market report: San Jacinto CA | 7/21/2009 - 8/20/2009 | Cash Sales and The Market
During the period between July 21st, 2009 and August 20th, 2009 there were 126 Single Family Residential Homes that closed escrow. My previous report in this series, market report UPDATE - San Jacinto CA Real Estate Data detailed the specifics of the market in overall terms. This segment of the San Jacinto Real Estate Market Report will look exclusively at the 40 of the 126 homes that closed escrow that were bought with CASH - representing 30.95% of the entire market.
This information is to be considered useful, but please do not rely on it for any financial decisions without verifying the data for yourself. There are, of course, no guarantees to its accuracy.
This report covers both the 92582 and 92583 zip code - the only two zip codes in San Jacinto, CA which is located in the South West Riverside County area of the Inland Empire region of Southern California.
In the proceeding period (6/21/09 - 7/20/09), there were only 29 CASH transactions of the 110 that closed escrow; or 26.36% of all closed transactions. In this report the number of closed real estate transactions in San Jacinto, CA increased to 40, representing 30.95% of all real estate sold in the city from 7/21/09 through 8/20/09.
Back to the current period...
Homes sold with CASH, on average for $110,717 that represented 101.74% of the List Price of $108,829. The median Sale Price was $121,000 and the median List Price of only $114,900. These homes being reviewed in this section of my report ranged in List Price from $26.500 to $189,900. The Sale Price ranged for $27,100 all the way to $185,000.
An important indicator to gauge the value of a home is the cost per square foot. In this case, the AVERAGE Cost, for homes purchased with CASH has dropped to just $54.62 per square foot. The medium value was slightly less per square foot at $51.98 (nearly a 5% difference). The medium, of course, refers to the point where half of the values are above and half are below. In this case, we have one home that sold for a high of $86.94 per square foot. On the other end of the spectrum, homes started at only $31.37 per square foot. There were 5 single-family homes that sold for less than $36.01 a square foot and 15 total that came in under $50 a square foot. Of the 40 homes analyzed in this category, only 10% of them (4) were sold for over $75 per square foot. Regardless if the prices are going up or not, the value in San Jacinto CA cannot be disputed!
The Average Lot size for the Average San Jacinto, CA home that sold, for CASH, in this period was 7,600 sq ft. The Average home was built in 1991. The average home has 3.58 Bedrooms, 2.28 baths and provided the homeowner with 2,027 square feet of living space
I always find the marketing data the most interesting. On Average, homes that sold for CASH only sat on the MLS for a total of 32.35 days with another 22.93days in escrow before the title transferred to the new homebuyer. The number of photos posted to the MLS, on average was 6.88.
The reason for the nearly 33 DOM (Days on Market) had 3 homes posted to the MLS for over 100 days - with the longest at 180. There were 11 homes that closed escrow after being marketed for less than a week. The Medium DOM was only 8.
There were 7 CASH Escrows that closed in 2 weeks or less and only 10 that took over 30 days with the longest being only 40 days. The Medium Days in Escrow was only 22 days.
CASH is the preferred weapon of choice when battling for REO's in the San Jacinto Real Estate market. 34 of the 40 closed Cash Transactions were for bank owned homes in San Jacinto, CA. 3 Each were for Short Sales and good old fashioned Standards Sales.
The final stat that I'll look at for the AVERAGE SOLD HOME in San Jacinto CA from the period starting 7/21/2009 and ending 8/20/2009 is the number of pictures found in each MLS Listing. It should be noted that it is a MLS Violation NOT to have at least 1 picture posted. So why does it not surprise me that there was 8 listings with only the mandatory 1 photo. What also is no surprise is that the homes that did not have sufficient photos to properly represent a property sold for 59 cents less, per square foot than the Average Home.
Do You Like this Report?
I hope that you find this snapshot interesting. This is data that is not readily available anywhere else. I spend hours each month downloading and analyzing the data based on what I feel is the most relevant. This way, when The Excellence in Real Estate Team and myself are representing a buyer we can provide factual data that applies to their personal situation and not rely on the general statistics that are published by numerous resources. If you want to watch market trends on a weekly basis - just visit the home page of my personal website - JohnOcchi.Com and subscribe to the report generated each Monday, compiled by Altos - great stuff when you get the report sent straight to your email box each week.
