More Sellers Jump Into Favorable Market

More sellers are ready to put their homes on the market for the awaiting buyers.  They are getting top dollar! If you have been thinking of selling, give me a call for a FREE Comparative Market Analysis and let's begin the process! Laura Key 310.866.8422

Inventories of for-sale homes are increasing as more owners see rising home prices and faster sales as a reason to try to sell now, according to industry reports.

In April, the number of listings was higher than the level of homes that were under contract in that month, according to a study by the real estate brokerage ZipRealty, which measured listings in 24 major metro markets.

“It’s less of an indication of buyer momentum flagging and more of seller momentum picking up, finally,” says Lanny Baker, the company’s chief executive.

The reports find that homes are selling faster—on average, within 32 days of being listed. In April 2012, that average stood at 48 days for homes to sell. 

“A market in which the sale prices are happening very close to the list prices, a market in which the list prices seem to be moving sequentially higher, and a market in which any of those houses are selling speedily is one that is bringing sellers back,” Baker says. “That makes it feel to a seller that this isn’t going to be a long passive despair that I tried three years ago.”

Source: “Why More Sellers Could Test the Market,” The Wall Street Journal (June 10, 2013)

Want an estimate of what your California home is worth? Fill out the form below!  All info is confidential and will not be sold!

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HUD-Owned Homes Expected to Surge

Soon the market will be filled with new listings from HUD! Are you prepared? Make sure you use an agent who is HUD experienced and can help you find the home of your dreams.  I have closed many HUD homes in the past few years!  Let me assist you! Laura Key 310.866.8422

The U.S. Department of Housing and Urban Development is reportedly going to be releasing more of its homes to the market, which could be welcome news to buyers who have faced slim pickings in for-sale inventories. 

Over the next two years, experts predict that HUD homes on the market will increase significantly as lenders work through the backlogs of foreclosures and foreclosure reviews.

“The inventory is there, [it’s] just not being released during the banks/servicers review of the loan/mortgage documents,” says Nat Genis, a HUD listing broker in Riverside County, Calif., which is already seeing an increase in HUD-owned homes.  

"HUD homes are back," Genis told HousingWire. "FHA financing went away with the 'creative' financing of the 80/20 loans, and now with the increase of FHA financing, these government-backed loans guarantee that if the borrower defaults, HUD will pay off the mortgage, obtain the deed, and re-sell the home."

HUD-owned homes can be appealing because of the discounted sales price, even though they can be in poor condition often times, HousingWire reports. 

HUD had 39,442 homes in its REO inventory nationwide as of Feb. 28, 2013—with 20,536 of those having pending contracts on them, according to HUD. 

Source: “HUD homes add to inventory-starved market,” HousingWire (April 29, 2013)

Can You Buy a Home That Isn’t for Sale?

With inventory so low in Cali you must think outside the box.  I'm willing to go there with you! Laura.A.Key@gmail.com

It may seem like an odd question, but apparently, you can! 

The shortage of homes on the market right now is driving both real estate agents and consumers to get creative in their efforts to find their dream home. One recent survey reports a dramatic drop in the number of homes for sale in 2013 (specifically, they say that there are 14% fewer homes for sale this year than in years past). One prime example of this shortage is in Orange County, California, where there are 9000 fewer homes on the market than there were three years ago!

 

With the spring season upon us, realtors have been using their creativity to try and coax potential sellers out into the market, but even with their efforts, there is still a major lack of inventory. Although it may prove to be a challenge, it is still possible to find homes that aren’t even on the market yet. If you’re patient enough, you can be first on the list should a home go up for sale!

 

How do you do it?

 

One way is to look for homes where the current owner has defaulted on their loan. There is a period of time before the bank forecloses on the home where you can make an offer to a homeowner who may be struggling with paying their mortgage. By approaching the homeowner before the bank forecloses, you can save the homeowner from foreclosure and buy a home that hasn’t been listed yet. 

 

By doing some research, you may be able to find potential sellers that previously had their home on the market, but took it off either because of the lousy market, or for other reasons. When you find one, send a letter to the homeowner, and ask them to contact you should they decide to relist their home, or make them an offer worth consideration even if they had changed their mind about selling. 

 

(One thing to be careful of when contacting homeowners is that it is illegal to place something in another person’s mailbox. Either mail the letter through post office, or leave the letter at the front door.) 

 

You may also be surprised to discover that there are websites where people “list” their homes at their fantasy price. Although these are not official listings, you may find a home where their fantasy price isn’t that far off from your reality price! By searching for these homes, you at least can get an idea of people who could be persuaded to sell if you are willing to make their fantasy a reality. 

 

Finally, to buy a house that isn’t for sale, take a shot in the dark and contact homeowners of houses you love. Although this is a long shot, people have actually been known to sell their homes in these situations. Mail the owner a letter about why you love their home, and why you are so interested in purchasing it. Ask the homeowner to contact you and let you know if they have any intentions whatsoever, or to contact you first should they ever decide to sell. 

 

The trick to reaching out this way is to be flexible and to offer scenarios that may be mutually beneficial. For example, you may offer to rent out the home after purchase for a period of time while the homeowners search for another house. It may seem like a long shot, but it’s definitely worth a try if you really love the house!

This article is brought to you exclusively by RealtyPin.com

Housing Shortage Will Dampen Spring Market

Buyers must be prepared more than ever! Do you have your PRE-APPROVAL in hand? It could mean the different of you getting your new home or renting for another year.  Call me, let's discuss your options! Laura Key 310.866.8422

The housing recovery is progressing, but a shortage of homes on the market will limit the number of home sales this spring selling season, industry insiders say. 

"If we don't see more people listing their properties, I don't think we will see the home sales volume increase that we are accustomed to seeing," Glenn Kelman, chief executive officer of Redfin told Reuters. "There are far more buyers than there are sellers on the market. We would have a huge boom spurred by low interest rates if there were more inventory on the market."

Still, the National Association of REALTORS® predicts existing-home sales will rise around 7 or 8 percent this spring compared to year ago levels. 

In some areas where inventories are particularly constrained—like Washington, D.C., New York, and several California cities—homes are selling within hours of being placed on the market. 

"The demand for properties is insane. The bidding wars that are going on, there is not enough inventory and it has become truly a seller's market again," says Neil Garfinkel, real estate attorney at Abrams Garfinkel Margolis Bergson in New York.

Source: “Analysis: Supply crunch to take steam out of home sales,” Reuters (April 3, 2013)