For Sale Vs. Sold
In the last 15 months, inventory levels topped out nearly a year ago in June 2008. Since then, they have been on a steady decline, fueled by seasonally consistent and steady sales. April's pending home sales are also high, indicating that May's closed sales will be in line with the continuing sales trends.
Days on Market - Sold Vs List Price (as a Percentage)
The average days on market indicates how long listings are remaining on the market before they are sold. One important point to note is that these numbers do not take into account those listings that do not end up selling, and instead indicate how long fairly priced homes will take to sell.
You will also see on this graph how much a home sold for, versus its list price. An obvious trend indicates that homes are now selling for less than their list price, which is a different story than what we saw a few years ago. In the last 6-7 months, this number has decreased on average by 1%, with most home sales selling on average at 96% of the list price, whereas it was a bit higher last year.
In the last quarter, we see a nudge up in the number of average Days on Market, from around 65 days last year to around 78 days.
Average Price - Sale Vs. Sold
This is a very interesting graph. The Average List Price (green line) has been on a steady and significant increase. The Average Sold Price (red line) was on a steady decline until January of this year. In January, the Average Sold Price then started increasing, and has been doing so for 2009.
Some people may look at this and think that we have hit the bottom of the real estate market in the Greater South Bay. I caution against that assumption as the Greater South Bay encompasses so many different cities and micro-markets. These numbers could be skewed by high sales in one area, but lackluster sales in another area. It is recommended that a more focused analysis be done to determine the state of the market for a specific area.
Months of Inventory
Anytime inventory is more than 6 months, it is considered to be a buyer's market.
The Months of Inventory have been very steadily declining since July 2008, with a few small blips in January and February 2009. Strong sales and the continued reduction of inventory are the prime reason for this steady decline. It will be interesting to see what comes in the next few months as we enter the summer real estate season.
Summary
I can't believe it has been since November 2008 that I have assembled my market reports! So many interesting things have happened: strong sales, reduced inventory, buyer incentives, record-low interest rates.
The graphs in this report are undeniable evidence that homes are selling! But what we don't see is something that I have observed through my experience - most of the homes that are selling are doing so in the lower price points. I would venture to say that the $300,000-$500,000 price range makes up the majority of the home sales.
Far fewer homes are selling in the $2,000,000+ price range. That's sad news for builders, of which a fair part of the higher end inventory is made up of. This could present some opportunities for buyers looking in this price point. Many builders are open to "creative financing", considering lease options or even carrying part of the loan. These are financing opportunities that would have been laughed down just 2 years ago.
I also want to comment on a recurring experience that I have with my buyers. My buyers who are actively looking for homes right now are getting frustrated. Why? The inventory that is on the market is not of the best quality! Many short sale listings aren't left in the best condition, and the same goes for bank owned homes. There are numerous "fixers", but very few homes that are in move-in ready condition. However, when a home comes on the market that is move-in ready and it is priced fairly, it's like a feeding frenzy! In the last 6 months, every single offer that I have submitted for my clients have been a multiple offer situation! So even though it is a buyer's market, there is big competition for the attractive, move-in ready homes.
So, you are probably still wondering, "Are we at the bottom?" In my opinion, I don't believe so - but we are getting closer! But as I cautioned earlier in the report, a more focused analysis of smaller areas/markets is recommended. Also, the industry is expecting to see a large number of bank owned homes hit the market in the next few months, just in time for the summer season. This is just a prediction, so only time will tell if we are correct about that.
If you are considering a home purchase, or you need to sell, I would love to earn your business. My team and I have the knowledge and expertise needed to help you make an educated and comfortable real estate decision. We would be happy to arrange a no-obligation consultation with you.
Tiffany Wilson has lived in the South Bay of Los Angeles County for almost 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
I am very excited about the upcoming Assisted Housing Stability and Energy and Green Retrofit Investments Stimulus program (phew, that's a mouthful), and I want to start by thanking Tiffany Humsfeld for pointing it out to me! But I can't horde this information for myself, because for those of you who own homes already, you may finally have an opportunity to get financial help to upgrade your home to make it more energy efficient.
This is exciting because up until now, there were primarily programs for home buyers to get access to funds for energy efficient upgrades (by the way - these are EEMs, or Energy Efficient Mortgages. Call or email me for more information). So for those of us who have been in our home for 30 days or 30 years, we didn't have access to similar programs to help us make energy efficient upgrades to our home.
At this point, details have not been released about the program, but I have requested to be informed from the program coordinators when they are available. I will be sure to share it here when I know more.