As is my pattern, I will generate a full series of articles based on this data where I get deep into it - looking at what is happening by both the different ways homes are financed (FHA, VA, CASH, etc) as well as the different types of transactions (Bank Owned, Short Sales, etc) that are taking place.
If you have made it this far, please leave a comment telling me what you like about this series and how you plan on using this data.
The Hemet San Jacinto, CA Real Estate Market has continued to remain flat. It is unfortunate that I have fallen behind in my detailed market report, looking at the numbers like only I do - trying to make sense of what the numbers actually mean and how they relate to each individual buyer or seller.
At the end of this report are links to several series of article that I have been publishing each month, breaking the real estate market numbers down for San Jacinto CA This is a very complex process that takes hours...and even days to compile.
On the other hand, I have recently subscribed to a service that give very complex reports, based on the most recent 7 days of market activity. An example of one of these reports can be found by reading market report: Free Detailed Market Report for Hemet, CA from ActiveRain Vendor ALTOS. This service is available to anyone, for free, by subscribing on my website, JohnOcchi.Com.
Although this valuable information is very thorough, in my opinion it is just not enough. Whenever I look at a real estate market report, I am always left with questions...questions that want the real estate data to relate to the transaction at hand.
My custom reports basically break down the data, that I download from the MLS, by two very important factors that are almost always over looked. I analyze the real estate market data based on the type of sale as well as financing. By Type of Sale I am referring to the status; i.e. Bank Owned (REO), Short Sale, Probate or even the occasional Standard Sale (yes, they still do happen).
The next criteria is the financing type. I do not believe a CASH buyer should be looking at the market by analyzing FHA or VA loans. So for these reports I will break down the same data with the primary factor being each type of real estate financing for each San Jacinto, CA sale; i.e. Cash, Conventional, FHA, VA, and even the occasional Land Contract that is appearing in this market.
Unfortunately, I am almost 3 months behind. To keep the data unique, I do not use a calendar month system, but rather a set month from the 21st to the 20th of the next month. I started this way because I had some down time, the first time, shortly after the 20th. I continue to use this period system to keep the data output uniquely mine.
So, this is where I have been and this is where I am going. My first priority is to get caught up on the July 21st, 2009 through August 20th data. I started with the overall summary, when I published market report: SAN JACINTO, CA MARKET REPORT | 7/21/2009 - 8/20/2009 | General Overview.
Now is the time to complete that and move on to the next reporting period, so that we can truly see what has taken place since the summer, in the San Jacinto, CA real estate marketplace.
If you want to Track the Market, then please read more about the preceding period at any of these links:
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | The Average Home
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | Averages by Type of Sale
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | FINANCING by TYPE of SALE
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | CASH SALES & THE MARKET
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | CONVENTIONAL LOANS in the Market
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | FHA LOANS in the MARKET
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | VA LOANS in the MARKET
REPORTS FROM 5/20/2009 - 6/20/2009
San Jacinto Market Analysis - SOLD 5/20/09 - 6/20/09
Financing - CASH
Financing - CONVENTIONAL
Financing - FHA
Financing - VA
Financing - LAND CONTRACT
FINANCING OBSERVATIONS
Market Summary - Why local is Important
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.
Serving California and Riverside County zip codes of 92501, 92503 , 92551, 92555 , 92562, 92563, 92504, 92505, 92557, 92553, 92506, 92507, 92590 92591, 92508, 92509, 92570, 92571, 92592, 92399 , 92584 , 92596, 92820 , 92571 , 92543, 92544, 92545, 92583, 92582, 92879, 92580 , 92530, 92532, 92881, 92882, 92567, 92518, 92883 , 92549, 92561, 92220, 92223, 92028, 92088
45 Day Escrow...All the Time in the World, Right? WRONG!
The real estate market in the Hemet - San Jacinto Valley, CA is dominated with investors and first-time homebuyers. The investors have all been through escrows and know what is expected of them to close and close on time, without incurring hefty per diem charges for delays. First-time homebuyers more often resemble a deer in headlights, believing that 45 days is plenty of time for everyone to do their job.
