What are the Sale Price Points?
The Active Funding Group is a local real estate investor funding business based in Scottsdale. They sent out some information yesteraday on market conditions and one thing caught my eye:
"List price Av. Days on market
0-100,000 85
101-200,000 107
201-400,000 135
401-750,000 188
751-1,001,000 234
1,001-2,000,000 258
2,001-5,000,000 361
5,001-10,000,000 369
Over 10,000,000 377
Summary
Over 78% of sales occur in the $200k and under category Over 90% of sales occur in the $400k and under category"
This was as of 3.4.10 and these are their numbers but I am reminded of an early business lesson: Price only affects days on market - it has NO effect on sale price. So when 90% of sales happen below $400K and "there are only so many 800 FICO score buyers with 30% (or more) in cash for a down payment" that means the pool of buyers for homes in Aviano is relatively small. Lending today is just ridiculously difficult.
The only hammer sellers have today is price reductions and there you have our current market problem. The first quarter of this year in Aviano has been really tough on sale pricing and if you factor in even a modest increase in interest rates, well my friend, it is not going to pretty for some time to come.
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From DSNews.com "your daily dose of default servicing news" comes this proposed action by those who govern us. If you were a lender and this was happening to you, why would you loan again if only to the most highly qualified? Would you think you had died and woken up in Cuba of Venezuela?
Congressman Calls for Second Lien Write-Downs
As servicers step up efforts to modify loans and keep borrowers in their homes, many are tripping over stumbling blocks in the form of home equity loans and other second lien mortgages. House Financial Services Committee Chairman Barney Frank has sent out a petition to some of the nation's largest junior lien holders demanding that
they take "immediate steps to write down second mortgages" to create a clear path for sustainable loan restructurings, especially since the prospect for any real return on these seconds is negligible, Frank says.
Click Here for the rest of the story.
Tags: aviano, desert ridge, phoenix, real estate, villages, fireside, Arizona, short sale, foreclosure, Toll Brothers. Information supplied by MLS and deemed reliable but not guaranteed.
"List price Av. Days on market
0-100,000 85
101-200,000 107
201-400,000 135
401-750,000 188
751-1,001,000 234
1,001-2,000,000 258
2,001-5,000,000 361
5,001-10,000,000 369
Over 10,000,000 377
Summary
Over 78% of sales occur in the $200k and under category Over 90% of sales occur in the $400k and under category"
This was as of 3.4.10 and these are their numbers but I am reminded of an early business lesson: Price only affects days on market - it has NO effect on sale price. So when 90% of sales happen below $400K and "there are only so many 800 FICO score buyers with 30% (or more) in cash for a down payment" that means the pool of buyers for homes in Aviano is relatively small. Lending today is just ridiculously difficult.
The only hammer sellers have today is price reductions and there you have our current market problem. The first quarter of this year in Aviano has been really tough on sale pricing and if you factor in even a modest increase in interest rates, well my friend, it is not going to pretty for some time to come.
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From DSNews.com "your daily dose of default servicing news" comes this proposed action by those who govern us. If you were a lender and this was happening to you, why would you loan again if only to the most highly qualified? Would you think you had died and woken up in Cuba of Venezuela?
Congressman Calls for Second Lien Write-Downs
As servicers step up efforts to modify loans and keep borrowers in their homes, many are tripping over stumbling blocks in the form of home equity loans and other second lien mortgages. House Financial Services Committee Chairman Barney Frank has sent out a petition to some of the nation's largest junior lien holders demanding that
they take "immediate steps to write down second mortgages" to create a clear path for sustainable loan restructurings, especially since the prospect for any real return on these seconds is negligible, Frank says.
Click Here for the rest of the story.
Tags: aviano, desert ridge, phoenix, real estate, villages, fireside, Arizona, short sale, foreclosure, Toll Brothers. Information supplied by MLS and deemed reliable but not guaranteed.
