Real Estate Information Archive

As real estate inventories continue to shrink, homes for sale throughout California are seeing fewer days on market! The latest data from the California Association of Realtors shows the pace of home sales at their highest level since 2009. Statewide, the days on market averaged a brisk 46.6 in May 2012, compared to 52.0 a year ago.

Los Angeles metro sales are up 18.2% from a year ago, with median home prices holding steady at about $289,280. Median home prices in the Los Angeles area are up by 4.6%. Prices in the outskirts of Los Angeles County have been slower to increase. 

An eye-opener for home buyers is the competition that exists in the most affordable price ranges. Homes under $500,000 are in the highest demand, though all price levels have seen increased activity from a year ago. Here's the current relationship between home prices and supply:

• Homes under $300,000 = 3.2 months supply
• Homes under $500,000 = 3.4 months supply
• Homes under $750,000 = 3.4 months supply
• Homes under $1,000,000 = 4.5 months supply

A year ago, supply averaged 5.1 months to 7.2 months for these price ranges, with the top pricing tiers having the greatest supply. What's changing today is that trade-up buyers are re-emerging, and many of them are joining first-time buyers in the quest for homes in mid-range pricing. 

The decline of distressed property inventory is also contributing to firmer home prices. Combined sales of bank-owned homes and short sales accounted for 40.7% of the California real estate market in May 2012, down from 49% a year ago. While this may be disappointing for real estate investors, it's good news for homeowners!

Are you getting ready to buy a home? Let us help you! At the Domis Team, we can help with your Whittier home search and your home ownership goals! Whether you're ready to buy, or just getting started, contact us today for the local expertise you can count on! 

The Domis Team
Prudential California Realty
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Have you been waiting for the other shoe to drop on the housing market? If so, you might be disappointed! The presence of the "shadow inventory" of distressed homes has been a concern in the industry for years, sidelining buyers and worrying sellers. But according to a recent report by CoreLogic, the shadow inventory is shrinking at a steady pace.

The shadow inventory consists of homes that are in some stage of foreclosure, but not yet on the market. As distressed properties put downward pressure on neighboring home values, the shadow inventory merits attention. Fortunately, the numbers have been in decline for the past couple of years:

• January 2010: 2.1 million homes
• April 2011: 1.8 million homes
• April 2012: 1.5 million homes 

The shadow inventory has seen a reduction of 28% since the peak. Improved efficiencies in the handling of foreclosures and short sales, along with a reduction of new mortgage defaults, should continue to drain the shadow inventory.

In California, mortgage defaults have dropped by 28%. Meanwhile, the volume of homes on the market in Los Angeles County is down by 35%. As California was among the first states to experience the housing downturn, it is now leading the pack in housing recovery. That doesn't mean home prices will double overnight, but the demand for homes in our area is clearly outpacing supply. The majority of single-family homes in Whittier are going under contract within 30 days of the listing. 

Since foreclosures in California are typically expedited within 110 to 140 days from the Notice of Default, the distressed home inventory for our area gets absorbed rather quickly. In fact, the majority of the national shadow inventory rests in states having a judicial foreclosure process, where court backlogs have contributed to extended timelines.

The Whittier real estate market changes rapidly! If you are thinking of buying or selling a home, get the local expertise you can trust! Here at the Domis Team, we have the latest Whittier home sales data and market trends for you, plus the experience you can count on! Contact us today - we'll be happy to help you!

It's starting to look that way! Buyers are finding the unexpected when browsing homes for sale in Whittier, CA; namely, banners that say "pending" and "sold"!

The Los Angeles Times reports that shrinking home inventories are frustrating buyers throughout the region, who are finding themselves in an increasingly competitive market. Compared to a year ago, home inventories shrank by 35% in Los Angeles County, 39% in Orange County, and 43% in San Diego County.

The pace of home buying has also accelerated, with homes in the region spending an average of only 33 days on market. A year ago, homes took five to six weeks longer to sell.

What's behind the change? Primarily, the "shadow inventory" of distressed properties doesn't appear to be materializing into homes for sale. Meanwhile, more homeowners with negative equity are staying put. Banks have also improved their handling of short sales.

There are other elements affecting the Whittier real estate market, including:

• Rising rental costs
• Strong interest from international buyers
• More investors/cash buyers
• Low mortgage interest rates

Another positive trend is the reduction of new defaults, as fewer homeowners fall behind in their mortgage payments. Improvements in the job market played an essential role in stabilizing home ownership.

What does it all mean for Whittier home buyers? It means in a fast-changing market like ours, you'll have the best chance of success by working with your Whittier real estate professionals! Whether you're just starting to look, or you're ready to buy, we can help you! Take advantage of our free, automated alerts for new listings and enjoy the benefits of our local expertise! For friendly, professional assistance, contact us today!

The Wall Street Journal recently reported that approximately one-third of home sales are affected by low appraisals. Low appraisals cause delays at the least, and cancelled sales at the worst. Often, the culprit of a low appraisal is the presence of distressed properties that are factored in to neighboring home values without regard to property condition. 

As a Whittier home seller, what can you do? First, recognize that a comparative market analysis and a full home appraisal may have differences, based upon the objectives involved in each analysis. 

A comparative market analysis looks at the most recent sales prices of homes most similar to yours, in your neighborhood or as close to it as possible. As your Whittier real estate professionals, we provide a thorough market analysis in order to arrive at a professional opinion of a feasible sales price. While we provide information and counseling, the actual sales price is chosen by you.

In contrast, an appraisal is performed by an independent third party in order to satisfy the mortgage lender of the home buyer. Lenders are concerned with the collateral value of the home, and therefore the appraisal must justify the amount to be financed. Here are some questions posed in valuation principals:

Conforming use: Is the home compatible with the structures around it, and does it meet current zoning requirements?

Change: Is the area in transition, and if so, how may it affect this property?

Substitution: What is the cost of other homes of this type, square footage, and amenities?

Supply and Demand: Is this type of home highly desirable in today's market?

Highest and Best Use: Is this the right purpose for this property, or would it have higher value if used in another manner?

This is a basic introduction only, and you can learn more about appraisals by visiting the California Department of Real Estate.

If you are thinking of selling your Whittier home, we would be happy to help you! Our local market expertise will help you find the right price range for your home. By pricing your home correctly from the start, it will attract serious buyers and spend less time on the market. If you have questions about your home value, or just want to know how the Whittier real estate market is doing, give us a call! Our friendly, professional team is ready to assist you. 

The Domis Team
Prudential California Realty
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