Posts Tagged ‘Moreno Valley’

Summary: Based on this data between the same time periods in 2009 vs. 2010 sales are down 31%.  In 2009 67% of the sales were REOs, in 2010 only 39% are REOs. Generally the short sales take the most days on the market to sell, and the Standard sales pull the highest prices per square foot.  Most of the listings now are short sales (including homes in foreclosure) and the REOs tend to sell the best. Read the rest of this entry »

Sketchers USA distribution center – south of the 60 freeway: between Theodore Street and Redlands Blvd – under construction

Read the rest of this entry »

Moreno Valley Home Prices and Trends May-June 2010

Bayer Facts: June 22, 2010

Provided by Beverly A. Bayer, SRA (appraiser) 951 247-3674

Read the rest of this entry »

10 Moreno Valley Homes Sold 3 Years Ago and What Happened to Them Since

23802 Parkland Avenue

1474sq’        built 1986    .11 acre lot

Sale History:	5/30/2006	$355,500	$241 per Sq’	100% financing	7.35% ADJ
	4/14/2009	$55,000	$37 per Sq’	as an REO
		-$300,500	-$8586 per month

16605 Vista Conejo Drive Read the rest of this entry »

The National unemployment rate for Feb 2009 hit 8.1% – that is a significant increase from the Feb 2008′s 6.2. California hit 10.1% in January 2009 – again a big increase over the Jan 2008′s 6.1%.
Riverside – San Bernardino – Ontario (California) had an unemployment rate of 10.1% in December 2008 another big increase over the 6.5% from December 2007. Read the rest of this entry »

Foreclosures, Affordability and Financing

Bayer Facts of Moreno Valley, CA: 3/5/2008

Moreno Valley Foreclosures

Notices of Default reported:	2/5/2008	70
	2/12/2008	63
	2/20/2008	56
	2/26/2008	127
	3/4/2008	101

= about 333 NODs per month – and for February 2008 about 108 homes are reported as sold in MLS (some by the auto close option).  There are 380 properties in Moreno Valley listed as pending in MLS – 244 pending since: 2/5/2008.  So even if each pending over the past month sold – there are more new Notices of Default.

Affordability

On 2/19/2008 C.A.R. reported the entry level affordability in California reached 33%, in the 4th quarter of 2007.  Which is the percentage of homebuyers can afford an entry level home. The calculation of mortgage payment is based on an interest rate of 6.21% with a 10% down payment.
The improvement was from 1 in 4 families that could afford the statewide entry-level home in the 4th quarter of 2006 to 1 in 3 families in the 4th quarter of 2007.

For Riverside / San Bernardino the affordability rate for the current period is 46% (almost ½) compared to 34% (about 1 family out of 3) 1 year ago.  For Riverside / San Bernardino the entry-level home price for the 4th quarter of 2007 was: $287,330 (basically 85% of the median home price per area) – with an estimated monthly mortgage payment with taxes and insurance at: $1920 and a qualifying income of: $57,600 (30%).

Financing

We at Bayer Appraisals have been surveying listings reported as sold by “auto sale” in MLS and finding the following:  7 out of 15 properties (we called about) reported as “closed” had not, due to the auto closing feature now part of our MLS.  Agents when asked did not like the new feature and sometimes did not know their pending sales were coming up as “closed”.   All together 10 agents were kind enough to talk about what they are seeing now.  They are seeing more activity and reported multiple offers – generally on the lower priced homes – typically on properties in move in condition.

FHA financing is hot in the around $200,000 price range and below; with down payment assistance common.  Tighter underwriting is a problem, often with last minute demands (such as larger down payments) extending the escrow times, or killing deals.  Some agents report an increase in desk reviews.  One agent had a problem where a desk review came in lower then the appraised value / purchase price.  100% financing is basically gone, and even 5% down might not be enough, for conventional loans.  Agents expressed a belief that foreclosures will remain a problem and prices will continue downward.

Hot news from Wil at MTGexperts.com – the new Fannie Mae / Freddie Mac – conforming loan limit is now: $500,000 in Riverside / San Bernardino Counties.

Only 48 homes sold through MLS (2007) – last November (2006) 151 homes sold.

23 of the current sales sold for $5000 to $82,000 below the final list price.

A house on Country Flower sold for $59,990 below list price.

A house on Delcresta sold for $74,000 below list price.

A house on Southwalk sold for $35,900 below list price.

A house on Saddlebrook sold for $25,000 below list price.

A house on Lafayette sold for $30,000 below list price.

A house on Kendra sold for $82,000 below list price.

