Real estate market update
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Notice of Default

[highlight bg=”#fff199″ color=”#000000″]What’s the real estate market doing now?[/highlight]

Lots of contrasting trends. On one hand,Notices of default are up 39% .

But houses actually getting foreclosed on fell 28% from the prior quarter as short sales are becoming more common. Actual foreclosures fell 55% from last year. Default notices are more common in the lower areas= under 200k.

The median price in Southern California rose 28% in June from a year ago-most since statistics have been gathered. That puts it at $385,000 up from $300 last June. At the peak it was $505 so we have room to go.

The LA Times gives a monthly chart of prices by zip code and change from 2012.

[note color=”#fff199″][label style=”important”]YOU MUST SEE THIS[/label] Some areas are up over 75%. Remember averages are averages. There are many far above. You can view this chart by logging on to dqnews.com and check out the LA Times chart. text[/note]

All this is giving cash investors 2nd thoughts about buying at any price. The higher prices reduce their return on investment . That is good for us because they are the elephant in the room distorting everything.

If  you willing to work hard, your return is amazing. If you are not willing to work at it, you won’t find anything. You can’ at simply go to the MLS anymore. You have to learn how to find your own deals.

What’s the real estate market doing now?

Lots of contrasting trends. On one hand,Notices of default are up 39% .

But houses actually getting foreclosed on fell 28% from the prior quarter as short sales are becoming more common. Actual foreclosures fell 55% from last year. Default notices are more common in the lower areas= under 200k.

The median price in Southern California rose 28% in June from a year ago-most since statistics have been gathered. That puts it at $385,000 up from $300 last June. At the peak it was $505 so we have room to go.

The LA Times gives a monthly chart of prices by zipcode and change from 2012.YOU MUST SEE THIS. Some areas are up over 75%. Remember averages are averages. There are many far above. You can view this chart by logging on to dqnews.com and check out the LA Times chart.

All this is giving cash investors 2nd thoughts about buying at any price. The higher prices reduce their return on investment . That is good for us because they are the elephant in the room distorting everything.
[quote style=”3″]If you willing to work hard, your return is amazing. If you are not willing to work at it, you won’t find anything. You can’ at simply go to the MLS anymore. You have to find your own deals.[/quote]


Some cities are almost back to their highest home prices
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Highest home prices

This is interesting stuff. Certain cities in Texas, and Co hit  highs in their home price index. They are almost back up to the highs hit in 2007. Of course, we in Southern California are still way off the peak.

Hard to believe we went down so much. I remember having a conversation with Bruce Norris in 2005 and we talked about the possibility of the real estate market dropping by 50 %. Gulp!!!

Read This Article. It contains state by state stats.


First time home buyers stuck
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First time home buyers usually account for 40% of the real estate market but now its down to only 28%. Why is this?

1. student loans are  a killer and really bump up their debt level so its hard to qualify. In addition there are a lot of defaults- which also ruin credit scores

2,High downpayments are especially tough on first time home buyers.Home owner wanna bees in the lower end tend to have more negative items on their credit scores.

3. Cash investors are crowding out real people .They overbid and keep the market tight.

This is not good because it slows the move up market. Hopefully we are seeing a change.


Hedge fund buys 970 homes
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Colony capital made a deal with the banks to buy 970 foreclosed homes. They made a deal with the govt to rent them out so the real estate market would not tumble. These homes are in Ca, nevada and az- the worst hit states. They paid an average of 112% of value. And you wonder why we can’t get deals? I tell my students not to pay more than 70% of value.
If you want to know the right way to find deals today, you need to attend my upcoming basic training bootcamp on Jan 26th.
Click here for info

Read more on Hedge fund buys 970 homes…

Buying beats renting after 3 years
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Interesting study from Zillow. It depends on where you live but here in L.A. the magic number is 4.3 years if you made a 20% downpayment. Because home prices and interest rates are low and rental prices are high, this is a great time  to buy.

Read more on Buying beats renting after 3 years…