Housing Trends eNewsletter- Zachary Betts

Housing Trends eNewsletter- Zachary Betts

25142 Sweet Grass moreno valley

August month in real estate

I think right now we have a lot of people not sure if they should buy or sell real estate today. It maybe they are not making a move is because they do not have good accurate information. I have put together a little data on house inventory and sales prices. This is for the Victor Valley area as a whole. If you want a specific place or more detail contact me. 

What does this mean our inventory is at a 2 year high and opening escrows and closing escrows are at our usual number.

What does this chart mean? Houses are selling for 96% of list and are on the market for an average of 60 days. This means for buyer you have a better chance of getting that dream home for a good price and if you are selling it will take about 2 months to sell.

I want everyone to remember that not acting is not making a decision it is just the decision not to do anything. 

Call me if you have any questions 760-605-1632

What is going on with the High Desert Real Estate Market? 

Things are going pretty good right now. Prices have come up to an average of $94.00 per sqft this is up from $77.00 this time last year. This means if your home is 2000 sqft it could be worth $188,000.00 or more. If you want a more accurate evaluation click here and I will send you a 28 page report on your property.
Pricing on the average home was still going up and seems to have leveled off a little. What does this mean? We are now into a healthy real estate market. Prices have stabilized, inventory is staying stable, these are good things. It is still good time to buy, interest rates are still down and prices are not sky rocketing. We are in a good market. Average time on market is 61 days if house is priced right it sales for 96% of list. All of these things are very good indicators of a healthy market.

 

Are the Hedge funds done buying Rentals?

I thought this was an interesting article and is reflective of the markets I work in. 

Institutional Interest Falls as Foreclosures and Short Sales Remain High

Carole VanSickle Ellis | March 10, 2014 | 2 Comments

Institutional investors appear to feel that they have bought up all the viable rentals in many markets.

RealtyTrac’s January 2014 Residential & Foreclosure Sales Report was recently released, and shows that institutional investors’ purchases of rental homes are beginning to drop. Institutional investors, those entities purchasing at least 10 properties in a calendar year, accounted for just 5.2 percent of all U.S. residential property sales in January. This is down from 7.9 percent in December and down from 8.2 percent in January one year ago. The January 2014 figure also indicates the lowest percentage of institutional interest in the market in 22 months. Big drops in institutional interest occurred in Cape Coral-Fort Myers, Fla. (down 70 percent), Memphis, Tenn. (down 64 percent), Tucson, Ariz. (down 59 percent), Tampa, Fla. (down 48 percent), and Jacksonville, Fla. (down 21 percent).  In 23 of the 101 metro areas analyzed, year-over-year gains in institutional interest occurred, including the cities of Atlanta (up 9 percent), Austin (up 162 percent), Denver (up 21 percent), Cincinnati (up 83 percent), Dallas (up 30 percent), and Raleigh (up 15 percent).[1]

Daren Blomquist, a RealtyTrac vice president, said, “Many have anticipated that the large institutional investors backed by private equity would start winding down their purchases of homes to rent, and the January sales numbers provide early evidence this is happening. It’s unlikely that this pullback in purchasing is weather-related given that there were increases in the institutional investor share of purchases in colder-weather markets such as Denver and Cincinnati, even while many warmer-weather markets in Florida and Arizona saw substantial decreases in the share of institutional investors from a year ago.”[2]

The RealtyTrac report also shows that while distressed property transactions such as short sales and foreclosures remain high, they are beginning to drop.  Distressed sales accounted for a combined 17.5 percent of all U.S. residential sales in January 2014, down from 18.7 percent in January last year. While this number remains historically high, it seems to be levelling off and possibly beginning to decrease, although the total was higher than December’s reading of 14.9 percent.[3]

Do you think institutional investors are beginning to back off the rental housing market? Do you think distressed sales have seen their high-water mark?

VictorValley Real Estate Report