Menifee Real Estate Update - June 2011

Another gorgeous day in Menifee! This and the fall are truly my favorite time of year. Soon I will be starting my update posts with, "Holy Cow - How to Cook an Egg on Sidewalk!" Ok, I am exaggerating but I truly enjoy showing and selling Menifee real estate when the weather is so fantastic.

I know you aren't reading this because you want to hear about the weather. You want to know what is going on with Menifee Real Estate and how it affects you weather you are buying or selling a Menifee Home. Hopefully, this statisical information can be helpful to you for whichever side of the transaction you may be on.

As I stated in my previous update, I cover specific stats that focus on total active homes on the market, how many sold the month prior, and the price and average time it took. These stats are based on 3+, 2+ bedroom, detached homes priced under $1,000,000. Now on to the data...

Menifee CA Real Estate - June 2011 Update - As of 6/2/11

• Total Active Homes Listed - 278 Homes
  
• Average "Active" List Price - $229,744
  
• Menifee Homes Sold in May - 75 Homes
  
• Average Sold Home Price - $206,186
  
• Average Days on Market - 81 days

Let's start with Menifee home sales for May. When comparing against last month's update, we see that sales went from 82 in April to 75 homes in May. We also see that the active average price point has decreased but only by $645. Also the active market itself has hardly changed with 280 in May to 278 in June.

But we did see something interesting - it could be a fluke (only consistency will tell). The average price of Menifee real estate sold nudged upward from $201k to $206k. It is a minor increase but we also see that the days on market shrank as well from 93 days in April to 81 days in May. Those are both interesting demand side indicators to keep an eye on.

Things will pick up during the Spring and Summer of course. Menifee is always a pretty active market when compared domestically and things are heating up (pun intended) as schools are letting out and people are making the annual Summer move plans. I look foward to a busy summer and will keep posting market stats so you can see how we are doing!

And to all our Military personnel - I hope you men and woman had a great Memorial Day weekend. My family, my clients, and all of us in Menifee and the surrounding communities appreciate and applaud your duty on our behalf! Stay safe and God Bless!

Sincerely,

Stefan West, Broker of West Realty
Temecula Real Estate
Menifee Real Estate

Menifee CA Real Estate Update - May 2011

What a fantastic day!

Today Menifee featured a 76 degree and no cloud stunner! I hope you enjoyed it as much as I did - umm sitting at my computer! Enough chit chat, here's the scoop - starting this month I will plan to update this blog montly with information regarding the Menifee real estate in the following format:

•The number of Menifee Homes currently listed on the market
•The previous month's number of Menifee homes sold
•The average days on market to sell the homes
•Both the current average list price and the average closing

My overall goal is to provide consistent Menifee real estate update for Menifee owners, potential home buyers, and future Menifee citizens.

This data will give you a solid trend pattern of the Menifee Real Estate market as the year unfolds. I will also include additional information about Menifee so you can learn something new each time you visit. As an example, did you know that South Riverside county led appreciation rates nationwide from 2002-2007 at an average of almost 30% per year?! That may be a large contributor to our real estate market losing so much value of course!

There is your pinch of Menifee community information for this post. Ok, one more - did you know Menifee has grown up to a population of 77,705 as of 2010 and is roughly 416 miles from California's state capital? Ok, enough fun, I know you want to know the numbers :).

As a reporting baseline, these stats are based only on single family homes in Menifee, priced from 0-$1,000,000. They do not include townhouses or condos, etc. They also focus on 3 bedroom homes as they represent the fundamental definition of a single family residence.

Here are the numbers for my May 2011 Menifee Real Estate Update:

•There are 280 Menifee homes currently listed
•The average list price is $230,389
•In April, 82 homes in Menifee were sold at an average price of $201,889
•And the closed homes were on the market for approximately 93 days.

The average days on market is deceptive. This is due to the fact that many active homes are short sales that already have offers on them. It messes up the integrity of the number a little bit. The average time on market for a sharp, well-priced standard or Menifee bank owned property is MUCH shorter. Usually, they are left as "active" until banks agree to a submitted offer. In fact, I will be showing quite a few short sales to a great couple on Friday and when I call to check status I find they often have multiple offers already.

There it is, your Menifee real estate report for May 2011. If you are considering moving to the great Menifee community, please do not hesitate to contact me or my team. We love to welcome new people to our home and always strive to exceed your highest expectations!

Sincerely,

Stefan West, Broker of West Realty

Specializing in Menifee Homes and Menifee CA Real Estate

Government Forces Banks to Reimburse Foreclosed Homeowners: Does This Apply to Menifee?

News came out recently that the Federal Government ordered 16 banks to reimburse homeowners who were improperly foreclosed upon. Citibank, Bank of America, JPMorgan Chase and Wells Fargo, the nation's four largest banks, were among the financial firms cited in the joint report by the Federal Reserve, Office of Thrift Supervision and Office of the Comptroller of the Currency.

Under the agreements reached, the lenders and servicers have 45 days to hire an auditor and will "remediate all financial injury to borrowers caused by any errors, misrepresentations, or other deficiencies." There is no minimum or maximum dollar amount identified.

If you've read my blog before, you know that I've had situations here in Menifee where homeowners with genuine hardships tried to get loan modifications but were instead foreclosed upon.

Worse yet were the cases where homeowners with genuine hardships were negotiating in good faith, with bona fide offers from buyers ready to purchase the properties as short-sales, only to have the banks foreclose and auction the properties for less than the short-sale buyer was willing to spend.

Remember the case here in Menifee, where I had an offer of $310,000 and the bank turned it down, auctioning it off for $214,000? How about the one where the bank asked the seller for updated income and asset statements, leading him to believe they were still considering his short sale of $160,000? Instead, the bank foreclosed, selling it for $117,000 to a cash-paying investor.

There are a few instances where this could happen. I have personally seen where a bank will not work with any offer, regardless of the amount. I have seen where the Bank and the Legal Department did not communicate and the foreclosure proceedings were enforced and not delayed due to loan modifications or short sale settlements. I have also seen here in Menifee that some residents had multiple loans (1st and 2nd Loans) and the two could not be settled out if the seller did not have any cash.

So, it's too early to tell how much homeowners will get, how many will get anything, how long it will take, or what to do if you believe you were a victim of the lenders' improper practices, but this news represents a great step in the right direction.

I am certain details will be forthcoming, and will look out for them and pass them along to you.

Or if you have a personal interest in this, call me at 909-659-1315 or e-mail me at dm_homes@yahoo.com and I will do more research on this and find the proper channels.

But just as with my last article, call me before your home goes to foreclosure to prevent this from happening.

Dee Molina
Realtor*
License# 01422710
909-659-1315
dm_homes@yahoo.com

What Are Your Options As a Homeowner If Times Get Tough?

Statistics show that homeowners are better informed than compared to four to five years ago when the market turned and hardship became the norm. Foreclosures are down by 14% in California from last year alone.

To be honest it was a learning curve for many...

• Banks had to learn to handle the high volume of defaults.


• The government had to develop programs.


• Realtors had to learn the options and then educate the homeowners in default.


• The homeowner had to learn their options and act fast enough to take advantage of it.

The fact is that many are still walking away from their homes that just do not need to. There are options for the homeowner however. I must also warn that not just any Realtor can help a hardship homeowner. Many Realtors are not full time Realtors, many have their license but do not practice and are lost to the options and processes.

So, to help a friend or family member that is not seasoned or experienced, with your future on the line, will many times result in a foreclosure. Every client is different and unique. It is not a slam dunk that you will keep your home, but many times you can leave with an exit plan and regain your credit and buy again in two years if done properly.

Your options are to seek advice from a seasoned/experienced Realtor as soon as you can to figure your best solution...

• This agent must present all your options, not just sit with you to list your home for sale.


• This agent must care enough about your future, to show you the other options that will not necessarily get "that" agent a commission from the sale of your home. Unless, it is what you eventually choose.


• This agent must be know the answer to your question what if...


• This agent should be full time and work with short sales... Have listed at least 12 homes last year, worked with more than one bank on negotiating the best interests of the seller.


• Have a professional Short Sale Negotiator on their team.

If you have more questions about this subject feel free to contact me.
Dee Molina 909-659-1315 Cell License# 01422710

CalHFA - Below market rates to First-Time home buyers.

CalHFA recently announced a new 30-year mortgage, insured by the Federal Housing Administration. According to CalHFA, this is the CalHFA’s flagship mortgage loan product to get them back in business,
and being offered to first-time homebuyers. In addition, CalHFA has made some improvements to the California Home buyer’s Down payment Assistance Program (CHDAP) that makes it even more attractive. Menifee's housing market has been hit very hard and this new program will help create some new home sales in the area.

The CalHFA FHA mortgage is, at first look, simple enough: a 30-year loan with a fixed rate. It stands out for
two reasons, though. One, it carries a below market interest rate, the result of ongoing bond negotiations  between CalHFA and the US Treasury. Two, when combined with CalHFA’s CHDAP or AHPP (Affordable Housing Partnership Plan) programs, the rate may drop even lower, currently giving a 0.125% break for CHDAP and 0.25% break for AHPP.

They have also made some changes to the underwriting and  documentation requirements for CHDAP, so its standards conform to the standards of the first mortgage.  CHDAP now only requires a 1% buyer contribution instead of the previous 3%.

In addition, the School Facility Fee Down Payment Assistance Program has returned. This program gives a conditional grant to purchasers of newly constructed homes in California, to be used for down payment, closing costs, upgrades, or any other aspect of the purchase. The grant averages about $5,000, and if the qualified buyer stays in the property for three years, it does not need to be repaid.

CalHFA continues to be dedicated to safe, responsible lending. A FHA loan requires a 620 credit score, and every borrower must undergo home buyer counseling.

This FHA loan product, along with their down payment programs, represents a new beginning for CalHFA as they move forward after the extremely challenging events of the past few years. With powerful products like these, CalHFA is poised to open doors for new home buyers, and fund possibilities for the future once again.

Many lenders in Menifee and the Temecula Valley are able to offer this loan. Make sure the broker offering the loan charges reasonable "points". Usually 1 to 2 points is more than enough.

Skylar Lewis
Temecula Real Estate
951-708-1380
Check out our Menifee Carpet Cleaning friends

Drop in home prices, but what about our insurance?

Home prices in Southern California have dropped dramatically over the last couple years, but our homeowner's insurance hasn't. The average cost of homeowner's insurance has actually gone up. Why is this?

The price of homeowner's insurance is based on the cost to build or repair your home. Even though the construction industry has been hit hard, that doesn't mean the cost of rebuilding a home is decreasing or has decreased. Home prices are decreasing but homeowner's insurance costs are rising...

So how can you reduce your bill?

• Raise your deductible ( can dramatically decrease insurance costs, but will cost more when you have an emergency )
• Lower the amount of your insurance ( not usually recommended )
• Shop around. Online rates are sometimes cheaper than through local insurance agents.
• Always be weary of insurance companies offering extremely low prices. Low prices could mean bad customer service or no service at all.
• Be sure to check consumer websites and the department of insurance when searching for homeowner's insurance. insurance.ca.gov. Check out Home Ownership Accelerator for more information on reducing your balance.

Skylar Lewis - Your Local Real Estate Expert
Menifee Homes
Menifee Real Estate

Happy New Year Menifee Home Owners!

As I start my first week of the New Year - I wanted to wish all of you a improved and wondeful 2011. As always, Menifee real estate remains a large part of my business. In each case, the people and community remain one of the best!

Over the last few years I have watched Menifee continue its growth in Commercial and City-Hood. We have also seen prices in real estate rise a bit in 2010. I know it doesn't often seem like it but homes that were selling at $175,000 are now closer to $210,000. It is hard to see that when they used to by worth $300,000. But we are getting there!

I will also point out that people are paying more for rent lately and it isn't easy finding rentals right now. I think we will see further appreciation over the next year of around 5% or so. I am not an economics professor BUT I do see people looking more than last year. And that means only good things. As prices have risen in Temecula and Murrieta real estate, it pushes more home buyers into Menifee.

So, enough economics and rain for that matter! Here is to wishing you all a wonderful 2011. If you should need any help regarding understand short sales, wanting to know your options, etc. Please do not hesitate to let me know!

Sincerely,

Stefan West, Owner of West Realty for Menifee Real Estate and Menifee Short Sales
951-894-6199