In a previous blog, I cited a statistic that almost 1/3 of all foreclosures are "strategic defaults", that is, situations where a homeowner has the means to continue paying on his mortgage but decides to default instead because of a negative equity position.
In that blog, I said that Americans need to buckle down and honor the promises to repay that we made when we purchased our homes. To read an interesting counter-argument to mine, click HERE.
Saturday, November 27, 2010
Friday, November 26, 2010
Weekly Sales (11/14 - 11/20/10)
Here is the second Thanksgiving helping of the weekly sales report. As always, this report will detail the total number of sales during the past week along with the prices and locations of those sales.
For the week of November 14th through the 20th, there were 35 residential sales in Leon County. This is a slight uptick from previous week (actually a 25% increase) but not a marked departure from our established pattern of sales in the mid-20s per week.
Of the 35 sales, over 25% of those (9) sold under $100,000. One of these purchases was a property that I bought personally for $13,500. I have reported on increased investor activity for several weeks, and I have put "my money where my mouth is". There are a lot of good investment deals out there. Call me for advice and perspective on buying investment property (850-251-6643). 12 of the 35 sales were over $200,000 with 7 of those 12 being over $300,000.
Sales in the Northeast were even stronger this week than in weeks prior. 60% (21) of the 35 sales last week were in the Northeast. Seven sales took place in the Northwest; three properties sold in the Southeast; four homes sold in the Southwest.
MY ADVICE: With increased sales percentage in the Northeast there is continued downward pressure on prices in the other three quadrants. If you want to buy in the NW, SE, or SW, I would encourage you to wait another few months as prices continue to decline. Sell in these quadrants as fast as you can. Look to buy in the Northeast.
The average sales price this week was $187,517 and the median sales price was $167,765 (slightly higher than the yearly average). Median sold price per square foot was $113.56. Expect that number to be significantly lower in future weeks.
For the week of November 14th through the 20th, there were 35 residential sales in Leon County. This is a slight uptick from previous week (actually a 25% increase) but not a marked departure from our established pattern of sales in the mid-20s per week.
Of the 35 sales, over 25% of those (9) sold under $100,000. One of these purchases was a property that I bought personally for $13,500. I have reported on increased investor activity for several weeks, and I have put "my money where my mouth is". There are a lot of good investment deals out there. Call me for advice and perspective on buying investment property (850-251-6643). 12 of the 35 sales were over $200,000 with 7 of those 12 being over $300,000.
Sales in the Northeast were even stronger this week than in weeks prior. 60% (21) of the 35 sales last week were in the Northeast. Seven sales took place in the Northwest; three properties sold in the Southeast; four homes sold in the Southwest.
MY ADVICE: With increased sales percentage in the Northeast there is continued downward pressure on prices in the other three quadrants. If you want to buy in the NW, SE, or SW, I would encourage you to wait another few months as prices continue to decline. Sell in these quadrants as fast as you can. Look to buy in the Northeast.
The average sales price this week was $187,517 and the median sales price was $167,765 (slightly higher than the yearly average). Median sold price per square foot was $113.56. Expect that number to be significantly lower in future weeks.
Thursday, November 25, 2010
Weekly Sales (11/7 - 11/13/10)
Happy Thanksgiving to Everyone! Today I'm sure that everyone is getting extra helpings of food, so we'll get a double dose of real estate sales as well. I am going to post last week's figures and this week's figures today.
There were 28 residential sales in Leon County the week of the 7th through the 13th. This figure is in line with our previous few week's of activity and is consistent with the time of year.
Of the 28 sales, 6 of those were under $100,000. This is evidence of investor activity continuing and the increased affordability that has allowed more and more lower income buyers to purchase a home. Adding more buyers increases demand and that is good for the market. 11 sales were over $200,000 and 4 of those 11 were over $300,000.
Almost half (13) of the 28 sales were in the Northeast. Nine sales took place in the Northwest. There were only two sales in the Southeast while there were four sales in the Southwest.
MY ADVICE: UNCHANGED - If you are looking to buy, then buy in the Northeast or in an established Northwest subdivision. If you are looking to sell, make sure that your home is in pristine condition and priced below the median price per square foot in your neighborhood.
This week's average ($193,687) and median price ($160,000) were similar to last week and stand above the yearly figures of $190,180 and $162,500, respectively.
There were 28 residential sales in Leon County the week of the 7th through the 13th. This figure is in line with our previous few week's of activity and is consistent with the time of year.
Of the 28 sales, 6 of those were under $100,000. This is evidence of investor activity continuing and the increased affordability that has allowed more and more lower income buyers to purchase a home. Adding more buyers increases demand and that is good for the market. 11 sales were over $200,000 and 4 of those 11 were over $300,000.
Almost half (13) of the 28 sales were in the Northeast. Nine sales took place in the Northwest. There were only two sales in the Southeast while there were four sales in the Southwest.
