Over the last two years, Lou Crandall has been among the most accurate forecasters of the U.S. economy. Crandall believes, because the economy is recovering from such low levels, the progress that has been made has yet to generate a sense that things are moving in the right direction. Still, he feels the economic recovery will continue, though at a slow pace. According to an outlook released by The Federal Reserve Bank of Chicago, the housing market will also improve in 2011, backed by a surge in residential investment. The Fed expects housing starts to reach a total of 690,000 in 2011. In 2009, starts totaled just 550,000. And analysts at Capital Economics note that, despite issues of buyer confidence and foreclosure moratoriums, affordability and low rates offer prospective homebuyers the best conditions in the last 30 years.
According to RealtyTrac’s Q3 2010 U.S. Foreclosure Sales Report, foreclosure sales fell 25 percent from the previous quarter and the average sales price of properties in some stage of foreclosure was $169,523, down 2.46 percent from the second quarter. James J. Saccacio, chief executive officer of RealtyTrac, said the expiration of the homebuyer tax credit created a substantial dip in overall demand in the third quarter. The average sales price of non-foreclosure properties, however, rose 6.42 percent from the second quarter and 4.36 percent from the third quarter of 2009. More here and here.
The National Association of Realtors’ Pending Home Sales Index jumped 10.4 percent in October, continuing an upward trend since bottoming in June. The index, based on signed contracts during the month, is 20.5 percent below last year’s level, which was elevated due to the homebuyer tax credit. Lawrence Yun, NAR’s chief economist, said it was encouraging to see double-digit gains and feels the market, though uneven at times, is clearly in a recovery phase. More here and here.
This is a continuation of our three year long monthly report on Bank Owned (REO) home sales data for El Dorado Hills, CA. This report covers Bank Owned homes sold in November 2010.
There were 14 Bank Owned homes sold in November, one more than sold in October.
REO inventory in El Dorado Hills that spiked in September at a 6.4 month supply dropped to a 2 month supply in October and a 1.9 month supply in November. These October and November numbers bring the statistic back into the normal range. The inventory for all available homes dropped from a 4.6 month supply last month to a 3.8 month supply in November. A 3.8 month supply is the lowest level of inventory of available homes reported for any month in 2010. A six month supply is considered a neutral market.
The average days-on-market shot up to 81 in November from 38 days in October. This is the longest average days-on-market number reported in over fourteen months. Five of the REO homes that sold had been on the market for over 100 days and NONE of the REO homes sold were on the market two weeks or less. This is the first time since we started reporting these figures that no REO home sold in the less than a 14 day period.
The 14 REO homes that sold represent only 24% of all homes sold in El Dorado Hills in November, the same as the previous month.
The average cost per square foot of REO homes in November was $ 128, down from $ 134 the previous month, and the lowest reported in over a year. The cost per square foot of all El Dorado Hills Homes sold in November dropped eight dollars, to $ 151. This statistic is also the lowest reported in over a year.
The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO homes represented a 15% savings for REO buyers in November, the same as reported for October.
The overall sales price for REO homes was 89% of the final asking price, and 80.2% of the original asking price. These numbers are also the lowest reported since we started these reports. It looks like some older inventory has been cleaned out in November. One could guess that the condition of the homes sold was not up to normal standards. Only 22% of the buyers paid more than the asking price for REO homes in November.
The actual, measurable savings is the difference in cost per square foot between REO homes sold and the cost per square foot of all home sold: in July, $ 23 per square foot. That is a $ 57,500 savings on a 2500 square foot home, A much larger difference than normal.
If you have any questions about the data provided on Bank Owned Homes sold in El Dorado Hills, feel free to give us a call at (916) 337-0658. If you need assistance in finding the best bank owned deal we are the El Dorado Hills Realtor you should contact.
The data follows:
Folsom, CA REO (BANK OWNED) SALES DATA FOR November 2010
This is a continuation of a three year study of Bank Owned home sales in Folsom, CA. This report covers REO homes sold in November 2010.
There were 15 REO homes sold in November, down from 19 in October. Lenders continue to release these homes for sale at a very slow pace in order to avoid causing major problems in the housing market. A glut of low priced homes would be catastrophic to an already shaky market.
The average days-on-market statistic for the month was 46, down sharply from 78 the previous month. Only one of the homes sold had been on the market over 100 days. Five, or one third of the REO homes sold, had been on the market for two weeks or less.
The 15 REO homes sold represent 28% of all homes sold in Folsom this month.
The overall home inventory in Folsom decreased to a 4.4 month supply, down from the 5.8 month supply reported for the previous two months. This is the lowest available supply since June. The inventory for REO homes in November was 2.4 months, up from a 1.7 month supply in October and well within the normal range. A six month supply is considered a neutral market.
The average cost per square foot of REO homes sold in October decreased one dollar to $ 153 while the cost per square foot for ALL homes sold increased to $ 166. These numbers have been moving in a narrow range for well over a year with no marked upward or downward trend.
The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 7% savings for REO buyers. That is a slight increase from 5% reported for the previous month.
The overall sales price for REO homes was 94.5% of the final asking price, much lower than normal. And 33.3% of the buyers paid more than the asking price for their bank owned home in November. There was a $ 13 dollar per square foot savings in the purchase of REO homes, compared to the cost of all homes sold. When we apply that price difference to a 2500 square foot home it represents a $ 32,500 savings, something worth considering when selecting a home: not a small sum.
If you have any questions about purchasing a Folsom REO or an REO anywhere in the area, or are just looking for the best buys available feel free to call us at (916) 337-0658.
The data follows: