Sales are picking up

I live in Heritage Palms and I do quite a bit of my business in that community. When I say business is picking up, I am not kidding. We have had 6 houses with accepted offers in the last 2 weeks. That is pretty good for a community with only 1004 homes.

So if you are interested in the best 55+ community in the area, give me a call. I love showing my community to others.

Home sales up in Coachella Valley

Housing prices may have started to rise on a national level. Here in the Coachella Valley, we are seeing the bottoming out of prices. In recent months the medium price has not changed from $300,000. People are beginning to realize that prices are not going to go much lower so now is the time to buy. Sales are climbing in our area. According the Desert Sun article on August 26th, "The resale single-family segment of the market showed gains for the forth consecutive month. The 538 homes sold is up 36.2 percent from the previous year."
So if you have been sitting on the fence about whether or not you should buy - the time is now. The interest rates are low, there is plenty of inventory on the market and it doesn't look like prices are going much lower.

Home prices on the rise

According to NAR statistics, the median home price has fallen from a high of $230,200 in July 2006 to a low in February 2008 at $195,600, a drop of 15%. Since February, however, it has risen steadily every month. By May the index (which will be revised on July 24) had risen to $208,600, up $13,000 and a full 6.6%. Another indicator, the mean home price (otherwise known as the average home price), has also shown strength and has risen from a low of $242,000 also in February of this year to $253,100, a rise of $11,100 or 4.5%. It, too, has risen every month since February of this year.

Market Upturn Predicted Second Half of Year

Although existing-home sales have been soft since the beginning of this year, they are expected to improve notably during the second half of 2008, according to a forecast by the NATIONAL ASSOCIATION OF REALTORS® (NAR). Statistics suggest a sizeable pent-up demand for homes, according to NAR Chief Economist Lawrence Yun, which will be released into the marketplace as excessive home-buyer pessimism about the market begins to subside.

“Ever since the credit crunch last year home sales have noticeably declined,” says Yun. “Subprime lending accounted for 20 percent of the market, and that suddenly disappeared last August. For brokers, these have been tough times, but given that we have historically low mortgage rates, I believe we’ll see an increase in sales the second half of the year.”

Foreclosures drive housing market

In Riverside County, home values tumbled 28.6% from May 2007 to May 2008, DataQuick said. But the volume of home sales in May of this year actually increased by 4.1% from a year earlier, to 3,444.

We are seeing the lowest prices on homes that we have seen in a few years and people are buying. Anyone who was thinking about buying before the prices started to drop, are in the market now. There are low priced home and deals to be had in every level of the market. Even people who didn't think they could afford a house, can now find something in their price point. The foreclosures have forced prices down even if the seller in not facing finacial difficulties. If you want to sell a house today it has to be priced right. And that means a price tag considerably lower than what the house would have sold for a year ago.

Those who decided to wait till the market bottomed out - well now is the time. The interest rates are starting to rise and the inventory is huge.

Homes Sales in Indio up 47 percent

Heritage Plams and Sun City Shadow Hill, two 'active adult communities' plus many other great developments, new and old, are located in Indio. Anyone looking for a home in the desert is sure to find something to their liking. According the the Desert Sun on Friday June 6th, "Indio's home sales in April were up 46.5 percent from a year ago". And in addition, the number of homes sold in Indio in April was up almost 47 percent when compared with home sales in March of this year.

The housing market is definitely improving in this area. Let's hope the rest of the country sees the same increases in the near future.

REO's

What does REO mean? Real Estate Owned and it refers to a bank that owns the real estate. This means that the home has been foreclosed on and the bank now owns the home. Banks are not in the real estate business and want these homes sold as fast as possible. They want to recover as much as they can when selling an REO so most of the time there is a deal to be had.
Still, don't be fooled into buying and REO and then finding out that you paid more than the house is worth. Remember many of these homes were financed 100% when the market was high. Now the home is not worth what the principal of mortgage was when the homeowners defaulted. Most of the time the bank is writing off a lot of the debt therefore you and find great deals on REO's for sale.
It would really be worth your while to have a reputable real estate agent work with you to determine the comps in the area you are looking to buy. Many auction companies even let you bring your realtor to the auction.
So REO's can be a great way for first time buyers and investors to find reasonably prices homes. But don't forget to do your homework before making an offer to the bank.