This is the latest monthly report of a four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers December 2011.

There were six bank owned homes sold in El Dorado Hills in December, down one from the previous month.  A low inventory is the primary reason.

The average days-on-market increased from 29 in November to 79 in December.  One of the homes had been on the market for over 100 days.  Some old inventory was cleared out.  None of the homes that sold had been on the market for two weeks or less, which is very unusual.

The six bank owned homes that sold represent only 8% of ALL homes sold in El Dorado Hills this month.  This is a much smaller segment than normal, despite the increase in inventory.

The available inventory of bank owned homes in El Dorado Hills spiked at a 2.4-month supply in December, the second highest inventory level in 2011…  The available inventory for ALL homes available dropped from a 2.9-month supply the previous month to a 2.2-month supply in December, the lowest inventory level in 2011.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a strong seller’s market for ALL homes in El Dorado Hills. 

The average cost-per-square-foot for Bank Owned homes was $ 150 in December, up considerably from $ 126 in the previous month, and the highest in the past fifteen months. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in December remained $ 153 for the second month in a row.   

The overall sales price for bank owned homes was 94.9% of the final asking price and 87% of the original asking price.  Only one of the buyers paid the full asking price in December.  The banks did not do a very good job of estimating the market value of their “toxic Assets” that sold in December.

Bank owned homebuyers paid 98% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in December.  That is only $ 3 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 7,500, much less than usual. 

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

This is the latest monthly report of a four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers November 2011.

There were seven bank owned homes sold in El Dorado Hills in November, down from 10 the previous month.  A low inventory is the primary reason.

The average days-on-market decreased from 56 in October to 29 in November.  None of the homes had been on the market for over 100 days.  Twenty-nine percent of the homes that sold were on the market for two weeks or less.

The seven bank owned homes that sold represent only 16% of ALL homes sold in El Dorado Hills this month.  This is a much smaller segment than normal, largely due to the low available inventory.

The available inventory of bank owned homes in El Dorado Hills decreased from a 1.7-month supply the previous month to a 1.5-month supply in November.  That inventory level has not been over a 2-month supply since March of this year.  The available inventory for ALL homes available dropped from a 4.2-month supply the previous month to a 2.9-month supply in November.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills. 

The average cost-per-square-foot for Bank Owned homes was $ 126 in November, down one dollar from the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in November increased to $ 153, up from $ 146 the previous month. 

The overall sales price for bank owned homes was 101% of the final asking price and 97.1% of the original asking price.  Yet 86% of the buyers paid the full asking price or more for their bank owned homes in November.  Apparently, these homes were well priced and buyers decided to take advantage of those prices along with excellent mortgage interest rates.

Bank owned homebuyers paid 83% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in November.  That is a $ 23 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 57,500, a considerable sum. 

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

If you have had the patience to read through the previous posts in this thread, many of which go into great detail about loans, you now have an idea of what to expect and the long term impact the decisions you are about to make will have on your future. There is an old saying, “forewarned is forearmed.”

REO Property Update

It may be a good time to discuss some aspects of the current market for our local area.  Bank Owned properties (REOs) are a significant segment of that market.  At least 25 percent of the homes sold in the past year have been REOs.  They are properties that have gone through foreclosure.  The bank now owns them and puts them on the market for resale.  The banks are not  in the real estate business by design and they would like to clear these “toxic assets” off their books.

However, the banks are just like any other seller.  They want to get as much as they can for each property.  Observing the activity, the asset managers seem to be as vulnerable to poor decision making as are individuals who sell their own homes.  REOs often come on the market over priced.  When they sit on the market without receiving offers, the asset managers then reduce the prices and the properties do eventually sell.

Over 25% of the REO properties in pending sale status (properties for which a purchase price has been agreed upon by the buyer and seller and are waiting for the buyer to complete their inspections and wait for lenders to process and fund loans) were on the market for FOURTEEN days or less.  So, well priced homes in good condition sell quickly.

Historical data shows that REO properties consistently sell for a lower price per square foot than do all properties that sell, usually by five to ten percent.  That fact coupled with buyer perception that REOs are the best deal on the market creates an interesting dynamic.  Buyers frequently find themselves in multiple offer situations (an undesirable position for a buyer) when placing offers on REO properties.  Buyers find that if they really want a property the have to submit an offer OVER the asking price.  The banks want to create a bidding atmosphere, increasing the selling price considerably.

The perception that a buyer could pick up an REO property for fifty to sixty percent of the asking price was always a pipe dream.  In today’s market the myth has evaporated completely.  My four year long study of REO sales in El Dorado Hills and Folsom, CA clearly shows that it is difficult to get any bank to lower their price more than 5% of the asking price.  It does happen in rare instances but it is more common for an REO to sell at, or over the asking price.

If one views the data with perspective, a five percent reduction in asking price still represents a significant savings.  The key is not to let emotion take control and pay above market price for any REO property. 

Also remember that REOs are sold AS/IS.  The buyer usually has to pay for their own inspections and repairs.  The only thing the bank usually guarantees is a clear title to the property—an important issue.

