Bob Willis, Whittier Realtor® Whittier Real Estate - Whittier Homes

I just came across an old spreadsheet that I had created on October 7, 2008 that compared interest rates and payments for a typical home in Whittier.

The average interest rate at the time was 6.5%.

The average Whittier home price was $470,000.

FHA loans allowed borrowers to have a down payment of only 3% of the purchase price.

Today, the nationwide interest rate for a home loan is 3.88%, according to bankrate.com.

Today, the average Whittier home price is $295,000 (based upon last 3 months of sales).

Today, FHA loans allow borrowers to have a down payment as low as 3.5% of the purchase price.

Using bankrate.com's mortgage calculator, the monthly payment on a $470,000 home loan at 6.5% is $2,970.72.

Using the same bankrate.com calculator, a comparable home loan today of $295,000 at 3.88% interest has a monthly payment of $1,388.04.

Do you think homes are much more affordable today than they were only 3 years ago?

Market Report on Homes for Sale in Whittier, CA – January 2, 2012

This Market Report on Whittier Homes for Sale will focus on Single Family Residences
in Whittier, California. It does not include condominiums or Multifamily Residences.

As of today, there are exactly 431 homes for sale in the Whittier area, and 374 of them
are Single Family Residences.

113 homes were sold in the City of Whittier during the month of December.
Over the past three months, 310 homes were sold in Whittier.

The average Whittier home sale price in December was
$322,972, at an average cost per square foot of $226.01.

265 Whittier homes are currently in Backup or Pending status.

Homes are taking an average of 93 days to sell in this market.

It would take 3.3 months, at the current rate of sales, for all the current Whittier homes
on the market to sell. Technically a Sellers’ Market is when there is less than 5 months
of supply. At 3.3 months absorption rate, Whittier is clearly in a Sellers’ Market. Despite these technical statistics, homes that are not in top condition or priced to sell, simply will not sell, and will sit on the market for months.

According to Realtors® Property Resource, median home values declined in 2011 for all Whittier zip codes from December 2010 to December 2011.

It is clear that we are in a declining real estate market. So, if you are thinking of selling for top dollar, the sooner you sell, the better.

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Thank you for reading the above Market Report on Whittier Homes for Sale. If you like my blog, make sure you subscribe to my RSS feed to get the latest Whittier real estate news.

If you are looking for a great real estate agent in Whittier, Let me Google one for you.

Helpful Information for Whittier Home Sellers:

• Free Guide For Smart Whittier Home Sellers
• Find Out How Much Your Whittier Home is Worth

Home Buyers: Search for Whittier Homes Like an Agent

I help people sell and buy homes in Whittier, La Habra, La Habra Heights, La Mirada, Norwalk, Santa Fe Springs, Covina and West Covina.

It is clear that we are in a declining real estate market. In an interview on On The Edge (discussion starts at 19:40 in the interview), Karl Denninger of Market-ticker.org has predicted that housing prices may fall another 50% or more over the next 2-3 years. “My expectation is that over time, the deflation in housing prices and the deflation in that sector, along with most other sectors, is going to continue. I don’t think that there is any bottom anywhere in sight in the United States. The foreclosure mess is still there. The holding of assets with unrealistic values is still there; and until we see that start to clear out, we’re not going to be able to find out where a bottom actually is. But it would not surprise me, over the next 2 or 3 years, to see another 50% come off house prices in the United States alone.” When asked to clarify if he meant another 50% move down in real estate, Denninger said, “Entirely possible, and possibly more…”

How would a 50% decline in home prices affect an average home in Whittier? According to Realtors® Property Resource, the average home value in Whittier’s zip code 90603 is currently $363,000. If values decline 50% in three years, such an average home would then be worth only $181,500. So, if you are thinking of selling for top dollar, the sooner you sell, the better.

A further decline of 50% in home prices would be disastrous for the economy. Counties and municipalities would have their property tax revenues slashed, which means they would further have to cut jobs. Some may even declare bankruptcy. More businesses would falter and close, leading to more unemployment.

Denninger is not the only one who predicts falling home prices. Over the last year, every zip code in Whittier has seen a decline in home values.

