The San Jacinto, CA Real Estate market is very similar to every other local real estate market in the country - it is local and has it's own unique nuances.
In this Market Snapshot I am going to examine the market for 3 Bedroom 2 Bath Single Family Residential homes, across the entire city of San Jacinto and cover current statistical data and looking at sales in the city, spanning the last 90 days, only.
QUANTITY
ACTIVE - Currently there are 57 ACTIVE real estate listings in San Jacinto that range in size from 924 square feet to 2,481 sq feet with an average size of living space of 1,544 square feet.
These homes are listed for sale in the MLS from $59,900 ($44.53 per sq ft) to $359,000 ($227.23 per sq ft.) The average List Price for ALL Active real estate listings in San Jacinto, CA is $131,369 ($86.54 per sq ft).
The AVERAGE DAYS ON MARKET (DOM) is 89 with the newest listing being added to the MLS just 2 days ago. (This data was compiled on a Saturday evening - no, I don't have a life, so leave me alone.) The oldest listing has been aged like a fine wine for 466 days on the market (that's over 15 months ago!).
PENDING & BACK UP. First let me explain that in the current real estate market conditions I do not believe there is much of a difference between these two statuses. On the surface, a PENDING transaction sounds much stronger than a BACK-UP. However, the reason I choose Back-Up for my listings once I have an accepted offer is because the various Internet sites will continue to market the homes for sale, as if they are ACTIVE real estate listings in the MLS.
There are currently 18 BACK -UP OFFERS and 54 PENDING SALE listings in the MLS. The BACK-UPS range in size from 1,119 square feet to 2,210 sq ft with an average size of 1,593 square feet. The PENDING properties start off smaller at 924 sq ft and range up to 2,255 sq ft with an average size of 1,490 sq ft.
Back-Up homes for Sale in San Jacinto, CA were listed in the MLS for sale starting at $67,900 ($50.11) and went up to $185,000 ($94.58) with an Average List Price of $114,983 (71.96 per sq ft).
Pending Listings were priced in the MLS for a low of $49,900 ($41.38 per sq ft) all the way to $310,000 ($199.10 per sq ft). The Average List Price of $115,118 ($77.29 per sq ft) for all Pending properties for sale in the MLS.
The Average DOM for the Back Up listings ranged from 19 days to 361 days with 120 being the average. Pending Listings were considerably less with zero days on market for the quickest sale to 253 for the longest and an average of 42 days on the market before an offer was accepted.
SOLD REAL ESTATE over the last 90 days only accounted for 56 closed escrows. Considering there are only 57 Active Listings, all that is on the market for 3 bedroom 2 bath homes in San Jacinto CA is three months worth of homes for sale in the MLS.
Now, those homes that did sell were on the market as quick as zero days and as long as 186 day on the market. The Average DOM for all the 3 bedroom 2 bath homes that sold in San Jacinto CA in the last 90 days was only 31 days.
The List Price of the Sold Homes in San Jacinto ranged from $40,600 ($42.80 per sq ft) to $275,000 ($215.31 per sq ft.). The Average home that sold in San Jacinto over the last 90 day was listed in the MLS for $113,011. Sale Price ranged from $44,000 to $275,000 with the average at $118,714 or 105.05% of List Price.
The Ratio between the List Price and the Sold Price is very important when studying the nuances of a market. In San Jacinto, CA, over the last 90 days 10 of the 57 properties that closed escrow were for less than list price. Three of these were with CASH, three were with FHA Financing and the remaining four used conventional financing.
The lowest percentage of List Price to Sold Price was a 2467 sq ft home built in 2002 that was listed for sale at $159,900 and was sold after only 30 days on the market for 78.8% of the list price...or only $126,000 with Cash to purchase the home.
The Highest List Price to Sold Price of the homes that sold and closed escrow in San Jacinto over the last 90 days was up to 152.13% on a home built in 1978 with 1,448 sq ft. It was listed at $53,900 and Sold 6 days later for $82,000.
SPECIAL CONDITIONS
Over the last 90 days we already determined that 56 homes sold throughout the entire city of San Jacinto, CA. What I find extremely relevant and helpful for my buyers is that 46 of them were owned by the bank as an REO Listing. Of the remaining 10, 7 were short sales and the last 3 were all Standard Sales - most likely flips.
Looking just at the 46 closed REO (Bank Owned) homes that were listed in the MLS as Closed Transactions, 20 of them sold with CASH and 8 more with Conventional Financing that requires significant cash down (typically 20% to 25% - as low as 10%).
