Localism: Hemet, CA

ALL OF THIS IN OUR OWN BACK YARD

Sun, 09 Nov 2008 14:57:00 -0600

Yes, Hemet is a little sleepy town compared to San Diego, Orange

county and La. And yet, there are many treasures surrounding it

within a quater tank of gas. If you like fresh air and beautiful views of

vistas ,then Oak Glen, located just 15 miles from the Hemet/San Jacinto

valley, is the perfect choice. My wife and I and 3 of our 4 daughters

spent yesterday afternoon

hiking, munching on

raspberries and Carmel apples at

one of our favorite apple farms,

Riley's Apple Farm. (Our

forth daughter is currently

attending a private Christian college located on the Pacific ocean,

poor thing!) The weather was fantastic and the place was filled with fun activity.

One of the best parts of this trip is the hike into the mountains. The views are breath taking

as you can see. Its a great opportunity to stop and smell the roses.

Another favorite activity is sampling the apple cider and all the

different varieties of apples. They also had apple butter,

Jalapeno jelly and many other interesting jams

and spreads. If you are ever in the area make sure you make this

trek to this small mountain community; you'll be glad you did.

To get to Glen Oak from Hemet take Sanderson straight up to Beaumont Rd

continue

until

you get

to Riley's apple farm. (Please

note that Sanderson turns into Beaumont

Rd) it is that

easy.

Feel free to e-mail if you have any

questions. http://www.soldbybarr.com/

Another referral

Wed, 05 Nov 2008 22:02:17 -0600

The strangest thing happened to me today, I got another referral for a mobile home listing. The

first one I got 45 days ago sold in less

than 30 days. So I guess this means I'm

the mobile home guy. Please don't feel

sorry for me, it's not as bad as it seems.

You see, in my neck of the woods there

are many seniors who prefer to live in a

park and pay cash. This means a much

shorter escrow and less hassles. On the other hand we're not talking about a huge commission check.

But, a little bit of something is better than nothing. It will be interesting to me to see where this run

on mobile homes takes me. The picture has nothing to do with mobile homes, I just love seeing those

mountains in the back ground.

Mortgage Interest Rates Volatile - Stay Informed With This Daily Update

Wed, 15 Oct 2008 17:38:28 -0500

Do you know what today's mortgage rate is? It went up .25% from yesterday!

With the real estate market the way it is, some people want to know what the rates are doing. I've put into place a way for you to stay updated every day...on your cell phone!

If you want to know what the rates are at today with a short text message, you can read THIS ARTICLE and set it up. Or, if you prefer not to get an occasional text message, add THIS WEBSITE to your favorites and check up on it when you please.

Note: the published rate is only a guideline. It assumes a score of 720, 20% down purchase, primary residence, fully documented income and assets. To get an accurate rate quote, you should always speak to a mortgage professional that you trust. This will, however, give you an idea of how rates are moving.

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Top Hemet Mortgage & Real Estate Articles:

Looking to buy real estate?

Joey Aszterbaum is the Hemet Home Loan Guy and a member of the Active Rain social network of real estate professionals. Patrion Mortgage is a direct lender and a division of Altura Credit Union (formerly Riverside County's Credit Union). To buy or refinance real estate in Hemet, Riverside County, California visit www.HemetHomeLoans.com or call 951.571.5751

When Realtors take a 2nd job....

Sat, 04 Oct 2008 06:04:31 -0500

Well in reading the current thing about what happens when a realtor takes a 2nd job...What does happen? I mean as of today, i'm getting up at 4:00am to work on files but shortly i will dress and don my 2nd hat for the day, a barista/Gelato bar owner. Yeah that's right, I went out and created my own 2ND JOB! My husband and I went out and bought a Gelateria (Italian Ice Cream- for those of you who don't know) So now on top of working my way thru short sale listing's, mortgage defunks and buyer's wanting to see every REO on the market. Did I mention doing BPO's, i too have to get up and make coffee for paying clients and people I don't know. My husband makes the Gelato, that would have been just the straw that broke this camel,LOL. I also created Panini receipes and found a great Italian bakery in the area. I never knew she existed before this. I've hired 8 employees with my husband and myself being at the shop whenever we can get there. I have been blessed in that my oldest daughter manages the shop for me. I've had to teach her systems. You remember I'm a realtor 1st, so being the system mongul's we are, I've just transfered over those train of thoughts. I do get clients who look at me strange and sometimes I look at myself strange, but with the economy being the way it is, I would appauld anyone that goes out and does that extra something to put food on the table. We still have to eat and make those bill payments. I can't tell you how excited I was to find out about the new changes 10/1/08 made to mortgages maybe a realtor could get a break here, oh wait, this program needs me to fully document my income.......guess I'll have to sweet (Gelato) talk my CPA.. Well talk to you soon again. If you want to add another job GO FOR IT!

Hemet Market Snapshot: June 1st through September 21st - 2007 Compared to 2008

Sun, 21 Sep 2008 18:38:48 -0500

I was very disturbed when I red an article earlier this month that my local market had dropped in value by a full 9% in just one month.

Hello, I live here and work this market full time - every day and yes, I have seen a drop month after month - it has never been 9% in a single month, despite what the local newspaper, "The Press Enterprise" reporter Leslie Berkman reported on August 30^th, 2008.

Now, I agree with most of what the article reports - but come on, lets be responsible and not add fuel to the fire. I agree with Ms. Berkman when she said, "Economists and real estate insiders agree that the biggest price drops are behind in Inland Southern California. But they say prices could fall another 15 percent or so, bottoming in mid- to late 2009 or 2010."

When asked, I have often voiced my opinion that the market had another 10% left to bottom in the next 12 months which will probably be followed by still another 5% decrease in the following 12 months before we actually bottom out and start an incline for a couple of additional years before the California public gets tired of waiting and starts a new buying frenzy fueled by the principals of Supply and Demand. My guess is the population of California will be significantly higher in 4 or 5 years than it is today.

I do not believe it is in anyone's best interest to wait on the market. First off, we won't actually know we hit the very bottom for at least 3 months after it happens as real estate value is all about trends and trends take time to reveal themselves.

If I was in the market to purchase real estate I would be more concerned with rising interest rates than I would dropping prices. The way I see it, anyone who buys a home now and plans on living in it for at least 5 years cannot get burned - impossible. The reason being is many newer homes are selling for $60 to $65 a square foot today - about half the cost of building a new home. Hello - can anyone say bargain???

If the interest rates climb to 9% or 10% like they did in the 1990's...or how about 18% to 21% like they did in the 1980's, then the price will be an point if insignificance. For example a 30 year fixed loan at 6% will have a $599.95 monthly principal and interest (P&I) loan payment. Increase that by just 1% and the monthly payment is increased by over $65 a month. So a $250,000 mortgage today at 6% would have P&I payment of $1498.88. At 10% that payment would jump to $2,193.93; at 18% that same home would now require a $3,767.71 monthly mortgage payment.

PERSONAL EXPERIENCE

And yes, 18% really did happen in my lifetime. When I was in the Army, returning from a 6 year tour in Europe, we had a democrat president in 1980. I had a down payment on a home for around $50,000 at the time but ended up losing my deposit (which I could not afford) when the rates jumped to 21%. This was in the days before Rate Locks became common.

So, my point is that interest rates are much more significant to the buyer than the actual purchase price - especially since prices are so low right now.

To buy a home today makes pretty good sense to a lot of people. The California Association of REALTORS® reported that 177% more Californians bought a home in July 2008 over July 2007. In Hemet, 74 homes closed escrow in August 2007 and then this year in August, 208 escrows closed, reflecting a 284% increase in the number of transactions for over $100,000 less than the homes were just a year earlier. In August 2007 the Median price of a home that sold in Hemet, California was down to $267,000. In August of 2007, the Median price of a home in Hemet, CA was only $159,900 - approximately a 41% drop in a single year.

Here is some data that I collected using the Alliance MLS - which is a compilation of the local SoCalMLS that is used by the local Hemet - San Jacinto Association of REALTORS (HSJAOR) and the Matrix MLS used by most other REALTOR boards in South West Riverside County and throughout the Inland Empire region of Southern California.

The downside to this compilation is that there are duplicate entries as some REALTORS will list the same home in both MLS's so that they can gain maximum exposure It is also very difficult to search and sort by all but the very basic search criteria.

SOLD HOMES BY PERIOD

PERIOD	SOLD	MEDIAN $	Sold $ From	Sold $ To
Sep-08*	121	$145,000	$49,900	$99,725
Sep-07*	56	$263,990	$99,725	$777,000

Aug-08	208	$159,900	$30,000	$450,000
Aug-07	74	$268,000	$81,000	$565,000

Jul-08	172	$165,500	$41,500	$624,000
Jul-07	118	$281,000	$128,000	$739,000

Jun-08	177	$179,500	$49,900	$560,000
Jun-07	93	$287,500	$125,000	$720,000

This chart shows how many homes actually closed escrow each month, the Median Price for each months well as the range of sales prices for closed transactions in Hemet, CA.

LISTINGS BY PERIOD

PERIOD	NEW	MEDIAN $	List $ From	LIST $ TO	Cur ACT	Cur SOLD	Cur PEND
Sep-08*	253		$45,000	$1,100,000	223	2	19
Sep-07*	287	$267,500	$41,500	$1,149,000	12	69	1

Aug-08	389	$193,000	$37,000	$750,000	258	12	91
Aug-07	416	$297,000	$800	$749,000	10	87	2

Jul-08	423	$224,900	$49,900	$895,000	205	76	92
Jul-07	443	$299,900	$68,250	$969,000	7	95	0

Jun-08	388	$199,900	$65,000	$419,000	169	99	65
Jun-07	451	$225,000	$2,000	$1,870,000	5	87	1

* September 1-21 Only - Data gathered 9/21/2008.

This chart is similar, covering the identical periods but instead of looking at the activity of closed files this chart examines how many properties were listed each month and again looking at the total number of new listings, the Median Price and the List Price homes came on the market with

The difference is this chart looks to see what has happened with the properties by examining how many are still Active, how many Closed escrow and how many (if any) are currently in the Pending status. I find it amazing that there are as many active listings still on the books from over a year ago. My guess is that right offer could get a ‘smokin' deal on one of these properties, as the seller wants out.

Collectively these charts point out the trend of a year ago as we were early in the rapidly declining market and how it continue today. These charts show that there are some great opportunities in the current real estate market and with interest rates still in the realm of historically low, makes this an excellent time for the investor, first time or move up home buyer to make their move and secure their financial futures with real estate today.

Blessings to all who read,

John Occhi, REALTOR®
Century 21 Crest - CrestREO
Over $1 Billion in Closed REO Sales
CrestREO.Com
Hemet - San Jacinto Valley
951-927-9473

Servicing THE REO Needs of Asset Managers, Servicers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above phone number.