KingsburghomeBlog

Your local bank (of Mom and Dad), Interest Rates and Flippers

kingsburghomeblog — Tue, 17 Jan 2012 06:08:55 +0000

News from the National level strikes a familiar cord here in Kingsburg.
From Reuter news comes interesting facts that 1/3 of first time home buyers received either a large gift for their down payment or a loan from families to finance home purchases. The mortgage side of our business is seeing a lot of financing help from the “bank of Mom and Dad”.
From the New York Times an article sites that the Federal Reserve and Freddie Mac will maintain long-term interest rates through 2012. I wonder if an election year has anything to do with that decision.
And last but not least ……. CNN Money is reporting that FHA has waived their anti-flipping regulations in an effort to help stabilize the housing market. Now investors can purchase that distressed piece of property, rehab it and sell it on the FHA market. Maybe this waiver will help with some of those Shadow Properties we talked about last month that are expected this spring.
Now on with the housing market here in Kingsburg. In recapping and comparing the sales from 2010 to 2011, the numbers do show that our market here has stabilized somewhat as I have been stating for the past 6 months. In 2010 we had 101 sales and in 2011 we had 126 sales. Even the December 2011 numbers were good compared to most markets during the holidays. Inventory of available homes for sale still continues to stay low right at about 40 listings, give or take a few. Compared to a few years ago, we typically had 85 to 100 Active properties on the market.
The launch of our new “Bullseye Investor” services has been very well received. If you are interested in learning more about investment properties here locally, visit our new website at www.bullseyeinvestors.com or call us at 897-4077 and we’ll be glad to create a profile just for you.
All of us here at The Housing Connection and New Era Financial wish you and your family the very best in 2012!

Shadow Properties

kingsburghomeblog — Sun, 11 Dec 2011 05:17:11 +0000

The latest buzzwords in the real estate industry are …… Shadow Properties. These are bank owned/foreclosure properties that are looming on the horizon.
Following are the national REO (real estate owned) statistics:
1,600,000 homes are currently owned by lenders/banks
3,600,000 mortgages are delinquent and at risk of foreclosure
14,000,000 mortgages are at 125% or greater LTV (loan to value) than the actual home value
Here in Kingsburg we are currently looking at 12 homes pending short sale approval by the Seller’s lender. Since we only sold a total of 10 homes and almost all of them were distressed, the percentage of short sales and foreclosures is pretty high. With the above statistics of Shadow Properties, it looks like we will continue to see the same for a while. You can see by the CMA (comparative market analysis) for the month of November, our numbers are stayin pretty close to the same as previous months.
What an opportunity. NOW is the time to buy! We are seeing some great deals and awesome mortgage interest rates. In fact, it is actually less costly to buy than to rent.
We would like to extend our very best wishes for a Very Merry Christmas. We ask that you take the time to remember those here in our great little town that are less fortunate. KCAPS is in need of donations and sponsors to adopt a family for Christmas. If you are able, please give. Thank you and God Bless.

Multiple Signs Point to Nationwide Real Estate Rebound

kingsburghomeblog — Thu, 10 Nov 2011 19:03:42 +0000

According to a recent article in the Consumer News and Advice the past several weeks have showcased numerous signals that the real estate market is on the rise. Briefly, these signals include 15% rise in housing start, a surge in builder confidence, an increase in mortgage applications and regional market improvements across the country. Curiously, the weakest market, nationwide, is Bakersfield, California where foreclosures have been a huge problem. The articles wrap up with these words of assurance; while prices aren’t on the upswing in many places, at least they’re not expected to fall that rapidly in the coming year.
Thankfully, we’ve been experiencing a stabilization of the market here in Kingsburg for about a year now.
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EXSITING NEWS! Look for our new venture that will be launched sometime early in January. Our “Bull’s-eye Investor Team” is a pre-screened foreclosure service that will connect local investors to local distressed property. Flipping, rentals, private funds, joint venture; we’ll offer it all!
The CMA (comparative market analysis) to the right of this post still shows our market here in Kingsburg is relative flat. We currently have 38 homes on the market as compared to 43 at the end of September. Our DOM (days on the market) for SOLD properties went up in October to 113 days. We closed escrow on 8 properties in October and in September we closed 15 transactions. So again this month as last month, some of the numbers are good, some not so good.
Leonard, I and our Staff wish everyone a wonderful and happy Thanksgiving with wishes that you are surrounded by your loved ones, whether they are family or friends.