So, what can we expect from this program? I can only speculate, but forget dreams of installing solar power at home on the government! I suspect that the participating homeowner will be required to order an Energy Appraisal, which will identify some of the top retrofits that can be done which will lower their energy costs enough to essentially pay for the cost of the retrofits over their lifetime. Examples of this can include replacing a tank water heater with a tankless water heater, weatherstripping doors and windows, or installing insulation in various parts of the home.
So, the rule of "green" thumb (heh, heh... I just made that up) is that green retrofits and upgrades save you money. But that's not the only benefit to your pocketbook: statistics have shown that home buyers are willing to pay MORE for homes that have green upgrades.
If you would like more information on this program, you can click here to visit HUD's website.
Tiffany Wilson has lived in the South Bay of Los Angeles County for over 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
I am VERY proud to announce that I have recently earned the GREEN designation from the National Association of Realtors (NAR), demonstrating my dedication to environmentally conscious matters that affect our planet.
Many of my clients, colleagues, and friends don't know this about me, but I grew up in a rural area. Here, I was exposed to environmentally-friendly concepts and practices that were not a new trend, but that were a part of farm-life. Composting, recycling, and energy conservation were just part of life - not a trendy Hollywood campaign.
I have also been active with the non-profit environmental group, Surfrider, and continue to be a strong supporter. I do my part to recycle our trash, change our light bulbs to CFLs, tend an organic garden (Hey! I AM a farm girl!) and teach my children about the importance of being a good steward of the planet.
It has been a goal of mine to incorporate a green philosophy, that is very important to me, into my business, which is why I recently completed specialized courses in order to receive my GREEN designation from NAR. As part of this training, I learned how I can assist my clients who are eco-conscious like myself, help them learn more about green subjects related to real estate, and even put them in touch with other green vendors (contractors, lenders, etc) and builders.
And for those of you who are thinking, "well, I can't buy a new, green home, so how can she help me?" There are green services and products available to ALL homeowners and buyers that can help you not only be more green, but also have the potential to save you money!
It's funny that I am making this announcement the same month that Earth Day falls in - April 22nd actually. So in honor of Earth Day, I encourage you all to make one change in your lives that can not only be friendlier to the environment, but also save you money. Here are a few ideas:
Go green!
In February, I created the first "Top 10 Investment Opportunities in the Greater South Bay" report. That was such a hit that I was asked to create the same reports for Riverside, Long Beach, and Palmdale/Lancaster.
It was my original intent to author these reports each month, but I soon realized that I could not find the time to do this on a monthly basis. So instead, I decided to create them each quarter.
So, I now have the following Q2 Investment Opportunity reports available to all, by request:
These reports are available to anyone for FREE - just send me an email noting the reports you are interested in, and I will email them to you.
Some of you may be looking for a similar report for Single Family Homes. I am willing to produce those reports, but only after signing a Buyer Broker Agreement and setting up an appointment with me for an initial consultation.
If there are requests for reports in other Southern California areas in the future, please email your request to me at tiffany.wilson@shorewood.com.
Happy investing!
Tiffany Wilson has lived in the South Bay of Los Angeles County for over 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
Facing foreclosure can be a very scary prospect. Most homeowners do not know exactly what their situation is and what options are available to them. Even more confusing is when the postcards and letters start arriving where people promise to "get them out of foreclosure for $599", or other promises to that extent. Often that scares people away from speaking with anyone about finding a solution to their situation. That shouldn't be the case.
So, in order to do my part, I want to share the options that are available to homeowners, though not necessarily all of them. Every homeowner's situation is different, so not all options will be available to them.
1. Refinance - only works if the homeowner's credit is intact, their income supports the refinance, and the value of their home is high enough to refinance.
2. Loan Modification - modify the terms and rate of a homeowner's existing loan so that they can continue to make payments in full and on time. Bank must agree to do a loan modification.
3. Short sale - homeowner sells their home for less than what is owed, and the lender pays the Realtor's commission. Lender must agree to the sale.
4. Deed in lieu of foreclosure - the homeowner returns the keys (deed) to the lender and walks away from the home. The lender does not have to agree to this though.
5. Walk away - the homeowner does nothing, the home forecloses, and the lender typically becomes the new owner.
Some people may even say that selling to a real estate investor is an option. I will admit that it could be an option, but it is important to work with an honest investor.
All of these options impact the homeowner's housing and financial situation differently. It is important that they assess the impact of each option to determine which option is a fit for them.