16 REO homes for sale were financed by the FHA and 1 was a VA Loan and another a CAL Vet loan.
REO - BANK OWNDE HOMES
The Balance of this report will look at some of the same numbers but exclude all real estate sales that were not REO bank owned homes in San Jacinto, CA.
Of the 46 of the Closed REO Transactions, 20 of them or 43.48% were paid for with CASH money at an average of 104.37% of the List Price which averaged a List Price of $88,193 and a SOLD Price of $92,049.
These CASH REO Transactions closed Escrow in only 22 days, on average after spending only an average of 22.5 days on the market before going into escrow.
Conventional Financing of the 8 transactions represented 17.39% of all REO Sales for an average of 105.44% of the List Price, with average list price of $124,781 and a SOLD Price of $131,575.
San Jacinto CA real estate that was purchased with Conventional financing was on the market in the MLS for an average of 44 days and took 61 days to close escrow.
Buyers of San Jacinto, CA real estate who relied of FHA loans ended up paying the highest percentage over List Price than any other buyer of bank owned homes paying, on average, 110.8% of the list price, which averaged $115,381 with a Sold Price of $127,838.
The FHA Financed homes were only on the market (DOM) an average of 30.4 days and took an average of 56 days to close escrow.
WHAT DOES THIS MEAN?
The market has been such a difficult place to pinpoint overall trends which is why it has become critical to look at very narrow segments of the market, as they apply to each individual situation.
The first conclusion I make is that although the best deals are found with Cash - it is no longer the norm for a buyer with Cash to expect to receive a significant discount when purchasing San Jacinto real estate.
San Jacinto, CA - City Offices & Services
When looking to buy real estate in San Jacinto, California it is nice to know that the real estate you buy is in the oldest incorporated city in all of Riverside County, CA. located in South West Riverside County portion of the Inland Empire region of Southern California - one of the fastest growing regions in the entire country.
The City of San Jacinto, California, City Hall is located at 595 South San Jacinto Avenue in Building "A", San Jacinto, CA 92583. The City phone number is (951) 487-7330
The City Clerk is also located at 595 South San Jacinto Ave but in Building B. The San Jacinto City Clerk phone number is (951) 487-7339.
The City of San Jacinto, CA Finance Department is in the same building, B, as the City Clerk as 595 South San Jacinto, The Finance Dept phone number is (951) 537-6386.
Community Development for the City of San Jacinto is located in Building A at 595 South San Jacinto Ave. and can be reached by phone at (951) 487-7330.
The San Jacinto Police Department is located across the street from City Hall at 160 West 6th Street and can be reached by phone at (951) 654-2702. Of course in an EMERGENCY, always dial 911. For a Mobile Emergency, please call (951) 776-1078.
The San Jacinto Community Center can be found nearby at 625 South Pico Avenue, San Jacinto, CA 92583. The Community Center phone is (951) 654-7212.
The San Jacinto ‘City Corporation Yard' is located at 270 Bissel Place and can be reached at (951) 654-4041.
The CDF Fire Station is located at 132 South San Jacinto Avenue. Of course, for emergencies do not hesitate - dial 911. For all other calls, dial (951) 654-7912.
CITY SERVICES
Once you purchase real estate in San Jacinto you are a citizen of the City of San Jacinto. It is important to know who to call when there are either problems near your real estate or curiosity of what is going on around your real estate that demands an answer. Please refer to this list of Services provided by the City of San Jacinto.
Abandoned or Inoperative Vehicles left in the street - Call (951) 654-2702.
Animal Control - Call (951) 358-7387
Code Enforcement - Call (951) 487-7330
Community Facilities District - Call (951) 487-7330
City Attorney - Call (951) 487-7330
City Council - Call (951) 487-7330
City Clerk - Call (951) 487-7339
Demographics and Development - Call (951) 487-7330
Fire Prevention - Call (951) 955-4777
Graffiti Hotline - Call (951) 654-4041
Job Listings - Call (951) 487-7330
Library - Call (951) 654-8635
Pothole & Pavement Repair - Call (951) 654-4041
Street Lights - Call (951) 654-4041
Street Sweeping - Call (951) 654-4041
Water Services - Call (951) 537-6386
Zoning - Call (951) 487-7330
REAL ESTATE - Call John Occhi and the Excellence in Real Estate Team at Allison James Estates & Homes to find out about current real estate market conditions if you are interested in buying or selling real estate. Call (951) 654-5550.
Much of my real estate success has come from my ability (or luck) to stay a step or two ahead of the changes in the marketplace. Often I have been ridiculed for my forward thinking actions, like when I started doing BPO's in 2006; or after I listed my first Short Sale in April, 2007 I was humiliated at an office meeting; and my favorite was at the Christmas Party that my then broker hosted and left him making a drunken fool out of himself as he tore into the stupidity of listing REOs.