MY ADVICE: UNCHANGED - If you are looking to buy, then buy in the Northeast or in an established Northwest subdivision. If you are looking to sell, make sure that your home is in pristine condition and priced below the median price per square foot in your neighborhood.
This week's average ($193,687) and median price ($160,000) were similar to last week and stand above the yearly figures of $190,180 and $162,500, respectively.
Thursday, November 11, 2010
Weekly Sales (10/31 - 11/6/10)
A new month, Daylight Saving Time, and now the 9th installment of our weekly sales report. Amid all the change, I'm still reporting on the total number of sales, the location of those sales, and the price ranges of those sales. Be sure to read through the entire blog, as I've started including a "My Advice" section at the bottom. Thanks for reading!
During the week of October 31st through November 6th, twenty-two (22) homes sold in Leon County. That figure represents roughly a 60% drop from the number of sales from last week but returns to the pattern of weekly sales in the mid-20s. I still think that, despite last week's aberration, we will see weekly sales hover in the twenties through next Spring.
Of the 22 sales, twenty-two percent (5 houses) were under $100,000; this is a sign of investor activity increasing. Seven of the 22 sales were over $200,000 and 3 of the 7 sold for more than $300,000. The median sales price per square foot this week was $84.91 (almost a $17 per square foot drop from last week - a sign of volatility in the market).
By quadrant, 12 sales (54%) were in the Northeast, 5 were in the Northwest, 4 were in the Southeast, and just one property sold in the Southwest. The northern half of town is still seeing the majority of sales, and the Northeast continues to dominate the market.
MY ADVICE: UNCHANGED - If you are looking to buy, then buy in the Northeast or in an established Northwest subdivision. If you are looking to sell, make sure that your home is in pristine condition and priced below the median price per square foot in your neighborhood.
This week's average ($191,328) and median price ($169,950) were similar to last week and stand above the yearly figures of $190,180 and $162,500, respectively.
During the week of October 31st through November 6th, twenty-two (22) homes sold in Leon County. That figure represents roughly a 60% drop from the number of sales from last week but returns to the pattern of weekly sales in the mid-20s. I still think that, despite last week's aberration, we will see weekly sales hover in the twenties through next Spring.
Of the 22 sales, twenty-two percent (5 houses) were under $100,000; this is a sign of investor activity increasing. Seven of the 22 sales were over $200,000 and 3 of the 7 sold for more than $300,000. The median sales price per square foot this week was $84.91 (almost a $17 per square foot drop from last week - a sign of volatility in the market).
By quadrant, 12 sales (54%) were in the Northeast, 5 were in the Northwest, 4 were in the Southeast, and just one property sold in the Southwest. The northern half of town is still seeing the majority of sales, and the Northeast continues to dominate the market.
MY ADVICE: UNCHANGED - If you are looking to buy, then buy in the Northeast or in an established Northwest subdivision. If you are looking to sell, make sure that your home is in pristine condition and priced below the median price per square foot in your neighborhood.
This week's average ($191,328) and median price ($169,950) were similar to last week and stand above the yearly figures of $190,180 and $162,500, respectively.
Wednesday, November 10, 2010
Depression-Era Depreciation Nears
Nearly one-quarter, or 23.2 percent of U.S. homeowners with a mortgage, were underwater on the loan in the third quarter, meaning they owe more on the home than it is worth, according to figures released Wednesday by the real estate data provider Zillow.
The third-quarter underwater number rose from 22.5% in the second quarter and is the highest it’s been since Zillow began tracking negative equity in 2009. The subtle hints of stabilization in home values that started emerging earlier in the year began to wane last quarter.
Zillow’s home value index recorded a 4.3 percent year-over-year decline in Q3 and was down 1.2 percent from the second quarter. The Seattle-based company says its index reading has fallen for 17 consecutive quarters now. The company’s market data shows the median home value nationwide has dropped to $179,900.
With home values nationally 25% below their June 2006 peak, the current housing downturn is approaching Great Depression-era declines, when home values fell 25.9 percent in five years (between 1929 and 1933).
Source: DSNews
The third-quarter underwater number rose from 22.5% in the second quarter and is the highest it’s been since Zillow began tracking negative equity in 2009. The subtle hints of stabilization in home values that started emerging earlier in the year began to wane last quarter.
Zillow’s home value index recorded a 4.3 percent year-over-year decline in Q3 and was down 1.2 percent from the second quarter. The Seattle-based company says its index reading has fallen for 17 consecutive quarters now. The company’s market data shows the median home value nationwide has dropped to $179,900.
With home values nationally 25% below their June 2006 peak, the current housing downturn is approaching Great Depression-era declines, when home values fell 25.9 percent in five years (between 1929 and 1933).
Source: DSNews
Friday, November 5, 2010
Weekly Sales (10/24 - 10/30/10)
As we reach a milestone in the weekly sales report (now 2 months strong), the market is reaching milestones of its own, and they are not good. Inventory and prices are both going in the wrong direction (both locally and nationally) and the foreclosure scandal is muddying the water of recovery.
Thankfully, amid all the bad news, the week of October 24th through October 30th held some positive news. Last week's sales more than doubled from the week prior (25) to an astonishing 54. That figure breaks a string of three consecutive weeks with weekly sales in the mid-20s. I guess that folks must have been really anxious to have trick-or-treaters to their new homes!
Of the 54 sales, twenty-two percent (12) were under $100,000; this is a sign of investor activity increasing. Twenty-four of those 54 sales were over $200,000 and 38% (9 of the 24) sold for more than $300,000. The median sales price per square foot this week was $101.63 (more than a $4 per square foot increase from last week).
By quadrant, 29 sales (54%) were in the Northeast, 15 were in the Northwest, 6 were in the Southeast, and 4 properties sold in the Southwest. The northern half of town is still seeing the majority of sales, and the Northeast continues to see around half of the total sales in Leon County (958 of 1966 year-to-date).
MY ADVICE: If you are looking to buy, then buy in the Northeast or in an established Northwest subdivision. If you are looking to sell, make sure that your home is in pristine condition and priced below the median price per square foot in your neighborhood.
This week's average ($193,525) and median price ($172,000) were both up significantly and stood above the yearly figures of $190,180 and $162,500, respectively.
Thankfully, amid all the bad news, the week of October 24th through October 30th held some positive news. Last week's sales more than doubled from the week prior (25) to an astonishing 54. That figure breaks a string of three consecutive weeks with weekly sales in the mid-20s. I guess that folks must have been really anxious to have trick-or-treaters to their new homes!
Of the 54 sales, twenty-two percent (12) were under $100,000; this is a sign of investor activity increasing. Twenty-four of those 54 sales were over $200,000 and 38% (9 of the 24) sold for more than $300,000. The median sales price per square foot this week was $101.63 (more than a $4 per square foot increase from last week).
By quadrant, 29 sales (54%) were in the Northeast, 15 were in the Northwest, 6 were in the Southeast, and 4 properties sold in the Southwest. The northern half of town is still seeing the majority of sales, and the Northeast continues to see around half of the total sales in Leon County (958 of 1966 year-to-date).
MY ADVICE: If you are looking to buy, then buy in the Northeast or in an established Northwest subdivision. If you are looking to sell, make sure that your home is in pristine condition and priced below the median price per square foot in your neighborhood.
This week's average ($193,525) and median price ($172,000) were both up significantly and stood above the yearly figures of $190,180 and $162,500, respectively.
Monday, November 1, 2010
Hurry Up and Sell... I'm Serious!
For those of you who have been keeping up with my blog over the last two weeks, you will recall that I have written three articles regarding the decline in housing prices and the need to sell your home quickly (if you really need and/or want to sell).
For support of my rantings I have provided you with various market statistics and articles from other well respected real estate experts. I am adding to that list of support today.
Analysts at the research firm Capital Economics stated on Friday that the "double-dip" which many have feared is already underway in the real estate market. And waiting things out won't help any. Paul Dales, the U.S. economist at CE, says that prices won't regain their previous highs (from 2006) for another decade.
Carrie Bay from DSNews reports that the Capital Economics House Price Model suggests that by the end of next year, prices will have fallen back by just over 5 percent, taking them to a new cycle low.
She goes on to report that the company’s analysts predict housing demand will remain “unusually weak” for at least the next three years. At the same time, supply is set to stay “unusually high.”
Relative to today’s demand, Capital Economics says there are currently about 1.5 million too many homes up for sale. And a steady flow of foreclosures will mean that excess supply will continue to grow. “The economy will not be able to support a decent housing recovery,” the company’s analysts wrote. “Income growth will stay muted, unemployment will stay high, and the threat of deflation will rise.”
So if you need to sell, HURRY UP AND CALL ME! (850) 251-6643.
For support of my rantings I have provided you with various market statistics and articles from other well respected real estate experts. I am adding to that list of support today.
Analysts at the research firm Capital Economics stated on Friday that the "double-dip" which many have feared is already underway in the real estate market. And waiting things out won't help any. Paul Dales, the U.S. economist at CE, says that prices won't regain their previous highs (from 2006) for another decade.
Carrie Bay from DSNews reports that the Capital Economics House Price Model suggests that by the end of next year, prices will have fallen back by just over 5 percent, taking them to a new cycle low.
She goes on to report that the company’s analysts predict housing demand will remain “unusually weak” for at least the next three years. At the same time, supply is set to stay “unusually high.”
Relative to today’s demand, Capital Economics says there are currently about 1.5 million too many homes up for sale. And a steady flow of foreclosures will mean that excess supply will continue to grow. “The economy will not be able to support a decent housing recovery,” the company’s analysts wrote. “Income growth will stay muted, unemployment will stay high, and the threat of deflation will rise.”
So if you need to sell, HURRY UP AND CALL ME! (850) 251-6643.
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