The first time buyer & repeat buyer tax credit program may have stimulated the market somewhat, but now that it has ended it will take a few months to be able to actually measure the true demand.

Closings in 2010 have ranged from $537,000 for a bank-owned pool home up to $700,000 for a highly upgraded home with 4 bedrooms, a bonus room, a pool and 3 car garage at the end of a cul de sac.

Both of these extremes sold very quickly.  Additionally, there were 2 investor-owned (“flip”) homes that sold within a month of reducing the prices near the final selling price.  Two other owner-occupied homes sold in under 30 days each.

There are currently 2 homes under contract. One, a bank-owned home, originally sold after 31 days but fell out of escrow and had to be re-sold.  The second one is an owner-occupied home that sold after 37 days on the market.

Active homes on the MLS today range from $575,000 to $649,900. I have visited all except the one that is a short sale, as it was appointment-only and nobody has called me back after leaving messages.  (I am guessing that they don’t really want to sell and are just going through the motions while attempting a loan modification.)  The condition of these properties ranged from “very 1976 original” to “highly upgraded.”  Some are in premium locations with views of the creek and park, and others are in more challenging locations.   They average 78 days on the market, and I don’t expect any of them to sell soon without price adjustments.

If you would like to see any of these homes, or would like an estimate of your home’s value, please call or email me soon! 

There are currently 5 active listings in the Lake Park West neighborhood, with 3 in escrow and 3 closings this year.  Of the 5 listings, one is bank-owned, 2 are short sales, and 2 are traditional “standard” sales.

Here are the 2009 sales for Lake Park West :

Two of these sales were standard sales, 1 was a short sale, one was a bank-owned, and 2 were flipped after being sold on the courthouse steps.

Here’s the overview of last year’s (2009) sales :

Out of the 6 sales, 3 were short sales, 1 was a bank-owned, and 2 were traditional sales.

I like this new report because it includes all the photos for each property, and will update itself if the price or status changes.  A new field called “Special Conditions” is under the property description and will tell you if the property is a short sale, or REO listing.  It also shows the $/square foot price of each property which I think may be valuable to the analytical types.  These links will all expire in 30 days, but I will provide all the new reports before then. 

Serrano Woods Condos

The Oaks

Forest Creek

Indian Hills

Lake Park West

Lakeside Park

Park Place

Parkwood Estates

Parkwood Estates 2

Prairie Ridge

Ranchwood Homes

Serrano Ridge

Lake Forest Keys

The Woods

Even though the national election is behind us, real estate activity is still being slowed by questions of what the economy will do, as well as concerns about the lending environment.  In California, the foreclosures have slowed noticeably, but it’s not clear whether that is because lenders are waiting to see what the $700 billion bailout will offer them, or because of California’s new law that requires lenders to document their attempts to work with borrowers before foreclosing.

It is still extremely frustrating for both buyers and sellers to complete short sales, and many times, the buyers give up and buy another property before getting a final answer.  Also, the lenders are taking so long to reach decisions regarding short sales, that the values are declining below the “approved” price, and the properties no longer appraise for value needed for the buyer’s loan!

There are currently foreclosed homes in almost every neighborhood in Lake Forest II, and the banks are pricing them to attract multiple offers.  Last month, out of 81 homes sold in Lake Forest, 40 of them were foreclosures, and 30 of those sold for over list price, and were on the market an average of only 15 days.  In reality, the 15-day average was inflated by the lender refusing to respond to any offers for the first 7 days, then giving all of those potential buyers another 5 days to re-write their offers with their “highest and best” terms.  I have represented several buyers in this type of “blind auction” bidding.  Since you don’t know how many, or how qualified the other buyers really are, the only way to respond is to think about what value would make you feel satisfied that you “won” without feeling that you were tricked into it.  It’s very difficult!

There are 12 foreclosed homes on the market in Lake Forest II neighborhoods today.  If you have a good imagination and don’t mind spending time, energy and money to update or repair a home to your own taste, one of them may be a good investment for you!  Contact me if you would like further information!

Here are the year-to-date activity reports for several Lake Forest II neighborhoods.  I will be adding the rest of them in the next few days.

Serrano Woods Condos 11-11-08

Forest Creek in Lake Forest YTD 11-11-2008

Park Place YTD 11-11-2008

Lakeside Park YTD 11-11-2008

Parkwood Estates II YTD 11-11-08