Blog

Although home prices have not returned to the average of $196,000 like it was last year, it is getting close. When comparing home prices at different tiers, Madison is staying ahead of the rest of the state in all three tiers.  The following charts are from Zillow.  This first chart points out two facts.  First, the average price for a home in Wisconsin in the upper tier is around $232,000.  However, for Madison the price is approximately $295,000.  This points to the continued growth in the Madison area.  Secondly, while the average price in this tier only increased 0.2% for the state of Wisconsin, in Madison the price improved by 1.6% 

Your Credit Score
When you foreclose on a home your credit will be altered for about 5+ years, to say the least. However, when you do a short sale your credit is also affected, but for a much shorter time period and less damage is done. The truth is there is no concrete answer as to how many points it will affect your score. Every person has his or her own FICO and each individual’s score will vary. What I can tell you is the late payments are typically what have the major affect on a borrower’s credit. Most people are usually able to qualify for a new loan and buy a new home within 2 years after a short sale vs. the 5+ years if you were to go into foreclosure. Since everyone is different it’s best to consult with a credit repair-person or your real estate professional in more detail.

FAQ’s
Why don’t I file Bankruptcy?
Short Sale vs. Bankruptcy – When faced with foreclosure many people tend to turn to bankruptcy as an option of solving their problem. Now there is a large difference many of the “professionals” fail to tell you. Filing for bankruptcy will consolidate your debt and can wipe out your liabilities, but it will not save you from having a FORECLOSURE put onto your credit report. Instead, now you will have both a bankruptcy and a foreclosure on your credit. If you plan on eventually turning back your property you WILL STILL HAVE A FORECLOSURE ON YOUR CREDIT REPORT. Trying to conduct a short sale while in bankruptcy can hold up the process, but it is not impossible. It will just take some more paperwork. My best advice is to consult with a great bankruptcy attorney prior to making any decision should you have additional debt you are unable to control besides your property. One key point to keep in mind is if your home is the only debt that is creating an uncontrollable situation for you then a short sale option is most likely your best bet vs. a bankruptcy. If you have other uncontrollable debt then a bankruptcy might also be needed in addition to a short sale. You should consult with a bankruptcy attorney should this be the case.

What do I do after a short sale?
After your short sale, the stress of your housing payment is extinguished and it’s time to get back on track to restoring your credit. Many people will rent for a while until their credit is fixed and then it’s time to get back into another house. With the right team of people working for you, you will be in a new house before you know it.

Mona Salem 310.925.4782 | Michelle Rosca 562.552.9600 | Long Beach Short Sales

Having problems with short selling property or a reverse mortgage in a probate?  Please contact us.

May 2012 Could Signal a Turn Around for Housing Market

There is some hope for the real estate market. According to a report published by the Commerce Department the number of homes purchased in May of 2012 was the highest number in over two years. The number of purchases increased from April to May by 7.6%. That number is the best increase since April of 2010 when the tax credit for purchasing a home was still in effect.

Areas of Highest Growth

The places that saw the largest increases were the South and Northeast. The number of homes purchased in the South grew by 12.7% while the growth in the Northeast was 36.7%

Although the total number of sales across the country seems to be off pace from the 700,000 transactions favored by economists, the market is showing other signs of improvement.

Strong Signals from the Market

First and foremost, builders have begun to increase production. More construction is always a positive sign, no matter how small the increase. Second, interest rates for mortgages are still at historically low levels making it easy to afford a home. Third, and this is important too, is the stabilization of home values. Most regions around the country have noticed home values finally holding steady. All of these factors have lead to people buying up existing homes, paving the way to build more properties.

More than Just Statistics

The main reason why economists and financial analysts pay so much attention to new construction comes from their overall economic impact. Building a new home normally produces about three new year-long jobs. It also leads to an increase in taxable revenue by an average of $90,000. Although new homes are only 20% of the entire housing market, the numbers above show how constructions helps the economy thrive.

Supply is Down

At the end of May it was reported that a total of 145,000 new homes were on the market throughout the entire country. Based on current sales numbers the market should go through the existing inventory of new homes in about 4.5 months. Economic experts feel that a 6 month supply of new homes keeps the economy healthy. With a lower than average supply it is possible that home prices could go up simply because demand will be higher.

Prices Already Higher

Speaking in general averages, the price of a home bought in May of 2012 was down ever so slightly from the average price in April. However, when looking at sales from one year ago shows that average prices have gone up by 5.6%.

The Winchester, VA real estate market is predominately made up of three types of real estate sales.  There are fair market (straight seller sales), short sales and foreclosures (also known as REOs or bank owned properties).

The Winchester, VA real estate market report for 1/24/2012 - 2/24/2012 consisted of 62 sales.  Of that number, 31 were fair market, 12 were short sales and 19 were foreclosures.  Even though the current active listings show that only 20% of the listings are made up of foreclosures and short sales, the most recent 30 day sales report tells a different story.  Fifty percent (50%) of sales were made up of foreclosures and short sales.  

The price ranges for each category varies substantially.  Fair market sales range from $77,150 - $470,000.  Foreclosure sales range from $42,000 - $285,000, and Short Sales range from $76500 - $370,000.

The "list to sold price" also swung sharply from one group to the other.  The market data shows that a buyer is better off to buy a short sale than either of the other two types of sales. Short sales on average sold at 84.36% of list.

Fair market sales sold at 95% of list, and foreclosures sold at 91.42% of list.  The advantage of buying a foreclosure during this period is the days on the market.  From list to close, foreclosures averaged 45 days.  Short sales, which are notorious for taking forever to get to closing, actually only averaged 93 days on market to close.  Fair market sales averaged 139 days on the market.  

A buyer was likely to pay more for a fair market property during this period, but in most cases, the fair market property offered less potential problems getting to closing.  That's not always true, but it often is the case.  Short sales and foreclosure properties have potential issues getting to closing due to the circumstances which brought them to market. 

All three types of properties offer Winchester VA real estate buyers great options.  When you're ready to start your real estate search, give Cornerstone Business Group, Inc., a call and we'll help you find the right house at the right price.  

 Winchester, VA real estate market report for 1/24/2012 - 2/24/2012 

Oakland, Wayne and Macomb Counties 1st Quarter 2012 Real Estate Market Report

by: Mike Sher (248) 496-1572, Max Broock Realtors

The first quarter County Market Reports are further proof of what we are seeing every day: Sales are picking up and inventory is getting scarce. Seven of the eight markets tracked showed sales unit gains over last year. Declining home inventories are moving all areas closer to a Seller’s Market, with many of the lower priced areas already crossing the Seller’s Market barrier (under three months of inventory). The vast majority of areas are sitting in a neutral market. When we examine those neutral markets, we see about one-third of the market in a solid Seller’s Market with multiple bids and two-thirds still sitting at a Buyer’s Market, typically because of price or condition. Even in the upper-end markets, where we still see inventories in excess of 12 months, the one-third/two-thirds pattern still follows and is even more pronounced since overpricing tends to be more prominent in the over $400,000 price ranges.

Wayne County: MSI improved 14%, sales 4% and inventories fell 11%. Excluding Detroit, Wayne MSI for under $75,000 was actually under three months. For the first time in a while, the City of Detroit did not fare as well as the rest of the county in terms of sales activity.

Oakland County: MSI improved 21%, sales 5% and inventories fell 16%. Under $100,000 moved to a Seller’s market with the balance of the county in neutral territory.

Macomb County: MSI improved 50%, sales 16% and inventories fell 40%. Macomb made the most significant improvement over last year and is the first county to move into a Seller’s Market overall.

We’ll be looking forward to second quarter market reports where the upward trends will possibly grow even stronger. All signs point to a Seller’s Market in the near future.  

Below you will find the links to the 1st Quarter, 2012 reports .

Macomb County

Oakland County

Oakland County 600+

Wayne County