Dataquick reports today that the median price of Bay area homes is $390,000, up nearly 7% from September 2009. They report that the increase is due to adip in foreclosures and a rise in the number of high end sales.But at the same time 33% of the Fixed, A paper loans are in default in the 3rd quarter( 21% last year) and 16% increase in defaults on subprime loans( 35% last year).
In San Ramon, zip code 94582 the increase in prices and reduction is inventory is very similar.
Year to Date activity in Windemere has seen 129 sold homes reported on the MLS. Sales of New Homes sometimes get reported but not all the time. This data is based on what has been reported and I have broken it down into List Price vs Sold price vs Sold Month:
Activity indicated in the 2000-3000 sq ft homes. Here is the data :
Square footage 3000-4000 sq ft starting from January to date, 2009:
4000 sq ft plus activity:
Out of the 129 sales reported on the MLS, 36 homes were short sales and 20 homes were Bank owned homes.Out of the currently pending inventory of 53 homes, 39 are short sales and 2 are bank owned homes. We just have to wait and watch how many of the pending short sales will actually close.Given the fact that there are only 10 active homes on the resale market, the housing availability is in a bottleneck and will continue to tighten through the winter months. Demand is still very high, homes are flying off the market very quickly and prices are solidifying.
Prediction for 2010- NONE !!!! I have predicted things many times and had to eat crow, so I am flowing with the tide because this market is so crazy, I honestly do not know how it is going to pan out !
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Hardship, Foreclosure and the Homeowner
In an uncertain real estate market and troubling national economy, too many homeowners are faced with the immense challenge of maintaining their mortgage by living paycheck to paycheck, taking a large pay cut, having to pay unexpected medical bills, or losing their job entirely. In addition to perhaps having little to no savings and little available credit, the situation can be very grim.
There are options for homeowners feeling stuck in this situation and faced with certain foreclosure. Some may be able to sell their home with barely enough money to pay off their mortgage. Some may be able to sell their home with barely enough money to pay off their mortgage. Others may be able to refinance, however a majority of homeowners in this situation do not have enough equity to acquire a new loan.
Options include reinstatement, loan modification, forbearance, and the list goes on; however, many of these options are a drawn-out process that do little to ease the future financial pressure and foreclosure still looms even if put off for several months. Foreclosure is entirely avoidable, however, through the process of effecting a short sale.
A short sale is a real estate transaction in which the proceeds from the sale do not cover the balance owed on a loan or loans on the property. Lenders, quite simply, accept a discounted payoff on the loan and allow the sale to close escrow. The bank or mortgage lender will agree to discount the loan due to an economic hardship on the part of the mortgagor, and the homeowner will sell the mortgaged property for less than the outstanding balance of the loan, turn over the proceeds to the lender or bank, most often in full satisfaction of the debt.
A short sale is accomplished through negotiation with a bank’s loss mitigation or workout department on the part of the real estate professional, but the lender has the right to approve or disapprove any proposed sale. Main factors contributing to the lender’s decision are the borrower’s financial situation and the current state of the real estate market.
It is neither the lender doing the homeowner a favor nor an easy way out for the homeowner, but a process enabled by the real estate professional nor homeowner when they are committed to avoiding foreclosure. It can be likened to a circus, under a not-so-big top in which the animals and acts do not seem inclined to respond to the skilled direction of their leader, the real estate professional.
The main goal of a short sale is to prevent foreclosure; however, the bank’s decision to move forward with a short sale is dependent on whether there will be a smaller financial loss taking the short sale or in the carrying costs associated with foreclosure. Typically, a bank will determine the amount of equity by determining a probable selling price from a broker price opinion (BPO) or appraisal, and decide to approve or deny the short sale based on the offered short sale price difference compared to the costs of foreclosure.
Banks will not accept all short sales, and a trained, knowledgeable real estate professional is paramount to the process of getting a short sale approved. Advantages for the homeowner are avoidance of a foreclosure on their credit history and some partial control of the monetary deficiency.In foreclosure a homeowner will receive a 1099A (Abandonment) which there is very little tax relief for. In a Short Sale a seller would receive a 1099C (Cancelation of Debt) Based in section 108 of the tax code found at www.irs.ca.gov with a letter of insolvency from a CPA and IRS form 982 there is less exposure to an ongoing tax liability from a 1099C over a 1099A
Additionally, the process of a short sale is faster and less costly than a foreclosure. Controlling that deficiency and paying off one’s debt via a short sale is a sure-fire way to sidestep immense financial hardship and get back on one’s feet. While a short sale does adversely affect a person’s credit history, the impact is far less than that of a foreclosure.
