January 2012 Real Estate Market Report for Upland, Rancho Cucamonga and surrounding CA Cities.
By Brad Rachielles
I'd like to start my January, 2012 Real Estate Market Report with positive news.... so:
- The weather has been mild... that's good news,
- The Super Bowl was very exciting... more good news... and
- I earned a new Real Estate designation... again, good news.
Obviously, you noted that the January Market conditions were not included in my list. While there was a positive start to this article, January seems to be less than an exciting month around here.
January closings are often down (see the chart to the right), and this January is no exception, Year-end relocation's may have been done before the holidays. Showings are hard with the family events in November and December, Winter break is over. REALTORS(R) are finalizing their planning for the year, and families with school age children would rather move in the summer months.
Reports from other parts of the country, and even national statistics are indicating "BUYER's Market conditions with inventories of unsold homes above the six month mark. Not so in the Foothill Communities of SoCal. While several individual cities in the area are approaching this condition, the combined average of the 10 city market has just increased to only 4 weeks of available homes for sale (another verification that "REAL ESTATE is LOCAL). This is clearly a SELLER's Market condition, but heading more for a balanced situation.
The Average Selling Price of all closings was again down in January, both from the same month in 2011, and from December of 2011 by 4.9% and 3.4% respectively. This is very much like the price declines in January of 2011.
This market is of the nations hardest hit when you think of foreclosures. For years, home buyers were able to get loans that they didn't qualify for, and when the job market started to decline, and home values started to decline, many were caught in loans that they could not afford and were unable to qualify for refinancing. "Their virtual PIGGY BANK BROKE". Standard transactions represented only 39% of the local sales in January and Short Sales 38.6%. While there may seem to be a reluctance to shop for a Short Sale property because of the extra time for the transaction to close (148 days vs. 76 for a Standard transaction in this market), it is clear that many are finding that a Short Sale is "DO-able. That's one reason why I decided to go for the CDPE (Certified Distressed Property Expert) Designation.
What's In the Future?
Nobody knows for sure, but I personally feel that things will get better sooner than later. Foreclosures are a big problem and the thinking is that many home owners will be considering Short Sales as one of their options to foreclosure as may more and more lenders. Staying in their homes may be best for sellers in distress, and I see increased efforts to help them learn of their options (there are possibly choices). When lenders streamline their Short Sale processes, more buyers may be agree-able to doing Short Sales and the inventory may start to move. Sidelined sellers may then see that their competition is less and less the distressed property so listing becomes more appealing.
I'm not sure that interest rates will stay at these historic lows... I hope so. The dream of home ownership is still a big part of the American Dream. It may become more realistic working with a REALTOR(R) that is well trained to handle the tough sale.
When I started thinking about this post, I wasn't sure how it was going to end. Happily, there is much to be positive about.
This has been my January 2012 Real Estate Market Report for Upland, Rancho Cucamonga and surrounding CA Cities.
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It's All About YOU! Brad Rachielles, REALTOR, Upland, CA
Brad Rachielles, REALTOR. Helping Inland Empire Buyers and Sellers with their Real Estate needs in the Communities of: Upland, Rancho Cucamonga, Fontana, Claremont, Ontario, Chino, Chino Hills, Pomona and La Verne, CA.
Web Page: http://www.BradRachielles.com