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Eureka California Home Sales In November 2016

by Dean Kessler

Eureka California Home Sales in April 2012

by Dean Kessler

 

April 2012 had an 11% increase over April 2011 as far as the number of homes sold here in the Eureka area. That's a really nice increase. The average home selling prices have not increased, yet showing activity, buyer activity, offers being written and seller accepting offers have continued to increase. Interest rates remain low and hover between 3.75% and 4%.
The number of homes for sale has increased with sales volume. In the Eureka area there are 188 homes for sale, 97 of which are priced under $250,000.

 

 

 

 

 

 

 

Eureka California Home Sales in March 2012

by Dean Kessler

Home sales in Eureka, California continued to trend upward. First time homebuyers continued to be the largest group of home buyers. Low inventory and low interest rates meant some home sellers received multiple offers from many buyers. We still have a shortage of homes for sale in the $150,000 to $250,000 price range.
Investor buyers remained active, scooping up many of the bank owned homes coming onto our market.
The most interesting statistic has been the number of homes being purchased by what I term as the "Move-Up Home Buyer'. These are buyers who are trading up from the first home to a larger 3 or 4 bedroom home. These homes range in price from $250,000 to $400,000. The number of homes selling to this group of home buyers increased 10% over February. Very good news for home sellers in this upper price range where previously this market stagnanted and we saw few if any sales in this price point.
With historically low interest rates I believe this market will continue to be driven by first time home buyers and move-up home buyers will become more competive as inventory in the upper price point is bought out. A concern I've spoken up previously has been and continues to be locating new inventory. And now we're seeing increased pressure by our market to provide new inventory for the "move-up home buyers" in the $250,000 to $400,000 price range.

 

 

Eureka California Home Sales in February 2012

by Dean Kessler

Real estate sales for Eureka California remained consistent as we tumbled into February 2012. The number of homes sold in February was similar to those sold in January. Yet the number of homes that are presently under contract are 150% more than we had in January. March and April will be very busy as we work hard to bring these offers to closings.

Home buying activity is again led by the First-Time homebuyers, with Move-Up home buyers and Investor buyers remaining very active. I have noticed a trend developing with the type of real estate Investors are pursuing. Many entry level homes readily cherished by First-Time homebuyers are now being aggressively pursued by Investor home buyers. Homes for sale in the lower price point are now receiving multiple offers after being on the market for a short time. Case in point, witnessed a home  receive 8 offers after being on the market for 5 days. Majority of those offers from investors flush with cash. 

My counsel to First-Time home buyers, or any home buyer; to compete in this market, you must have a loan pre-approval letter from your lender of choice, period. Loan pre-qualification letters are not up to the task (if you're not sure of the difference, shoot me an email). With a loan pre-approval letter, a homebuyer is more competetive when faced with a multiple offer scenario.

For home sellers there remains great news. We continue below the two year moving average of homes available for sale. For active home sellers, there is less competition for home buyers. And home buyers are out in force with interst rates below 4%. These home buyers have seen the existing inventory and are anxious for new inventory to choose from.

Eureka California Home Sales in January 2012

by Dean Kessler

Home sales in Eureka California have remained consistent as we moved into February 2012. The Humboldt Association of Realtors MLS System reports the number of homes under contract increased 150% from January to February. These are homes with offers not yet sold, so as we move into March we should see even more Sold homes. This is a positive sign and many experts believe we are heading for a more stable housing market. Interest rates remain at all time low's hovering around 4%.

One of the most interesting trends I'm watching is the number of homes for sale which had dipped below it's 2-year moving average back in December 2011. Today our available inventory remains below this 2-year average. This means there are fewer homes for buyers to choose from. Less inventory means more activity for the available homes. The reason I'm sharing this with you is because it confirms a trend that our local real estate market activity is on the rise and I believe their is a high probability this trend will continue throughout 2012.

Thinking of buying or selling a home? Home prices are stabilizing and interest rates are at their lowest levels in 50 years.

CNN Money - Eureka Best Place To Live!!!

by Dean Kessler

Dean Kessler, The Kessler Team, was recently interviewed by CNN Money!!!

Have You Heard of This New Refinance Option?

by Dean Kessler

Are you a homeowner who has an adjustable rate mortgage, or a high interest rate mortgage, or a mortgage balance larger than the value of your home? Nationally, 1 in 4 homeowners is upside down in their home loan. California is even more troubling with 1 in 3 homeowners upside down in their home loan.

If your mortgage is owned by Freddie Mac or Fannie Mae, you need to know about their Home Affordable Refinance Program (HARP). Administered by Freddie Mac and Fannie Mae homeowners can refinance to a new loan and lock in at today’s lower fixed interest rates. And their may also be a principal reduction.

