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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 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.

August Real Estate Trends

by Dean Kessler

Eureka Home Selling Trends - April 2009

by Dean Kessler

Eureka Real Estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM reports that in the past month home sales in the greater Eureka area remained consistent.

 

Kessler notes “It’s unfortunate to have to report a dramatic increase in the number of “bank owned” home sales in the past month. It simply means a prior home owner went thru the pain of foreclosure rather than pursue the many other available options to foreclosure.

 

Kessler went onto say “The pain of foreclosure severely degrades property values of all homes in our community. For example, last month a “bank owned” 3bed/2bath home in Myrtletown sold for $233,600. Previously a comparable “resale” home in the neighborhood sold for $257,500, a difference of $23,900. This difference now reduces property values by $23,900 of all comparable homes. Reason being, appraisers have to use the “bank owned” home sale in their valuation assessment of future home sales. Let’s take it to another level. Using the same “bank owned” home sale, let’s say there are 200 comparable homes in the greater Eureka area. The County’s tax base was just reduced $4,780,000 as a result of this one “bank owned” home sale. Keep in mind, there were 5 other “bank owned” home sales that had occurred last month. If my example “bank owned” home sale was the average sales price (and it was), the County’s tax base was reduced by almost 29 million dollars as a result of the six “bank owned” home sales last month”.

 

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

 

 

April 2009

% Change

April 2008

Active Listings

240

-22%

310

Sales

28

-12%

32

Short Sales

0

-12%

0

Bank Owned Sales

6

-

1

Average Sales Price

$264,311

-14%

$308,600

Time Supply of Inventory (months)

8.6

-11%

9.7

 

 

Kessler reflected on April’s real estate statistics by saying “The average sales price of a single family home in Eureka increased 8% to $264,311 from March’s average of $241,922. This increase appears to be an anomaly attributed to a couple of large dollar home sales last month. Most of the home sale activity is occurring below the $250,000 price point.”

 

A quick look at the least and most expensive homes sold in the Eureka area include a $169,900 3bed/1bath home “Bank Owned” sale in West Eureka and a $570,000 3bed/2.5bath “Resale” home in the Humboldt Hill area.

 

So who were these buyers that are keeping our real estate market active? The top 3 sales groups of Home Buyers last month included:

 

· 43% were 1st time homebuyers

· 14% were move-up buyers

· 14% were buyers relocating to the area

 

For the fifth successive month, 1st time homebuyers continued to be the largest group of buyers in our real estate market. With the availability of really low interest rates and accompanying low home prices, 1st time home buyers are listening to the advice of  Buy now, it’s simply too great of an opportunity to pass up.  The $8,000 tax rebate being offered by the government just about covers the complete down payment needed for an FHA loan. And the FHA loan is the most popular loan product used by 1st time homebuyers. And the news keeps getting better. Factor in an additional $10,000 tax rebate being offered for purchasing a newly constructed home and one can see how1st time home buyer’s are realizing a smart home purchase now, and a sizeable income tax return in 2009/2010.

 

Dean Kessler is the Broker/Owner of RMK Realty, Inc and Seller Specialist for The Kessler Real Estate Team. He holds the Realtor®, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

 

All statistics courtesy Humboldt Multiple Listing Service. 

Distressed Property Inventory Hits New High

by Dean Kessler

Eureka Area Real Estate Distressed Property Inventory Hits New High

 

The number of distressed properties facing foreclosure in the Eureka area continues to increase. Over the past 4 months, 164 homeowners received a Notice of Default, the first step in the pre-foreclosure process. Unfortunately, an additional 64 homeowners received a Notice of Sale, the final step before their property is sold at auction on the courthouse steps.  Finally, an additional 85 homes went to auction and where foreclosed on.  (Statistics retrieved from RealtyTrac.com)

 

Facing a foreclosure is a scary thing, but there are things you should do – and shouldn’t do – to avoid making the situation worse.

DO answer the phone and read your mail. Avoiding your lender won’t make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.

DO realistically assess you situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.

DO consider your options. If you are not in position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption.

DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.

DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.

DON’T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.

DON’T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help keep your home; however, you only have a limited amount of time.

DON’T convince yourself you can afford a home if you can’t. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.

DON’T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee.  

Reprinted from www.freddiemac.com

Eureka Home Selling Trends

by Dean Kessler

EUREKA AREA HOME SELLING TRENDS

 

Eureka real estate expert, Dean Kessler of The Kessler Real Estate Team is reporting home sales in the greater Eureka area remains consistent.

 

Kessler notes “The trend of 1st time home buyers driving our real estate market continues.  Each month since the beginning of the new year the 1st time home buyer group have been the largest group of home buyers actively pursuing and buying homes in our market. Demand for entry level priced homes remains high. The 1st time homebuyers are taking advantage of record low interest rates, tax incentives, and attractive home prices to invest in their financial future.”

 

Kessler went onto say “The average sales price of a single family home in Eureka decreased 6.6% to $241,922 from February’s average of $258,909.  The $8,000 tax rebate being offered by the government just about covers the complete down payment needed for an FHA loan. And the FHA loan is the most popular loan product used by 1st time homebuyers. And the news keeps getting better. Factor in an additional $10,000 tax rebate being offered for purchasing a newly constructed home and one can see how1st time home buyer’s are realizing a smart home purchase now, and a sizeable income tax return in 2009/2010.”

 

The chart below shows real estate activity for the Eureka area as compared to the same time last year.

 

 

March 2009

% Change

March 2008

Active Listings

232

-18.9

286

Sales

25

+0

25

Short

Sales

1

+100

0

Bank Owned Sales

3

+150

2

Average Sales Price

$241,922

-24.9

$322,058

Time Supply of Inventory (months)

9.3

-18.4

11.4

 

A quick look at the least and most expensive homes sold in the Eureka area include a $155,000 2bed/1bath home “Bank-owned” sale in Myrtletown and a $441,000 3bed/2bath “New Construction” sale in Cutten.

 

The top 3 categories of Home Buyers last month include:

 

· 44% were 1st time homebuyers

· 24% were buyers relocating to the area

· 8% were investors

 

 

Dean Kessler is the Broker/Owner of RMK Realty, Inc and The Kessler Real Estate Team. He holds the Realtor, Accredited Buyers Representative (ABR), Certified Distressed Property Expert (CDPE), and Certified Residential Specialist (CRS) designations.

 

All statistics courtesy HMLS. 

 

Eureka Area Distressed Property Inventory Hits New High

by Dean Kessler

 

The number of distressed properties facing foreclosure in the Eureka area continues to increase. Over the past 4 months, 164 homeowners received a Notice of Default, the first step in the pre-foreclosure process. Unfortunately, an additional 64 homeowners received a Notice of Sale, the final step before their property is sold at auction on the courthouse steps.  Finally, an additional 85 homes went to auction and where foreclosed on.  (Statistics retrieved from RealtyTrac.com)

 

Facing a foreclosure is a scary thing, but there are things you should do – and shouldn’t do – to avoid making the situation worse.

DO answer the phone and read your mail. Avoiding your lender won’t make the problem go away. In fact, it will only make the problem worse. Your lender may be able to help you, so be sure to answer the phone and read any mail they may have sent you.

DO realistically assess you situation. Are your financial problems temporary? If you are temporarily out of work and will be fine once you find a new job, call your lender. Lenders may be able to offer a forbearance or repayment plan.

DO consider your options. If you are not in position to keep your home, consider selling it before you face a foreclosure. If you have already missed a mortgage payment, call your lender. There may be purchase options, like a short payoff or assumption.

DO be aware of certain financial responsibilities. Even if your lender sells your property, you may still be responsible for the difference in the sale price and what you owe. It is important to realize that you may be responsible for certain taxes when a lender forecloses on your property. However, the IRS does provide tax relief in certain situations.

DO protect your wealth. Recognize that you may have significant equity in your property that must be preserved.

DON’T move out of your home. In order to qualify for assistance, homeowners are often required to be living in their home. Be sure to talk to your lender before you think about moving.

DON’T ignore the problem. It may be possible to keep your home, but if you wait to take action, fewer options will be available. You have certain rights and can take certain actions to help keep your home; however, you only have a limited amount of time.

DON’T convince yourself you can afford a home if you can’t. Most lenders will only lend what a borrower can afford, but some less scrupulous lenders will allow borrowers to get in over their heads. In some cases, a home that was affordable becomes unaffordable due to changes in your life circumstances. Call your mortgage company; they may be able to help you avoid foreclosure by agreeing to an assumption or a short payoff.

DON’T fall victim to a scheme. Some people want to profit by your misfortune by offering to contact and conduct all work-outs and negotiations with your lender on your behalf – for a fee.  

Reprinted from www.freddiemac.com

Q & A Forum

What will a Short Sale cost me?

Nothing! In a properly negotiated Short Sale, your lender agrees to pay any of your closing costs including the Realtor’s commission. In some situations, your lender may also agree to pay some of the buyer’s closing costs.  Very few real estate agents have obtained the training and skill for these unique negotiations. How does a distressed homeowner know whether a real estate agent is truly qualified to facilitate a short sale? Look for an agent with a CDPE designation.

How long does a Short Sale take?

