SFV Home Sales up for 12 straight months Sales throughout the San Fernando Valley of existing single-family homes increased 15.5 percent during June, the Southland Regional Association of Realtors reported. It marked the 12”’ consecutive month that sales came in higher than the prior year. A total of 775 homes changed owners during June compared to 671 in June 2008 and 708 this May for a month-to-month increase of 9.5 percent. Condominium sales also increased during June with the 236 condos that changed owners up 2.6 percent from the prior year and 4.4 percent above the May total. “With resale prices now firming up and many properties selling above list price, what we need now are more properties to sell and lenders who are willing to write loans. “Personally, because there are so few listings on the market I cannot find anything for a bunch of my buyers. “Yet even if we found the perfect property, getting a loan is still extremely difficult.”  The market cannot fully recover until lenders accept that it is no longer a declining market and gradually release for sale whatever foreclosed properties they are holding onto. “Most analysts anticipate another wave of foreclosed properties.   However, if lenders release properties in an orderly manner there appears to be enough demand to absorb them without stifling the burgeoning market recovery.  Yet lenders remain hesitant as they await further evidence that resale prices have stabilized and, in some categories, are already on the rise. Reflecting the fact that many sales receive multiple offers at higher than list price, the median resale price decline has slowed dramatically with much of the decline due to the concentration of sales in the lower price ranges rather than real drops in value. The median price of the 775 homes sold during June was $375,000, down 13.0 percent from a year ago when it stood at $431,000. However, on a month-to-month basis, the median — the point where half the homes sold for more and half for less – increased 7.1 percent. The median has been bouncing up and down from $340,000 to $375,000 since November, supporting arguments that the freefall that began in October 2007 is over. The median has been lower than the prior year in each of the last 21 months.  We’re seeing increased activity in price ranges above the median.  “When banks accept that prizes have stabilized we should see further improvements in the market”. For now, however, obtaining a home loan in any amount remains challenging and requires professional assistance. “If a buyer does not have a 720 FICO score and a 20 percent down payment it’s almost impossible to get a loan.  “The reality is that most lenders are still calling any loan above $417,000 a jumbo, which typically triggers extra points and fees.  Bank guidelines are still very strict . “The situation is improving, but very slowly.” The median price of condominiums sold during June was $226,000 , down 23.4 percent from June 2008, but 22.2 percent higher than the median reported this May. Pending escrows – a measure of future resale activity – were up 24.0 percent with 1,399 open escrows throughout the San Fernando Valley at the end of June. There were 3,359 active listings throughout the Valley. That was down 51.6 percent from the 6,935 listings of a year ago. Despite public perception that the local inventory is high, at the current pace of sales, the properties currently listed for sale represent a mere 3.3-month supply. That compares with the 7.7-month supply reported in June 2008.

Sales Volume Up, Prices Starting to Rise

It’s official, June 2009 Sales numbers show that sales volume is the highest its been in 4 years.  1410 homes closed in the month of June, 2009 alone. The multiple offers and reduced inventory is starting to show a push in pricing, especially in the first time homebuyer market.  Many colleagues are reporting 10-20 offers coming in on their lower priced listings.  Although I can’t predict the future, some things seems certain.  One is that the 30 year fixed conforming loan rate will not stay in the low 5′s for too much longer, and that the first time homebuyer market has certainly bottomed out in price and folks waiting on the sidelines may soon be priced out of the market. 
Don’t wait, now is the perfect time to get into the market and take advantage of extraordinary low interest rates and very attractively priced housing.

Parts of Van Nuys are now Sherman Oaks

The city council just approved the renaming of parts of Van Nuys to Sherman Oaks.  The new Sherman Oaks is bordered by the 405 Freeway to Hazeltine Avenue and Burbank Blvd. to Oxnard Street.  This change will probably improve property values in the new Sherman Oaks.  Let’s welcome our new neighbors!

Real Estate Market Heating Up!

Recently, Southern California is experiencing multiple offers on first time homebuyer properties, below $400,000. Oftentimes, lower priced properties are being bid up over asking price. This is a clear sign of market stabilization and an end to further price declines in the market. Although no one is able to predict the bottom of a market until it has passed, I believe that the So. Cal. Real estate market is slowly recuperating and buyers should not wait to take advantage of federal income tax credits, incentives and very reasonable interest rates. Now is the time to get a great deal on a new home before prices begin to appreciate again.

Regards,
Alan Parness
www.parnessproperties.com