Sunday, January 11, 2009
Pier View Townhomes in Ventura
Pier View Townhomes
Mark Dragonchuck is a genius. He has done what very few other local developers have achieved.
He got it right.
Mr Dragonchuck has managed to place a group of townhomes where they ought to be, at a price that is very competitive and with a quality of workmanship and superb styling that we seldom see. This is very cutting edge stuff. This is Pier View Townhomes.
Nine units only, no pool or recreation center and hardly anything else that a buyer can be charged for in addition to their home. These are just small, really, really nice homes. Very energy efficient and very tech friendly. Wow, what a concept!
There are only four units left, but they represent some very comfortable offerings. The basic home layout is a 2 car garage with built-in laundry on the first floor and a very long straight staircase to the living areas on the second and third floors. These homes are not designed for folks with weak legs. You drop your newspaper at the top of the steps and it’s going to bounce all the way down to the street.
When you enter the living area you are going to be surprised at the level of workmanship and attention to detail you see everywhere around you. Take a look at the limestone flooring. It’s not just well executed, it’s breathtaking in design and colors used as well. All of the gorgeous tilework is framed by 5” dark natural wood floor trim and matching door frames. There are no two units that share designs or colors.
Everything you touch is nice. The doors are solid panel fir. The door knobs and hinges are oil rubbed bronze. Light fixtures are shaker style and sized for the home. The staircase banisters are varnished hard wood and installed on both sides of the steps – a nice touch.
The second floor has the kitchen, dining area, living room and 1 bathroom. There is a two chair deck off the dining area which may or may not have a view and which usually has a gas plug for your barbeque. You may have to give up a chair if you elect to have a barbeque on your deck.
The kitchens are mostly small with no islands, but with very high quality, hand finished natural wooden cabinetry, stainless appliances, and some marvelous granite counter tops that were evidently selected with great care. Under cabinet lighting and recessed room lighting keep everything comfortably lit for food preparation. Most kitchens have a window but the kitchen views may not always impress.
The stairways to the third floor may or may not be carpeted, but all are limestone or flagstone framed with hardwood trim and banisters. The top floor has one or two bedrooms and a bath. The bathrooms are masterpieces of stone work flooring and colorful granite vanity tops.
The smaller bedroom usually is rather compact with few frills, while the master bedroom will have an outside deck and a larger closet. There were a few master bedrooms that had absolutely wonderful views of the ocean and pier. One of the units we visited had a good-sized walk-in closet in addition to the deck and larger bedroom size. Another unit, had both bedrooms sharing the outside patio with their own separate access.
Everything you see runs counter to the normal new home trends. Bigger here is not better. The units are compact and scream efficiency, quality and high tech. No plastic anywhere, no built-in entertainment nooks and no 1000 square foot two story entryways. There really is no wasted space anywhere.
What you will find are dual pane PELLA windows, water saving shower heads, low flow toilets, set back thermostat controls for FAU, exterior house doors weather stripped and the list goes on. Hard wired smoke detectors, garage door safety sensors, fire sprinkler systems, HDTV ready, pre-wired for security system, pre-wired for On-Q network systems. Very impressive, very smart, very green, very nice.
Usually on one of the floors of each unit there is a view or partial view of mountains, ocean or some of the nearby Victorian Style mansions which have been converted to apartment or business use. There are several units which have a parking lot view of the next door restaurant and which absorb a bit of the loud music that it plays. There are also a few very poorly maintained rental homes just over the fence on both sides of the development. It just adds to the inner city ambiance.
People who like downtown Ventura with all it’s shops, restaurants, playhouses and clubs will find this a marvelous, convenient place to live. These homes are 1 block from the pedestrian bridge that crosses the 101 to the ocean front walkways, surfing beaches, restaurants and fairgrounds. You would have a difficult time finding another single location with such extraordinary access to the best attractions Ventura has to offer.
I give this enclave an A for style, A for quality, A for execution, and an A for location.
I like it! I want to see more from Mr Dragonchuck.
Warmest Regards,
Mark Thorngren
Find out more at http://www.pierviewtownhomes.com/
Visit more of my blogs at http://www.blogger.com/www.MarkThorngren.com.
Wednesday, December 31, 2008
Lost and Alone in a Sea of Senior Agencies
Area Agency On Aging
Christy Cantrell
(800) 510-2020
Hello Christy,
It was wonderful speaking with you yesterday on behalf of Sara. You and your organization do wonderful work for folks like Sara.
As you know, Sara is 76 years old and living alone in a rented apartment in Ventura. She is frustrated, desperate, despondent and scared to death. She has high blood pressure, osteoporosis, cataracts in both her eyes (which she says her medical insurance refuses to cover) and she took a bad fall this last year. Oh, she is going deaf as well.
Until now, her rent has been $850/month, but new property owners have raised her rent to $1,150/month. Her Master Card reset her card limit to $200 without her immediate knowledge and she used this card to make up the difference for her rent. As a result, the new owners charged her a $50 bounced check fee on top of her increase in rent. She says she has less than 2 months before she will be evicted from her home.
I’m told rent control does not exist in Ventura County except for mobile homes in Thousand Oaks, so she has no recourse to the $300/month increase in her rent. That’s a 35% hike in her housing expenses and she doesn’t even have a mortgage!
One of my co-workers and I received a request for help from Sara. Sara knows we are both Realtors and she was hoping we knew of properties she could afford. In the spirit of the season, we have did a county-wide MLS search for anything renting for less than $1,000/month but had no luck. There may be something in the classified’s, but with her fixed income at just over $900/mo, it is unlikely we can improve her situation even if we do find something. She will still need food, clothing, utilities and medical care.
We have been making phone calls to local agencies and charities, but we haven’t had a great deal of success. Admittedly, we are not experienced at finding people like her the most appropriate help, but we have tried to do our best.
Christy, you indicated you have had prior contact with Sara, that she has made some unfortunate choices in health care providers, and in not applying for all the assistance she could be receiving. I’m sure that could be true, but from what Sara has told me, she has always tried to be self-sufficient until now. She’s been proud to take care of herself and slow to ask for public aid. Now that her housing expenses have jumped, she has little time left to change her situation, mostly because she has tried so hard to be independent.
The more I investigate what resources are available to her this time of the year, the more I understand her emotional distress. Many state and county agencies I contacted during this last week, have exhausted their annual budgets. Next year’s budgets are probably going to be much smaller for elderly assistance. Many of the larger agencies such as the Area Housing Authority of the County of Ventura are on holiday until 5 January 2009. Others, such as Section 8 Housing have a 2 to 4 year waiting period after application is made for Elderly Housing Assistance. These folks are without funding or on holiday.
This is evidently a very bad time of the year for finding financial assistance, or guidance. Yet this is typically a time of the year when rents are raised.
I’ve been told by numerous agencies that Sara is not unusual in her plight. Agencies have told me there are literally thousands of seniors asking for help. Evidently, more than a few elderly folks live out their final days on the street. This is euthanasia by default. I find it really hard to understand how this could be, in an area of Southern California that is home to so much individual wealth.
My co-worker and I have heard Sara say she might feel compelled to take her own life. She has said that she doesn’t want to do that, “because she wouldn’t get to see her son in heaven if she did.” But she told me today that the ocean is so near, she might just go there and end her troubles. She has also mentioned that she wishes she could just die in her sleep, that “she is angry at God because he won’t let her end her life that way.”
I’m not a mental health professional but I feel confident in saying that Sara’s stress is probably preventing her from making the right choices for herself.
I’m a member of the giant Baby Boomer generation, and I can foresee a time in the not too distant future, when people like myself will be approaching Sara’s age and mental competence. Obviously, we are going to need to be much better prepared than she. I think my generation’s retirement pardigm needs some major shifting. I’m sure we all need to contribute a bit more of our individual energy and earnings to that future time. We shouldn’t rely on the charity of others to survive, but perhaps we could develop a more efficient, effective and dignified response to elderly care than Sara has received.
In any case, you were extremely helpful today Christy. I appreciate your continued efforts at the “Area Agency on Aging” to help Sara. I also received some very useful and heartfelt guidance from Regina Fitzgerald at “Project Understanding.” My co-worker and I made calls to more than 20 departments and agencies today.
You and Regina and a very nice lady (who’s name I didn’t catch) at the after hours information desk of “Adult Protective Services” offered us very constructive advice and guidance. Your organizations don’t seem to draw much public attention or anything near the appreciation that I’m sure your efforts deserve, but you have thoroughly impressed us. You folks truly are leading the charge on one of our nation’s most unrecognized, immediate challenges.
I’m convinced from what I have seen, that we in America are not at our best when providing for the elderly. I served 23 years in the military and I love my country, but I’m embarrassed at how poorly we treat our seniors.
On behalf of Sara - Thank you Christy
Mark Thorngren
Christy Cantrell
(800) 510-2020
Hello Christy,
It was wonderful speaking with you yesterday on behalf of Sara. You and your organization do wonderful work for folks like Sara.
As you know, Sara is 76 years old and living alone in a rented apartment in Ventura. She is frustrated, desperate, despondent and scared to death. She has high blood pressure, osteoporosis, cataracts in both her eyes (which she says her medical insurance refuses to cover) and she took a bad fall this last year. Oh, she is going deaf as well.
Until now, her rent has been $850/month, but new property owners have raised her rent to $1,150/month. Her Master Card reset her card limit to $200 without her immediate knowledge and she used this card to make up the difference for her rent. As a result, the new owners charged her a $50 bounced check fee on top of her increase in rent. She says she has less than 2 months before she will be evicted from her home.
