BNI presentation 4-22-10

Santa Clarita ValleyResidential Real Estate

BNI Presentation on April 22, 2010By

Phil Levy, REALTOR®, CDPEIntero Real Estate Services

[email protected]

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State of the SCV Residential Real Estate Market

Four Questions:1. What’s new in the SCV?2. Has the residential real estate market

turned?3. Has the mortgage meltdown ended?4. What’s going on with all those short sales?

April 22, 2010

Phil Levy, REALTOR®, CDPE Intero Real Estate Services

www.jpscvrealty.com

Phil Levy, REALTOR®, CDPE Intero Real Estate Services www.jpscvrealty.com

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What’s New in the SCV?

• SCV – Great Place to Live and Work• City of Santa Clarita is 51st most affluent in US

– Ranks in top 15% of all cities with a population greater than 75,000.

– Very giving community– Source: The Signal, Monday April 12 2010.

• January 2010 unemployment was 8.2% vs 13.2% for LA County and State of CA– Source: Santa Clarita Business Journal – April 2010.

• SCV – Preferred filming location for all sorts of films, TV series, and commercials – www.filmsantaclarita.com

April 22, 2010


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Has the Residential Real Estate Market Turned?

April 22, 2010

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State of the Market?

April 22, 2010


www.jpscvrealty.com

Peak Median – Apr ‘06 @ $643,000

DO

M*

*DOM = Days on Market

409,950

403,000

Single Family Residences


6April 22, 2010

4 mos

2 mos

7262


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Has the Residential Housing Market Turned?

• Perhaps – Some upward trend in overall median prices combined

with low inventories– Storm Clouds

• FED recently stopped supporting the secondary mortgage market – potential for increasing interest rates.

• Expiration of Fed Income Tax Credit – potentially offset by state credit as long as it lasts.

• Mortgage meltdown continues to depress prices.

– Sunny Skies• Improving overall economy +++

April 22, 2010


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Has the Mortgage Meltdown Ended?

April 22, 2010

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• Distressed Homeowners Dominate– SCV Sales Stats (SRAR MLS) –

• Closed Sales (749)

April 22, 2010


www.jpscvrealty.com

199; 27%

226; 30%

324; 43%

Closed Sales YTD March 2010

Short SaleBank OwnedAll Other


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• Active Listings – as of March 2010

– Total Active/Backup status – 1,230

April 22, 2010

697; 57%

70; 6%

463; 38%

Active Listings at March 2010

Short SaleBank OwnedAll Other


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• Then add several hundred thousand REO’s that bank’s have not released to the market.

• So no – “we still have miles to go before we sleep” (Robert Frost)

April 22, 2010


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What’s Going On with all Those Short Sales

• Definition –– Market Value < Loans: Requires lender(s) approval

• Application procedure is quite onerous, cumbersome and lengthy

• Here comes HAFA (not a coffee whitener)– Home Affordable Foreclosures Alternative Program– Implemented by the Treasury just on April 5, 2010.

April 22, 2010


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What’s Going On with Short Sales?

• HAFA Cont.– Administered by Fannie Mae– Objective is to avoid valuation devastation to

communities by resolving distressed properties through short sales or deeds in lieu of foreclosure rather than foreclosure

• Recent study revealed that lenders can expect on average 60% recovery via short sale vs 30% via foreclosure

April 22, 2010


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What’s Going On with Short Sales?

• HAFA Cont.– Promulgates major improvements for sellers

• Lenders must comply with standard documents & timelines.

• Pre-approved short sale terms prior to listing the property.

– Eliminates guesswork on behalf of sellers, buyers and agents wondering whether the lender will approve the price/terms

• Releases sellers from liability of delinquency balances– Check with tax advisor re tax consequences

• $3,000 relocation assistance

April 22, 2010


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What’s Going On with Short Sales?• HAFA Cont.

– Generally borrowers are eligible if they do not/have not qualified for modification

– Lenders must subscribe to the standard and most of the majors have;

– Fannie Mae and Freddie Mae Owned are expected soon to adapt this standard

– Visit www.santa-clarita-home-solutions.com for free detailed information, surveys and reports. A useful survey is found at www.santa-clarita-home-solutions.com/eligibility

April 22, 2010

Bank of America CitibankJP Morgan Chase GMAC Financial ServicesWachovia Wells Fargo

http://www.santa-clarita-home-solutions.com/

http://www.santa-clarita-home-solutions.com/eligibilty

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Conclusion

• Buyers - Beware the cost of waiting:– Upward trending median prices– Increasing interest rates

• Especially with economic recovery

– Loss of tax credits• Sellers –

– Low inventories should generally result in quick sales– Great opportunities for up scaling, relocating, or investing

• Distressed homeowners – – HAFA presents a unique opportunity to start over

April 22, 2010


www.jpscvrealty.com

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Web Services for Clients• www.jpscvrealty.com

– Marketsnapshot – gives market activity within the vicinity of a given address.– Property searches– Comprehensive Rent_v_Buy calculator customized for the California market– Loan Calculator– Resources for property tax reassessment– Community Information– Foreclosure Lists– Resource information for distressed sellers and first time buyers – Bios– HAFA site (under construction)

• blog.jpscvrealty.com – contains timely updates on the status of the residential market .

• Text FINDSCV to 87778 for free smart phone GPS MLS app• www.santa-clarita-home-solutions.com. Survey found on

www.santa-clarita-home-solutions.com/eligibilty

April 22, 2010


www.jpscvrealty.com

http://www.jpscvrealty.com/

http://www.santa-clarita-home-solutions.com/

http://www.santa-clarita-home-solutions.com/eligibilty

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Appendix: What is the SCV?

• The Southland Regional Association of Realtors Multiple Listing Service defines SCV as:

• Constitutes City of Santa Clarita – Saugus south of Copper Hill.

• The SCV consists of 200 square miles.• The City of Santa Clarita consists of 52 square miles making it

geographically the largest city in LA County

Acton Newhall*Aqua Dulce Stevenson RanchCastaic Saugus*Canyon Country* Valencia*

April 22, 2010


www.jpscvrealty.com

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What is SCV – cont.

• Recently voted the most “Business Friendly” city in LA County

• Schools rank among the top 10% in CA according to the CA Assessment Program.

• Higher median city household income vs LA County overall - $76 vs $52 (data from 2006).

• Lower unemployment October 2009 – 7.8% vs 12.6% LA

April 22, 2010


www.jpscvrealty.com

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What is SCV – cont.• Enterprise Zone encompasses 97% of all commercial, business and

industrial land w/in the city.– Provides certain income tax incentives for employing eligible individuals.

• Volunteerism – – Multitude of civic organizations

• All seem to have really cool galas.

– Example: Senior Center • For more info on SCV –

– www.santa-clarita.com• Also refer to city’s monthly “Economic Snapshot”. Link through to “Community

Profile” section on the website.

– www.SCVchamber.com• SCV is a GreAT Place to live and work.

April 22, 2010


www.jpscvrealty.com

http://www.santa-clarita.com/

http://www.scvchamber.com/

BNI presentation 4-22-10

Real Estate

Transcript of BNI presentation 4-22-10