I guess I'm qualified to be classified as a forward thinker (I started blogging in 2006, too).
HOW TO WRITE OFFERS IN TODAYS MARKET
REALTORS® learn very early in their career how to do the paperwork to write offers in their local jurisdictions that comply with the local rules and broker requirements.
Here in the Hemet - San Jacinto, CA Valley our real estate market today is dominated by bank owned homes, or REO Real Estate. I say dominated, because over 90% of all closings are indeed REO Listings of homes for sale. Most of the other 10% are Short Sales or Standard Sales (typically an Investor flip).
Although Short Sales only represent about 10% of the closings, they continue to dominate the active listings in the local MLS; short sales represent approximately 60% of all active listings in the Hemet - San Jacinto, CA Valley.
THE MARKET CONTINUES TO CHANGE
Last month (October 2009) has seen a rash of low appraisals, despite the fact the home prices have been inching up over the last couple of months. In the last month, my sellers have had to renegotiate contract prices 4 separate times due to low appraisals.
Based on this scenario and my understanding of local real estate I have started to advise buyer agents to do their homework and only submit offers for what they believe the home will appraise for - providing me with actual comps.
REED AND HEED
A well-respected real estate blogger, Broker Bryant Tutas. from Poinciana, Florida published a blog over the weekend, about the importance of Buyers Agents preparing a quality CMA for their buyers. You can read his insight and preview a sample by reading The Buyer CMA. Do you use it?.
I'm taking his suggestions a step further and advocating that Buyer Agents actually submit the CMA as a part of their offer documentation.
I have suggested this several times over the last week or two with a rash of offers that have come in. Most have not listened to me but a coup0le have and they are happy today.
The problem is my listings today average a list price of $150K, as were the 2 of the 4 I mentioned earlier that had to be renegotiated - the other 2 were listed at over $225k and both reduced by close to $50K! But lets focus on the bread and butter $150K deals.
The sad truth is the appraisals are coming in from $125K to $140K. I have agents calling me as if I have the negotiating power to change the price in the MLS - I don't. When they follow my queue and submit the documentation to support their offers, the bank has countered back with less that a $1500 difference in the asking price. When the agents just submit an offer with a low ball offer, that's how the banks look at it - low ball and counter back within $1,000 of list price.
THE NEXT LEVEL
I was particularly impressed with one agent in particular who not only submitted comps but a complete market analysis justifying the offer that was being submitted. Guess what? The seller accepted the offer without any additional counter offer on price.
WHAT IS NORMAL?
Personally, I am tired of the whining about when we get back to a "NORMAL MARKET" - whatever that is. The truth is this is what we got today...so make the most of it. You can follow my lead of do things the way you have always done them (wasn't it Einstein who said that doing the same thing over and over again expecting different results is the definition of insanity...or something like that)
Looking forward to seeing your next offer for Hemet - San Jacinto Real Estate
The song by CLASH, with the same name as this article, may have been a hit back in 1981, when they asked the question that seems to be the question of today, "Should I Stay or Should I Go?"
Today, however, the question takes on a more serious tone than the confused singer in his tumultuous love affair begging for confirmation as the chorus ends with the line...
If I go there will be trouble
An if I stay it will be double
So come on and let me know
(LISTEN HERE)
The tone of the question today, of course, if focused on the housing chrises, as more and more families are trying to figure out what to do. It's not like there is a single authority on the subject of what will happen to them - in either scenario. Should they stay or should they go?
This indecisions bugging me
Should I Pay or Should I Play? The Real Question of the Day
When asked by local residents in the Hemet - San Jacinto Valley if they should pay their mortgage or should they play the game that seems to have gained in enormous popularity over the last year.
The game, of course, is the Strategic Default (my article). This is when the homeowner analizes their personal sitution and then decides to not pay their home loan but often continuing top keep all of their other credit in pristine condition. In many cases, homeowners today are reporting that they have been in their home for over a year without paying the mortgage or property taxes. If you are interested, the Wall Street Journal has an artilce that addresses the moral question of walking away from your home.
NOT MY CROSS TO BEAR
So, when I am engaged in a conversation along these lines I first have to protect myself with an almost obligatory disclaimer that I sell real estate for a living and am not in the business of resolving anyones personal problems. However, as a trusted friend and/or colleague if they want to bounce ideas off of me, I'd be glad to lsiten and respond with what I know but I must emphasise that any decision they make has to be their own decision that is based on their very personal set of circumstances...that I will never fully understand. I'll also mention that if they need legal or tax advice theat they should consult a professional in those fields, as neither has anything to do with my skill at selling real estate in the Hemet - San Jacinto Valley, CA.
This point is so important, I make a point of repeating it, at the end of any converstaion that may follow.
The first point I will share on the topic is that when a short sale or lon modification is being negotiated that it is much easier to do when the payment is deliquent, althogh it is no lnoger mandatory, as it was last year.
The next point is every lender is different and every lender has different policies for how they treat different situations. For example, two borrowers may both be 60 days late. One may be eligible for a loan modification and the other may not. The income levels, the hardship and so many other facotrs are considered. Again, the rules change from lender to lender, as well.
SOOOOOOO MUCH INFO
There is so much conflicting information because there is no industry standard for either Short Sales or Loan Modifications. The market is full of scam artists right now, despite the fact that both State and Federal Authorities are cracking down on them, big time (Including the State Bar going after ATTORNEYS!).
The government is doing it's best to confuse the entire situation with more rules, regulations, moratoriums and mandates than anyone can keep up with.
Industry trade groups, such as the National Association of REALTORS (NAR) or the Mortgage Bankers Association (MBA) are pretty much powerless in regulating their members when it comes to this uncharted territory.
Should I stay or should I go now?
If I go there will be trouble
And if I stay it will be double
So you gotta let me know
Should I stay or should I go?
Sorry, but this is not the place to come for easy answers or heavy questions...
Now please, go talk to your attorney or tax advisor and let me sell my real estate.
Looking through the online edition of REALTOR Magazine and there is a story posted this morning that references an article published on Forbes.Com by Zack O'Malley Greenburg that claims to have found the 10 Safest Places to Live, in the USA.
The criteria was reviewed with four factors in mind:
OK, so I can see why these issues are considered and will help define safty for the average family looking to find a place to call home and raise a family.
The problem I have with the results is that they are all cities of significant size. Take a look:
No where on this list do I see either Hemet or San Jacinto. Granted we may only have about 100,000 residents in the entire valley but I can almost guarantee that we have NOT had any Weather Catastrophes (OK, maybe a case or two of sun stroke or an occassional dehydration - but hey, this is Southern California and we are in a very arid valley...could be considered desert by some).
I'm quite positive that we have a very low WORKPLACE ACCIDENT rate here in the Hemet - San Jacinto Valley. Since they quit building new homes about 2 years ago, there are hardley any jobs here for anyone to get hurt at. Most of our employers are either retail or service related and most are very low risk. Many of our residents commute to places like Temecula, San Diego, Riverside,m San Bernardion, Ontario and even Orange County. Hemet and San Jacinto is very safe when it comes to the workplace...I can practically guarantee it.
If it wasn't for TRAFFIC ACCIDENTS. Granted our 'Blue Haird Ladies' and 'Old Men with Hat' population is rapidly declining as the average age (but it does seem that we have more senior involved traffic accidents than ever, as they continue to age) in the vally has dramitically lowered itself from the high 40's to the early 30's in just the last 5 years, we still do have a few crazy drivers around here. Heck, on July 11th of this year, I toateld my car on the Ramona Expressway when som yahoo ran a red light at 8:00 on a Sunday morning. So, I guess traffic accidents is our Archilles Heel when it comes to being a safe city.
I just can't imagine the 10 safest places to live are 10 major metropolitan areas. Heck, I moved out of the City in '92 becuse they tried to burn down LA - how safe is that?
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The market has changed and so have I. I am now in my 4th year of successfully working with banks and Asset Managers in the preservation and sale of REO Properties throughout the Inland Empire, CA
Thank You for Visiting! "The Best Compliment we can receive is when a freind tells another friend about us"
Allison James Estate and Homes is the only TRUE NATIONAL INTERNET BASED REAL ESTATE BROKERAGE in the country. The type of REALTORS® who join Allison James are those joining the ‘Virtual Culture" and tend to be a younger (at least at heart) than average with approximately 8 years in the Real Estate Industry. Allison James Agents are independent and we seem to be more detailed and professional.
The Excellence in Real Estate Team is a local branch office of Allison James Estates and Homes of California located at the border between Hemet and San Jacinto in the Hemet - San Jacinto Valley in South West Riverside County in the Inland Empire Region of southern California. We are located in a new modern community shopping center anchored by ‘Fresh and Easy" and "Jack in the Box". Our Office is right nest door to "Starbucks".