The first time homebuyer who now has successfully negotiated a purchase contract, with the help of their REALTOR® or other real estate agent now has the real work cut out.
I'll often joke with buyers, very early in the process, when I'm assisting them with the ‘pre-approval' process that once they have been pre-approved we'll know exactly how much money they have to spend, and being the bona-fide shopaholics that I am, I can easily help them spend their money. I'll go on to explain that getting into escrow is the easy and fun part - where I earn my money is getting out of escrow.
TIME FOR THE BUYER TO GO TO WORK
Perhaps the most critical actions any buyer can do is be prepared with supporting documentation that will include a copy of their drivers license and social security card (for each borrower, if more than one).
The first time borrower must be able to provide proof of income that will include pay stubs for the last month. The borrower must also realize that it is not uncommon for the underwriter to request updated information and documentation in the days preceding the anticipated close of escrow date.
Not only will the borrower have to produce current employment records but tax returns for the most recent two years, as well...to include ALL W2's and 1099's for the prior tax years.
Two months worth of ALL bank statements will also be needed. Make sure you include your IRA and 401 statements as well as any CD's and saving accounts. This is not the time to black out account numbers or bank branch info - this is documentation that will be verified.
STAY CALM
Assuming the first time homebuyer is successful at submitting all of the requested documentation right away, it does not mean that the borrower is off the hook. The loan package, with all of your supporting documentation as well as the appraisal and possibly even termite or maintenance inspection reports are closely reviewed. The analogy of the underwriter analyzing your hemorrhoids with a microscope are often floated in conversation.
It is NOT uncommon for the underwriter to request additional documentation. This is the point when many purchasers will start to loose their composure. The process is getting down to crunch time and the buyer is being asked for something that has already been produced, or the buyer can't understand why they would ever want to see something that appears to be totally irrelevant...say 10 year old divorce papers, or a child support award...anything. It's all possible.
It is imperative that the new home buyer maintain their cool and accept the fact that they have been reduced to the role of a circus tiger trained to jump through burning hoops of fire. Just do it. Don't argue. Don't justify. Don't make excuses. Remember the old Nike commercials - "Just Do It".
WHAT NOT TO DO
Now this should be understood without any comment here - but maybe the seasoned real estate agent or loan officer just got so tired of sharing this information that they just naturally assume everyone and their brother knows this...DON'T MAKE ANY MAJOR PURCHASES UNTIL YOU CLOSE ESCROW - PERIOD!
I hate thinking of the Hemet - San Jacinto, CA real estate transactions that went sideways and didn't close because some happy-go-lucky buyer felt sooooo good that they were buying their first home they went out and bought a house full of new furniture, using some easy payment plan...many times with no payments due for a year. Maybe they bought a new car or they start opening new lines of credit - you know 2 or 3 new credit cards. . My favorite is when a first time wanna-be homebuyer quits their job and starts their own business. That's always a classic - remember more than likely the underwriter will want to see updated pay stubs at the end of escrow - at the very least they will be making telephone calls to the employer.
The reason why is very simple. The loan the first time buyer is obtaining was calculated on a debt to income ratio, among other important factors. When debt is increased it throws off the entire ratio. Even if the borrower would qualify for a similar loan with the higher ratio - more often than not they don't qualify for the loan that is being processed. And no, they do not just re-adjust the terms. This deal is now scrapped and more often than not the first time buyer has just forfeited their earnest money deposit.
This has all been said before. In today's economic climate these guidelines are perhaps even more important than ever before since the lenders appear to be over analyzing just about everything. So please prepare yourself ahead of time, be prepared for bumps in the road and don't don anything of a financial nature until after you close your escrow.
Today more people are trying to make the most of the homes they have...and that means remodeling.
Well here is a new video that just started it's circulation on some unusual home improvements...I hope you enjoy this as much as I did...My favorite is the Windows Window...the funnest...either the toilet paper or the light switch. What do you think?
10 Funny Home Improvement Real Estate Ideas - Watch more funny videos here
It is true that the Active Listings in the MLS are dominated by Short Sales listings these days and on the surface they appear to be some really great deals. However, just like your Highs School Prom Queen, looks can be deceiving (my apologies to all the H.S. Prom Queens who read this...and their Kings...and the rest of the Court, as well).
