Whittier, CA

Bank owned homes are only a part of the picture of Whittier real estate. 

Perhaps more interesting, is the change in housing supply from one year ago till now.

A year ago, on May 25, 2008, there were 888 homes for sale in the City of Whittier.

Today, June 8, 2009, there are 383 homes for sale in the City of Whittier.  In other words, there are 505 fewer homes for buyers to choose from.

So, in the course of one year, we have gone from a strong Buyers' Market to a Sellers' Market.

Don't let the news media tell you that it is a Buyers' Market, with plenty of home choices.  At least not in Whittier, if not in most of the rest of Los Angeles and Orange Counties.

One year ago, on June 9, 2008, there were 8.8 months of housing supply in Whittier.

Last month, May 2009, there were 118 homes sold in Whittier.  What that means is that, with today's 383 active listings, there are only 3.25 months of housing inventory available. 

A rule of thumb in real estate says that 6 months of inventory is a balanced market.  Below 6 months is a Seller's Market, and above 6 months is a Buyers' Market.  So, in Whittier, we are now in a strong Sellers' Market.  A year ago, it was a strong Buyers' Market.

Does it mean that there are no good deals in Whittier?  Of course not!  Prices have come down nearly 50% since the peak.  In other words, a home you could have bought December 2006 for $500,000 may sell today for only $250,000.  Is that an advantage for a buyer?  You bet!  Especially with today's extremely low interest rates.  But, if you are a buyer, be prepared to face a lot of competition from other buyers.  Homes in good condition, at a good price, are seeing multiple offers.  If you find a home for sale that you like, be prepared to offer more than the asking price, just like a dozen other potential buyers.  Then, just pray that your offer is higher than the competition.

How can you guarantee that you will win the bidding war on the home of your dreams?  Well, you can't.  However, with my help, you will stand a better chance.  Here's how:

• First, we find a property you like, preferably within the first day after it was put in the MLS.
• Make sure you can afford the home.  If you are preapproved for a home worth $400,000, don't go looking for homes that are priced at $430,000.  Stick to homes within your budget.
• We'll go see the property as soon as we can.  We can't wait until tomorrow to see the house.  Other people are seeing it today, and they are writing an offer on it today.
• When you have decided to buy a home, I will run a market analysis to see how the pricing on this home compares with other homes in the neighborhood.  Then, based upon the condition of the home and comparable home sales, you will need to decide how much to offer on the property.  Don't try to lowball an offer in this Seller's Market.  Your competition may just win the right to buy it by offering 1%, 2% or more above the asking price.
• A year ago, buyers could ask for closing costs and home warranties, and pay less than the asking price.  Today, it is much more difficult to expect the seller to provide a credit for closing costs.
• You can increase your chance of getting your home if you have better financing terms, including:
  • A large down payment
  • A conventional loan, rather than an FHA loan
  • An all cash offer
  • A high good faith deposit
  • Strong FICO scores
  • A direct lender, rather than a mortgage broker

Of the 118 homes that sold in May, 48 of them were Bank Owned homes and 25 of them were Short Sales. 

Bank Owned homes sold for an average of 100.54% of the asking price.

Short Sales sold for an average of 100.25% of the asking price.

The rest of the homes that sold in May went for an average of 97.48% of the asking price.

If you are a buyer, now is the time to find your home, before interest rates and home prices increase.  It may be difficult to find the right home, but, if you are persistent, and work with me, you can buy a home you will love, at a great price.

If you are a seller, and you want to sell your home quickly, you are in a great market right now.  Give me a call.  I will be happy to run a free market analysis for you.

-Blog End-

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About the author: The above Market Report on Whittier Real Estate was provided by Bob Willis, a Whittier Realtor®. Bob can be reached via email at bob@willisrealtor.com or by phone at (562) 639-9400.

For Whittier real estate, see Whittier Welcomes You. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my ListingBook website.

I service the following towns in the greater Whittier area: La Habra, La Habra Heights, La Mirada, Norwalk and Santa Fe Springs.

I specialize in helping first time buyers get into their first home. Whether you want to buy now, in six months or in a year, a Buyer Consultation with a professional Realtor® should be the first priority of your home search. It's custom designed for you and your needs! Please call me for a FREE Buyer Consultation! (562) 639-9400.

http://www.reneebaccaro.com/499096.html

FOUST Team Listing Will Be Featured in LA Times

Just a quick heads up that one of our listings in the city of Whittier, CA will soon be

featured in an upcoming article on real estate in the area. The listing is this 3 bedroom 2 bath 1800 square foot home in the popular Morningside community.


The author of the story should be Lauren Beale and we imagine the spotlight section should take place in the real estate section.


This is just another example of how a strong web presence pays big dividends in the current real estate market. We'd like to thank the LA Times for featuring us and invite all interested parties to check out our Whittier real estate and Whittier homes for sale pages.