Tiffany Wilson has lived in the South Bay of Los Angeles County for almost 10 years. She and her family enjoy the safety and rich family features that the beach communities of the South Bay have to offer, including a close and neighborly community. Also, having experienced an out-of-country move to California over 10 years ago, she is perfectly positioned to assist out-of-state and foreign buyers in their search for real estate in the South Bay and the additional surrounding communities of Los Angeles and Orange County. She can be reached directly at tiffany.wilson@shorewood.com or 310-503-0557.
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Do you want to hear about me, or what I can do for YOU? How about a Realtor who keeps in touch with the changing market, so she can adapt to best serve her clients. Competency, knowledge, and service.
I LOVE real estate, and I appear to have an affinity for it. I began investing in real estate in 1999 and have learned a lot along the way and bought some great homes. I have enjoyed this experience immensely, and I find that it helps me greatly when serving my clients.
But it's not just about real estate - it's about the people I work with: my current & future clients, financial professionals, title and escrow, insurance professionals, my peers, and all others involved. Real estate is serious business, but that still doesn't mean we can't have fun with it, does it?
Some people think I am crazy for being in a career in real estate with the way the current state of the housing and finance industry. But, I have always walked to the beat of my own drum. My primary motivator for working in real estate is not financially driven, but because it is something I truly enjoy. I am up for all of the challenges, looking at them as opportunities to grow and learn, not pitfalls. This is no fairweather real estate agent, my friend!
I think it is important to have a mantra - a slogan - which tells people what you are all about. I think I have found one for myself which is simple and succinct:
Responsible Real Estate
Of course I want to act in a responsible manner in all my real estate dealings, but I want to go further than that:
I specialize in the South Bay, beach and surrounding cities of Culver City, El Segundo, Gardena, Hawthorne, Hermosa Beach, Lawndale, Lomita, Manhattan Beach, Palos Verdes Peninsula, Redondo Beach, Rancho Palos Verdes, Rolling Hills, and Torrance.
I also specialize in Real Estate Investing and Green Real Estate.
Who are my clients?
Buyers and sellers who are:
I intend on serving ALL of my clients at a minimum in the following manners:
Individuals and families selling or relocating to or within the South Bay
I have lived, worked, and played in the South Bay for almost 10 years now - and counting! I have driven the streets to and from work, my family and I have frequented the beaches, we have dined all over (shout out to Wahoos Fish Taco in Manhattan Beach, the BEST restaurant in the whole world), shopped here, and enjoyed this wonderful area that I made into home after relocating from the cold, northern regions of Canada.
Buyers:
Sellers:
Real Estate Investors & Foreign Buyers
I am a real estate investor myself, and I always look at every piece of real estate with an investor's eyes. I am also a foreigner, having made a large move from Canada to Southern California over 10 years ago. I am familiar with what investors and foreign buyers are looking for and what they have to deal with. I have also served foreign buyers in the past when considering the purchase of real estate in Costa Rica. To top it off, I have also personally purchased out-of-state real estate safely and successfully. That is only possible with the help of a good agent, and mine has taught me the proper way to do it.
Tiffany has the experience in customer relations, sales and marketing, and most importantly, a desire to succeed through self-motivation. Her dedication and passion lends a unique commitment to service excellence, of which her colleagues and clients have, and will continue, to benefit from in the future. Tiffany is a genuine asset to the industry, to her clients, as well as to her colleagues, friends and family.
- Renee Crow, Missouri real estate agent with Realty Professionals
From my first contact with Tiffany, the choice was obvious: Wayne and Tiffany came well prepared, with their "homework" done and every detail attended to. They were there to sell themselves , but it was clear that they had listened attentively to our needs as sellers: they were extremely clear on a well-researched asking price that would be attractive in the current market and yet acceptable to us, and they had a creative marketing plan that went far beyond the office caravan, brokers' open, and open house after open house and included every possible potential buyer , whether it was someone just surfing the internet, starting to think about buying or someone who had been searching with the help of a real estate agent and just waiting for the perfect house to come on the market.
I signed the listing paperwork on a Monday evening, the listing went public Tuesday morning, and by that Thursday evening, we had a realtor call to say she had an offer on its way. We went from listing to closing in a mere 38 days.
Throughout the entire process, Tiffany and Wayne were always available to me via phone and email, and they never hesitated to stop by in person when necessary. Their teamwork is tightly choreographed and between the two of them all aspects of our sale were handled without a hitch. The internet listing was beautifully done with a maximum of photographs, the hard copy materials were thoughtfully conceived and flawlessly executed.
I highly recommend Wayne Lester and Tiffany Wilson to anyone considering selling their home.
- Elizabeth Baker, Torrance, CA
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