The real estate industry is going through the worst economic crisis in more than 60 years; however, we are seeing some improvement. This is good, because in order for our economy to get back on track, we need a stable housing market.
California sales numbers continue to be considerably stronger than nationwide numbers. The increase in residential sales was driven in large part by deeply-discounted distressed properties providing more affordable housing as prices adjusted to the unsustainable growth that occurred during the first 6 years of this decade. California Association of REALTORS® (CAR) anticipates that the foreclosure wave should hit a peak in the second or third quarter of this year with a decline in the share of distressed properties to follow.
California’s residential market has seen larger price declines when compared to many other parts of the country. Indeed, the February median price for homes nationally is $30,400 less than it was a year ago, in California it is $170,670 less, and in our mountain area, it is $73,000 less. The February 2009 median prices are as follows: nationally, $165,400; California, $247,590; and locally, $217,500, though, our mountain-area median price for the first quarter of 2009 is $225,000. CAR Vice President and Chief Economist Leslie Appleton-Young attributed the California median price declining by a larger margin than the nationwide median price because the under $500,000 portion of the market experienced larger price declines than other market segments due to the large share of distressed homes for sale.
Nationally, February home sales when compared with the same period a year ago were down 10 percent, although, in California, home sales increased 83 percent, and locally, our home sales increased by 100 percent. In fact, our residential sales are up by 60% overall in the first quarter of 2009 compared to the same period of time a year ago, and Ahwahnee, Bass Lake, Coarsegold, Mariposa, North Fork, Oakhurst, and Wishon have all seen an increase in residential sales. It is expected, though, that the percentage gains we are experiencing in California for home sales will decrease in coming months as current sales are compared against the extremely low numbers that prevailed during the early months of the credit crunch.
Other reasons why we are seeing an increase in home sales—besides the greater number of distressed properties on the market—is because people are getting the tools and incentives they need to buy. This includes the recent stimulus package that provides some homebuyers a tax credit of $8,000 that doesn’t have to be repaid if the borrowers own their home for at least 3 years, higher FHA loan limits in some areas, and other incentives.
Those trying to sell their land though are not as fortunate. In the first quarter of 2009 we had 4 land listings that sold compared to last year’s 15. That is a 73 percent drop from the previous quarter. Of the four land listings that sold, there was one each in the following communities: Ahwahnee, Coarsegold, Mariposa, and Oakhurst.
Though, financing continues to be challenging for some as a result of tougher underwriting standards, interest rates have improved. According to Freddie Mac, 30-year fixed-mortgage interest rates averaged 5.13 percent during February 2009 compared with 5.92 percent in February 2008 and adjustable-mortgage interest rates averaged 4.87 percent in February 2009 compared with 5.03 in February 2008. Rates continued to decline into March. Rates as of the week ending March 19, 2009, was 4.98% for 30-year fixed and 4.61% for 15-year fixed with fees/points at 0.7%.
Following are some additional local statistics:
Number of active listings in our multiple listing service (MLS) as of April 1 is 777: residential, 390; land, 337; manufactured home in a park, 30; commercial, 19; and business opportunity, 1. I expect to see an increase in the number of listings as typically they increase in the second quarter of the year and reach a plateau from June through August before decreasing as the year draws to a close.
Of the 75 properties that closed the first quarter of 2009: 20 were less than $175,000; 34 were between $175,000 and $300,000; 10 were between $300,000 and $350,000; 10 were between $350,000 and $450,000; and 1 was between $600,000 and $700,000.
There are currently 54 properties in escrow and 34 of them are listed below $300,000. Of the remaining 20, 19 of them are between $300,000 and $500,000, with 1 between $700,000 and $800,000.
Almost 300 properties expired or were withdrawn the first quarter of 2009 with the average days on market for those properties at over 300.
Local active listings are experiencing approximately 300 days on market; for our sold properties, it is 200.
Wednesday, April 15, 2009
Sunday, April 5, 2009
Home Expo Proceeds to Benefit Habitat for Humanity® of Mariposa County
The Yosemite Gateway Association of REALTORS® (YGAOR) is holding its first Mountain Area Home Expo Saturday, April 18. The home expo is a free event and will be at the Old True Value Building in the Von’s Shopping Center from 9 a.m. to 4 p.m. with local vendors and educational sessions.
The YGAOR Affiliate Committee has been working on this expo for more than six months. During the planning process, it was important for the committee to identify an organization to receive a portion of the event proceeds, and they selected Habitat for Humanity® of Mariposa County.
I was fortunate to be able to join six members of the committee when they met with three officers of Habitat for Humanity® of Mariposa County: Delores Hahn, president; Beth Tomsick, vice president; and Jovan Trujillo, treasurer. I learned at the meeting that there are 58 counties in California. Of those counties, 53 have joined Habitat for Humanity® as an affiliate: an independent, locally-run, nonprofit organization. Mariposa is celebrating their first year as an affiliate.
