Corona
Lake Elsinore
Murrieta
Temecula
Perris
Moreno Valley
Riverside
Sunday, September 21, 2008
Wednesday, September 10, 2008
USC v. Ohio St.
It is finally here...the long awaited USC Trojans battle the Ohio St. Buckeyes!!! This Saturday we find out if the Trojans have what it takes to win another national championship. Oh, wait, we are playing the Buckeyes...we find out if we can beat a team that plays for a lot of championships and gets blown out!!!
I can wait to get a chance to play an SEC team!
One of our pastors just took a job in the Ohio, so I assume he is being bombarded with a ton of pressure to shift alliances. Stand tall Mark...former Trojan Heisman award winner Carson Palmer certainly is...
Fight On!
Tuesday, September 9, 2008
Corona - 92880
As the housing market continues to fluctuate, it seems that as soon as we figure out where it is at…IndyMac fails, Freddie Mac and Fannie Mae need help, etc. So, I decided to take a look at some hard data. Here is what I did: I looked at all of the closed sales in the 92880 zip code of Corona, CA. My intention was to see what information was out there and then what conclusions could be drawn from that information.
The data…81 homes closed escrow. Of these homes the vast majority were REOs (64 of 81). These homes spent an average of 56 days on the market. The homes that spent the longest time on the market were on for 394 and 361 days respectively. Six of them were sold in the first three days on the market. The average sales price was $379,830.25. The average listing price was $377,727.14, generating a difference of only 0.05%.
The biggest changes down were:
Address Sale List Price/Sq Type %down
8608 Vienna Dr 465,000 399,900 $162.99 REO 16.28
13756 Hill Grove St. 385,000 334,900 $116.49 REO 14.96
13746 Apple Moss Ct 390,000 339,499 $130.57 REO 14.86
13331 Kamelia St 410,000 358,900 $117.44 REO 14.24
7854 Port Arthur Dr 405,000 356,900 $133.62 REO 13.48
The biggest changes up were:
Address Sale List Price/Sq Type %up
7173 Cottage Grove 480,000 550,000 $124.97 NEW 12.73
5903 Red Haven St 350,000 398,000 $105.94 S.S 12.07
5940 Red Haven St 341,000 379,900 $184.72 REO 11.24
6171 Royal Diamond 360,500 399,900 $139.78 Resale 9.83
7316 Pinewood Ct 440,000 484,900 $147.90 Resale 9.26
13901 Burrage St 319,000 351,500 $124.22 REO 9.25
Items that are unknown about this data are: 1.) how much paid by the seller for closing costs, 2.) how many offers were received for these properties, 3.) how many of the buyers utilized down payment assistance programs, 4.) the condition of the property, and 5.) how many upgrades were done to the property.
What conclusions do we come to?
Of the six biggest downward changers, only two were bank owned properties. All six of the biggest shifts up were bank owned homes. This tells me that the banks, for the most part, are listing the homes low in hopes of running the prices up. It also tells me that the new homes, resale homes and short sales are still pricing their homes too high.
Conclusion: the banks are driving the price in this area.
The data…81 homes closed escrow. Of these homes the vast majority were REOs (64 of 81). These homes spent an average of 56 days on the market. The homes that spent the longest time on the market were on for 394 and 361 days respectively. Six of them were sold in the first three days on the market. The average sales price was $379,830.25. The average listing price was $377,727.14, generating a difference of only 0.05%.
The biggest changes down were:
Address Sale List Price/Sq Type %down
8608 Vienna Dr 465,000 399,900 $162.99 REO 16.28
13756 Hill Grove St. 385,000 334,900 $116.49 REO 14.96
13746 Apple Moss Ct 390,000 339,499 $130.57 REO 14.86
13331 Kamelia St 410,000 358,900 $117.44 REO 14.24
7854 Port Arthur Dr 405,000 356,900 $133.62 REO 13.48
The biggest changes up were:
Address Sale List Price/Sq Type %up
7173 Cottage Grove 480,000 550,000 $124.97 NEW 12.73
5903 Red Haven St 350,000 398,000 $105.94 S.S 12.07
5940 Red Haven St 341,000 379,900 $184.72 REO 11.24
6171 Royal Diamond 360,500 399,900 $139.78 Resale 9.83
7316 Pinewood Ct 440,000 484,900 $147.90 Resale 9.26
13901 Burrage St 319,000 351,500 $124.22 REO 9.25
Items that are unknown about this data are: 1.) how much paid by the seller for closing costs, 2.) how many offers were received for these properties, 3.) how many of the buyers utilized down payment assistance programs, 4.) the condition of the property, and 5.) how many upgrades were done to the property.
What conclusions do we come to?
Of the six biggest downward changers, only two were bank owned properties. All six of the biggest shifts up were bank owned homes. This tells me that the banks, for the most part, are listing the homes low in hopes of running the prices up. It also tells me that the new homes, resale homes and short sales are still pricing their homes too high.
Conclusion: the banks are driving the price in this area.
Monday, September 8, 2008
1046 Viewpointe Ln, Corona, CA 92881 - T08123553
Fantastic South Corona home! Don't miss out on this beautiful home great location! Tunrkey! 3 bedrooms, 2 1/2 baths. Kitchen w/tile counters, pergo flooring, light wood cabinets and room for seperate eating area in the kitchen. Formal dining opens to the living room, great for entertaining guests. Vaulted ceilings with TV media niche. Hurry don't let this one get away, priced better than the local bank owned homes. Not a short sale!!!!!
I will post pictures when I have the professional ones this week.
Here are the links to the property on my website and from the MLS.
Zip Realty
MLS
I will post pictures when I have the professional ones this week.
Here are the links to the property on my website and from the MLS.
Zip Realty
MLS
Sunday, September 7, 2008
Save or buy?
As we discuss the merits of buying a home now, my client leans over and asks, "Tim, should we buy now or save for a bigger downpayment?"
This is a very good question. A question that I would have hoped that they would have asked before we sat down on this particular day, but a good question nonetheless. As soon as my clients hear that I have a financial planning background, these are the questions that I get asked.
So, I decided to spend sometime looking at FHA rules (oh, if any of you are mortgage officers, please correct any mistakes that I may have made). I wanted to know if it is actually better to buy a home today with 3% down, or buy it AFTER saving for a downpayment.
Let me set the scenario.
Purchase Price $200,000
Downpayment $6,000 (3%)
Loan Amount $197,000
Interest Rate 6.5%
Tax Rate 1.1%
The purchase price is $197,000 because HUD charges the buyer a 1.5% premium to get an FHA loan.
PITI $1,503.50
PMI $147.75
Payment $1,651.25
Purchase Price $200,000
Downpayment $20,000 (10%)
Loan Amount $180,000
Interest Rate 6.5%
Tax Rate 1.1%
The lowest downpayment for a conventional loan is 10%, or put another way 90% is the highest loan to value of conventional loans.
PITI $1,396.05
The question really is, how long does it take to save the additional $14,000?
At $500 per month, you are looking at 28 months! If you invest the $500 and earn 10% interest your save time is down to 25 months. What is your opportunity risk???? There are 2 of them…
- The prices of homes have corrected in just less than 2 years. The landscape of property values could adjust again and your $20,000 won’t enough to buy the home you want.
- These loan programs exist today. With the looming problems with Fannie Mae and Freddie Mac. Who know what the lending world will look like in 6 months, let alone 2 years.
There are a few other calculations that I want to do with this scenario, but they will have to come in a different post.
Friday, September 5, 2008
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