Foreclosures, MID (Mortgage Interest Deduction) & Short Sale Deficiencies

kingsburghomeblog — Thu, 13 Oct 2011 22:48:03 +0000

As the rate of foreclosures increase, as noted in the Fresno Bee, 10/13/2011, our goal is to establish a link between potential Sellers of distressed properties and potentials Buyers on a local level. If you are interested in becoming an investor, our Pre-Screened Foreclosure Service can be tailored to meet your needs, whether you are looking for a rental or to restore and flip properties. Let us help you identify properties as they become available, whether they are a short sale, a foreclosure or at auction. Call (559)897-4077 for details today.
According to the word on the street, the MID (Mortgage Interest Deduction) is still on the chopping block by the Super Committee of 12 in D.C. As early as last week, 5 “experts” testified before the Senate Finance Committee (not the Super one) regarding making changes to the existing law. The recommendation of all 5 witnesses before the committee were in complete agreement that now would not be the time to make any changes. The message: DO NO HARM.
And in the Short Sale arena, the new CA law that went into effect on July 15, 2011, expands the protection that a homeowner has from personal liability after a short sale. The general rule is that a mortgage lender is prohibited from pursuing a deficiency for a short sale involving a 1 to 4 residential property. The difference between what’s owed on the mortgage loan and what the lender receives as a payoff is called a deficiency. This new law will let a lot of local homeowners who have to sell their homes through a short sale, sleep a lot better at night.
As you can see by the CMA (comparative market analysis) to the right of this post, our real estate market here in Kingsburg is still holding steady. We currently have 43 homes on the market as compared to 35 at the end of August. Our DOM (days on the market) for SOLD properties decreased from 70 days in August to 58 in September. We closed escrow on 15 properties and in August we only closed 11 transactions. So again this month, some of the numbers are good, some not so good.
Don’t forget, Leonard and I are providing FREE pocket editions of The Constitution of the United States which includes the Declaration of Independence. So far, we’ve given away about 50 of these great little reference guides. You can pick up a FREE copy of it here at our office at 1340 Sierra St., or at the Kingsburg Chamber of Commerce, while supplies last. This is our little way of spreading the word about the importance of our government following the guidelines of the Constitution.

How to Lower your Property Tax

kingsburghomeblog — Thu, 08 Sep 2011 23:13:35 +0000

Home prices have been going down in some places …… like right here in our little corner of the world, Kingsburg. Property taxes do not move in lockstep with home values because local governments typically do not measure values every year. This means that your current property taxes might reflect your home’s value when the market was healthier. Homeowners can often get their assessment lowered if they appeal to their local assessor. This can translate into a lower bill, but can be a long and arduous process for the homeowner. There are several How To websites such as this one from the Wall Street Journal: http://online.wsj.com/article/SB10001424053111904070604576514573303531678.html. One of the first steps is for you, the homeowner, to determine the value of your home and this is where we can help. We will be glad to provide, free of charge, an in depth comparative market analysis (CMA) report on your home. Just give us a call at 897-4077, give us your address and we’ll be glad to mail, email or fax the report to you within 24 hours.

Our real estate market here in Kingsburg is still holding steady. As of August 31st, we had 35 homes on the market as compared to 36 at the end of July. Our DOM (days on the market) for SOLD properties increased from 26 days in July to 70 in August. We closed escrow on 11 properties and in July we had only closed 4. So again, some of the numbers are good, some not so good. The number of Pending escrows is now up to 24, which means that the month of September should show a big increase in closed transactions. Comparing the numbers to August of 2010, we are just a little bit better in every category; less homes on the market, more sales and a shorter time frame to sell.

Don’t forget, Leonard and I are providing FREE pocket editions of The Constitution of the United States which includes the Declaration of Independence. So far, we’ve given away about 25 of these great little reference guides. You can pick up a FREE copy of it here at our office at 1340 Sierra St., or at the Kingsburg Chamber of Commerce, while supplies last. This is our little way of spreading the word about the importance of our government following the guidelines of the Constitution.

The Attack on Homeownership

kingsburghomeblog — Thu, 11 Aug 2011 22:31:44 +0000

Here is a great article about the housing market hole that we seem to be in and the current attack on homeownership. Some of these issues will be voted upon by the Super Committee of 12 soon to be in session in Washington, DC.

