04.03.12 Tuesday Talk

by qinfovio 10. April 2012 11:43
Good afternoon,
 
I want to start with our home inventory where it is very low in some area, 20 in Seaside, 34 in Monterey and in the mid 25 all around the Salinas area.
 
A low inventory should bring home price up, right? But not in our case. A typically example is with a new listing in Seaside at 1505 Military Ave.
A very decent location, nice house condition, lot size over 10,000 square feet, a 2 bedrooms with 1 bathroom listed at only $186,000.00.
It is a short sale subject to lender approval and this house will sell and should appraise more around $250,000/$265,000. It is below foreclosure's sale price. Seller's agent just try to bring a bunch of offers, with highest and best, but mean time, will drop home value to $30,000.
 
If you have a house price like that one in your neighborhood, you will be not a happy homeowner.
 
The other issues that we are having is with the appraisers that will take in consideration the listed price and affect the selling price for all other homes in the area.
 
I attached home sale for 2005/2008/2012 and beside the inventory I want to point out the median sale price in different areas.
As the low end home price has adjusted by a ratio of 50 percent, it will then move to the higher end.
 
By bringing you the total sales volume between these three years for each of this month, it will also explain our deficit, the lost of income
that occurred at the level of a County. Income coming from Documentary Transfer Tax, Property Tax(average 1.1%).
We have total dollar volume of $277,271,088 in April 2005 compare to $103,714,687.
 
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Going back to our low inventory, our government is achieving their plan. I attended couple webinar from BOA and also Wells and all other lenders will follow. All these lenders have put a bunch of personnel to assist all homeowners, wanting to keep their home. It makes our government looks good, reduce unemployment, save homeowner home, the American Dream!
 
But remember on my last week Tuesday Talk, I mentioned that this year was the last year for Mortgage Debt Relief. The lost that your lender is taking is TAX FREE 
income until the end of 2012. Any short sale, loan modification, foreclosure after 2012 will report as an income to you. If lender take a lost of $200,000 you might end up 
around $60,000 to pay.
 
This year is going to be a very important decision time maker for a lot of homeowners.  If your home has lost 30% of its value, keeping your home would be like a car lease,
where you cannot get out of it unless you pay a large sum at the end.
 
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I have also some good news, despite this real estate crisis bubble that we went through. We are about at two third of it and we will be the first country in the world out of this bubble. Home price was inflated by speculation and banks deregulation. But now as our home price has declined by an average 50 to 60 percent to income level and it is what it will take to turn our economy back on.
 
I will tell you next week with the one third missing to complete our real estate crisis.
 
P.S Don't forget to use or refer our service.
 
Thanks and I will see you next week.

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