, this could definitely the time for homes buyers who have been waiting for the right time to buy. There is an increased trend of “new” resale homes hitting the market, albeit at prices are slightly higher and are at full retail prices, compared with their bank owned or short sale cousins. New homes often come with many built-in upgrades to flooring, counter-tops and floors, as well as other amenities which appeal to many home buyers willing to pay a premium by making an offer, and also perhaps borrowing more than the sales price to obtain the home.