Home Ownership Under Assault: 4 Issues Threaten Housing Market Recovery

Drowned out by such salacious news as Weinergate and Wikileaks, the very real attack on our nation’s housing market has gone virtually unnoticed by most Americans. But the outcome of this assault will hurt your ability to buy, own, and sell a home, long after the latest scandal fades from the headlines. So mute Nancy Grace, put down your People magazine, and turn your attention, just for a moment, to the not-so-sexy but far more important topic of housing policy. We promise it’s not just for political wonks anymore. Read

Visit houselogic.com for more articles like this.

The market here in Kingsburg continues to fluctuate a little each month. As of July 31st, we had 36 homes on the market as compared to 30 at the end of June. Our DOM (days on the market) for SOLD properties dropped from 77 in June to 26 in July. We only closed escrow on 4 properties and in June we closed 14. So some of the numbers are good, some not so good. The number of Pending escrows are 16, which means that the month of August should show an increase in closed transactions.

On a different note, Leonard and I have purchased 100 pocket editions of The Constitution of the United States which includes the Declaration of Independence. We are offering these great little reference guides FREE to anyone who would like one. You can pick up a FREE copy of it here at our office at 1340 Sierra St., or at the Kingsburg Chamber of Commerce, while supplies last. This is our little way of spreading the word about the importance of our government following the guidelines of the Constitution and for saying Thank You.

Alligators, an Obstacle Course and Snake Pits!

kingsburghomeblog — Fri, 08 Jul 2011 22:17:23 +0000

If the housing market were human, it would look like it just wrestled a few alligators, after running an obstacle course through a snake pit. To say the least the market has been beaten and bruised, but is still trying to emerge from the recession.
We are no different here in our own little corner of the world in Kingsburg. The month of June continued to show small improvements in almost all areas …. again. Take a look at the June CMA to the right of this post and you can see that our inventory is still decreasing and we are now down to only 30 Active listings within the city limits. Supply and demand! 14 homes closed escrow and the average days it took to sell these homes shrunk to only 77 days. Our price per square foot is not doing as well as we would like, due in most part (again) to the foreclosures and short sales. Speaking of short sales, we now have 11 homes in escrow waiting for the Seller’s bank to approve their short sale transactions. That’s a lot, when you consider we only Sold and closed escrow on a total of 14 sales in June.
In our humble opinion, the real estate industry will remain flat and not able to rebound until/when the job market stabilizies, starting with the building industry.
When it’s all said and done, there are some great real estate deals now and especially with the interest rates so low. Great time to buy!!!
Notice: new California Carbon Monoxide (CO) law SB183, effective July 1, 2011 states that all single family homes that contain a gas heater or appliance, a fireplace or an attached gargage, must install CO detectors. Landlords, this especially pertains to you! Call 897-4077 if you have any questions.
Please join us on July 21st as our sister mortgage company, New Era Financial, hosts the Summer Bank Concert in Memorial Park in Kingsburg. Concessions open at 5:00 PM and the concert begins at 8:00 PM.

Okay… Okay…. The Sky IS Falling,

kingsburghomeblog — Wed, 08 Jun 2011 21:35:44 +0000

but not in Kingsburg. As valley home prices continued to fall for the month of May, Kingsburg, again, remains somewhat stable. California fared worst in the nation and the Fresno area fared worst in California according to the latest home price index report released by CoreLogic, a real estate tracking company in Santa Ana. Fresno home prices, including distressed sales fell by 11.19 percent compared to April 2010. That’s slightly less than in March when home prices declined 11% compared to a year ago.
Looking at the Kingsburg Sales and Active listings for the month of May, we are still holding steady to pretty much the same numbers. Our inventory dropped a little (which is good), Days on the Market dropped a little (also good) and the overall Price per Square Foot stayed almost the same. One thing that kept our Sold numbers from edging up was the sale of two properties for the unheard of price of $51 and $55 Per Square Foot. Both of these homes were distressed homes and basically sold at land value only. On the other end of the spectrum, two homes sold in the north east area for $140 PSF and $148 PSF. So it seems that the sky is falling in the rest of the country, but we are still stabilizing here. The only thing coming out of the sky here is a lot of rain!
Effective July 1, 2011, the new California Carbon Monoxide law, SB 183, will require all single-family homes that contain a gas heater or appliance, a fireplace or an attached garage to have a CO detector installed. This new law applies to all rentals and will also effect homes as they are sold. Call our office at 897-4077 if you need more details.
Beginning June 23rd, Kingsburg’s very own 125-year old city band will begin the Summer Band Concerts Under the Stars and will continue every Thursday night for a total of six weeks. . Each night starts with a Farmer’s Market, Food and Crafts from 5-8 p.m., followed by the concert from 8-9:30 PM. Join us for a special evening on July 21st as New Era Financial (our mortgage company) sponsor’s that evening’s event. Here’s an opportunity for you to slip back in time to an old-fashioned outdoor Concert and Farmers’ Market. For more information contact the Kingsburg District of Commerce at 897-1111.

