Mike West

El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR OCTOBER 2009

This is a continuation of my monthly report on Bank Owned home sales for El Dorado Hills, CA. This report covers REO homes sold in October of 2009, the latest in my study of over two years.

There were 22 REO homes sold in October, up from 14 in September. The average days-on-market jumped to 43, up from the record low of eleven days in September. There were three homes that sold in October that had been on the market for 249, 127 and 108 days respectively, which had an effect on this statistic. Of the REO homes sold, 31.9% were on the market for two weeks or less.

The 22 homes sold represent 40% of all homes sold in El Dorado Hills.

Bank owned and Short Sales represent a majority of the home sales in today's market.

The cost per square foot of REO homes in October decreased to $ 149, down from $ 158 in September. The cost per square foot of all homes sold in October dropped twelve dollars, to $ 156.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 4.4% savings for REO buyers.

The overall sales price for REO homes was 101.9% of the final asking price. Only 36.4% of the REO homes that sold did so for less than the asking price.

At this writing there are 321 homes on the market in El Dorado hills, representing a 5.8 month inventory. We have edged into a seller's market.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all homes sold: in October, seven dollars per square foot. That is a $ 17,500 savings on a 2500 square foot home, still a tidy sum.

THe data follows:

Folsom, CA REO (BANK OWNED) SALES DATA FOR OCTOBER 2009

This is a continuation two year study of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in October of 2009.

There were 19 REO homes sold in October, up from 11 in September. That is a 72.8% increase. The days-on-market increased from 20 in October to 27 in September. The primary reason for the increase is that one home that had been on the market for 156 days sold last month, skewing the average days-on-market figure. The fact that 52.7% of the REO homes sold in two weeks or less shows that REO homes are still selling quickly.

The 19 homes sold represent 27.6% of all homes sold in Folsom, within the normal range for this study.

The overall home inventory in Folsom is presently 250, a 3.6 month inventory, down from 4.7 in August, indicating a continuing strong seller's market. At this rate there will be a shortage of available homes very soon. A neutral market is considered a 6 month inventory.

The cost per square foot of REO homes in October decreased to $ 163, down from $ 170 in August. The cost per square foot of all homes sold in October decreased to $ 180, down two dollars from September. Prices are still trending downward but more slowly than in the past few years.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 9.4% savings for REO buyers.

The overall sales price for REO homes was 99.5% of the final asking price. In October only 31.6% of the REO homes that sold did so for less than the asking price!

However, the banks are still pricing these homes well and in September there was a seventeen dollar per square foot savings, compared to the cost of all homes sold. That is still a $ 42,500 savings on a 2500 square foot home, something worth considering when selecting a home.

The data follows:

HOW TO AVOID FORECLOSURE

Fannie Mae Deed-for-Lease Progra

Fannie Mae has come out with another option to help distressed home owners avoid foreclosure. Any program that will help is worth looking at. The program guidelines are very specific and not everyone will qualify.

It is a variation of the deed-in-lieu process, through which the homeowner/borrower gives the lien holder the deed to the property in lieu of foreclosure. The lien holder becomes the owner of the property and the distressed homeowner who meets the guidelines remains in the home as a tenant.

• The borrower must have sufficient income to qualify to pay the market rent for the property. The cap is 31% of the borrower(s) gross income. So a family with a $ 2000 per month gross income can only qualify for a $ 620 monthly rent payment. The borrower must submit proof of income.
• The borrower must continue to occupy the property. They can not initiate the program, move out and sublet to another party.
• The property must be kept in good condition.
• This program was announced on November 5, 2009, and not many loan servicers have embraced it at this writing. The guidelines will not allow many to qualify, but is an option for those who do.

For more information go to:

http://www.fanniemae.com/newsreleases/2009/4844.jhtml

If you have further questions feel free to contact Mike West:

(916) 337-0658

http://www.ForeclosureStopper.ORG

El Dorado Hills, CA REO (BANK OWNED) SALES DATA FOR SEPTEMBER 2009

This is a continuation of my monthly report on Bank Owned home sales for El Dorado Hills, CA. This report covers REO homes sold in September of 2009, the latest in my study of over two years.

There were 14 REO homes sold in September, four more than sold in August. The average days-on-market dropped drastically to eleven, down from 36 days in August. REO homes are selling like hot cakes. Of the REO homes sold, 35.8% were on the market for less than two weeks. The longest one on the market was 23 days.

The 14 homes sold represent 34.2% of all homes sold in El Dorado Hills, up from 26.4 in August.

The cost per square foot of REO homes in June increased to $ 158, up from $ 144 in August. The cost per square foot of all homes sold in September increased seven dollars, to $ 168.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 5.9% savings for REO buyers.

The overall sales price for REO homes was 102.7% of the final asking price. Worthy of note is the fact that only one of the REO homes sold did so for less than the asking price. The limited inventory and aggressive pricing result in offers at or above the asking price; the only way for buyers to get their offers accepted over competing buyers.

The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all homes sold: in September, $10 per square foot. That is a $ 25,000 savings on a 2500 square foot home, a tidy sum.

The data follows:

Folsom, CA REO (BANK OWNED) SALES DATA FOR SEPTEMBER 2009

This is a continuation two year study of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in September of 2009.

There were 11 REO homes sold in September, one more than sold in August. The number of available REO homes has been drastically reduced. The days-on-market dropped from 22 in August to 20 in September. 54.6% of the REO homes that sold were on the market less than two weeks. One home had been on the market for 83 days.

For the second month in a row, none of the REO homes that sold were on the market for more than 90 days. Most are well priced when they hit the market and they are not lasting long.

The 11 homes sold represent only 19.3% of all homes sold in Folsom, similar to the August number.

The overall home inventory in Folsom is presently 265, a 4.7 month inventory, down from 5.3 in August, indicating a continuing seller's market. At this rate there will be a shortage of available homes very soon.

The cost per square foot of REO homes in September decreased to $ 170, down from $ 179 in August. The cost per square foot of all homes sold in September decreased to $ 182, down five dollars from August and the same as reported in July.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 6.6% savings for REO buyers. This number has been trending down for several months. Short sales are having an impact here. So REO sales are not the savings for buyers that they once were.

The overall sales price for REO homes was 103% of the final asking price. In September only 27.3% of the REO homes that sold did so for less than the asking price! The market has changed once again.

However, the banks are still pricing these homes well and in September there was a twelve dollar per square foot savings, compared to the cost of all homes sold. That is still a $ 30,000 savings on a 2500 square foot home, something worth considering when selecting a home.

The data follows: