Category Archives: Foreclosures and Bank Owned

May 2012 Market Update for California Real Estate Market

YES! it is official the market is picking up…In our micro market in Palm Springs California, particularly even so!
OK this is NOT the end of seeing distressed properties come on the market but we made that turn and the market is correcting itself at least from what I am seeing in our market with less than 9% of the inventory as distressed properties .
Please watch this video and enjoy the good news! Rush , rush and catch the last waggon of the train.



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Newest Housing Data Signals Improvements

The latest round of real estate data shows home-builder confidence is soaring as homes in the United States become more affordable. In California, prices and sales appear to be on the mend.

In a note back in May, Ian Sheperdson, chief U.S. economist for High Frequency Economics, wrote that the improvements in the housing market may be a result of credit loosening. The lack of readily available home loans has been a significant hindrance and one of the stumbling blocks to a rising market, he wrote.

Reacting to the rise in builder confidence, Sheperdson’s note further stated that the key factor is improving access to mortgage finance versus the level of rates, which have been very low for a long time. After a credit event, availability of credit is an important factor to real recovery; housing is on the cusp, he wrote.

Also in May, the National Association of Home Builders reported that its index of confidence in the market for newly constructed single-family homes climbed to a level of 29, the gauge’s highest reading since May 2007.

The West was the only region that saw a decline, down two points to 29. The Midwest and South were up five points each to hit 27 and 28 respectively, and the Northeast was up six points to 32.

In many housing markets, builders are reporting that sales and buyer traffic have picked back up after a pause this past April, Barry Rutenberg, chairman of the builders association, said in a news release.

It appears we have resumed the gradual upward trend in confidence that started at the beginning of this year, as excellent affordability and stabilizing prices encourage more people to pursue a new-home purchase, he stated further in the release.

A separate index produced by the National Association of Realtors indicated that homes in the United States reached a record level of affordability in the first quarter of this year. According to research, the index shows a family that earns the median annual income of just under $61,000 can afford a home costing $325,500.

And finally, home prices and sales appeared to improve in the Golden State as well, according to the California Association of Realtors. The statewide median price rose above $300,000 for the first time, and sales were at their highest level in more than two years, the group said.

A record-high housing affordability coupled with a brighter economic picture, pushed the Spring home buying season off to a strong start, LeFrancis Arnold, president of the association, said in a news release.

With interest rates declining to new record lows in recent weeks as well as a continually improving economy, we should see a steady improvement in the housing market throughout the end of the year, Arnold said further.

The California real estate group also reported that the amount of inventory on the market remained low. About four months and just under a week’s worth of homes were available for sale on the market, according to the association’s inventory index. Around six to seven months is considered a healthy market.



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Mesquite Golf and Country Club – Palm Springs

The Mesquite Golf and Country Club was established in 1984 and ever since that period, its architect Bert Stamps has managed to make it stand out as one of the most spectacular golf courses in Palm Springs. When one is golfing at the Mesquite, one can’t help but admire the beautiful and spectacular tropical scenery that hits them. From the majestic San Jacinto and Santa Rosa mountain range to the tree lined fairways and the 5 lakes found on the grounds, Mesquite golf country club has one of the most beautiful golf courses in the US.

Reasons one should join the Mesquite Golf and Country Club

 

There are various reasons why one should join the Mesquite Golf and Country Club some of which include;

  • The Mesquite golf course has a beautiful 6,400 yard field that is both challenging and eye catching. This will sure appeal to all golfers who love beautiful scenery and enjoy a challenging game of golf.
  • The Mesquite golf course features a traditional 18 hole championship layout that was designed by renowned architect Bert Stamps.
  • Mesquite golf course also has 5 lakes that are strategically placed within the field to create a more challenging field for the club’s golfers. A feature that members of the Mesquite golf country club enjoy and love.
  • The Mesquite Golf Course is lined with mature trees that give it a certain picturesque appeal that is both appealing and attractive to all of its members.
  • Mesquite Golf and Country Club also features a fairly large grass practice facility for its members coupled with a driving range.
  • The Mesquite clubhouse has being beautifully crafted in a Spanish style that makes it stand out from other clubhouses. This Spanish clubhouse boasts of a lot of culture and uniqueness that most people find hard to resist.
  • The Mesquite clubhouse is huge with over 15,000 square feet, and has an elevated fully established restaurant that serves some of the best cuisines in the region.
  • While at the Mesquite Golf and Country Club one gets to enjoy the awesome views of the mountains and lush fairways that are characteristic of the unique landscape at the Mesquite Golf and Country Club.
  • The clubhouse also has a banquet area, a cocktail lounge, pro shop, two racquetball courts, and a patio that gives one a chance to enjoy the breathtaking views that are at Mesquite golf country club.
  • The Mesquite Golf Country Club is located just a few miles from Downtown Palm Springs, which is close to some of Palm Springs most famous hotels, airports, and casinos.
  • The Mesquite Golf and Country Club has hosted several local PGA and Golden State Tour events, this has made it gain recognition as one of the best places to golf.
  • Bob Hope has also frequented the Mesquite Golf and Country Club. This has served as proof of how beautiful and good the golf course and clubhouse at the Mesquite Golf Country Club is.



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Taquitz Country Club

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Located in Palm Springs, Taquitz country club is like an undiscovered pearl in the heart of the Palm Springs area. The Taquitz country club consists of two scenic 18-hole golf courses that both have spectacular views of Palm Springs and were even rated by Golf Digest as ‘one of the best places to play’.

 

Directions to Taquitz country club

  • If one is at Palm Springs, take the Palm Canyon drive from downtown heading East and take a left turn onto Golf drive, the entrance to Taquitz country mile is located just one mile to its left.
  • If one is on the East Interstate 1-10, they should exit at the Gene Autry exit towards Palm Springs Airport exit and turn right. One then turns left on Ramon road and right on Crossley road. From here, the golf course entrance will be one and a half miles to the right.
  • If one is on highway 111 heading towards Palm Springs, turn right on to golf club drive and the Taquitz Country Club entrance will be one mile to the left.
  • If one is headed west on interstate 1-10, exit at the Ramon road exit to Palm springs and turn left towards the Aqua Caliente Casino onto Ramon road. From here, branch into Palm Springs and turn left after approximately 6 miles. The golf course entrance will be just one and a half miles to the right.

 

Taquitz country club golf courses

 

The Taquitz Country Club has two unique golf courses each with the following characteristics;

 

Legend Course

 

This spectacular course was designed by renowned designer Billy Bell in the late 50’s and it has some of the most beautiful landscapes in the area. The Legend course was renovated not too long ago by Palmer Course Design Company. This course is huge and extensive and stands at a whooping 6815 yards with 60 bunkers. The Legend Course at the Taquitz country club is also a par- 72 course that has the traditional golfing layout that is commonly liked and used by most golfers.

It also features greens that are heavily sloped from front to back making the playing experience on this golf course highly challenging. The Taquitz Country Club at the same time also offers the player picturesque mountain views and fairways lined with trees that create the perfect back drop to the golfers as they play.

 

Resort Course

 

This elaborate golf course was designed by Ted Robinson Jr. who made it using the links style and technique making the resort course into what it is today. The Resort Course found at the Taquitz country club features a par- 72, 6705 yard course that has four sets of tees. This course is the more recent of the two courses at Taquitz country club owing to the fact that it was opened to the public in 1995.

The Resort golf course features a perfect blend of spectacular architectural design and natural desert beauty, which most golfers relish and enjoy. This desert design coupled with the magnificent waterscapes, and spectacular mountain views will leave golf players enjoying the game and wanting more of the breathtaking scenery.



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Palm Springs Heat bringing also Heat to the Real Estate Market?

Bidding on homes in Palm Springs.

It happened again today! I wrote an offer on a house 10% over the listing price and the listing agent comes back to me asking for best and final announcing that he has multiple offers in hand and that I should do much better if I want to be in the game.

OMG! this happening to me again and again…properties are selling fast and faster and if not at asking price then above the asking price.

It is 106 degrees out there, my courageous clients braving the heat , in Palm Springs and trying to beat the market and buy before next season (I believe prices will raise more by then) ,

This is what happens when there is no inventory and when the late bloomers start waking up and want NOT TO MISS the BOTTOM….Well the bad news is that the BOTTOM of the market was hit 6 months ago but the good news is that prices WILL go up and whoever can be brave enough to come during the hot summer months to Palm Springs will still buy real estate at lesser price than the buyers who will be here next season.

 



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Palm Springs! Palm Springs!

 Some Realtors tuning down for the summer  in Palm Springs – NOT US

 

As we are seeing the snow birds leaving town as a flock of migrating birds, I as a Realtor get in gear for the best of my selling season.

Well would you tell me but most of the buyers are there during the season ? Yes they are but the “lookers” too and some time they get mixed up and a lot of time is lost with those.

On another note the sellers noticing the number of “showings” dropping are also more open to price adjustments and looking closer to offers that come along

I am happy to speak from now on to REAL potential buyers which will visit for a week or so and this is all you need to look at a number of homes , make a decision and get into escrow.

Our number of sales and goals   for the last 5 or 6 years were reached thanks to the number of sales made from July on. So our decision to stay in town and get that business has proven to be right and will this year too if I look at my appointments schedule for the summer months.

I will keep on blogging and tell you what is happening in our market . stay tuned



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What is going on with the Foreclosures market in Palm Springs and the Desert Cities

Alvin Fuchs was quoted in the Desert Sun last week for his comments on the topic of foreclosures and prices in Palm Springs Real estate market.

What’s it worth?

Alvin Fuchs, a Realtor with Keller Williams Realty in Rancho Mirage, said just because a property is a foreclosure doesn’t mean it’s a hot deal.

Buyers should work with Realtors to compare other homes in the area and more accurately determine the home’s value

Some banks are looking to recoup the value of a defaulted mortgage, so buyers could end up paying more than the property is worth.

That’s particularly true now that inventories of foreclosed homes — particularly those priced at less than $200,000 — have plummeted in many valley communities.

Of 3,585 homes listed last week on the Desert Area Multiple Listing Service in five cities — Indian Wells, La Quinta, Palm Desert, Palm Springs and Rancho Mirage — only 187 were low-end, bank-owned properties, Fuchs said.

In some instances, the dearth of foreclosed homes has resulted in aggressive, multiple bidding by competing buyers.

It’s critical to get a good home inspector because, in most cases, “the bank has no clue what happened to that house,” Fuchs said.

Realtors and home inspectors said one of the first steps buyers should take when assessing a distressed property is to simply trust their instincts. If a house exterior looks bad, it’s probably worse than they think.

Before making an offer, buyers should do a thorough title search to uncover past problems that could become future obstacles, Franklin said.

Buyers must determine whether the effects of a poorly maintained home has resulted in structural rather than mere cosmetic problems.

Not only should buyers ask how long a house has been empty, but how long standard repair and maintenance have been on hold, Realtors said.

Distressed properties in the desert that have stood vacant for months or years with utilities shut off can deteriorate fast in triple-digit heat, even having mold problems that warrant expensive repairs.

As many as 20-30 percent of foreclosed properties nationwide are vandalized or cannibalized by frustrated homeowners, said Bill Jacques, president-elect of the American Society of Home Inspectors.

Although many buyers pay inspectors to determine what needs to be fixed, banks are usually reluctant to pay for the repairs.

“But basically, you get a home inspection so when you take the property over you know what you’re going to have to fix.”

When buyers are seriously looking at foreclosures they should  also be “open minded” to other options such as individual sellers. Many of them have dramatically reduced prices and are ready to negotiate.

Taxes and liens

A foreclosure typically wipes out the prior owner’s private debt, but there can also be public debt against a property, such as real estate tax or income tax, Franklin said.

Buyers should work with Realtors and the escrow company to research the land lease, property taxes, mechanics’ liens or lawsuits.

Although most liens are cleared at a foreclosure auction, some liens survive and carry over to new owners.

On tribal land, buyers should watch for illegal land transfers in which the landowner takes out a second mortgage and never reports it to the Bureau of Indian Affairs.

Prospective buyers should also be on the lookout for separate ownership “transfer fees” that can be as much as $4,500 in some valley country clubs.

In short sales, buyers should be sure to review the terms approved by lenders and not be afraid to say “no” later in the process.

Buyers engaged in short sales should be patient and brace themselves for what could be a long process, Fuchs said.

One of his clients spent eight months waiting for a short sale to go through, only to have the bank then foreclose on the property.

It just make sense to work closely with your Realtor who will guide you.

 

 



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REOs Bank Owned Properties in Palm Springs

The market is turning – Palm Springs Real Estate is on its way to recovery

Just to confirm my previous post showing a chart and how the inventory is looking I would like to share a story with you: i wrote an offer on a home in Palm Springs, free standing home , in a decent condition, new listing just before President day week end. the price was over 250K

We wrote an offer a full asking price and presented it to the listing agent,by time it was presented to the bank 3 days later (because of the holiday week end) there were 13 offers on the table..

Now do you think that whoever is going to buy this property is going to buy it at a fair market price or will it be over priced? I say over priced .

So what I was predicting is happening, the number of  bank owned properties is decreasing and prices in this price range up to 300K will go up very fast.

I believe that the next few months will be the last of the “super deals” in the lower  end of the market in Palm Springs and  the Desert Cities Real Estate.

 



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Buyers'market turning into a sellers'market in Palm Springs Real Estate?

Palm Springs Real Estate market is changing and for the better

In my previous blog I was showing the numbers for our inventory in Palm Springs and the Desert Cities by price range and also showing the number of bank owned properties for each category SOLD and ACTIVE.

During the last week and in the lower “entry level” price range , meaning up 300K. I found myself in a bidding position each time. Reminds me of the good years ..
I am not saying that we are recovered and certainly not considering that the banks are just as difficult in giving out money. But I did find myself in this situation in many years bidding on properties which are regular equity sales and not even bank owned.

I am full of hope and happy for all my clients who bought during the last year they will see prices go up.

Still some good ones out there..



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