It is clear that housing prices need to be in line with what the average wage earner can afford. In the 1950s and 1960s, it only took one wage earner to support a family, and that included the ability to make the payments on a home loan. Today, due to declining wages, it typically takes 2 wage earners to support a family; and often there is not enough money to pay for a mortgage. The only way real estate prices can go up is if wages and salaries increase across the board. Today’s unemployment statistics show that, as more competition for jobs increases, wages are driven lower and lower. CNBC's Diana Olick talks about the high levels of homes that are underwater, including California, which has over 2 million.

I don’t know what will happen in the future. I do believe prices will decline further; I just don’t know how far they will decline. The status of the world economy is far too complex to discuss here; and perhaps far too complex for anyone to really know.

What would such a fall mean for someone who wants to buy a home right now? It depends on the reasons for buying. It may still make sense, if it would cost more to rent a home than to buy one; and if you plan to live in the home for the next 10 years or longer.

I have given a lot of thought as to how it would affect my business, and come to the conclusion that no matter what happens, people always need to buy or sell homes; and it is my job to help them during those transactions. I cannot decide for them whether to buy or sell, but I can help them once they make a decision.

This Market Report is for Whittier, California.

This Market Report on Whittier Homes for Sale will focus on Single Family Residences
in Whittier, California. It does not include condominiums or Multifamily Residences.

As of today, there are exactly 500 homes for sale in the Whittier area, and 433 of them
are Single Family Residences.

92 homes were sold in the City of Whittier during the month of November.
Over the past three months, 302 homes were sold in Whittier.

The average Whittier home sale price in November was
$336,379, at an average cost per square foot of $225.00.

275 Whittier homes are currently in Backup or Pending status.

Homes are taking an average of 98 days to sell in this market.

It would take 4.7 months, at the current rate of sales, for all the current Whittier homes
on the market to sell.Technically a Sellers’ Market is when there is less than 5 months
of supply.Currently, Sellers have the edge, although Whittier real estate market has been
in a neutral market for the past year.

________________________________________________________________

Thank you for reading the above Market Report on Whittier Homes for Sale. If you like my blog, make sure you subscribe to my RSS feed to get the latest Whittier real estate news.

If you are looking for a great real estate agent in Whittier, Let me Google one for you.

Helpful Information for Whittier Home Sellers:

• Free Guide For Smart Whittier Home Sellers
• Find Out How Much Your Whittier Home is Worth

Home Buyers: Search for Whittier Homes Like an Agent

I help people sell and buy homes in Whittier, La Habra, La Habra Heights, La Mirada, Norwalk, Santa Fe Springs, Covina and West Covina.

Today I edited and uploaded a video tour of two Whittier homes for sale that are great bargains.

None of these Whittier homes is a Foreclosure, Short Sale, Bank Owned Home, REO, HUD Sale or Auction. They are standard sales of great properties. What makes them the buys of the week? Check out the video to see.

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Thank you for reading the above Video Home Tour of 2 Bargains in Whittier's Michigan Park. If you like my blog, make sure you subscribe to my RSS feed to get the latest Whittier real estate news.

If you are looking for a great real estate agent in Whittier, Let me Google one for you.

Helpful Information for Whittier Home Sellers:

• Free Guide For Smart Whittier Home Sellers
• Find Out How Much Your Whittier Home is Worth

Whittier Home Searches by Price Range:

· Whittier Single Family Homes $200,000 - $299,999

· Whittier Single Family Homes $300,000 - $399,999

· Whittier Single Family Homes $400,000 - $499,999

· Whittier Single Family Homes $500,000 and up

Whittier Neighborhood Home Searches:

· Whittier Spy Glass Homes for Sale

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· South Whittier Homes for Sale

· East Whittier Homes for Sale

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Helpful Information:

· Free HomeFinder Service Helps Whittier Homebuyers Buy Lovely Homes From $250,000 To $450,000 For a Low Down Payment

· Find Out How Much Your Whittier Home is Worth

More Useful Information:

· Free List of Bank Owned Properties in Greater Whittier

· Whittwood Home Sales - Free Report on Whittwood House Prices

· Friendly Hills Neighborhood

· Whittier Palm Park Home Sales - Free Report on Palm Park House Prices

· Whittier Palm Park Neighborhood

· Whittier Welcomes You

I help people sell and buy homes in Whittier, La Habra, La Habra Heights, La Mirada, Norwalk, Santa Fe Springs, Covina and West Covina.