Dear Friends,

While the whole world is engulfed in Swine Flu hysteria, we take a look at the facts and fiction surrounding the H1N1 Flu virus.

www.clientappreciationprogramweb.com/baccaro_flu.pdf

It Looks Like a Bottom. Home Prices Increase in February 2009

On April 22, 2009, the Federal Housing Finance Agency issued a Press Release showing that "U.S. home prices rose 0.7 percent on a seasonally-adjusted basis from January to February". In other words, home prices have gone up for the second month in a row. Do two months make a trend? Only time will tell, but there are other indications that the real estate market has made a drastic turn upwards.

The above graph starts at the peak of the housing boom in April 2007, and shows how prices continued downward until December 2008. The first significant rise in nationwide real estate prices was during the month of January. The trend continues with another consecutive month of price increases from January to February 2009.

The Low Inventory of Quality Homes for Sale

At the low end of the market, consisting of mostly bank owned properties, there are several obstacles for first time home buyers:

• Condition of most bank repos is only fair to very poor.
• Bank repos in fairly decent condition are getting multiple offers.
• Some bank repos in Whittier have received over 40 offers because they were priced low and in decent shape.
• Most first time home buyers are planning to use an FHA loan to buy their home. Unfortunately, when competing against a dozen other offers on the same house, there will usually be a few buyers using a conventional loan, with 20% or more down payment, or all cash. A bank will take conventional financing or cash over an FHA offer any day.
• If a property requires repairs, don't expect the bank to pay for them. Usually, they won't, which is another reason why they don't want to deal with FHA and its requirements that the home be in livable condition.

The Looming Prospect of Shadow Inventory, Increasing Unemployment and a Continuing Bad Economy

Although the trend shows home prices continuing upward, the overall economy could throw them into a downturn at any time.

Shadow Inventory: Banks have had a moratorium on foreclosures for the past few months, resulting in a huge inventory of homes that have not yet started the foreclosure process. Banks have also put a throttle on releasing their existing inventory of foreclosed properties onto the market to sell. They have held back because they do not want to flood the market with properties, and thus cause prices to go down. It appears as if they have gone too far in holding back because it is getting harder to find good properties for sale, especially where there are not multiple offers, and prices are rising. Some experts have estimated this shadow inventory to be so huge that it could have devastating effects on home prices.

Increasing Unemployment: If more and more people continue to lose their jobs, there will be more foreclosures. If, on the other hand, job losses decrease, people will start feeling more confident in the economy, and more people will want to snatch up today's low priced homes before prices go up.

The Overall Economy: If the economy gets worse, real estate prices will follow. If any of the Big Three auto makers go bankrupt, look for the rest of the economy to tank. On the other hand, if the auto makers survive, the economy will improve, consumers will have more confidence, and sales will increase.

Real Estate May Lead the Way Out of the Recession

It may be happening already. Home buyers are smart people, and many of them, who have been waiting for the bottom, have jumped into the market now, all at the same time. Competition for homes is fierce in Whittier. Don't let anyone tell you it is a Buyers' Market anymore. A Buyers' Market means that there is at least 6 months of inventory and buyers can make offers that are lower than the asking price. Buyers in this market have no leverage if the house they are buying is under $400,000. That price range is a Sellers' Market. Is now still a great time to buy? Absolutely. But be prepared to make an offer at market price. Forget about low ball offers; but with prices as low as they are, you can still get a great deal.

Real Data Strategies reports that Whittier had 9.2 months of housing inventory available on May 8, 2008. Their latest report, dated March 3, 2009, shows only 4.4 months of inventory.

The Fed Sees Recession Easing

According to the Federal Reserve, the recession is easing its downward slope. An Associated Press article dated April 29, 2009 reports that stock prices rose for the day due to the Fed statements on the economy. Consumer confidence is also high, and the economy is improving.

The BOTTOM?

The bottom line is, if you find a home that you want to live in for at least five years, then buy it now. Don't wait for prices and interest rates to go back up!

-Blog End-

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About the author: The above Report about the Whittier Real Estate Market and National Real Estate Trends was provided by Bob Willis, a locally recognized Realtor®. Bob can be reached via email at bob@willisrealtor.com or by phone at (562) 639-9400.

For Whittier real estate, see Whittier Welcomes You. Want to have MLS access to beat other buyers to your dream home? Sign up with no obligation at my ListingBook website.

I service the following towns in the greater Whittier area: La Habra, La Habra Heights, La Mirada, Norwalk and Santa Fe Springs.

I specialize in helping first time buyers get into their first home. Whether you want to buy now, in six months or in a year, a Buyer Consultation with a professional Realtor® should be the first priority of your home search. It's custom designed for you and your needs! Please call me for a FREE Buyer Consultation! (562) 639-9400.