In San Ramon itself, since January 2009, there are 33 Active Short Sale Listings; 165 Pending Short Sales and 149 Sold Short Sales.Do Banks Accept all Short Sales? No. That is why it is critical from the correct presentation of the short sale package to the lender, to working with the lenders’ loss mitigation departments is our best weapon to keep the file moving towards approval.
Would a Bank Accept a Short Sale if the Homeowner is Current on Payments? The answer is, maybe. Some lenders will accept a Short Sale file for approval on loans that are not delinquent; however, this is very rare. Other lenders will not accept the file until the loan is delinquent. One way to find out whether your lender will accept a short sale file for approval on a loan that is current is by submitting a short sale file to your lender.
A short sale/ pre-foreclosure trained and certified real estate agent is central to the process of executing a short sale.They are responsible for identifying financially distressed homeowners as candidates for a short sale as well as compiling a file for submission to the lender in hopes of having the short sale approved through their loss mitigation department. The homeowner trusts the professional to work hard to avoid foreclosure via the short sale, and the professional is the linchpin on which the entire process hinges. Even more than just allowing the homeowner to “sell” their house and exit on their own terms, the real estate professional enables the homeowner to save themselves the embarrassment of excessive legal postings or the threat of a visit from the sheriff as well as helping them maintain their dignity in a time of financial hardship.
Weekly Market Trend Reports for San Ramon
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All it takes me is an overseas trip to a third world country to start realising my blessings and thanking God for them. I would highly recommend all the pundits going crazy with their" The US is going down and everything is bad" negative raaga to go visit a far away country- that would show them what a great life we have here.
Why are we, as a society, becoming a bunch of whiners and complainers? I know when you lose your job, or your healthcare or lose anything else that is important to you- the tendency is to cry about it but somewhere in the crying we forget to count our blessings.I just got back from India where people living in the cities are breathing the most toxic air, drinking the most infected water, living in abject poverty( or living in complete opulence), sleeping on the streets in the extreme heat or cold- yet they go about without stress !! This is the one thing that amazed me because at some deep level there is the confidence that things are ok.
When I landed at SFO, I almost kissed the ground !! I thanked God for bringing me back to my family, where I can breathe fresh air, see the blue sky, live in a beautiful environment, drink clean water and have 24/7 electricity and water !! I am not here lecturing anyone but sharing my thoughts and experiences- People, PLEASE be positive and thankful,things could have been worse. Do not forget the art of compassion for one another and do not lose the respect for one another. Life is good and will get better.
In a growing city like San Ramon and a heavy demand for housing, we currently have just 150 homes currently available for sale. Out of these 150 homes for sale in San Ramon, 46 homes are Short sales and 16 are Bank owned.I am quite sure that out of the 46 short sales there are atleast 50% pending but because the listing agents want to play games by not marking it pending, there really is lesser inventory than the numbers show.
As for the pending homes in San Ramon,264 homes are pending YTD. Out of these 163 are Pending short sales !! Astounding numbers that shocked me too. 26 bank owned homes are pending as well, with an average of only 14 days on the market as opposed to the short sales with an average days on market being 45 for detached homes and a lot higher DOM for condos and townhouses.
Here is what the Windemere market looked like till last week:
Here is one example of a home in the Saville community that sold today. As you can see that the plan 3 in the resale market just went up in price from what the builder just sold:
If you have any questions about homes that are available for sale or have sold in San Ramon, please feel free to contact Rama Mehra @ 925.698.1815 or via email.
Homes For Sale in San Ramon, $100,000- $200,000
Homes For Sale in San Ramon,$200,000-$300,000
Homes For Sale in San Ramon, $300,000- $400,000
Homes For Sale in San Ramon, $400,000- $500,000
Homes For Sale in San Ramon, $500,000- $600,000
Homes For Sale in San Ramon, $600,000- $700,000
Homes For Sale in San Ramon, $700,000- $800,000
Homes For Sale in San Ramon, $800,000- $900,000
Homes For Sale in San Ramon, $900,000- $1,000,000
Homes For Sale in San Ramon, $1,000,000+
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Certified Pre Foreclosure Specialist, ePRO
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