The April Housing Scorecard

kingsburghomeblog — Thu, 12 May 2011 20:54:23 +0000

………… shows growing evidence of economic progress according to a comprehensive report on the nation’s housing market. This April “Scorecard” was released in early May by The U. S. Department of Housing and Urban Development (otherwise known as HUD) and the U.S. Department of the Treasury. In true political speak, HUD Assistant Secretary Raphael Rustic is quoted as saying “The housing data in this month’s Scorecard offer continued mixed signals and some signs of weakness in the market – despite growing evidence of progress in the broader economy”. HUH? Is the market getting better or is it not?
Okay, what about the Kingsburg “Scorecard”? At least we can look at our numbers for the past 30 days with a clearer eye and determine that under the SOLD category, almost all of our data did improve. Not by much, sort of just inching up a bit, but nevertheless, better than March’s data. Kingsburg had 12 properties close escrow with an average price per square foot of $108, average days on the market of 62 and an average sales price of $175,977. Four homes sold for over $125 PSF and 1 sold for $145 PSF, so you can see, there is movement on the upper end in addition to the foreclosures and short sales. We listed a home on Silverbrooke St and within 10 days had a good offer. This home has great location, is in perfect condition and was priced right. These three things are what sell real estate!
This week REALTORS® will trek to Capitol Hill to meet with members of Congress regarding: protecting the mortgage interest deduction, retaining a government guarantee for the secondary mortgage market, fixing the short-sale process, and ensuring that the qualified residential mortgage rule is inclusive of future home buyers. Says NAR First Vice President Gary Thomas in a video from this week’s Midyear Legislative Meetings & Trade Expo, “A functioning real estate market can again lead this country out of recession.” Couldn’t agree more!
Don’t forget the upcoming 46th Annual Swedish Festival on May 20th and 21st with a prelude on Thursday, May 19th, that includes a Pea Soup and Pancake Supper. For more information, contact the Kingsburg District Chamber of Commerce at 897-1111.

The Kingsburg Real Estate Cycle Is Still Turning

kingsburghomeblog — Mon, 11 Apr 2011 18:14:40 +0000

The local market here in Kingsburg is still trending to stabilization. To compare March 2011 to March 2010, the number of Sold properties doubled from 7 to 14, Days on the market went from 65 days to 78 days, the Price per Square foot went up a couple dollars to $106 and the average price per home stayed almost the same, just a couple dollars lower. Of the 14 properties that Sold in Kingsburg in March of 2011, 7 of them were full foreclosures, 3 were short sales and only 4 were traditional sales. So you can see, we are still under the burden of the foreclosure market, but improving a little bit better each month. We currently have 20 Pending properties in escrow, which means these transactions should be closing in April and May, so; again the pipeline looks strong.

Your Mortgage Interest Deduction is Still Under Attack. Ever since the federal income tax was introduced in 1913, the government has used the tax code to encourage homeownership. Now, as a result of the effort to reduce the federal deficit, the mortgage interest deduction is under fire. Proposed changes to the tax code would have a dramatic impact on home owners and would significantly reduce the value of this deduction. Let your voice be heard by going to this link:
savemymortgageinterestdeduction.com.
Don’t forget the Kingsburg District Chamber of Commerce 17th Annual Car coming up this Saturday, April 16th. There will also be a Cruise Night Friday before the car show starting at 6:30 p. m. I understand there will be an awesome band and a sock hop. Also, be sure to attend the Senior Center’s Pancake Breakfast on Saturday morning from 7 – 11 a. m. It looks like we will have beautiful weather for the weekend.