Depends. Once a purchase offer has been submitted some lenders are responding quickly. In a recent negotiation the lender tendered acceptance within 4 days. Another lender had taken 90 days. All lenders are overwhelmed with the amount of Short Sale offers they’re processing. Each is unique. After we receive lender approval, escrow is opened and typically closes within 30 days.

I have a first and second loan and owe much more than what my house is worth. Can I avoid a foreclosure and participate in a Short Sale?

Yes! Many of the Short Sales we’ve negotiated included multiple lenders with loan amounts much larger than the property’s current value. Lenders understand that a property will only sell for today’s market value. As long as an offer is reasonable, lenders would rather enter into a short sale than take the property back at foreclosure and attempt their own REO sale in the same market.

Dean Kessler is The Broker/Owner of RMK Realty, Inc and The Kessler Real Estate Team in Eureka. He has earned the prestigious Certified Distressed Property Expert (CDPE) designation at the Distressed Property Institute in Florida and is uniquely qualified to help homeowners in financial distress.

Eureka Home Selling Trends - January 2009

by Dean Kessler
EUREKA AREA HOME SELLING TRENDS
 
Eureka real estate expert, DEAN KESSLER of THE KESSLER REAL ESTATE TEAM is reporting home sales soared upwards 41% last month.
 
Kessler notes “The average sales price of a single family home in Eureka increased 14% last month to $281,055 compared to December 2008, but declined 9.9% from the same reporting period one year ago.”
 
Kessler went onto say “In many sales, the increase in sales price may be artificial as Buyer Agents are negotiating with Sellers to pay a hefty portion of the Buyer’s closing costs in the sales price. This can inflate the sales price upwards an additional 6% above the Sellers asking price. The good news, it allows the Seller to sell and the Buyer to buy.”
 
The chart below shows real estate activity for the Eureka area as compared to the same time last year.
 
 
January 2009
% Change
January 2008
Active Listings
240
-9.2
262
Sales
29
+3.4
28
Short
Sales
1
+100
0
Bank Owned Sales
6
+100
3
Average Sales Price
$281,055
-9.9
$308,970
Time Supply of Inventory (months)
8.3
-13.3
9.4
 
A quick look at the least and most expensive homes sold in the Eureka area include a $155,000 2bed/1bath home “Bank-owned” sale in Myrtletown and a $441,000 3bed/2bath “New Construction” sale in Cutten.
 
The top 3 categories of Home Buyers last month include:
 
·34% were investors
·21% were 1st time homebuyers
·14% were buyers relocating to the area
 
 
Dean Kessler
 

All statistics courtesy HMLS. 

Eureka Area Home Selling Trends

by Dean Kessler
EUREKA AREA HOME SELLING TRENDS
 
 
DEAN KESSLER of THE KESSLER REAL ESTATE TEAM in EUREKA reports that in the December 2008 reported real estate sales there is both good news and bad news. The bad news is that home sales slumped down 32 % when compared to December 2007. And the average sales price of a Eureka home dropped 15% from one year ago. Now for some good news, instead of shopping in the malls a lot of buyers instead opted to shop in neighborhoods. As a result the number of home sellers that accepted buyer offers last month catapulted up 56% from our December 2007 report. There’s even better news as interest rates remain very attractive around 5% and our local lenders tell me there is plenty of money to loan for home purchases.
 
The chart below shows real estate activity for the Eureka area as compared to the same time last year.
 
 
December 2008
% Change
December 2007
Active Listings
248
-3.0
258
Pending Sales
36
+56.0
23
Sales
17
-32.0
25
Bank Owned Sales
1
-
0
Average Sales Price
$241,771
-15.0
$287,654
Time Supply of Inventory (months)
14.6
+42.0
10.3
 
 
A quick look at the least and most expensive homes sold in the Eureka area include a $95,000 2bed/1bath home “Estate” sale in West Eureka and a $330,000 4bed/2bath “Resale” home in the Cutten area.
 
So who were these buyers that are keeping our real estate market active? The top 3 categories of Home Buyers were:
 
·65% were 1st time homebuyers
·18% were investors
·6% were buyers relocating to the area
 
Again the 1st time homebuyers lead the home buying charge. 1st time homebuyers have found that lenders have great loan products administered thru the Federal Housing Administration and the Veterans Administration. Years ago these same loan products had fallen out of favor in light of the many new, flashy loans being offered. Loans with cool, sexy sounding names like SIVA, SISA and NINJA where all the rage. Today, VA and FHA are THE loan products making it possible for many buyers to purchase.
 
Dean Kessler
All statistics in the 1st section courtesy HMLS. 

Displaying blog entries 1-10 of 13

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