I’m told rent control does not exist in Ventura County except for mobile homes in Thousand Oaks, so she has no recourse to the $300/month increase in her rent. That’s a 35% hike in her housing expenses and she doesn’t even have a mortgage!
One of my co-workers and I received a request for help from Sara. Sara knows we are both Realtors and she was hoping we knew of properties she could afford. In the spirit of the season, we have did a county-wide MLS search for anything renting for less than $1,000/month but had no luck. There may be something in the classified’s, but with her fixed income at just over $900/mo, it is unlikely we can improve her situation even if we do find something. She will still need food, clothing, utilities and medical care.
We have been making phone calls to local agencies and charities, but we haven’t had a great deal of success. Admittedly, we are not experienced at finding people like her the most appropriate help, but we have tried to do our best.
Christy, you indicated you have had prior contact with Sara, that she has made some unfortunate choices in health care providers, and in not applying for all the assistance she could be receiving. I’m sure that could be true, but from what Sara has told me, she has always tried to be self-sufficient until now. She’s been proud to take care of herself and slow to ask for public aid. Now that her housing expenses have jumped, she has little time left to change her situation, mostly because she has tried so hard to be independent.
The more I investigate what resources are available to her this time of the year, the more I understand her emotional distress. Many state and county agencies I contacted during this last week, have exhausted their annual budgets. Next year’s budgets are probably going to be much smaller for elderly assistance. Many of the larger agencies such as the Area Housing Authority of the County of Ventura are on holiday until 5 January 2009. Others, such as Section 8 Housing have a 2 to 4 year waiting period after application is made for Elderly Housing Assistance. These folks are without funding or on holiday.
This is evidently a very bad time of the year for finding financial assistance, or guidance. Yet this is typically a time of the year when rents are raised.
I’ve been told by numerous agencies that Sara is not unusual in her plight. Agencies have told me there are literally thousands of seniors asking for help. Evidently, more than a few elderly folks live out their final days on the street. This is euthanasia by default. I find it really hard to understand how this could be, in an area of Southern California that is home to so much individual wealth.
My co-worker and I have heard Sara say she might feel compelled to take her own life. She has said that she doesn’t want to do that, “because she wouldn’t get to see her son in heaven if she did.” But she told me today that the ocean is so near, she might just go there and end her troubles. She has also mentioned that she wishes she could just die in her sleep, that “she is angry at God because he won’t let her end her life that way.”
I’m not a mental health professional but I feel confident in saying that Sara’s stress is probably preventing her from making the right choices for herself.
I’m a member of the giant Baby Boomer generation, and I can foresee a time in the not too distant future, when people like myself will be approaching Sara’s age and mental competence. Obviously, we are going to need to be much better prepared than she. I think my generation’s retirement pardigm needs some major shifting. I’m sure we all need to contribute a bit more of our individual energy and earnings to that future time. We shouldn’t rely on the charity of others to survive, but perhaps we could develop a more efficient, effective and dignified response to elderly care than Sara has received.
In any case, you were extremely helpful today Christy. I appreciate your continued efforts at the “Area Agency on Aging” to help Sara. I also received some very useful and heartfelt guidance from Regina Fitzgerald at “Project Understanding.” My co-worker and I made calls to more than 20 departments and agencies today.
You and Regina and a very nice lady (who’s name I didn’t catch) at the after hours information desk of “Adult Protective Services” offered us very constructive advice and guidance. Your organizations don’t seem to draw much public attention or anything near the appreciation that I’m sure your efforts deserve, but you have thoroughly impressed us. You folks truly are leading the charge on one of our nation’s most unrecognized, immediate challenges.
I’m convinced from what I have seen, that we in America are not at our best when providing for the elderly. I served 23 years in the military and I love my country, but I’m embarrassed at how poorly we treat our seniors.
On behalf of Sara - Thank you Christy
Mark Thorngren
Thursday, December 18, 2008
Renters vs Foreclosures
December 15, 2008
Fannie Mae Lets Renters Stay Despite Foreclosures
By CHARLES DUHIGG
In a move that provides relief to thousands of renters who face eviction but draws the federal government even deeper into the housing market, the loan giant Fannie Mae said Sunday that it would sign new leases with renters living in foreclosed properties owned by the company.
It is the first nationwide effort to provide widespread relief to renters ensnared by the unfolding mortgage crisis, and it will effectively transform Fannie Mae — a government-controlled mortgage finance company — into a national landlord.
It may also increase pressure on private lenders to establish similar programs and on lawmakers to pass renter relief. “There are renters all around the country who have been holding up their end of the bargain and paying their rent faithfully, but the landlord got into trouble, and so the renter is now unfairly facing eviction,” said John Taylor, president of the National Community Reinvestment Coalition, a consumer advocacy group. “It’s really good news that Fannie Mae is doing this. Now the question is whether private sector will follow suit.”
In recent months, skyrocketing foreclosure rates have exposed as many as 70,000 renters to evictions, even though many never missed rent payments, according to analysts who track housing data. In many cities and states, renters can be evicted after their home goes into foreclosure, regardless of how long their lease stretches into thefuture.
Many financial institutions — including JPMorgan Chase and Bank of America — have policies to evict renters after foreclosure, company representatives said. Fannie Mae’s initiative is expected to initially benefit as many as 4,000 renters living in foreclosed homes owned by the company. Fannie Mae has traditionally only bought and sold mortgages. But when a loan held by the company goes into foreclosure, Fannie Mae gains ownership of the underlying property until it is resold to new investors.
Fannie Mae owned 67,500 properties in foreclosure at the end of September, according to the company’s most recent filings. Most of those were owner-occupied. Under the new policy, former owners will most likely not be eligible to rent homes they lost in foreclosure.
Last month, both Fannie Mae and Freddie Mac, the other government-controlled mortgage giant, temporarily suspended foreclosures and evictions until early January. Fannie Mae will now offer renters in foreclosed properties month-to-month leases until the property is resold.
A company representative said program details were still being worked out. “While it may be sometimes tougher for us to sell a property when people are in it, we understand that lots of people are in tough situations right now,” said Chuck Greener, a Fannie Mae spokesman. “If a renter wants to stay in their home, we’ll make that happen. And if they want to move out, in many cases we’ll help them pay for the move.”
A spokesman for Freddie Mac said that the company was looking at a number of options, including a program similar to Fannie Mae’s, but that no decisions had been made. The companies’ regulator, James B. Lockhart of the Federal Housing Finance Agency, issued a statement on Sunday saying that he expected both companies to update their policies shortly regarding renters living in foreclosed properties.
Both Fannie Mae and Freddie Mac were taken over by Mr. Lockhart’s agency this year and now operate in aconservatorship. Representatives of some major banks said it was unclear if Fannie Mae’s new policy would prompt their institutions to change theirs. “We’re not in the business of managing rental properties, and we’re not in the business of being a landlord,” said Thomas Kelly, a spokesman for JP Morgan Chase, which owns about two million loans. “Clearly the renter is caught in the middle in cases like this. When a property is in foreclosure, we follow the law.”
Some lawmakers and housing advocates say such policies are unjust. “If your loan is owned by Fannie Mae, you get to stay in your home. If your loan is owned by someone else, you’re on the street,” said Mr. Taylor of the National Community Reinvestment Coalition. “These banks need to realize they’re in the property management business now, whether they like it or not.”
Some lawmakers have complained that evicting renters is unfair. In November, the Los Angeles City Council voted to draft a law that would bar financial institutions from evicting renters living in foreclosed homes.
Last year, the House passed a measure that would require the new owner of a foreclosed property to inform renters at least 90 days before an eviction. That bill failed to pass the Senate.
Law enforcement officers in some states have refused to evict residents of foreclosed properties. But Yadilka Torres, who rents a home in New Haven, Conn., for $775 a month, had no such protection. Fannie Mae took possession of her house in September, when it went into foreclosure.
Even though she was current on her rent, she received an eviction notice saying that she and her two young children would have to leave. She looked for another apartment but could not find anything affordable. Under Fannie Mae’s new policy, she will now be allowed to stay.
“I was feeling so nervous,” Ms. Torres said. “I’ve tried very hard to pay the rent and to pay all my bills, and it seemed unfair this was happening. I’m very grateful we won’t have to move.”
Fannie Mae Lets Renters Stay Despite Foreclosures
By CHARLES DUHIGG
In a move that provides relief to thousands of renters who face eviction but draws the federal government even deeper into the housing market, the loan giant Fannie Mae said Sunday that it would sign new leases with renters living in foreclosed properties owned by the company.
It is the first nationwide effort to provide widespread relief to renters ensnared by the unfolding mortgage crisis, and it will effectively transform Fannie Mae — a government-controlled mortgage finance company — into a national landlord.
It may also increase pressure on private lenders to establish similar programs and on lawmakers to pass renter relief. “There are renters all around the country who have been holding up their end of the bargain and paying their rent faithfully, but the landlord got into trouble, and so the renter is now unfairly facing eviction,” said John Taylor, president of the National Community Reinvestment Coalition, a consumer advocacy group. “It’s really good news that Fannie Mae is doing this. Now the question is whether private sector will follow suit.”
In recent months, skyrocketing foreclosure rates have exposed as many as 70,000 renters to evictions, even though many never missed rent payments, according to analysts who track housing data. In many cities and states, renters can be evicted after their home goes into foreclosure, regardless of how long their lease stretches into thefuture.