Of course, each property is unique.  Each has to be studied individually. Once you find a property that you like, you should ask your Realtor to do extensive research.  When you decide to make an offer you should know about as much about the property as possible.  Understand what the market value of the property is and do not offer more than that market value.

There are a lot of excellent buys out there.  You just have to expend the effort to find them and decide on the one which meets you needs and wants.

To review the latest Bank Owned Home Sales Data for El Dorado Hills, Ca select this link:

                         http://www.ByuYourVilla.com/blog/page/4/

Of course, I would be pleased to help you find that ONE.  Just give me a call. (916) 337-0658

 Stay tuned for part 7.

BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – OCTOBER 2011

This is the latest monthly report of a four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers October 2011.

There were 10 REO homes sold in El Dorado Hills in October, a 33% decline from the previous month.  A low inventory is the primary reason.

The average days-on-market increased from 35 in September to 56 in October.  Two of the homes had been on the market for over 100 days. Only 20% of the homes that sold were on the market for two weeks or less, a smaller than normal segment.

The 10 Bank Owned homes that sold represent 24% of ALL homes sold in El Dorado Hills this month.

The available inventory of bank owned homes in El Dorado Hills increased from a 1.5-month supply the previous month to a 1.9-month supply in October.  That inventory level has not been over a 2-month supply since February of this year.  The available inventory for ALL homes available increased from a 3.7-month supply the previous month to a 4.5-month supply in October.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills. 

The average cost-per-square-foot for Bank Owned homes was $ 125 in October, down from $ 137 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in October dropped to $ 147, down from $ 151 the previous month. 

The overall sales price for REO homes was 98.8% of the final asking price and 93.1% of the original asking price.  Yet 50% of the buyers paid the full asking price or more for their REO homes in October.  Apparently, these homes were well priced and buyers decided to take advantage of those prices along with excellent mortgage interest rates.

REO buyers paid 85% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in October.  That is a $ 22 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of      $ 55,000, a considerable sum. 

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – SEPTEMBER 2011

This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers September 2011.

There were 15 REO homes sold in El Dorado Hills in September, three more than sold the previous month.

The average days on market dropped from 36 in August to 36 in September.  Only one of the homes had been on the market for over 100 days. A full 60% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 15 Bank Owned homes that sold represent only 26% of ALL homes sold in El Dorado Hills this month.

The available inventory of bank owned homes in El Dorado Hills increased from a 1.5-month supply the previous month to a 1.6-month supply in September.  That inventory level has not been over a 2-month supply any month this year, with the exception of February, when it was at a 2.7-month supply.  The available inventory for ALL homes increased from a 3.5-month supply the previous month to a 4.2-month supply in September.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills. 

The average cost-per-square-foot for Bank Owned homes was $ 136 in September, up from $ 133 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in September increased to $ 152, up from $ 148 the previous month. 

The overall sales price for REO homes was 101.1% of the final asking price and 98.6% of the original asking price.  Yet 60% of the buyers paid the full asking price or more for their REO homes in September.  Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.

REO buyers paid 90% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for ALL homes sold in September.  That is a $ 16 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 40,000, a considerable sum.  Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights they have when buying a home in a normal sale.

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – AUGUST 2011

This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers August 2011.

There were 13 REO homes sold in El Dorado Hills in August, three less than sold the previous month.

The average days on market dropped from 67 in July to 36 in August.  None of the homes had been on the market for over 100 days. A full 54% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 13 Bank Owned homes that sold represent only 22% of ALL homes sold in El Dorado Hills this month.

The available inventory of REO homes in El Dorado Hills increased from a .9-month supply the previous month to a 1.5-month supply in August.  That inventory level has not been over a 2-month supply any month this year, with the exception of February, when it was at a 2.7-month supply.  The available inventory for ALL homes increased from a 3.1-month supply the previous month to a 3.5-month supply in August. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.

The average cost-per-square-foot for Bank Owned homes was $ 133 in August, up from $ 122 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in August increased to $ 148, up from $ 146 the previous month. 

The overall sales price for REO homes was 100.1% of the final asking price and 98.4% of the original asking price.  Yet 70% of the buyers paid the full asking price or more for their REO homes in August.  Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.

REO buyers paid 90% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for all homes sold in August.  That is a $ 15 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 37.500, a considerable sum.  Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights they have when buying a home in a normal sale.

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers July 2011.

There were 16 REO homes sold in El Dorado Hills in July, three less than sold the previous month.

The average days on market dropped from 72 in June to 67 in July.  Three of the homes had been on the market for over 100 days, one for 270 days.  However, 25% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 16 Bank Owned homes that sold represent 25% of ALL homes sold in El Dorado Hills this month.

The available inventory of REO homes in El Dorado Hills increased slightly from a .9-month supply the previous month to a 1.0-month supply in July.  The available inventory for ALL homes increased from a 2.9-month supply the previous month to a 3.5-month supply in July. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.

The average cost-per-square-foot for Bank Owned homes was $ 124 in July, down from $ 128 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in July dropped to $ 146, down from $ 149 the previous month. 

