4 lovely properties sold in Monterey this week. 3 of the 4 properties sold for under $400k. This is an indicator that people are looking for affordable properties in Monterey, possibly for investment purposes.
About 9 single-family residential homes are selling per month in Monterey. Homes are selling in just under 130 days for about 6% less than their asking price. 9 months of available inventory tells us that we’re still in a buyer’s market.
Condos and townhomes seemed to be more appropriately priced, selling for only 3% less than their asking price.
We are three-and-a-half months into the year (2011). Everyone is sitting on the edge of their seat, anticipating a perspective; some sort of idea as to where we are in this economic roller coaster. The housing market plays a huge roll in our position. I try to share information in this blog that helps you get a feel for where you can position yourself on your seat…on the edge or comfortably against the back-rest.
Monterey Peninsula
Today I’m reporting the status of single-family residential real estate sales year-to-date on the Monterey Peninsula (Carmel, Monterey, Pacific Grove, Pebble Beach). Comparing the same time period in 2010 to 2011 is a nice way see where we were and where we’re going. As you can see below, inventory is up 26%, number of sales is down 29%, Foreclosures are up 26%, Short Sales are up 47%, average and median sales prices have remained steady, and average days on market (DOM) has increased by 13%.
Below is a graph that shows us where our real estate market is now and where it has been over the past 10 years (2000 through 2010). Each graph is for a particular city, including figures for single-family residential homes in Carmel, Monterey, Pacific Grove, Pebble Beach, and Seaside. We follow the number of home sales, the average home sale price, median home sale price, and the average days on market (DOM).
The variables indicated, help us see where we are at right now, what we can expect to purchase a home for, and how we can reasonably price our home for sale. For example, if my home was worth $1,000,000 in 2005 and the median sales price has decreased by 25% since 2005, then with all else remaining the same, I can expect to receive about $750,000 for my home today. On the same, and more encouraging, front, if a home that I want to buy was purchased for $1,000,000 in 2005 and the median sales price of homes in the area has decreased by 25%, then I know that $750,000 is a reasonable asking price from the seller.
Carmel:
Carmel, California Real Estate Market Trends; 2000 - 2010
Monterey:
Monterey, California Real Estate Market Trends; 2000 - 2010
Pacific Grove:
Pacific Grove, California Real Estate Market Trends; 2000 - 2010
Pebble Beach:
Peabble Beach, California Real Estate Market Trends; 2000 - 2010
Seaside:
Seaside, California Real Estate Market Trends; 2000 - 2010
The line graphs above show us where the real estate market on the Monterey Peninsula is today and where it has been over the past 10 years. I have the same statistics, including more detailed figures, in a spreadsheet format that I can EMAIL TO YOU UPON YOUR REQUEST.
Please enjoy this information and don’t hesitate to contact me to discuss it further. I look forward to your inquiries, our discussions, and helping you and your friends with your real estate needs.
Calif. median home price: September 2010: $309,900 (Source: C.A.R.)
Calif. highest median home price by C.A.R. region September 2010: Santa Barbara So. Coast $879,750 (Source: C.A.R.)
Calif. lowest median home price by C.A.R. region September 2010: High Desert $124,960 (Source: C.A.R.) Calif. First-time Buyer Affordability Index – Third quarter 2010: 64 percent (Source: C.A.R.) Mortgage rates: Week ending 11/04/2010 30-yr. fixed: 4.17 Fees/points: 0.8% 15-yr. fixed: 3.57% Fees/points: 0.8% 1-yr. adjustable: 3.26% Fees/points: 0.7% (Source: Freddie Mac)
HUD is launching a new pilot program that will offer credit-worthy borrowers low-cost loans to make energy-saving improvements to their homes. Backed by the Federal Housing Administration (FHA), these new FHA PowerSaver loans will offer homeowners up to $25,000 to make energy-efficient improvements of their choice, including the installation of insulation, duct sealing, doors and windows, HVAC systems, water heaters, solar panels, and geothermal systems.
PowerSaver loans will be backed by the FHA – but with significant “skin in the game” from private lenders. FHA mortgage insurance will cover up to 90 percent of the loan amount in the event of default. Lenders will retain the remaining risk on each loan, incentivizing responsible underwriting and lending standards. FHA will provide streamlined insurance claims payment procedures on PowerSaver loans. In addition, lenders may be eligible for incentive grant payments from FHA to enhance benefits to borrowers, such as lowering interest rates.
Housing affordability among first-time home buyers improved slightly in the third quarter of 2010, both on a quarter-to-quarter and year-to-year basis, according to C.A.R.’s First-time Buyer Housing Affordability Index (FTB-HAI). The percentage of first-time buyers who could afford to purchase an entry-level home in California stood at 66 percent in the third quarter of 2010. In the second quarter of 2010, the Index was a revised 65 percent and was 64 percent in the third quarter of 2009.
“With interest rates at historic lows, which have led to lower monthly mortgage payments, affordability continues to remain at near record-high levels in California,” said C.A.R. President Beth L. Peerce. “Another high point for first-time buyers is the current ratio between the California median price and the California median household income. During the third quarter, the ratio stood at 5 to 1 and was at a level we haven’t seen in the last 10 years. This is opening many doors for potential first-time buyers.”
First-time buyers, who tend to purchase homes equal to 85 percent of the prevailing median price, needed to earn a minimum annual income of $42,300 to qualify for an entry-level home of $266,620 during the third quarter of 2010. The monthly payment, including taxes and insurance, was $1,410, assuming a 10 percent down payment and an adjustable effective interest rate of 3.66.
Foreclosure activity increased 65 percent nationwide year-over-year, according to RealtyTrac’s Q3 2010 Metropolitan Foreclosure Market Report. The report showed that cities in California, Florida, Nevada, and Arizona once again accounted for all top 10 foreclosure rates in the third quarter among metropolitan areas with a population of 200,000 or more, while cities outside those four states accounted for many of the biggest increases in metro foreclosure activity. California, Florida, Nevada, and Arizona cities also accounted for 19 of the top 20 metro foreclosure rates.
With one in every 36 housing units receiving a foreclosure filing during the third quarter, Modesto, Calif., posted the nation’s third highest metro foreclosure rate, despite a nearly 18 percent decrease in foreclosure activity from the third quarter of 2009. Other California metro areas in the top 10 were Stockton at No. 4; Merced at No. 5; Riverside-San Bernardino-Ontario at No. 6; Bakersfield at No. 9; and Vallejo-Fairfield at No. 10, according to the report.
A total of 48,849 properties in Los Angeles-Long Beach-Santa Ana area received a foreclosure filing in the third quarter, the second highest metro total, despite a nearly 3 percent decrease from the previous quarter and a nearly 30 percent decrease from the third quarter of 2009.
El Dorado Realty Company 