Short Sale homes are typically are a better buying decision for an investor looking for investment property than for a first time homebuyer. It still continues to amaze me when a first time homebuyer that is in a rush to move will ask me if I know "How to Buy a Short Sale House for Sale in Hemet?"
Short Sale homes typically will be occupied by the owner - but not always. Today, more investors are trying to liquidate their investment properties through the Short Sale process.
WHAT DOES SHORT SALE MEAN?
Before I can educate a first time homebuyer I must first make sure that they truly understand the meaning of the term that is tossed about so casually these days so that they understand what is a short sale.
I offer a short sale definition that simply lets the prospective buyer know that the seller owes more on their mortgage than the home is worth and in order to sell it, the current owner needs to obtain permission from the lender - often a bank.
I'll elaborate, when questioned further that there is an entire short sale check list that each lender has that is unique to them. So what Countrywide, Bank of America, Wells Fargo, One West Bank or USAA expect from short sale REALTORS® is completely different from one another. There is no magic bullet that can speed up the short sale time line or give anyone a special passage to buy a short sale home.
SHORT SALE REQUIREMENTS
As previously stated, each bank will have it's own unique requirements for working with them to liquidate a short sale mortgage.
One of the universal tasks that a specialist in short sale realestate must address is the hardship letter that must be prepared documenting why the sellers unique circumstances should be considered for leniency in the forgiveness of what may be a huge amount of debt. To complete the short sale package, the hardship letter must not only tell the story of woe, but must document the circumstances with pay-stubs, bank statements, tax returns, medical records and anything else that can document the homeowners situation. It is necessary to ‘un-qualify' for the loan and PROVE that the homebuyer CANNOT afford the current mortgage. Loss of equity doesn't cut it.
Many lenders will provide the short sale realty company with a complete sample short sale package to improve the chances of getting the short sale package approved.
HOW LONG WILL IT TAKE?
This is perhaps the biggest reason I try my hardest to discourage first time homebuyers, who have or want to move soon, from getting involved in buying a short sale and why I'll do almost anything if it means avoiding a short sale.
The timeline can be very long - typically in excess of two months. When an offer is made by the buyer and their real estate agent, the listing real estate agent must now complete their "short sale package" with their hardship letter and all of the supporting documentation, which should include some preliminary title work to show any other liens that may be on the property as well as the contract that needs to be in line with market value of the short sale house.
On the receiving side the negotiator for the bank receives the package - but typically won't even take a look at the contract until close to the date when the bank is scheduled to take the home back, through the foreclosure process. You see, these bank negotiators are over-worked. They have a very heavy caseload and cannot spend a lot of time on any one file. The other consideration is they pretty much all work on some sort of bonus program - so the only files they are really going to get deeply involved in are the ones where they believe they will be able to close the deal and earn that bonus before the bank takes the home back in foreclosure and moves it to the REO department for liquidation...or worse sold as part of a bulk sale to short sale bank investors with a pool of other short sales that the bank chose not to negotiate.
The Short Sale process time line can move quickly once in the hands of a competent bank negotiator. So quickly that it is not uncommon for the bank to accept an offer and give the buyer 10 days to close escrow. So the buyer has to have their financing in place, which is why short sales are great investment vehicles for bank short sale investors but for the first time homebuyer who typically does not have a stash of cash and must rely on traditional financing methods which will require a decent credit score, a down payment and closing costs...not to mention some funds in reserve for any rehab work that may need to be done.
WHAT ARE THE CHANCES OF GETTING MY SHORT SALE PROPERTY?
There are those clients who just won't take no for an answer and God Bless them. After I painstakingly go through the details of the process, I am still asked about their odds of getting into a short sale property.
I'll make one last effort to enlighten them and ask the first time homebuyer if they understand what the short sale requirements are and if they are ready to go down the emotional roller coaster ride that will take two to three months...knowing that the statistics are against us. More often I'll get a fairly complete recap along with a, "but we just love this house, and it's in the neighborhood that we both love. Can't we just try?"
At this point, I say of course we can...as I dial the phone and ask one of my buyer agents to meet us back in the office...
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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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