13 homes were scheduled for foreclosure auction: 11/15/2007
17 homes had Notices of Default filed: 11/15/2007
4 homes sold per MLS: 11/15/2007
19 new listings: 11/15/2007

Next chart is the average dropping in value in the last 91 days (from: 12/3/2007) compared to the same period 1-year ago, by house size.

Moreno Valley Real Estate Market Snapshot: November 2007

In this Market Snapshot we take a look at what is going on inside the Moreno Valley real estate market at a quick glance.  We take a look at how many homes are currently listed in 3 separate categories.  We look at how many homes have sold in the last 31 days within each category as well as how long it would take to get rid of the inventory at the current rate of sales.

Homes: 1000 to 1200 square feet in size

185 listed – average price: $265,132 / per square foot: $239
9 sales in the last 31 days – at that rate it would take 20.5 months to sell the inventory
25% of the listings are now priced between: $169,900 and $235,000

Homes: 1400 to 1600 square feet in size

369 listed – average price: $302,479 / per square foot: $201
9 sales in the last 31 days – at that rate it would take 41 months to sell the inventory
25% of the listings are now priced between: $179,000 and $264,000

Homes: 1800 to 2000 square feet in size

204 listed – average price: $351,823 / per square foot: $186
8 sales in the last 31 days – at that rate it would take 25.5 months to sell the inventory
25% of the listings are now priced between: $189,900 and $314,000

There are 74 pending sales in the past 31 days

List prices of the pending sales range from: $174,900 to $681,801
Houses range in size from: 820 to 4288 square feet
Homes were built between 1960 and 2007
Average list price: $313,183 / per square foot: $161

25% of the pending sales were listed for: $245,000 or less 

Per MLS: 8 homes closed escrow

2297 square foot house on Cattail for: $475,000  ($206.79 per square foot)
It was first listed for sale 8/10/2006 for $749,900 – with the following price reductions: $715,000 (9/20/2006); $685,000 (10/24/2006); $633,000 (12/18/2006); $599,999 (2/25/2007); $569,990 (5/14/2007); $559,000 (6/21/2007); $549,000 (7/12/2007); $555,000 (7/12/2007); $545,000 (8/22/2007); $525,000 (8/30/2007); $524,900 (8/31/2007) – going pending on 10/22/2007 – with a final sales price $274,000 less then original list price 14 months back.

3771 square foot new home on Salt Mission for $455,000 ($120.66 per square foot)
First listed in MLS 2/13/2007 for $561,990 – selling in 203 days for $106,990 less.  New owner got almost 100% financing.

1858 square foot new home on Quail Creek for $342,500 ($184.33 per square foot)
First listed in MLS 6/8/2007 for $402,990 – selling in 49 days for $60,490 less.

2677 square foot home on Zaharias for: $320,000 ($119.54 per square foot)
This was a lender REO with a prior sale 3/31/2005 for $460,000 (selling now for $140,000 less in 31 months = a loss of value of $4516 per month).  House was first listed for sale 3/16/2006 for $505,000 – taking 288 days to sell with 13 price reductions, and selling for $19,000 below the final list price.

1795 square foot home on Cherrylaurel for: $270,000 ($150.42 per square foot)
A lender REO originally listed for sale 11/27/2006 at $410,000 – on the market 256 days – selling in the end for $140,000 less then the original list price.

1070 square foot 2 bedroom, 2 bath home sold for $265,000 ($247.66 per square foot) on Red Mahogany was originally listed for sale 11/22/2006 at $325,000 – taking 304 days to sell – in the end for $60,000 below original list price.  New owner purchased with 100% financing.

1308 square foot home on Shady Glen for: $253,000 ($193.43 per square foot)
It took 90 days to sell with an original list price of $289,900 – per MLS seller paid $10,000 of buyer’s closing costs with 100% financing.

1420 square foot home on Hartland for: $247,000 ($173.94 per square foot)
Another lender REO with a prior sale on 2/27/2006 for $385,000 – with is $138,000 more than recent sale 20 months later = a loss of $6900 a month. It was originally listed on 29 days at: $259,900 – with no price reductions, but sold for $12,900 below the list price.

4 homes went pending

A lender REO 2034 square foot home on Snowbell – with a final list price of: $309,900
Prior sale $440,000 (5/12/2006) – a decline of $130,100 in 17 months (= $7653 per month).  Has been listed 192 days – starting at $414,900.

1317 square foot home on Rena – with a final list price of: $249,900 – listed 108 days with an original price of $270,000.