To qualify, you need to be a homeowner who is current on your loan payments, and your loan balance is 80% to 125% of your property’s current value. A majority of home owners who purchased in the past 5 years will meet this requirement.

This refinance program was ready to expire June 30, 2011 and has recently been extended one year thru June 30, 2012.

Now you won’t know Freddie or Fannie is your lender by who you’re sending mortgage payment to every month. The Wells Fargo’s, Bank of America’s, Chase’s, etc, brand name lenders may just be “servicing” the loan on behalf of Freddie or Fannie. To find out if you have a Freddie Mac loan, visit www.freddiemac.com. For a Fannie Mae loan visit www.fanniemae.com.

HARP is intended to pull borrowers “above water” and help them get out from under plummeting property values and/or increasing interest rates. Nationally 621,803 homeowners have taken advantage of this program. Yet this represents only 10% of annual home sales nationally so it’s clear many homeowners are not aware of this program. If you have questions, both Freddie and Fannie’s websites have excellent examples, one of which may fit your scenario. Additional questions should be directed to your favored Eureka area loan officer or mortgage broker who knows how to speak HARP.

3 Reasons the Term “Strategic Default” Is Misleading

by Dean Kessler

3 Reasons the Term “Strategic Default” Is Misleading

In a recent study, the Chicago Booth/Kellogg School Financial Trust Index found that a full 36% of Americans would consider “strategic default”—another term for walking away from your mortgage—if they were underwater (owed more on their home than what it was worth).

Now that more than one in four American homeowners is “underwater,” I feel that it’s important for the community to know the truth about strategic default.

The truth is the foreclosure process carries with it credit issues, current and future employment challenges, issues with security clearance and possible debt collections.

That’s why it is vital to explain the 3 reasons why the term “strategic default” is misleading:

  1. There’s nothing strategic about defaulting on purpose, especially when you have options like short sales, mortgage modifications, and refinance (just to name a few) that may keep you from foreclosure.
  2. The waiting periods to apply for a new mortgage loan are at least five years less in a short sale vs. a foreclosure.
  3. A foreclosure will show up on your credit report every time you apply for a home loan, car loan, new job, etc., and will affect your financial situation for many years to come.

If you are underwater and can no longer afford your mortgage payments, you need to create a genuine strategy to avoid foreclosure, helping to provide stability for you and our community.

If you have any questions about what steps you or someone you care about should take next, contact me today!

IMPORTANT GOVERNMENT DISCLOSURE: You may stop doing business with us at any time. You may accept or reject the offer of mortgage assistance we obtain from your lender (or servicer). If you reject the offer, you will not have to pay us for our services. The above brokerage is not associated with the government, and our service is not approved by the government or your lender. Even if you accept this offer and use our service, your lender may not agree to change your loan.

 

Making Sense of Mortgage Modification

by Dean Kessler

There has been much in the news in the past few weeks about mortgage modifications for homeowners who are having trouble making their house payments. Many are having difficulty qualifying for modifications, and so far the government’s Home Affordable Modification Program (HAMP) has had disappointing results.

Last month I was working with a Eureka homeowner in financial distress who had attempted to modify their loan thru HAMP. Three months later they where declined for a HAMP modification because a mathematical equation the lender used had determined it would be better for the lender to foreclose then to modify the loan. The lender then offered an “internal” modification, but only if the homeowners would pay an extra $80,000 on the loan if in the future they paid off the loan or sold the house. My clients declined and we successfully pursued a “short sale”. It was a very emotional decision, but financially it was there best option.

As a side note, the lender also found a reason to decline these homeowners for participation in the governments Home Affordable Foreclosure Alternative (HAFA). If we had been successful in a short sale under HAFA, the lender would have had to offer the borrowers $3,000 relocation assistance.

Not all lenders are as devious as this lender was, but this experience was an example of how some lenders tend to manipulate or just completely ignore rescue programs meant to help distressed homeowners and lenders. My counsel remains for distressed homeowners to be proactive with their lender and be realistic about their options.

The Washington Post recently reported that “troubled homeowners who receive housing counseling are 60% more likely to avoid foreclosure and have their mortgage payments lowered significantly than borrowers who navigate the process themselves.” I can help homeowners facilitate the process of loan modification and discuss other alternatives to foreclosure if a modification is not an option.

As a CDPE, I feel it’s my duty to help anyone I can during these hard times. If you would like to know more about mortgage modifications and whether or not you might qualify, please feel free to contact me.

August Real Estate Trends

by Dean Kessler

Displaying blog entries 1-10 of 25

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