The overall sales price for REO homes was 98.3% of the final asking price and 92.5% of the original asking price.  Yet 57% of the buyers paid the full asking price or more for their REO homes in July.  Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.

REO buyers paid 85% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for all homes sold in July.  That is a $ 22 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 55,000, a considerable sum.  Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights they have when buying a home in a normal sale.

If you have any questions about purchasing any home in El Dorado Hills, an El Dorado Hills Bank Owned Home, or a Bank Owned Home anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – JUNE 2011

This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers June 2011.

There were 19 REO homes sold in El Dorado Hills in June, two more than sold the previous month.

The average days on market increased from 66 in May to 72 in June.  Three of the homes had been on the market for over 100 days, one for 367 days.  However, 32% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 19 REO homes that sold represent 24% of ALL homes sold this month.

The available inventory of REO homes in El Dorado Hills decreased from a 1.2-month supply the previous month to a .9-month supply in June.  The available inventory for ALL homes decreased from a 4.0-month supply the previous month to a 3.1-month supply in June, the lowest level in fourteen months. Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.The average cost-per-square-foot for REO homes was $ 128 in June, down from $ 130 the previous month. The average cost-per-square-foot for ALL homes sold in El Dorado Hills in June dropped to $ 149, down from $ 155 the previous month. 

The overall sales price for REO homes was 99.1% of the final asking price and 94.6% of the original asking price.  Yet 53% of the buyers paid the full asking price or more for their REO homes in June.  Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.

REO buyers paid 86% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for all homes sold in June.  That is a $ 21 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 52,500, a considerable sum.  Most buyers would consider that sufficient reason to accept the fact that REO buyers must relinquish some of the rights the have when buying a home in a normal sale.

If you have any questions about purchasing an El Dorado Hills REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

BANK OWNED (REO) HOME SALES DATA FOR EL DORADO HILLS, CA – MAY 2011

This is the latest monthly report of a nearly four-year study of bank owned home sales in El Dorado Hills, CA.  This report covers May 2011.

There were 16 REO homes sold in El Dorado Hills in May, down from 21 the previous month.

The average days on market increased from 57 in April to 66 in May.  Three of the homes had been on the market for over 100 days, one for over 200.  However, 44% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 16 REO homes that sold represent 29% of ALL homes sold this month.

The available inventory of REO homes in El Dorado Hills decreased from a 1.5-month supply the previous month to a 1.3-month supply in May.  The available inventory for ALL homes increased slightly from a 3.7-month supply the previous month to a 4-month supply in May, at the lower end of the normal range.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.

The average cost-per-square-foot for REO homes was $ 133 in May, down from $ 154 the previous month.  (Note: There have been three months in the past year with a lower cost-per-square-foot in El Dorado Hills for REO homes.)  The average cost-per-square-foot for ALL homes sold in El Dorado Hills in May dropped to $ 155, down from $ 167 the previous month. 

The overall sales price for REO homes was 102.1% of the final asking price and 50% of the buyers paid more than the final asking price for their REO homes in May.  Apparently, these homes were well priced and buyers decided to take advantage of low prices and excellent mortgage interest rates.

REO buyers paid 86% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for all homes sold in May.  That is a $ 22 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 55,000, a considerable sum.  Most buyers would consider that sufficient to accept the fact that REO buyers must relinquish some of the rights the have when buying a home in a normal sale.

If you have any questions about purchasing an El Dorado Hills REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows:

There were 21 REO homes sold in El Dorado Hills in April, up from 16 the previous month.

The average days on market increased from 48 in March to 57 in April.  Four of the homes had been on the market for over 100 days, one for almost 300.  However, 48% of the homes that sold were on the market for two weeks or less.  Well-priced homes in good condition are still selling quickly.

The 21 REO homes that sold represent 33% of all homes sold this month.

The available inventory of REO homes in El Dorado Hills decreased from a 2.0-month supply the previous month to a 1.6-month supply in April.  The available inventory for ALL homes declined from a 4.2-month supply the previous month to a 3.9-month supply in April, at the lower end of the normal range.  Pundits advise that a 6-month supply is a neutral market, so we are still looking at a seller’s market for ALL homes in El Dorado Hills.

The average cost-per-square-foot for REO homes was $ 154 in April, up from $ 145 the previous month.  The average cost-per-square-foot for all homes sold in El Dorado Hills in April jumped to $ 167, up from $ 154 the previous month.

The overall sales price for REO homes was 102.6 % of the final asking price for the first time in over three years! In addition, 62% of the buyers paid more than the final asking price for their REO homes in April.  Apparently, these homes were very well priced and buyers decided to take advantage of excellent mortgage interest rates.

REO buyers paid 93% of the cost-per-square-foot for their REO home when compared with the cost-per-square-foot for all homes sold in April.  That is a $ 13 pre-square-foot savings.  When applied to a 2500 square foot home that represents a savings of $ 32,500, a considerable sum.  Most buyers would consider that sufficient to accept the fact that REO buyers must relinquish some of the rights the have when buying a home in a normal sale.

If you have any questions about purchasing an El Dorado Hills REO, or an REO anywhere in the area, feel free to give us a call (916) 337-0658.

The data follows: