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Central Valley Real Estate Market Statistics, October 2011

Mon, 14 Nov 2011 14:23:49 -0800

October 2011 Stockton Area Market Update

Central Valley Real Estate News

Stockton Real Estate - Market Trends and Information

FHA 203(k) Plan Allows Homebuyers To Purchase Fixers!

Due to a delay processing foreclosures, there is limited housing inventory to choose from in today's market. The FHA 203(k) Plan provides an opportunity for buyers to capitalize on 'fixer' opportunities in the market. Prudent buyers have used the program to turn fixers into their dream home. Buying a home in the right area they may add rooms, repair items, do fresh paint, add carpet - or invest in a home that needs some work and resell it.

The 203(k) borrower can get just one mortgage, at a 30 year fixed rate, and combine the acquisition price and rehab costs of the property. To provide funds for any repairs, the mortgage is based on the anticipated value of the property after repairs are completed, taking into consideration the repairs and the repair costs.

This is a great program for buyers wanting to have work done on a home (or to take advantage of a great buy) with no out of pocket costs for repairs!

This program makes it feasible for first time homebuyers, current renters, and others to buy 'fixers'. If you are interested, go to our website by just clicking here. Search for a home for sale in the Central Valley. Then call us at 209.471.6516 for more information on any homes that may interest you.

Read A Description of the Short Sale Process - click here.

Call for free expert advice regarding alternatives to foreclosure, about short sales, which often seems to be the best answer in today's real estate quagmire. If you or someone you know who needs help may reach us at 209-471-0285.

Click here to search the MLS like a realtor or the following links to view the homes available in the following neighborhoods!

Brookside	Brookside Golf	Morada
Lincoln Village	Morada West	Spanos West
Lincoln Village West	Quail Lakes	Spanos East
Weston Ranch	UOP	Lodi
Lathrop	Manteca	Tracy
Mountain House	Elk Grove	All of Stockton

(Links are available at the bottom of this email to detailed market reports for Brookside, Lincoln Village, Lincoln Village West, Morada, Morada West, Quail Lakes, Spanos East and Spanos West.)

Stockton Market Trend:

The foreclosure delay we have experienced resulted in a temporary reduction in housing inventory for sale, and has temporarily held up home sale prices. Shadow inventories that are estimated at in excess of one and a half million units nationwide indicate a substantial increase in inventory for sale. Traditional laws of supply and demand dictate this eventual increase in inventory will place downward pressure on prices.

Some institutions, previously perceived as 'too large to fail' have faced heavy fines and are now being directly confronted by the Government. Bank of America had to pay $1.3 billion in penalties to Fannie Mae and Freddie Mac in the first nine months of 2011 because of foreclosure delays, as disclosed in the bank's SEC filing.

But when? We should see a substantial increase in inventories within the next six months, and a nominal (temporary) decrease in housing prices within the next 12 months.

Stockton Stats for October 2011

o There were 2,071 homes for sale in Stockton at the end of the month. This total includes 587 pending units, leaving a net 1,484 units (3.8 months' inventory) available for sale.

o 4,652 homes were sold in Stockton during the 12 month period, an average of 388 homes per month. This compares to 4,880 homes, or a 407 unit average per month one year ago, a 5% drop.

o SALES ARE SLOWING... INVENTORIES ARE COMING...

o There is a 5 month inventory on the market (see the "Months Sales In Inventory" chart above). Exclusive of pending sales (more transactions fall out of escrow in this market than in a normal market) there is a 3.8 month adjusted inventory.

o There should be additional homes placed on the market over the next few months unless lenders continue to "bank" foreclosed-upon homes, or some other solution is found for 'warehoused' foreclosures and other "Shadow Inventory". See comments above.

o 390 units were sold this month this year, 396 units this month last year.

o The average sales price per square foot is $78 - less than the cost to build a home.

o The average home sales price was $131,000.

o Continued increases in mortgage delinquencies will result in new measures, increased inventories, and should continue a downward pressure on Stockton home sale prices.

o We can probably expect a price adjustment next year of 10% nationwide, and we expect about half that in Stockton, since we have led the national curve. That would indicate a further average price reduction of $6,500 (5% of $131,000) here.

Click on any of the following links to view neighborhood specific market reports.

Brookside	Lincoln Village West	Lincoln Village & Parkwoods
Morada East	Morada West	Quail Lakes
Spanos East

www.Homes-In-Stockton.com Posterous

Central Valley Real Estate Market Statistics, October 2011

Central Valley Real Estate News

FHA 203(k) Plan Allows Homebuyers To Purchase Fixers!

Read A Description of the Short Sale Process - click here.

Central Valley Short Sale Specialist

Mortgage Rates at Record Lows! 30 Year Fixed 4.01% & 15 Year Fixed 3.28%

The Number of Central Valley REOs Expected to Increase as Robo Signing Debacle is Resolved

Central Valley Short Sale Volume Increasing!

Conforming loan limits expiring September 30, 2011

Central Valley California Real Estate Trends

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 3546 Quail Lakes Dr, Stockton, CA, 95207

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 3057, Sea Gull Ln., Stockton, CA, 95219

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 2747, Tecumseh Ln., Stockton, CA, 95206

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 9023 Warm Springs Cir, Stockton, CA, 95210

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 8843 Glacier Point Dr, Stockton, CA, 95212

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 8005 Kaeli Ct, Stockton, CA, 95212

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 7050 Tristan Cir; Stockton, CA, 95210

Central Valley Real Estate Inventory Expected to Increase!

Common Mistakes Central Valley Real Estate Investors Should be Aware of!

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 2631 Grizzly Hollow Way,, Stockton, CA, 95207

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 227 E Pearl Ave, Stockton, CA, 95207

Lathrop, CA, Lathrop Home for Sale & Lathrop Real Estate, 16990 Pecan Hollow Way, Lathrop, CA, 95330

Stockton, CA, Stockton Home for Sale & Stockton Real Estate, 111 E Alder St, , Stockton, CA, 95204