Many financial institutions — including JPMorgan Chase and Bank of America — have policies to evict renters after foreclosure, company representatives said. Fannie Mae’s initiative is expected to initially benefit as many as 4,000 renters living in foreclosed homes owned by the company. Fannie Mae has traditionally only bought and sold mortgages. But when a loan held by the company goes into foreclosure, Fannie Mae gains ownership of the underlying property until it is resold to new investors.
Fannie Mae owned 67,500 properties in foreclosure at the end of September, according to the company’s most recent filings. Most of those were owner-occupied. Under the new policy, former owners will most likely not be eligible to rent homes they lost in foreclosure.
Last month, both Fannie Mae and Freddie Mac, the other government-controlled mortgage giant, temporarily suspended foreclosures and evictions until early January. Fannie Mae will now offer renters in foreclosed properties month-to-month leases until the property is resold.
A company representative said program details were still being worked out. “While it may be sometimes tougher for us to sell a property when people are in it, we understand that lots of people are in tough situations right now,” said Chuck Greener, a Fannie Mae spokesman. “If a renter wants to stay in their home, we’ll make that happen. And if they want to move out, in many cases we’ll help them pay for the move.”
A spokesman for Freddie Mac said that the company was looking at a number of options, including a program similar to Fannie Mae’s, but that no decisions had been made. The companies’ regulator, James B. Lockhart of the Federal Housing Finance Agency, issued a statement on Sunday saying that he expected both companies to update their policies shortly regarding renters living in foreclosed properties.
Both Fannie Mae and Freddie Mac were taken over by Mr. Lockhart’s agency this year and now operate in aconservatorship. Representatives of some major banks said it was unclear if Fannie Mae’s new policy would prompt their institutions to change theirs. “We’re not in the business of managing rental properties, and we’re not in the business of being a landlord,” said Thomas Kelly, a spokesman for JP Morgan Chase, which owns about two million loans. “Clearly the renter is caught in the middle in cases like this. When a property is in foreclosure, we follow the law.”
Some lawmakers and housing advocates say such policies are unjust. “If your loan is owned by Fannie Mae, you get to stay in your home. If your loan is owned by someone else, you’re on the street,” said Mr. Taylor of the National Community Reinvestment Coalition. “These banks need to realize they’re in the property management business now, whether they like it or not.”
Some lawmakers have complained that evicting renters is unfair. In November, the Los Angeles City Council voted to draft a law that would bar financial institutions from evicting renters living in foreclosed homes.
Last year, the House passed a measure that would require the new owner of a foreclosed property to inform renters at least 90 days before an eviction. That bill failed to pass the Senate.
Law enforcement officers in some states have refused to evict residents of foreclosed properties. But Yadilka Torres, who rents a home in New Haven, Conn., for $775 a month, had no such protection. Fannie Mae took possession of her house in September, when it went into foreclosure.
Even though she was current on her rent, she received an eviction notice saying that she and her two young children would have to leave. She looked for another apartment but could not find anything affordable. Under Fannie Mae’s new policy, she will now be allowed to stay.
“I was feeling so nervous,” Ms. Torres said. “I’ve tried very hard to pay the rent and to pay all my bills, and it seemed unfair this was happening. I’m very grateful we won’t have to move.”
Tuesday, December 9, 2008
Rise In First Time Home Buyers
Buyers, Long-Term Plans NAR Home Buyer and Seller Survey Shows Rise in First-Time Buyers
ORLANDO, November 08, 2008
The latest consumer survey of home buyers and sellers shows first-time buyers have risen in market share and plan to own their homes longer than buyers in the past. The study was released here today at the 2008 REALTORS® Conference & Expo.
The 2008 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, marketing, preferences and experiences of home buyers and sellers.
Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it’s a trend he expects to grow. “First-time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home,” he said. “Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.
“Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves – that, in turn, should free more existing owners to make a trade in 2009.”
The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year’s survey and 36 percent in 2006. “Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent data show a stronger uptrend in first-time buyers who are helping to reduce excess inventory,” Yun said.*
According to the NAR study, the median age of first-time buyers was 30, down from 31 in 2007, and the median income was $60,600. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for 10 years, up from seven years in 2007.
The median downpayment by first-time buyers was 4 percent, up from 2 percent in 2007; the number purchasing with no money down fell from 45 percent in 2007 to 34 percent in the current survey.
“The study covers transactions through the middle of 2008, so we can assume the downpayment numbers have shifted recently because credit tightened and no-downpayment loans all but disappeared around the close of the survey,” Yun explained.
Of first-time buyers who made a downpayment, 69 percent used savings and 26 percent received a gift from a friend or relative, typically from their parents. Another 7 percent received a loan from a relative or friend, while 16 percent tapped into a 401(k) fund, stocks or bonds. Ninety-two percent chose a fixed-rate mortgage.
NAR 2008 President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said consumers rely heavily on the expertise of real estate agents to navigate the market. “This is the biggest transaction most people are ever involved in, so the qualities they’re looking for in a real estate agent include reputation, honesty, integrity and knowledge of the market,” he said. “Both buyers and sellers want agents to provide context, advice and know-how. The vast majority would use their agent again or recommend their agent to others.”
Only 1 percent of sellers chose an agent based on his or her commission. Forty-six percent report the real estate agent initiated a discussion of compensation, while 24 percent of sellers brought up the topic and the agent was willing to negotiate the commission or fee. Thirteen percent of sellers did not know commissions and fees are negotiable.
Nearly nine out of 10 home buyers and sellers would definitely or probably use the same agent again or recommend him or her to others, consistent with the 2007 findings. The survey shows that 81 percent of home buyers and 84 percent sellers used a real estate professional, comparable to 2007.
Thirty-eight percent of sellers found their agent as a result of a referral, while 26 percent used the agent in a previous home purchase. Similarly, 43 percent of buyers relied on referrals to find an agent, while 18 percent of repeat buyers used an agent from a previous transaction.
The percentage of buyers who purchased a home in foreclosure jumped to 6 percent of transactions in the 2008 survey from 1 percent in 2007. Another 38 percent of buyers considered purchasing of a home in foreclosure but did not, primarily because they could not find the right home.
Commuting costs factored greatly in neighborhood selection, with 41 percent of buyers saying they were very important and another 39 percent saying transportation costs were somewhat important. “Since fuel costs began rising in the latter part of the survey period, it’s reasonable to assume they’ve become even more important to home buyers since,” Yun said. “We’ve heard from our members that commuting costs are playing a bigger role in buyers’ decisions.”
Environmentally friendly features also were important, cited by 90 percent of buyers. Heating and cooling costs were of primary importance, followed by energy efficient appliances and energy efficient lighting.
Buyers searched a median of 10 weeks and viewed 10 homes. Of buyers who used an agent, 61 percent chose a buyer’s representative. Nearly nine out of 10 consider their home a good investment, and almost half see it as a better investment than stocks. Fifteen percent of buyers own two or more homes.
The typical repeat buyer was 47 years old, earned $88,200, purchased a home costing $236,000 and plans to stay in that home for 10 years. Repeat buyers made a median downpayment of 15 percent, but 10 percent paid cash for their property.
The median age of home sellers was 47; income was $91,000. Three-quarters were married couples, had been in their home for six years and moved a median distance of 19 miles. Their home was on the market for eight weeks; 5 percent of sellers who also purchased a home reported selling their home in a short sale.
Forty-two percent of sellers offered incentives to attract buyers, such as assistance with closing costs or home warranty policies. The typical home sold for 96 percent of the listing price, and 86 percent of sellers were satisfied with the selling process. Fifty-two percent of sellers were trading up to a larger home, while 22 percent were downsizing.
The study found that 81 percent of sellers used full-service brokerage, in which real estate agents provide a range of services that include managing most of the process of selling a home from listing to closing. Nine percent chose limited services, which may include discount brokerage, and 9 percent used minimal service, such as simply listing a property on a multiple listing service. All of these types of services are provided by Realtors® as well as non-member agents and brokers. The results are identical to findings in 2007 and comparable to findings in 2006.
Primarily, sellers want agents to price their home competitively, market the property, find a buyer and sell within a specific timeframe.
Home buyers are consistent in their expectations of real estate agents. Buyers thought the most important agent services are helping find the right house, and negotiating sales terms and price. Because agents often are chosen based on a referral, or were used in a previous transaction, two-thirds of buyers contacted only one real estate agent in the search process.
Buyers used a variety of resources in searching for a home: 87 percent used the Internet, 85 percent used a real estate agent, 62 percent yard signs, 48 percent attended open houses and 47 percent looked at print or newspaper ads. Fewer buyers rely on a home book or magazine, home builders, television, billboards and relocation companies. Buyers most commonly start their search process online and then contact a real estate agent.
When asked where they first learned about the home purchased, 34 percent of buyers said a real estate agent; 32 percent the Internet; 15 percent from yard signs; 7 percent from a friend, neighbor or relative; 7 percent home builders; 3 percent a print or newspaper ad; 2 percent directly from the seller; and 1 percent a home book or magazine.
Eighty-seven percent of home buyers who used the Internet to search for a home purchased through a real estate agent, in contrast with 72 percent of non-Internet users who were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service Web sites were the most popular Internet resource, used by 60 percent of buyers, followed by Realtor.com, 48 percent; real estate company sites, 46 percent; real estate agent Web sites, 43 percent; for-sale-by-owner sites, 19 percent; and local newspaper sites, 11 percent; other categories were smaller.
Sixty-one percent of buyers are married couples, 20 percent are single women, 10 percent single men, 7 percent unmarried couples and 2 percent other. Twenty-six percent are non-white, 9 percent were born outside of the United States, and 4 percent primarily speak a language other than English.
Seventy-eight percent of all respondents purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 5 percent some other kind of housing.
Fifty-five percent of all homes purchased were in a suburb or subdivision, 17 percent were in an urban area, 16 percent in a small town, 10 percent in a rural area and 2 percent in a resort or recreation area. The median distance from the previous residence was 12 miles.
The level of for-sale-by-owner transactions was 13 percent, up slightly from a record-low market share of 12 percent in both 2007 and 2006. The level of homes sold without professional representation has trended lower since reaching a cyclical peak of 18 percent in 1997.
A large number of these properties were not placed on the open market – 45 percent were “closely held” between parties who knew each other in advance, such as family or acquaintances.
Factoring out properties that were not placed on the open market, the actual number of homes sold without professional assistance is 7 percent – the rest are unrepresented sellers in private transactions. This matches the results in the 2007 study and marks a downtrend from 10 percent sold on the open market in 2004.
The median home price for sellers who used an agent was $211,000 vs. $153,000 for a home sold directly by an owner, but there were important differences between the two. Unassisted sellers were more likely to be in a rural area or small town where sellers are more likely to know potential buyers. In addition, the home was more likely to be a mobile or manufactured home, and the owner’s income was lower than that of sellers using agents.
The most difficult tasks reported by unrepresented sellers are selling within the planned length of time, getting the right price, preparing the home for sale, and understanding and performing paperwork.
NAR mailed an eight-page questionnaire in August 2008 to a national sample of 133,000 home buyers and sellers who purchased their homes between July 2007 and June 2008, according to county records. It generated 10,053 usable responses; the adjusted response rate was 7.9 percent. All information is characteristic of the 12-month period ending in June 2008 with the exception of income data, which are for 2007. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.
# # #
*A separate report by HouseHunt, Inc., based on a survey of 2,000 real estate agents, shows 50 percent of homes purchased in the third quarter of 2008 were by first-time buyers.
© Copyright NATIONAL ASSOCIATION of REALTORS® Headquarters: 430 North Michigan Avenue, Chicago, IL 60611
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500
ORLANDO, November 08, 2008
The latest consumer survey of home buyers and sellers shows first-time buyers have risen in market share and plan to own their homes longer than buyers in the past. The study was released here today at the 2008 REALTORS® Conference & Expo.
The 2008 National Association of Realtors® Profile of Home Buyers and Sellers is the latest in a series of large national NAR surveys evaluating demographics, marketing, preferences and experiences of home buyers and sellers.
Lawrence Yun, NAR chief economist, said a higher share of first-time buyers makes perfect sense, and it’s a trend he expects to grow. “First-time buyers are much more flexible in entering the market because they aren’t concerned about selling an existing home,” he said. “Given low home prices, plentiful supply and affordable interest rates, it’s been an optimal time for entry-level buyers with a long-term view.
“Considering the temporary first-time buyer tax credit and improvements to the FHA loan program, we expect stronger entry-level activity as the flow of credit improves – that, in turn, should free more existing owners to make a trade in 2009.”
The number of first-time buyers rose to 41 percent from 39 percent of transactions in last year’s survey and 36 percent in 2006. “Although modest, this is a meaningful gain for the 12-month period ending at the close of June, and more recent independent data show a stronger uptrend in first-time buyers who are helping to reduce excess inventory,” Yun said.*
According to the NAR study, the median age of first-time buyers was 30, down from 31 in 2007, and the median income was $60,600. The typical first-time buyer purchased a home costing $165,000 and plans to stay in that home for 10 years, up from seven years in 2007.
The median downpayment by first-time buyers was 4 percent, up from 2 percent in 2007; the number purchasing with no money down fell from 45 percent in 2007 to 34 percent in the current survey.
“The study covers transactions through the middle of 2008, so we can assume the downpayment numbers have shifted recently because credit tightened and no-downpayment loans all but disappeared around the close of the survey,” Yun explained.
Of first-time buyers who made a downpayment, 69 percent used savings and 26 percent received a gift from a friend or relative, typically from their parents. Another 7 percent received a loan from a relative or friend, while 16 percent tapped into a 401(k) fund, stocks or bonds. Ninety-two percent chose a fixed-rate mortgage.
NAR 2008 President Richard F. Gaylord, a broker with RE/MAX Real Estate Specialists in Long Beach, Calif., said consumers rely heavily on the expertise of real estate agents to navigate the market. “This is the biggest transaction most people are ever involved in, so the qualities they’re looking for in a real estate agent include reputation, honesty, integrity and knowledge of the market,” he said. “Both buyers and sellers want agents to provide context, advice and know-how. The vast majority would use their agent again or recommend their agent to others.”
Only 1 percent of sellers chose an agent based on his or her commission. Forty-six percent report the real estate agent initiated a discussion of compensation, while 24 percent of sellers brought up the topic and the agent was willing to negotiate the commission or fee. Thirteen percent of sellers did not know commissions and fees are negotiable.
Nearly nine out of 10 home buyers and sellers would definitely or probably use the same agent again or recommend him or her to others, consistent with the 2007 findings. The survey shows that 81 percent of home buyers and 84 percent sellers used a real estate professional, comparable to 2007.
Thirty-eight percent of sellers found their agent as a result of a referral, while 26 percent used the agent in a previous home purchase. Similarly, 43 percent of buyers relied on referrals to find an agent, while 18 percent of repeat buyers used an agent from a previous transaction.
The percentage of buyers who purchased a home in foreclosure jumped to 6 percent of transactions in the 2008 survey from 1 percent in 2007. Another 38 percent of buyers considered purchasing of a home in foreclosure but did not, primarily because they could not find the right home.
Commuting costs factored greatly in neighborhood selection, with 41 percent of buyers saying they were very important and another 39 percent saying transportation costs were somewhat important. “Since fuel costs began rising in the latter part of the survey period, it’s reasonable to assume they’ve become even more important to home buyers since,” Yun said. “We’ve heard from our members that commuting costs are playing a bigger role in buyers’ decisions.”
Environmentally friendly features also were important, cited by 90 percent of buyers. Heating and cooling costs were of primary importance, followed by energy efficient appliances and energy efficient lighting.
Buyers searched a median of 10 weeks and viewed 10 homes. Of buyers who used an agent, 61 percent chose a buyer’s representative. Nearly nine out of 10 consider their home a good investment, and almost half see it as a better investment than stocks. Fifteen percent of buyers own two or more homes.
The typical repeat buyer was 47 years old, earned $88,200, purchased a home costing $236,000 and plans to stay in that home for 10 years. Repeat buyers made a median downpayment of 15 percent, but 10 percent paid cash for their property.
The median age of home sellers was 47; income was $91,000. Three-quarters were married couples, had been in their home for six years and moved a median distance of 19 miles. Their home was on the market for eight weeks; 5 percent of sellers who also purchased a home reported selling their home in a short sale.
Forty-two percent of sellers offered incentives to attract buyers, such as assistance with closing costs or home warranty policies. The typical home sold for 96 percent of the listing price, and 86 percent of sellers were satisfied with the selling process. Fifty-two percent of sellers were trading up to a larger home, while 22 percent were downsizing.
The study found that 81 percent of sellers used full-service brokerage, in which real estate agents provide a range of services that include managing most of the process of selling a home from listing to closing. Nine percent chose limited services, which may include discount brokerage, and 9 percent used minimal service, such as simply listing a property on a multiple listing service. All of these types of services are provided by Realtors® as well as non-member agents and brokers. The results are identical to findings in 2007 and comparable to findings in 2006.
Primarily, sellers want agents to price their home competitively, market the property, find a buyer and sell within a specific timeframe.
Home buyers are consistent in their expectations of real estate agents. Buyers thought the most important agent services are helping find the right house, and negotiating sales terms and price. Because agents often are chosen based on a referral, or were used in a previous transaction, two-thirds of buyers contacted only one real estate agent in the search process.
Buyers used a variety of resources in searching for a home: 87 percent used the Internet, 85 percent used a real estate agent, 62 percent yard signs, 48 percent attended open houses and 47 percent looked at print or newspaper ads. Fewer buyers rely on a home book or magazine, home builders, television, billboards and relocation companies. Buyers most commonly start their search process online and then contact a real estate agent.
When asked where they first learned about the home purchased, 34 percent of buyers said a real estate agent; 32 percent the Internet; 15 percent from yard signs; 7 percent from a friend, neighbor or relative; 7 percent home builders; 3 percent a print or newspaper ad; 2 percent directly from the seller; and 1 percent a home book or magazine.
Eighty-seven percent of home buyers who used the Internet to search for a home purchased through a real estate agent, in contrast with 72 percent of non-Internet users who were more likely to purchase directly from a builder or from an owner they already knew in a private transaction.
Local metropolitan multiple listing service Web sites were the most popular Internet resource, used by 60 percent of buyers, followed by Realtor.com, 48 percent; real estate company sites, 46 percent; real estate agent Web sites, 43 percent; for-sale-by-owner sites, 19 percent; and local newspaper sites, 11 percent; other categories were smaller.
Sixty-one percent of buyers are married couples, 20 percent are single women, 10 percent single men, 7 percent unmarried couples and 2 percent other. Twenty-six percent are non-white, 9 percent were born outside of the United States, and 4 percent primarily speak a language other than English.
Seventy-eight percent of all respondents purchased a detached single-family home, 9 percent a condo, 8 percent a townhouse or rowhouse, and 5 percent some other kind of housing.
Fifty-five percent of all homes purchased were in a suburb or subdivision, 17 percent were in an urban area, 16 percent in a small town, 10 percent in a rural area and 2 percent in a resort or recreation area. The median distance from the previous residence was 12 miles.
The level of for-sale-by-owner transactions was 13 percent, up slightly from a record-low market share of 12 percent in both 2007 and 2006. The level of homes sold without professional representation has trended lower since reaching a cyclical peak of 18 percent in 1997.
A large number of these properties were not placed on the open market – 45 percent were “closely held” between parties who knew each other in advance, such as family or acquaintances.
Factoring out properties that were not placed on the open market, the actual number of homes sold without professional assistance is 7 percent – the rest are unrepresented sellers in private transactions. This matches the results in the 2007 study and marks a downtrend from 10 percent sold on the open market in 2004.
The median home price for sellers who used an agent was $211,000 vs. $153,000 for a home sold directly by an owner, but there were important differences between the two. Unassisted sellers were more likely to be in a rural area or small town where sellers are more likely to know potential buyers. In addition, the home was more likely to be a mobile or manufactured home, and the owner’s income was lower than that of sellers using agents.
The most difficult tasks reported by unrepresented sellers are selling within the planned length of time, getting the right price, preparing the home for sale, and understanding and performing paperwork.
NAR mailed an eight-page questionnaire in August 2008 to a national sample of 133,000 home buyers and sellers who purchased their homes between July 2007 and June 2008, according to county records. It generated 10,053 usable responses; the adjusted response rate was 7.9 percent. All information is characteristic of the 12-month period ending in June 2008 with the exception of income data, which are for 2007. Because of rounding and omissions for space, percentage distributions for some findings may not add up to 100 percent.
# # #
*A separate report by HouseHunt, Inc., based on a survey of 2,000 real estate agents, shows 50 percent of homes purchased in the third quarter of 2008 were by first-time buyers.
© Copyright NATIONAL ASSOCIATION of REALTORS® Headquarters: 430 North Michigan Avenue, Chicago, IL 60611
DC Office: 500 New Jersey Avenue, NW, Washington, DC 20001-2020 I 1-800-874-6500
YOUR MONEY
It May Be Time to Think About Buying a House
By RON LIEBER
Published: December 5, 2008
Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.
Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.
Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.
That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.
Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.
If you’re hoping for a recovery in the housing market, you ought to be cheering on the first-time home buyers. When they purchase homes, their sellers are free to move on or move up, stimulating further sales.
But if you are a potential first-time buyer yourself, or lending or giving the down payment to one, you are probably as frightened as you are tempted by all the “For Sale” signs that have become “On Sale” signs. So let’s quickly review some of the still-grim pricing data in certain areas — and consider the reasoning offered up by first-time buyers who have forged ahead anyhow.
As is always the case with real estate, much depends on location. One study, “The Changing Prospects for Building Home Equity,” tries to predict where today’s first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines. The verdict was that buyers in 33 of the markets could see a decline by 2012, including potential six-figure drops on an average home in the New York City, Los Angeles, San Francisco and Seattle metropolitan areas.
This is obviously scary. (I’ve linked to the study, a joint effort of the Center for Economic and Policy Research and the National Low Income Housing Coalition, from the version of this article at nytimes.com/yourmoney.) It’s worth noting, however, that these predictions came before the government made its most recent move to reduce borrowing costs.
Also, the price projections in the study are based, in part, on the fact that the ratio of purchase prices to annual rents is still higher in many areas than the historical average, which is roughly 15 times rents. While past figures may well have some predictive value, I have never been convinced that first-time buyers compare a home that they could own and one that they would rent in purely or even primarily economic terms.
When Jaime and Michael Proman moved this fall to Minneapolis, his hometown, from New York City, they craved a different sort of life after two years together in a 450-square-foot studio apartment. “We didn’t want a sterile apartment feel,” said Mr. Proman, who is 28 (his wife is 26). “We wanted something that was permanent and very much a reflection of us.”
The fact is, in many parts of the country there are few if any attractive rentals for people looking to put down roots and enjoy the sort of amenities they may spot on cable television home improvement shows. Comparing a rental with a place that you may own seems almost pointless in these situations, especially for those who are now grown up enough to want to make their own decisions about décor without consulting the landlord.
Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.
You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.
John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it’s free) at annualcreditreport.com and dispute errors.
While no one can easily predict the likelihood of losing a job, Friday’s startling unemployment figures suggest the need for caution if you think you might be vulnerable. A. C. Panella, who teaches communications at Pasadena City College in California, waited until she had a tenure-track job before buying a home in the Highland Park section of Los Angeles with her partner, Amy Goldman, a lawyer for a nonprofit organization. “We could afford the mortgage payment on one salary, were something to come up,” Ms. Panella, 31, said. “It’s really about being able to stay within our means.”
For many first-time home buyers, that philosophy stretches to the down payment, too. Ms. Panella and her partner put down 20 percent when they bought their home in September, as did the Promans when they bought their home in the Lowry Hill neighborhood of Minneapolis.
Alison Nowak, 29, put just 3 percent down on a Federal Housing Administration-backed loan last month when she and her partner, Lacey Mamak, bought a $149,900, 800-square-foot home several miles south of where the Promans live. “Anything that is an opportunity also has a bit of risk,” she said. Her house was in foreclosure before a plumber bought it and fixed it up. “One way we mitigated it was that we bought a really tiny house in a very good neighborhood.”
One other strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. “If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be,” Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.
Finally, allow yourself to consider how it would feel if you bought and then prices dropped another 10 or 15 percent. It might not bother you if you plan to stick around. Plenty of people seem to be making a longer commitment to their homes. According to a survey that the National Association of Realtors released last month, typical first-time buyers plan to stay in their home 10 years, up from 7 last year.
Perhaps people are more aware that they will not be able to build equity as rapidly as others did in the real estate boom. Or they simply have more confidence in hard, hometown assets now than in other markets.
“We wouldn’t let another decline bother us,” said Michael Proman. “You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now.”
Ready to buy, or waiting it out? Post a comment at nytimes.com/yourmoney or write to rlieber@nytimes.com.
More Articles in Business » A version of this article appeared in print on December 6, 2008, on page B1 of the New York edition.
It May Be Time to Think About Buying a House
By RON LIEBER
Published: December 5, 2008
Five or 10 years from now, when the financial crisis has ended and housing prices are up smartly once more, we will look in the rearview mirror and realize that we missed a golden age for first-time home buyers.
Then, everyone who sat on their down payment savings accounts for a few years too long will kick themselves for not taking advantage of what may turn out to be the buying opportunity of a lifetime for those who can qualify for a mortgage.
Unfortunately, we do not know when this golden age will begin, because we will be able to identify a bottom to the housing market only with the benefit of hindsight. But as it does with the stock market, the moment will probably arrive when everyone is feeling the most pessimistic.
That moment is certainly getting closer. Housing prices have fallen drastically from their peak levels in many areas of the country. Rates on 30-year fixed-rate mortgages are already close to 5.5 percent, and this week there were suggestions that the federal government might try to drive them down to 4.5 percent, a truly incredible figure to be able to lock in for three decades.
Meanwhile, first-time home buyers have the same advantage they have always had, which is that they do not have to sell their old place before buying a new one. That is an added advantage in areas where many available houses simply are not moving, because the people trying to sell them will not be bidding against you.
If you’re hoping for a recovery in the housing market, you ought to be cheering on the first-time home buyers. When they purchase homes, their sellers are free to move on or move up, stimulating further sales.
But if you are a potential first-time buyer yourself, or lending or giving the down payment to one, you are probably as frightened as you are tempted by all the “For Sale” signs that have become “On Sale” signs. So let’s quickly review some of the still-grim pricing data in certain areas — and consider the reasoning offered up by first-time buyers who have forged ahead anyhow.
As is always the case with real estate, much depends on location. One study, “The Changing Prospects for Building Home Equity,” tries to predict where today’s first-time buyers in the 100 biggest metropolitan areas may actually have less home equity by 2012 as a result of continued price declines. The verdict was that buyers in 33 of the markets could see a decline by 2012, including potential six-figure drops on an average home in the New York City, Los Angeles, San Francisco and Seattle metropolitan areas.
This is obviously scary. (I’ve linked to the study, a joint effort of the Center for Economic and Policy Research and the National Low Income Housing Coalition, from the version of this article at nytimes.com/yourmoney.) It’s worth noting, however, that these predictions came before the government made its most recent move to reduce borrowing costs.
Also, the price projections in the study are based, in part, on the fact that the ratio of purchase prices to annual rents is still higher in many areas than the historical average, which is roughly 15 times rents. While past figures may well have some predictive value, I have never been convinced that first-time buyers compare a home that they could own and one that they would rent in purely or even primarily economic terms.
When Jaime and Michael Proman moved this fall to Minneapolis, his hometown, from New York City, they craved a different sort of life after two years together in a 450-square-foot studio apartment. “We didn’t want a sterile apartment feel,” said Mr. Proman, who is 28 (his wife is 26). “We wanted something that was permanent and very much a reflection of us.”
The fact is, in many parts of the country there are few if any attractive rentals for people looking to put down roots and enjoy the sort of amenities they may spot on cable television home improvement shows. Comparing a rental with a place that you may own seems almost pointless in these situations, especially for those who are now grown up enough to want to make their own decisions about décor without consulting the landlord.
Still, for anyone feeling the urge to buy, a number of practical considerations have changed in the last year or two. The basics are back, like spending no more than 28 percent of your pretax income on mortgage payments, taxes and insurance. Even if a lender does not hold you to this when you go in for preapproval, you should hold yourself to it.
You will also want to start now on any project to improve your credit score because it may take several months to get it above the 720 level that qualifies you for many of the best mortgage rates.
John Ulzheimer, president of consumer education for credit.com, a consumer credit information and application site, suggests starting to pay down and put away credit cards months before you apply for a loan. That is because the credit scoring system could penalize you if you use a lot of credit each month, even if you always pay in full. Also, check your three credit reports (it’s free) at annualcreditreport.com and dispute errors.
While no one can easily predict the likelihood of losing a job, Friday’s startling unemployment figures suggest the need for caution if you think you might be vulnerable. A. C. Panella, who teaches communications at Pasadena City College in California, waited until she had a tenure-track job before buying a home in the Highland Park section of Los Angeles with her partner, Amy Goldman, a lawyer for a nonprofit organization. “We could afford the mortgage payment on one salary, were something to come up,” Ms. Panella, 31, said. “It’s really about being able to stay within our means.”
For many first-time home buyers, that philosophy stretches to the down payment, too. Ms. Panella and her partner put down 20 percent when they bought their home in September, as did the Promans when they bought their home in the Lowry Hill neighborhood of Minneapolis.
Alison Nowak, 29, put just 3 percent down on a Federal Housing Administration-backed loan last month when she and her partner, Lacey Mamak, bought a $149,900, 800-square-foot home several miles south of where the Promans live. “Anything that is an opportunity also has a bit of risk,” she said. Her house was in foreclosure before a plumber bought it and fixed it up. “One way we mitigated it was that we bought a really tiny house in a very good neighborhood.”
One other strategy might be to buy new instead of used. Ian Shepherdson, chief United States economist for the research firm High Frequency Economics, says he believes that a steep drop-off in inventory of new homes is coming soon, thanks to a rapid decrease in home builder activity.
Since prices generally soften in the winter, it may make sense to start looking seriously once the mercury bottoms out. “If you look at new developments next spring, you may not have the choice you thought you would have or be in the bargaining position you thought you would be,” Mr. Shepherdson said. Also, if you wait after June 30, you will miss out on a $7,500 federal tax credit for income-eligible first-time home buyers that works like an interest-free loan.
Finally, allow yourself to consider how it would feel if you bought and then prices dropped another 10 or 15 percent. It might not bother you if you plan to stick around. Plenty of people seem to be making a longer commitment to their homes. According to a survey that the National Association of Realtors released last month, typical first-time buyers plan to stay in their home 10 years, up from 7 last year.
Perhaps people are more aware that they will not be able to build equity as rapidly as others did in the real estate boom. Or they simply have more confidence in hard, hometown assets now than in other markets.
“We wouldn’t let another decline bother us,” said Michael Proman. “You can never time a bottom. This is a long-term investment for us, and it truly is the best investment we have in our portfolio right now.”
Ready to buy, or waiting it out? Post a comment at nytimes.com/yourmoney or write to rlieber@nytimes.com.
More Articles in Business » A version of this article appeared in print on December 6, 2008, on page B1 of the New York edition.
Saturday, November 8, 2008
Port 121 at Seabridge Marina - Oxnard, CA
Port 121 at Seabridge Marina
Port 121 is part of the master planned community at Seabridge Marina. It is probably one of the last major residential communities to be approved by the California Coastal Commission for the foreseeable future. The Seabridge Marina takes advantage of breath-taking mountain views, easy ocean access and world class shopping, culture, and recreation within a few minutes drive.
The Channel Islands National Park is a 20 mile boat ride off the coast to the West.
As I write this on 8 November, 2008 the Weather Channel is reporting over 12 inches of rain in parts of Washington State, near-record snow fall in South Dakota with drifts high enough to trap home owners inside, and cold winds blowing through Chicago. Here in Ventura County we are enjoying clear, sunny skies, with temps in the high 70’s and low 80’s. It is not difficult to understand why people move here from all over the world.
Seabridge Marina new home communities are being offered at very competitive prices compared to the older harbor side communities in the LA Basin. If you like yachts, backdoor mooring for your yacht and a fabulous clubhouse / pool complex – Seabridge Marina is a real eye-opener. If you want a luxury loft style living space, Port 121 at Seabridge Marina is really the only game in town.
Port 121 is a Townhome complex made up of two buildings – Phase 1 and Phase 2 - fronting on the Marina Village area of Seabridge Marina. The first building – Phase 1 - is rapidly nearing completion with 35 units. Sales began in July and there are 24 units still available as of early November 2008. That means these homes are selling at a rate of about 3 a month. None of the units will be available for move-in until early 2009. These first 35 units are scheduled for completion sometime between January and March.
Phase 1
Phase 1 is a three story building with keypad security and elevator access. There are 8 floorplans which include first floor live/work units combining business office space with second floor quarters. The office units have already sold out in Phase 1. The majority of the units are residential and include single story and two story loft homes. These homes are being offered with a long list of luxury upgrades included standard. A few of these upgrades include:
- “Metro Maple” European style cabinetry
- Living Room and Master Bedroom pre-wired for plasma tv’s
- Video/Audio system including interior inside monitor for visitor communication and access
- Category 5 high speed data transmission wiring at all Bedrooms, Loft, Living Room and
Kitchen (per plan). Fiber optic cable with central hub included in each residence
Gourmet Kitchens include:
- Whirlpool Gold stainless appliance package, including:
- Self-Cleaning slide-in Gas Range
- 1.7 cubic ft. family capacity microwave hood combo
- 4-cycle, 5-level dishwasher with optional settings
- Granite Countertops with 6” backsplash
- Australian stainless steel sink with stylish Delta Chrome faucet
- In-Sink-Aerator disposal
- Spacious Pantries (per plan)
- Convenient Center Island (per plan)
Master Suite Baths include:
- Granite Countertops at both bath vanities.
- “Laguna” square sinks with striking chrome bath hardware and accessories
- Attractive tile shower/tub surrounds including shower enclosure with matching chrome
Accents.
This is just a very small sampling of the many upgrades included as standard with Phase 1. The cost of these upgrades has been heavily subsidized by the builder to get people interested.
Not all of these upgrades will be included as standard in Phase 2 !!!!
Also, it is important to know what is not included in either phase:
- You must buy your own Refrigerator
- Washer and Dryer - The washer and dryer must be a stackable unit.
Phase 2
Phase 2 will be twice as large as Phase 1 with 75 units and 4 stories. Where Phase 1 had only 2 water view units, Phase 2 will have 17 water view units. Phase 2 construction has been halted at the foundation and will not resume until sometime near 2011. These units are premium locations at Seabridge and the hope is to be able to offer them when the market is stronger and the builder can more easily justify higher prices and recoup some of the massive investments made prior to the current market slump. Prices will be anywhere from $100,000 to $200,000 more for the same floorplans currently available in Phase 1!
Phase 2 has been built immediately adjacent to harbor boat slips and features gated underground parking the same as in Phase 1. A fabulous harbor walkway runs immediately behind the property. Owners may have 1 or 2 parking spaces depending on the unit they purchase above them.
What is all this going to cost?
On the face of it, this community is a real bargain. You can actually buy a 1 bedroom, 1 bath for less than $350,000 ($349,990). The 6 plans still available in Phase 1 are priced from the $350,000 range for a Plan A on up to $599,990 for a Plan F single bedroom. You can also get a premium two bedroom Plan J with up to 1,732 sq ft for $550,990. The 3 other plans fall somewhere in between. So what we are talking about is a unit priced somewhere between $350,000 and roughly $600,000. Not bad at all for the seaside location, luxury amenities and brand new everything. But there are a few more considerations…
Mello-Roos
This is a new development. That means we can automatically expect a Mello-Roos (see my Mellos-Roos blog). When Proposition 13 passed in 1978, it severely limited the abilty of state and local governments to use property taxes to construct public facilities and services. Things like road maintenance, traffic lights, street lights, storm sewers, water mains, etc for new home developments. The Mello-Roos Community Facilities Act of 1982 enables “Community Facilities Districts (CFD’s) to be established by Counties, Cities and School Districts as a means of obtaining this community funding.
Simply put, a Mello-Roos allows local CFD’s to collect a monthly tax from new home buyers instead of through state property taxes. The developer does not have to pay for these services so they don’t usually include their cost in the home price. That allows the homebuyer to purchase their home at a lower price from the developer. The CFD Mello-Roos just makes sure that the new home buyer does pay for these services without violating state law or impacting the bottom line for the developer. This is a 30 year Mello-Roos at Port 121.
HOAs
HOAs are Home Owner Association dues for the upkeep and maintenance of the landscaping, security systems, walkways, recreation center, pool – you get the idea. These fees are based on the square footage of the units purchased and can range from $290/month for a plan A to as high as $381/month for a plan J. These are “developer subsidized for the first 4 years of home ownership,” after which the community HOA’s will revert to an additional $100 dollars a month for each plan.
