Up to Date Real Estate News from the Experts in Urban Living, November, 2011

Up to Date Real Estate News from the Experts in Urban Living November, 2011

Distressed home sales gumming up market

Source: OC Register, 10/25/2011

Market insiders had envisioned that the housing market would be well on its way to recovery by now. Instead, it remains mired in the doldrums, with sales and prices hovering only slightly higher than when they hit bottom more than two years ago. Here’s one possible reason why:
On average, four out of every 10 Orange County homes sold each month is either a bank-owned property or a short sale, according to figures provided by Adrese Roundtree, chief operating officer for the California Regional Multiple Listing Service.

These distressed properties – sold by the most motivated buyers in the business ­ act as a drag on the market, depressing prices. Bank-owned homes are foreclosures that were repossessed by lenders. Short sales are homes sold on the open market for less than is owed on the mortgage.

The MLS numbers show:

(Chart doesn’t include some distressed sales categorized as “other”)

Period Short Sales Bank Owned Total
2009 Average 451 615 1,119
2010 Average 466 578 1,097
2011 Average 481 552 1,090

  • The average number of distressed properties sold through the broker-run home listing system was 1,119 a month in 2009, representing 49.9% (half!) of all MLS deals. (See chart at right.)
  • In 2010, the average fell to 1,097 a month, accounting for 43.5% of all MLS transactions.
  • This year so far, the average held at 1,090 a month, still at 43.5% of all deals.

Other trends show that while the number of bank-owned sales has been falling over the past three years, short sales have risen. The MLS figures show:

  • Sales of bank-owned homes dropped from an average of 615 units a month in 2009 (or 27.9%) to 552 a month this year so far (24.1%).
  • Short sales increased from an average of 451 a month in 2009 (or 19.7%) to 481 this year so far (21.3%).

SoCal MLS Distressed 10-24-11, The Sousse Group, Luxury Irvine Condos

JUST LISTED – The Plaza, 8059 Scholarship, $868,888

8059 Scholarship, The Sousse Group, Luxury Irvine Condos

8059 Scholarship, 2 bedroom, 2.5 bath, 1,790 sq ft, $848,000

Views of twinkling city lights, mountains, Fashion Island, golf course and nature habitat preserve that bring the outside in from this ‘big sky’ wrap-a-round terrace. This 2 bedroom plus foyer/gallery, 2.5 bath corner unit on the 5th floor offers gorgeous travertine floors that guide you through the luxury of light cherry wood kitchen cabinetry, granite counter tops, floor to ceiling windows with upgraded window shades, custom paint, custom light fixtures, crown molding, three Plasma TV’s and fireplace with custom built-in entertainment in living room. Experience extraordinary amenities and recreational oasis on nearly one acre of land…The Plaza-Irvine.

Financial Update by Maurice

Rates are just about even with last week, but, we had a couple days of bumped up rates during the week with a settling back today. Interest rates are still great as you can see. Someone asked me this week about the scenario for the rates that are attached. Please note that we always assume the greatest possible scenario when quoting weekly rates. The scenario always assumes a minimum of 25% down with a FICO of 740 or better achieving the best rate scenario possible. That way you know what the best possible rate offered is to your most qualified client.

Just a reminder, our purchase underwriting time is still at only 5 business days. I heard on the grapevine that some of the big box banks are still at close to 15-20 days in underwriting alone for purchase transactions….no bueno.

I like the quote by Allen Neuharth who said “I quit being afraid when my first venture failed and the sky didn’t fall in.”

Based in Orange County, California, The Soussé Group is ranked number one in total sales in Irvine, California, 92612. Topped $96 million is sales in 2010, 2009, 2008, 2007 along with 260 completed transactions and have successfully risen to the top 50 among the 25,000 agents in Orange County.
Kerry and Maurice Soussé
Realtor / Broker
The Soussé Group
HÔM Real Estate Group
1200 Newport Center Drive, Suite 100
Newport Beach, CA 92660
Direct Line: (714) 412-9014
Direct Line: (714) 412-8512
Direct Fax : (949) 640-7606
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