Madera County does not have a Habitat for Humanity®; although, some YGAOR affiliates and REALTORS® are exploring the possibility of setting up a Habitat for Humanity® in Madera County. If you’d like to participate in establishing a Habitat for Humanity® in Madera County, please send an email to beverly@oakhurstrealestate.net or call 559-760-7600 so we can add you to the list of potential charter members. Habitat for Humanity® of Mariposa County has offered their assistance in mentoring us if we decide to move forward with this very worthwhile endeavor.
Habitat for Humanity® of Mariposa County will be at the home expo with information about the organization, how one can apply to be considered for a home through Habitat, and how people can assist families with partnership housing. Partnership housing, according to Habitat, is based on the idea that those in need of adequate shelter work side by side with volunteers to build simple, decent houses. The first partnership house was completed in 1969 in Georgia.
Hahn said, “Habitat is a hand up not a hand out.” In addition to a down payment and the monthly mortgage payments, homeowners invest hundreds of hours of their own labor—sweat equity—into building their Habitat house and the houses of others. The family selected to receive a home from Habitat must volunteer a minimum of 350 hours and at least 100 hours on their own home. Many families choose to volunteer more hours than the required minimum, added Hahn.
The local selection committee chooses homeowners based on their level of need, their willingness to become partners in the program, and their ability to repay the no-interest loan. The homeowners’ monthly mortgage payments are then used to build more houses. Indeed, since Habitat for Humanity® International was founded in 1976, they have built and rehabilitated more than 300,000 houses and provided shelter for more than 1.5 million people in over 90 countries. In fact, last year, Habitat was named the 14th largest homebuilder in the United States. What is amazing about this statistic is that volunteer labor builds and rehabilitates all the homes for Habitat.
Habitat for Humanity® of Mariposa County can use more volunteers. They are in need of someone to work in the office on the first and third Thursdays of the month and they have several other volunteer opportunities. Their regular meetings are open to all. Their next meeting is next Tuesday, April 7, at 6 p.m. at Mariposa Lutheran Church. Hahn said, “Attending these meetings is a great way to keep up with what is going on and to choose a place you wish to help.” To learn more about the Habitat for Humanity® of Mariposa County, visit www.mariposahabitat.org.
The YGAOR Affiliate Committee has been working on this expo for more than six months. During the planning process, it was important for the committee to identify an organization to receive a portion of the event proceeds, and they selected Habitat for Humanity® of Mariposa County.
I was fortunate to be able to join six members of the committee when they met with three officers of Habitat for Humanity® of Mariposa County: Delores Hahn, president; Beth Tomsick, vice president; and Jovan Trujillo, treasurer. I learned at the meeting that there are 58 counties in California. Of those counties, 53 have joined Habitat for Humanity® as an affiliate: an independent, locally-run, nonprofit organization. Mariposa is celebrating their first year as an affiliate.
Madera County does not have a Habitat for Humanity®; although, some YGAOR affiliates and REALTORS® are exploring the possibility of setting up a Habitat for Humanity® in Madera County. If you’d like to participate in establishing a Habitat for Humanity® in Madera County, please send an email to beverly@oakhurstrealestate.net or call 559-760-7600 so we can add you to the list of potential charter members. Habitat for Humanity® of Mariposa County has offered their assistance in mentoring us if we decide to move forward with this very worthwhile endeavor.
Habitat for Humanity® of Mariposa County will be at the home expo with information about the organization, how one can apply to be considered for a home through Habitat, and how people can assist families with partnership housing. Partnership housing, according to Habitat, is based on the idea that those in need of adequate shelter work side by side with volunteers to build simple, decent houses. The first partnership house was completed in 1969 in Georgia.
Hahn said, “Habitat is a hand up not a hand out.” In addition to a down payment and the monthly mortgage payments, homeowners invest hundreds of hours of their own labor—sweat equity—into building their Habitat house and the houses of others. The family selected to receive a home from Habitat must volunteer a minimum of 350 hours and at least 100 hours on their own home. Many families choose to volunteer more hours than the required minimum, added Hahn.
The local selection committee chooses homeowners based on their level of need, their willingness to become partners in the program, and their ability to repay the no-interest loan. The homeowners’ monthly mortgage payments are then used to build more houses. Indeed, since Habitat for Humanity® International was founded in 1976, they have built and rehabilitated more than 300,000 houses and provided shelter for more than 1.5 million people in over 90 countries. In fact, last year, Habitat was named the 14th largest homebuilder in the United States. What is amazing about this statistic is that volunteer labor builds and rehabilitates all the homes for Habitat.
Habitat for Humanity® of Mariposa County can use more volunteers. They are in need of someone to work in the office on the first and third Thursdays of the month and they have several other volunteer opportunities. Their regular meetings are open to all. Their next meeting is next Tuesday, April 7, at 6 p.m. at Mariposa Lutheran Church. Hahn said, “Attending these meetings is a great way to keep up with what is going on and to choose a place you wish to help.” To learn more about the Habitat for Humanity® of Mariposa County, visit www.mariposahabitat.org.
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