It is also interesting to note that these HOA costs are actually inclusive of a Seabridge Marina HOA and a Port 121 HOA. The two are separate HOA’s paid concurrently by the new home owner.
Besides your principal and interest for your mortgage, there is a 1.25% Annual Ventura County Property Tax based on your Home Sales Price. Amount / 12 for monthly cost.
Mortgage Insurance is .0026 times the Loan Amount / 12 for monthly cost.
Plan Costs
Here is a little break down of the plan costs and parking available for Phase 1 units.
Plan/ HOA/ Mello-Roos/ Total/Month/ # Parking Spaces
A/ $290/month/ $223/month/ = $513/month/ 1 space
B/ $335/ $263/ = $598/ 2
E/ $350/ $263/ = $613/ 2
F/ $335/ $263/ = $598/ 1
G/ $365/ $263/ = $628/ 2
J/ $381/ $340/ = $721/ 2
So what does all this add up to?
The least expensive Port 121 unit is the single bedroom Plan A. Your mortgage amount will depend upon the amount you borrow to finance this home. There are a number of conventional and FHA programs to help first time home buyers into a mortgage. Some will pay a portion of the down payment and even most of the closing costs when combined with CAL-HFA programs. They probably won’t beat the incentive offered by the developer.
The developer is working with DHI Mortgage www.dhimortgage.com to offer an interested buyer several incentives. They will pay closing costs. These are costs which cannot be financed into the loan itself and can be considerable. Roughly $4,000 to $8,000 or more depending on your purchase price, credit rating, etc. (This is a shoot from the hip value – check with your lender.)
Another developer incentive to buy down the interest rate for purchasers to “around 6%”. Interest rates fluctuate daily, so this is a very rough rate.
These numbers will certainly rise over time with a $100 increase in the HOA guaranteed after 4 years. These are Phase 1 numbers only. Phase 2 purchase prices and associated monthly HOA and Mello-Roos will most certainly be much higher.
-All offers must be accompanied by a $7500 deposit.
-No contingent offers will be accepted. If you need to sell a property in order to
purchase this one. It cannot be a contingency of purchase.
-There is a normal (required by law) 3 day right of recission on any offer made.
Summary
This is a luxury community and it really is going to be tough for a first time home buyer to manage. For a larger family, Port 121 is going to be a tight squeeze with only 1 or 2 bedrooms. However, if you don’t want to mow your lawn or do any home maintenance at all, this is a very user friendly opportunity. If you are not concerned by the monthly costs, the homes are very comfortable. I’m told many are being purchased as second homes by investors and folks wanting a scenic get-away retreat from LA.
Make no mistake though, these are not economy homes by any definition.
I would hazard a guess that if you believe real estate is a cyclic market that will generally trend upwards in value, that land is not an unlimited quantity in Southern California, and that seaside properties are often in greater demand than similar homes further inland, you will find these homes to be a good value. Maybe a good long term investment as well.
Warmest Regards,
Mark Thorngren
mark@markthorngren.com
www.markthorngren.com
Free Realty Times Video Newsletter
(805) 504-0228
All of the figures used in this report were current as of the day written. I cannot guarantee the accuracy of any of the information presented beyond today. All prices and fees are subject to change without warning.
Port 121 is part of the master planned community at Seabridge Marina. It is probably one of the last major residential communities to be approved by the California Coastal Commission for the foreseeable future. The Seabridge Marina takes advantage of breath-taking mountain views, easy ocean access and world class shopping, culture, and recreation within a few minutes drive.
The Channel Islands National Park is a 20 mile boat ride off the coast to the West.
As I write this on 8 November, 2008 the Weather Channel is reporting over 12 inches of rain in parts of Washington State, near-record snow fall in South Dakota with drifts high enough to trap home owners inside, and cold winds blowing through Chicago. Here in Ventura County we are enjoying clear, sunny skies, with temps in the high 70’s and low 80’s. It is not difficult to understand why people move here from all over the world.
Seabridge Marina new home communities are being offered at very competitive prices compared to the older harbor side communities in the LA Basin. If you like yachts, backdoor mooring for your yacht and a fabulous clubhouse / pool complex – Seabridge Marina is a real eye-opener. If you want a luxury loft style living space, Port 121 at Seabridge Marina is really the only game in town.
Port 121 is a Townhome complex made up of two buildings – Phase 1 and Phase 2 - fronting on the Marina Village area of Seabridge Marina. The first building – Phase 1 - is rapidly nearing completion with 35 units. Sales began in July and there are 24 units still available as of early November 2008. That means these homes are selling at a rate of about 3 a month. None of the units will be available for move-in until early 2009. These first 35 units are scheduled for completion sometime between January and March.
Phase 1
Phase 1 is a three story building with keypad security and elevator access. There are 8 floorplans which include first floor live/work units combining business office space with second floor quarters. The office units have already sold out in Phase 1. The majority of the units are residential and include single story and two story loft homes. These homes are being offered with a long list of luxury upgrades included standard. A few of these upgrades include:
- “Metro Maple” European style cabinetry
- Living Room and Master Bedroom pre-wired for plasma tv’s
- Video/Audio system including interior inside monitor for visitor communication and access
- Category 5 high speed data transmission wiring at all Bedrooms, Loft, Living Room and
Kitchen (per plan). Fiber optic cable with central hub included in each residence
Gourmet Kitchens include:
- Whirlpool Gold stainless appliance package, including:
- Self-Cleaning slide-in Gas Range
- 1.7 cubic ft. family capacity microwave hood combo
- 4-cycle, 5-level dishwasher with optional settings
- Granite Countertops with 6” backsplash
- Australian stainless steel sink with stylish Delta Chrome faucet
- In-Sink-Aerator disposal
- Spacious Pantries (per plan)
- Convenient Center Island (per plan)
Master Suite Baths include:
- Granite Countertops at both bath vanities.
- “Laguna” square sinks with striking chrome bath hardware and accessories
- Attractive tile shower/tub surrounds including shower enclosure with matching chrome
Accents.
This is just a very small sampling of the many upgrades included as standard with Phase 1. The cost of these upgrades has been heavily subsidized by the builder to get people interested.
Not all of these upgrades will be included as standard in Phase 2 !!!!
Also, it is important to know what is not included in either phase:
- You must buy your own Refrigerator
- Washer and Dryer - The washer and dryer must be a stackable unit.
Phase 2
Phase 2 will be twice as large as Phase 1 with 75 units and 4 stories. Where Phase 1 had only 2 water view units, Phase 2 will have 17 water view units. Phase 2 construction has been halted at the foundation and will not resume until sometime near 2011. These units are premium locations at Seabridge and the hope is to be able to offer them when the market is stronger and the builder can more easily justify higher prices and recoup some of the massive investments made prior to the current market slump. Prices will be anywhere from $100,000 to $200,000 more for the same floorplans currently available in Phase 1!
Phase 2 has been built immediately adjacent to harbor boat slips and features gated underground parking the same as in Phase 1. A fabulous harbor walkway runs immediately behind the property. Owners may have 1 or 2 parking spaces depending on the unit they purchase above them.
What is all this going to cost?
On the face of it, this community is a real bargain. You can actually buy a 1 bedroom, 1 bath for less than $350,000 ($349,990). The 6 plans still available in Phase 1 are priced from the $350,000 range for a Plan A on up to $599,990 for a Plan F single bedroom. You can also get a premium two bedroom Plan J with up to 1,732 sq ft for $550,990. The 3 other plans fall somewhere in between. So what we are talking about is a unit priced somewhere between $350,000 and roughly $600,000. Not bad at all for the seaside location, luxury amenities and brand new everything. But there are a few more considerations…
Mello-Roos
This is a new development. That means we can automatically expect a Mello-Roos (see my Mellos-Roos blog). When Proposition 13 passed in 1978, it severely limited the abilty of state and local governments to use property taxes to construct public facilities and services. Things like road maintenance, traffic lights, street lights, storm sewers, water mains, etc for new home developments. The Mello-Roos Community Facilities Act of 1982 enables “Community Facilities Districts (CFD’s) to be established by Counties, Cities and School Districts as a means of obtaining this community funding.
Simply put, a Mello-Roos allows local CFD’s to collect a monthly tax from new home buyers instead of through state property taxes. The developer does not have to pay for these services so they don’t usually include their cost in the home price. That allows the homebuyer to purchase their home at a lower price from the developer. The CFD Mello-Roos just makes sure that the new home buyer does pay for these services without violating state law or impacting the bottom line for the developer. This is a 30 year Mello-Roos at Port 121.
HOAs
HOAs are Home Owner Association dues for the upkeep and maintenance of the landscaping, security systems, walkways, recreation center, pool – you get the idea. These fees are based on the square footage of the units purchased and can range from $290/month for a plan A to as high as $381/month for a plan J. These are “developer subsidized for the first 4 years of home ownership,” after which the community HOA’s will revert to an additional $100 dollars a month for each plan.
It is also interesting to note that these HOA costs are actually inclusive of a Seabridge Marina HOA and a Port 121 HOA. The two are separate HOA’s paid concurrently by the new home owner.
Besides your principal and interest for your mortgage, there is a 1.25% Annual Ventura County Property Tax based on your Home Sales Price. Amount / 12 for monthly cost.
Mortgage Insurance is .0026 times the Loan Amount / 12 for monthly cost.
Plan Costs
Here is a little break down of the plan costs and parking available for Phase 1 units.
