July 29, 2014

Sellers Have Come Out Of The Woodwork

The Orange County Register reports from California. “Mike Shapiro has an uneasy feeling, one that’s refreshingly surprising for a real estate brokerage owner coming off a record month. Shapiro is chairman of Hom Sotheby’s International Realty, a Newport Beach-based operation with a network of upscale-oriented brokerages stretching from Los Angeles’ Westside through Orange County’s beach towns and out to Palm Springs’ desert enclaves. In June, Hom agents sold a company-best $325 million in property. Shapiro is stunned that it looks like July’s projected closings will be roughly half that sum. One month doesn’t make a trend, he notes. But the sharp drop, paralleling other hints at economic anxiety, is, if nothing else, thought-provoking.”

“Shapiro, who in a previous career traded stocks, wonders if recent skittishness among Wall Street traders bubbled over into real estate. ‘Something is up … I don’t know what,’ the 51-year-old executive says.”

The Union Tribune. “Q: Halfway through 2014, what has surprised you so far in the housing market? Bill Davidson, president of Davidson Communities: ‘This recession has been unlike any economic downturn I’ve experienced in my career. The housing market has traditionally led the recovery. The traits and values of today’s Millennials are different from previous generations, in direct response to this disastrous recession. Not committing early to family formations, trouble finding good paying jobs, and, after witnessing what happened to their parents since December 2007, they’re skeptical of real estate. They are staying flexible, free and cautious.’”

“Kurt Wannebo, real estate broker and CEO of San Diego Real Estate and Investments: ‘The slowdown in sales and appreciation were all predicted factors, as we knew that investors would be leaving the market as foreclosures dried up, and sellers with equity who were waiting things out would start to flood the market, slowing the growing prices.’”

The Los Angeles Daily News. “It was supposed to be a breakout year for home sales. But after years of recession that bulldozed the Inland Empire housing market, there are still glitches in the road to recovery. The first quarter of the year looked promising, but it has come to full stop, said Redlands Realtor Perrie Mundy, a 30-year industry veteran, primarily because people are still worried about keeping their jobs. ‘It’s just at a standstill. We have no inventory,’ she said. ‘I think there is just so much uncertainty in our whole economic picture. Everyone wants it (the market) to be healthy and march along but there is a lot of uncertainty and people are wondering if they are going to have jobs tomorrow.’”

“Paul Herrera, government affairs director for the Riverside-based Inland Valleys Association of Realtors, believes the market is still adjusting to changes over the last year. ‘I think a year ago you had a lot of buyers who were ready and willing but were getting outbid by investors but that is no longer the case,’ he said. ‘The scenario of having a dozen or 20 or 30 offers come in on a home is gone. The price increase has stopped.’”

The Desert Sun. “Once-soaring price gains for single-family homes slumped in June across the Coachella Valley, two housing reports show. The rapid price appreciation during the first five months — jumping as high as 20 percent from the year before – ended its streak amid a tight inventory and fewer sales in June. The median price of single-family homes sold in the nine desert cities was $382,400, according to the Palm Desert-based California Desert Association of Realtors, which tracks properties through its MLS. That’s a 1.7 percent drop from the $389,000 in June 2013.”

“‘The market will correct itself, and that’s what we’ve been going through,’ said Mark Hilgenberg, a Keller Williams agent based in Rancho Mirage. ‘You will see prices rise, but not at the rate that they did.’”

From SCV News. “The median single-family home price in the Santa Clarita Valley dipped slightly in June to $481,000 from $485,000 in May, but the figure was still well ahead of last June’s $430,000. ‘I expect prices to keep moving up, but not at the double-digit pace seen last year,’ said Jim Link, CEO of the Southland Regional Association of Realtors.”

“Sales were somewhat more sluggish than Realtors tended to expect. ‘Pricing the property correctly is the key to a quick sale,’ said Nancy Starczyk, president of the Realtor group’s SCV Division. ‘Homes are taking longer to sell now, buyers are much more selective, and the pool of prospective buyers shrinks as prices move higher. The market is highly competitive.’”

“Some sellers have come out of the woodwork, though. As of June 30 there were 706 homes listed for sale on SRAR’s MLS, that’s 65 percent more than a year ago.”

The Signal. “Home sales sputtered slightly in June, although the increasing number of existing homes listed for sale are beginning to pull the Santa Clarita Valley out of the ‘inventory drought’ it had been in during the recession. Increased inventory is giving buyers slightly more leverage to negotiate. ‘Sellers have tried to continue the rise in prices from last year and there is some ‘push back’ in the market, meaning the buyers overall are not biting at the higher prices,’ said Dwight Hawkins with Realty Executives.”

“In the past seven days there were 100 new listings and 110 prices changes, and all sales prices went down except on 17 homes, Hawkins said. ‘We are seeing more inventory than has been on the market for a while in the SCV cities,’ said Connor MacIvor with Re/Max.”

“Other factors slowing home sales in June include fewer buyers qualifying as a result of stricter lending requirements, and appraisals still coming in too low to match the seller’s listing prices, said Bob Khalsa with United American Realty. The conservative appraisal is causing some blowback, Hawkins said. It causes some homes to have to go back on the market when a buyer’s lender won’t approve a loan at the agreed-upon sales price. ‘The appraisal comes in low and sometimes the seller and buyer will negotiate again,’ he said. ‘The sellers want the buyers to bring in money over the appraisal, and sometimes they can’t come to terms.’”

“One sales number did spike, however, and that was for properties listed as a short sale. Unlike a traditional home sale, in a short sales the seller owes more on the mortgage than the home is worth on today’s market. Short sales jumped to 9.1 percent of the total sales in June, up from 4.6 percent in May.”

“‘We are now seeing those who have been trying to hang on to their homes by the tips of their fingers losing their grip and finally short-selling,’ said Sam Heller with Keller Williams VIP Properties. ‘They (the sellers) tried to wait for the market to come up to cover their current mortgage amount, plus cover selling closing costs. Although the rise in prices was faster than many expected, they were not fast enough or high enough to save everyone.’”

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Comment by Housing Analyst
2014-07-29 07:09:36

Escondido, CA Housing Prices Crater 8% YoY; Inventory Doubles On Plunging Housing Demand


Comment by Mugsy
2014-07-30 04:05:19

We used to call it “Escondildo”. The folks who couldn’t afford South county moved up that way.

Comment by Housing Analyst
2014-07-29 07:11:14

Temecula, CA Housing Prices Plummet 10% YoY On Billowing Excess Housing Inventory


Comment by Housing Analyst
2014-07-29 07:13:15

Paso Robles, CA Housing Inventory Skyrockets As Prices Plunge 27% YoY


Comment by Housing Analyst
2014-07-29 07:14:48

California Housing Demand Plunges To 10 Year Low; Falls In 54 Of 58 Counties Statewide As Excess Inventory Skyrockets


Comment by Housing Analyst
2014-07-29 07:40:00



*Prices have been falling for a few quarters across the country however they’re still massively inflated 300% higher than long term trend

Comment by Mugsy
2014-07-30 04:07:07

It’s always “unexpected”.

Comment by Ben Jones
2014-07-29 08:02:55

‘Sellers have tried to continue the rise in prices from last year and there is some ‘push back’ in the market, meaning the buyers overall are not biting at the higher prices’

And the commissions have slowed so now you are talking back expectations.

Comment by doom
2014-07-29 10:14:54

No question RE agents continue to steer buyers (more expensive property listed in their office), to bad most buyers are not as informed as they should be.

RE agents that won’t turn the corner because they are afraid for you to look at another house should lose their license, good luck with that.

Comment by "Auntie Fed, why won't you love ME?"
2014-07-29 08:49:54

Funny how all these realtoRs are still talking Increase, even while the actual sales prices are decreasing. They just want to completely gloss over the plain fact that prices have begun to decline. Like as long as you say the word “increase”, then it will happen.

Comment by doom
2014-07-29 10:09:43

Prices come down? I guess nobody has ever owned a business on this site, when something doesn’t sell the price is reduce so what.

The question to ask how much reduction gets you excited to buy?

In home buying is it 5,10,20,30%, the magic number is different for every home, buyers need to look at a house that suits their needs in terms of location, condition of property, motivation of sellers.

Why would you buy a home 20% discount that is lets say 40 miles from your job, better to look for a home within 10 miles or less and offer 10% off.

Every home, every market is different, always keep that in mind when selling or buying.

Comment by Housing Analyst
2014-07-29 14:44:24

Nonsense. It’s never different nor is it complicated so why complicate it?

We’re profitable at $55/sq ft for new construction anywhere in the country. If you’re paying more than 65% of that for a resale house, you’re paying too much.

Comment by taxpayers
2014-07-29 11:47:05

why do folks use realwhores- save 6% read up, post it, get it sold

Comment by Ben Jones
2014-07-29 13:26:45

‘A real estate blog, Movoto, has researched home prices and household income, then factored in cultural amenities, educational achievement and what-not to come up with a list of the Snobbiest Small Cities in America. Our own Palo Alto tops the list, and two other Bay Area cities crack the top five (San Rafael and Walnut Creek).’

‘Are you thinking what we’re thinking? Yep, we’ve got waaaaay snobbier cities than those three! Can we dish? Tell us which East Bay, Peninsula, South Bay and Marin cities … they’re really precious little enclaves, aren’t they? … would top your list.’

‘BTW, Movoto’s survey is, of course, skewed by NorCal’s crazy-high housing prices.’


I don’t think Californian’s realize how wallowing in your shallowness is seen by people outside.

Comment by Housing Analyst
2014-07-29 15:02:32

They’re a sleazy enigma really. They seem like flamboyant exhibitionist flashers on the extremely unattractive side.

Comment by AmazingRuss
2014-07-29 20:58:10

I sat in a room full of them today. What a bunch of pretentious twats. I sat there quietly making twice what they do as they strutted and preened.

Comment by Ben Jones
2014-07-29 21:15:05

I have to admit, we were the same way in Texas during the 80’s bubble. I often recall this popular song from a Texas songwriter in that era:

“Oh Lord it’s hard to be humble
when you’re perfect in every way.
I can’t wait to look in the mirror
cause I get better looking each day.
To know me is to love me
I must be a hell of a man.
Oh Lord it’s hard to be humble
but I’m doing the best that I can.
I used to have a girlfriend
but she just couldn’t compete
with all of these love starved women
who keep clamoring at my feet.
Well I prob’ly could find me another
but I guess they’re all in awe of me.
Who cares, I never get lonesome
cause I treasure my own company.
Oh Lord it’s hard to be humble
when you’re perfect in every way,
I can’t wait to look in the mirror
cause I get better looking each day
To know me is to love me
I must be a hell of a man.
Oh Lord it’s hard to be humble
but were doing the best that we can.
I guess you could say I’m a loner,
a cowboy outlaw tough and proud.
I could have lots of friends if I want to
but then I wouldn’t stand out from the crowd.
Some folks say that I’m egotistical.
Hell, I don’t even know what that means.
I guess it has something to do with the way that I
fill out my skin tight blue jeans.
Oh Lord it’s hard to be humble
when you’re perfect in every way,
I can’t wait to look in the mirror
cause I get better looking each day
To know me is to love me
I must be a hell of a man.
Oh Lord it’s hard to be humble
We’re doing the best that we can.”

(Comments wont nest below this level)
Comment by inchbyinch
2014-07-30 16:37:06

I am a So Ca well dressed and fit petite lady. I can hold my own for over 50. (Take that anyway you want. lol) Ca is such a pretentious parade of name brand cars, housing tract/area name dropping, and collecting stuff. I call those type of obnoxious braggers “toppers”.

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Comment by Housing Analyst
2014-07-30 20:51:14

… like Russ said….

Comment by tresho
2014-07-29 13:40:36

Rio Rancho NM: Sinkhole leaves big mess, upset neighbors
There are some very upset people in one metro neighborhood. A big sinkhole swallowed up part of their street, the sidewalk and a chunk of a front yard.

Many neighbors say it could have been prevented if the city would have listened to them weeks ago. Instead, there’s a big mess in Rio Rancho. Neighbors say they tried warning the city earlier this month.

“For two weeks,” Van Dyke said. “It was just crazy. The water main was just bubbling through, bubbling through.”

The city tells KRQE News 13 it sent a crew to check it out but says it couldn’t pinpoint a cause at that time.

Even though this may be the biggest sinkhole this street has seen, people living here tell News 13 this happens far too often, on a yearly basis.

“We usually get about 3 to 4 ruptures within our block,” Moses Botello said. “It’s inconvenient for sure but it’s really no surprise.”

The comments are more interesting than this story:

When you build a community quick and cheap this is what you get! For as young as Rio Rancho is water mains should NOT have to be replaced yet if it had been done right to start!

Most of the politicos that are responsible for zoning and allowing the developers to build on arroyos and without proper storm water systems are already out of office. They came here to build a scam (Rio Rancho), took their money and left. Some of them have moved to Valencia County and are doing the same there on the east mesa.

That’s what you get when you throw up all these cheaply built neighborhoods; that anyone can own. These subdivsions almost appear overnight and they tack up the houses incredible fast and efficient. You pay $180k or more and get something built with plastic PVC pipes, subpar copper wire, bad shingles and other cheap short cuts. Neighborhoods built in the 1950s are going stronger than all this newly built crap that will fall completely apart if not constantly maintained. Just a few years back; we remember when a lot of newer houses were condemned for being below electrical code(thin copper wiring/potential fire hazard). Apparently, it’s not just the houses; it’s the land too. Don’t buy newer houses!

The quality is just slightly better than a mobile home. Leaky roof, leaky faucets, bad toilets, bad electrical, outdoor lights that don’t work, cracked garage foundations, cracked bathroom roofs and even someones kids who were playing around threw the other one through the wall. I guess the $120s and up appeals to people though. I’d have a hard time convincing myself to buy one for half that price, knowing it will be constant maintenance and junk. The best thing you can hope for in that situation is just to sell it to the next ignorant family and try to find something better.

We went looking a couple years back. The first thing we did was cross every newer home off of our list. They’re built like a kids backyard fort these days. They won’t be here in fifty years, many not even the thirty it takes to pay off the mortgage….. We moved out of ABQ anyway, because we found out how crooked the cops/courts,/government are

Comment by pazuzu
2014-07-29 17:25:29

Mark Bullshitberg, a Keller Williams parasite based in Rancho Mirage. ‘You will see prices rise, but not at the rate that they did.’”

Realtors are scum.

Comment by Housing Analyst
2014-07-29 17:50:46

lolz ‘bullshitberg’.

On a more serious note, with such fraudulent statements which are typical for realtors, they really have no room to complain about their reputation.

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