The comprehensive services we provide rival any other real estate office in Riverside County. Our staff of full team professional REALTORS® can help you buy or sell your home anywhere in Riverside County or throughout Southern California.
Excellence in Real Estate is not just some catchy phrase we came up with to market our team - but rather an ideal that we strive to achieve every day with every transaction, whether you are looking to buy or sell a home. If you are looking for Bank Repo's, Bank Owned Homes, REO's, Foreclosure or Foreclosed homes in the Hemet San Jacinto Valley or anywhere else in South West Riverside County including Temecula, Murrieta, Menifee, Sun City, Wildomar, Home Land, Romoland, Winchester, Banning, Beaumont or any of the other surrounding cities then there is no need to look any further
Allison James Estates & Homes
John Occhi, ePRO, Five Star Certified REO REALTOR®
Specializing in the Listing and Sales of Bank Owned REO Properties
(961) 654-5550 / (951) 443-6259
On a More Personal Note...
My life is often an open book here in this blog where I have shared many of my trials and tribulations in the quest for my real estate success while struggling at home with my wife, Sherri and her health.
In 1995, Sherri was diagnosed with a fairly rare form of cancer - CLL and given 5 years. Despite the odds, and six rounds of Chemo she is still here and still defying the odds.
In April 2007 she stopped her Chemo, feeling as if the cure would kill her. Sherri was then put on home hospice and given another sentence of 6 months...and here she is (this is written October 2009) refusing to go anywhere.
So, life is a struggle and never what you want it to be. God has his own plan for all of us and we have to be grateful for what we are given...and that includes our 4 dogs: A Pair of Golden Retrievers, a German Sheppard and the princess of the house, our Dalmatian.
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My expertise is in the south West Riverside County, focusing outward from the Hemet - San Jacinto Valley, California in the residential and land marketplace. I like to work with both Buyers & Sellers. My real passion in this industry is the marketing and especially the part I can do on the Internet!
We are DEDICATED to LIVING and WORKING by these CORE VALUES:
To Always:
Live by the GET BY GIVING Philosophy
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The best Testimonial I can post is from me just proclaiming how Great GOD is and what a blessing He has been in my life MY PEERS You should also check out John Occhi - http://activerain.com/mrhemet John was new himself not too long ago. However, he has applied a tremendous amount of effort into learning, researching, and experimenting. He has documented his experiences on his blog. It provides a lot of insight from someone who was in your shoes, but was determined to learn the essentials. >>>>>>>>>>>>> John, >>>>>>>>>>>>>> Hello John, >>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>> John, YOU DID IT AGAIN! I keep following you around AR b/c I learn something from each of your post. Thank you for the email and keep up the good work here in AR. You continue to inspire me to offer more to our community. Ray Nellum, GRI
David Kyle, Realtor, e-Pro, SEO/SEM
Thank you for a very well written educational post! We wanted you to know that we have included this Blog Post in the Suggested Reading Guide for the Fraiche Aire RendezVous in Black & White.
Lola Audu
I've had the recent pleasure of watching some of your real estate investing videos through Google. As someone who has relatively little knowledge of real estate investing, I found your videos to be very helpful and hopefully practical in the near future. I'm a recent college grad who is looking to begin investing in real estate in the near future. At the end of your videos, you make reference to the reports that have inspired the videos. At your discretion, I would be pleased to have a copy of the written reports that you have available; the importance of your credit score, the finding the right mortgage broker, the loan, and the hard money lending reports in particular. Once again, thank you for the content you've posted. Keep up the good work. Look forward to hearing from you soon.
Sincerely,
Michael H.
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MY CLIENTS
...We needed to hire not only a professional but the best there is out there. We decided to hire the John Occhi and the Excellence in Real Estate Team! We were amazed with their work: very professional, organized, knowledgeable, and honest! George and Samantha G. ~ San Jacinto CA
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John helped my as a first time homebuyer find my perfect home. He walked me through each process and was able to close on the home quickly. John has always been available for any questions I have. If I ever decide to sell, I would not even consider anyone but John to be my Realtor. ~ Gail R. San Jacinto CA
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My husband and I were going to be relocating to the Hemet area from Wyoming. We found John online. After contacting him and telling him what we were looking for, he was on it to say the least. After two months of looking by way of emails, pictures, phone, we put a house under contract without ever walking through it. Yes it was a bit scary, but the amount of confidence Shaun and I have had in John, made all of the difference. We closed on our house from Wyoming, and rolled into town two weeks later. The house was beautiful and all ready for us. I can say that having John and his Excellence in Real Estate Team handling this for us made this process and experience a truly Excellent one - thank you one and all. ~ Traci M. Hemet CA
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