Plan/ HOA/ Mello-Roos/ Total/Month/ # Parking Spaces
A/ $290/month/ $223/month/ = $513/month/ 1 space
B/ $335/ $263/ = $598/ 2
E/ $350/ $263/ = $613/ 2
F/ $335/ $263/ = $598/ 1
G/ $365/ $263/ = $628/ 2
J/ $381/ $340/ = $721/ 2
So what does all this add up to?
The least expensive Port 121 unit is the single bedroom Plan A. Your mortgage amount will depend upon the amount you borrow to finance this home. There are a number of conventional and FHA programs to help first time home buyers into a mortgage. Some will pay a portion of the down payment and even most of the closing costs when combined with CAL-HFA programs. They probably won’t beat the incentive offered by the developer.
The developer is working with DHI Mortgage www.dhimortgage.com to offer an interested buyer several incentives. They will pay closing costs. These are costs which cannot be financed into the loan itself and can be considerable. Roughly $4,000 to $8,000 or more depending on your purchase price, credit rating, etc. (This is a shoot from the hip value – check with your lender.)
Another developer incentive to buy down the interest rate for purchasers to “around 6%”. Interest rates fluctuate daily, so this is a very rough rate.
These numbers will certainly rise over time with a $100 increase in the HOA guaranteed after 4 years. These are Phase 1 numbers only. Phase 2 purchase prices and associated monthly HOA and Mello-Roos will most certainly be much higher.
-All offers must be accompanied by a $7500 deposit.
-No contingent offers will be accepted. If you need to sell a property in order to
purchase this one. It cannot be a contingency of purchase.
-There is a normal (required by law) 3 day right of recission on any offer made.
Summary
This is a luxury community and it really is going to be tough for a first time home buyer to manage. For a larger family, Port 121 is going to be a tight squeeze with only 1 or 2 bedrooms. However, if you don’t want to mow your lawn or do any home maintenance at all, this is a very user friendly opportunity. If you are not concerned by the monthly costs, the homes are very comfortable. I’m told many are being purchased as second homes by investors and folks wanting a scenic get-away retreat from LA.
Make no mistake though, these are not economy homes by any definition.
I would hazard a guess that if you believe real estate is a cyclic market that will generally trend upwards in value, that land is not an unlimited quantity in Southern California, and that seaside properties are often in greater demand than similar homes further inland, you will find these homes to be a good value. Maybe a good long term investment as well.
Warmest Regards,
Mark Thorngren
mark@markthorngren.com
www.markthorngren.com
Free Realty Times Video Newsletter
(805) 504-0228
All of the figures used in this report were current as of the day written. I cannot guarantee the accuracy of any of the information presented beyond today. All prices and fees are subject to change without warning.
Monday, October 13, 2008
What's Going On At Victoria Estates in Oxnard, CA
Victoria Estates In Oxnard, CA
Think of a premium community with all the amenities including a guarded gate, swimming pool, spa, recreation building and parks - built between late 2002 and 2004. Put it next to an award winning golf course that also just happens to be adjacent to where the Dallas Cowboys practice in late summer. Fill the sky with fresh air from the Pacific Ocean about a mile away and cool breezes which defeat the need for air conditioning. Put two major yachting harbors with restaurants and shopping - equidistant to the North and South about 4 miles. Now take these gorgeous homes which recently were listed from the high $800K’s to the $1.3M range and subtract $100K to $200K from their sales price – nothing is currently listed above $812,900 and one home is currently being listed for $550,000!
That’s Victoria Estates.
Today is October 13, 2008 and I have just finished looking at everything which has come to the market in Victoria Estates since October 1, 2007. There were 65 properties listed in the local MLS (Multiple Listing Service). By my count, there were an almost equal number of Foreclosures and Short Sales (33) as there were conventional home sales (32).
These are truly tragic numbers for home owners and sellers. They accurately reflect the time period during which home mortgages were given to anyone with a pulse, often with variable rate clauses which nobody ever expected would activate. Get behind on your mortgage? Just refinance in a year and drop your rate. Worst case, just put it on the market and it will sell in a day.
Then things changed. The new Fed chairman raised interest rates 9 times in one six month period. Home prices began to soften as fewer folks could afford the new mortgage rates and the high home prices. Homes took longer to sell because home owners knew their homes were worth and insane amount of money and would not compromise. Gradually, home owners began to see their interest rates adjust upwards on their new homes and they were suddenly upside down on their mortgages. They owed more than they could easily sell their homes for. Still, sellers refused to “give away their homes.”
The rest is history. Home owners couldn’t refinance to a lower mortgage rate on a home that was worth less than when they purchased it after only a year or two. Banks couldn’t make as many stated income loans and found they needed to tighten up their lending limits. This made it harder for folks to buy homes from the people desperately trying to sell. Banks began to pull out of escrows that had been approved just days earlier. We lost 1/3 of our mortgage lenders in the fall of 2007.
Victoria Estates is the poster child of the Real Estate Meltdown.
Victoria Estates is a buyers dream. There are 5 tracts within the Victoria Estates Development.
River Glen 1 This tract has had 14 homes listed during the last year. HOA’s range from $120/Month to $144/Month.
River Glen 2 This tract has had 4 homes listed during the last year. HOA’s range from $140 to $144/Month.
Glen Eagles This tract has had 13 homes listed during the last year. HOA’s range from $120 to $144/Month.
Legacy This tract has had 24 homes listed during the last year. HOA’s range from $120 earlier this year to as high as $147 this year.
Pacifica This tract has had 10 homes listed during the last year. HOA’s range from $120 late last year to $150/Month late this year.
I have spent considerable time in the last several months escorting astute investors, bargain hunting new home buyers and folks who just want to live somewhere special into Victoria Estates. I don’t have a crystal ball, but I don’t think these beautiful homes will continue to fall in price forever. In a shorter time than most “experts” predict, I think we’ll see home values in this development firm and turn.
There are 15 homes currently listed between $550,000 and $812,900. Many are short sales which I do not personally recommend, but they can be done. Ask me why I don't like short sales and I can recount a number of horror stories. Still there are some reasonable opportunities. There 8 homes currently in escrow ranging in price from $599,000 for 2,900 sq ft, to $830,000 for a home just under 4,500 sq ft.
If you are not from California these prices will shock you. If you are from California and are aware of what near ocean properties sell for, these prices will shock you as well.
17 homes have sold in the last 12 months for prices ranging from $570,000 this last April, to a home which sold for $875,000 a month earlier in March! Let me illustrate how volatile our market is with an example of our market right now. The last 3 homes which sold in Victoria Estates were all sold in July. They were all 4 bedroom and 3 bath homes built in 2003 and they sold within 3 days of each other.
The first was a 2,882 sq ft home sold July 22 for $704,000.
The next was a smaller 2,464 sq ft home sold July 25 for $605,000. That is $100,000 less and only about 400 sq ft smaller.
The last home was a larger 3,137 sq ft home sold July 25 for $640,000, but with a smaller yard. Still, that is a $64,000 lower price for a larger home!
The 2 lower priced homes were on 7500 sq ft lots while the higher priced home was on a 12,000 sq ft lot.
There were 10 properties which were cancelled during escrow and they ranged in price from $629,000 for a 3,300 sq ft home, to a home originally offered for $1,300,000 for 4,000 sq ft. It was reduced in price after 188 days on the market to $800,000 before it was cancelled. That might have proved to be an unfortunate decision as home prices over the last year have dropped to a median $704,000 in Victoria Estates.
There were also 13 homes which became expired listings in the last year. Most homes are listed for a six month period, but can be listed for any time frame the seller desires and the listing agent will agree to. These homes were listed for $679,000 for a 2,700 sq ft home on up to 1,099,000 for a 3,100 sq ft home. Most likely, these folks can afford to wait out the market.
It is interesting to note that 25 of the properties this year, of the 65 that were listed, did not sell but were cancelled, expired or released from showing.
Again, 11 homes were foreclosures and 22 were/are short sales. Those numbers just totally destroy any normal market price supports.
It’s definitely hunting season for buyers at Victoria Estates.
Just as an aside, I have also checked the rental market from what is on the MLS. These are probably not all the rentals for the year - a lot of that happens outside of the MLS. There were 9 homes listed for rent, ranging from $2,800/Month for a 2,700 sq ft home, to $3,500/Month for a 3,300 sq ft home. Both of those homes are currently available along with a 3,600 sq ft home for $3,000/Month.
Some investors are purchasing these homes and renting them back to their former owners. Everyone wins a bit in that situation. Families can keep their kids in school and maybe buy some time to decide their next move. Investors can rent the home at a bargain rate to someone who will very likely take good care of their investment.
I hope you have found this information useful. All the figures and information used for this report were drawn from my own personal experience working in Victoria Estates and from the information available to all realtors in the Ventura County Regional Data Share. I would be happy to share CMA’s for any of the 5 tracts with interested folks and can even send you mapped reports of these tracts as well. Please know that I do value your comments and suggestions.
Please feel free to contact me for additional information on these homes at:
mark@markthorngren.com or call me direct at: (805) 504-0228
You are welcome to visit my website at http://www.markthorngren.com/ where you can also keep up with current mortgage and real estate news in a video format from RealtyTimes.com. It’s fun, informative and it updates nearly every day. Bookmark it and use it as often as you like.
It is important that you know, that I do have time for you, your family, friends and people you like who could use my help right now. Your introductions are my greatest compliment.
Warmest Regards,
Mark Thorngren
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