A lender REO 1512 square foot home on Gorrion – with a final list price of: $247,500
Prior sale 8/11/2006 for $420,000 (that is a drop of  $172,500 in 14 months = $12,321 per month).  The final list price at that time was $372,000 (so it looks like the purchase price was elevated $48,000 in 2006 – with 100% financing – I think that might be mortgage fraud).

Lender REO 1261 square foot home on Mead – with a final list price of: $234,900
Originally listed for sale 7/24/2006 at $369,999 – for a total of 195 days.

14 Notices of Default filed

On the following streets: Calle Agua; Fay: Beal; Dabney; Finley; Tonadilla; Barley; Venetian; Morningside; Myers; Marston; Woodpecker; Canvasback; and Cleveland Bay.

Conclusions and More

Of the 12 sold and pending sales on day in Moreno Valley – 6 (1/2) are lender REOs.  2 of the ones that sold (1/4) had 100% financing.  2 of the sold homes were new homes.  Of the 12 solds and pending sales only 1 sold in less than 1 month; 4 total sales under 100 days; 3 took between 100 and 200 days to sell; 3 sold between 200 and 300 days; and 1 took 304 days to sell and the home on Cattail took 428 days to sell.  The average time on the market was: 180 days (6 months).  The chart below shows the number of closed sales, pending sales and notices of default filed on one day for Moreno Valley homes: 10/26/2007.

Data Quick just came out with the October 2007 sales data – it is not good!  Only 81 homes sold in Moreno Valley for the month (in Oct 2006 289 homes sold) – with prices down in 1 year:

18.4% for zip code 92551                    17% for zip code 92553           23.3% for zip code 92555
23.5% for zip code 92557

That on average equals a drop in prices in 1-year (October 2006 to October 2007) in Moreno Valley of 20.9% or on average 1.745% per month – on a $400,000 house that would be almost $7000 per month or almost $84,000 in 1 year.  The average sales price per square foot is now: $186.

This chart is median Moreno Valley home prices from Dqnews for every October since 1988

This chart is for zip code 92557 since January 2005 for the median sales prices – with a trend line showing the increase in prices and then the decline.

Taking 3 of the recent sales and pulling model match sales – this is what I found:

For the 2677 square foot home on Zaharias sales by date =
8/2002             $257,900                     up        $62,100  in 5 years, 2 months
1/2003             $282,000                     up        $38,000 in 4 years, 9 months
10/2004           $449,900                     down    $129,900 in 3 years
10/2005           $477,000                     down    $157,000 in 2 years
2/2006             $479,900                     down    $159,000 in 1 year, 8 months
1/2007             $424,500                     down    $104,500 in 9 months
10/2007           $320,000         down    $159,900 from the high in 20 months = – $7995 per month

For the 1795 square foot home on Cherrylaurel
2/2005             $350,000
4/2005             $359,000
4/2005             $367,000
5/2005             $369,000
5/2005             $375,000
6/2005             $369,000
6/2005             $369,000
7/2005             $380,000
8/2005             $384,900
8/2005             $387,500
8/2005             $390,000
8/2005             $399,000
9/2005             $415,000
10/2005           $398,999
12/2005           $411,000
3/2006             $389,000
3/2006             $419,000
3/2006             $420,000
5/2006             $419,900
5/2006             $429,000         high      up $79,000 in 1 year, 3 months = + $5267 per month
6/2006             $409,000
10/2006           $415,000
10/2006           $415,000
3/2007             $369,900
10/2007           $335,000
10/2007           $310,000
10/2007           $270,000         down $159,000 in 1year, 4 months = – $9937.50 a month

For the 1070 square foot home on Red Mahogany
8/2002             $127,500
11/2002           $129,600
9/2003             $145,000
4/2004             $210,000
7/2004             $210,000
11/2004           $225,000
11/2004           $250,000
6/2005             $270,000
11/2005           $285,000
11/2005           $288,000
12/2005           $290,500
6/2006             $314,000
9/2006             $320,000         high      up $192,500 in 4 years, 1 month = + $3928 per month
10/2007           $265,000         down    $55,000 in 1 year, 1 month = – $4231 per month

On 11/30/2007 there were 88 single family homes listed for sale in Moreno Valley priced at $200,000 or less; with an average price per square foot of: $178; with 12 pending sales – with an average list price per square foot of: $164; but only 2 sales since 1-1-2007 for $200,000 or less.  Looking at the data – we see a large inventory of homes for sale, long marketing times, few sales per month, dropping prices, under cutting prices and future foreclosures – insuring prices will continue downward for some time, until the number of home sales per day adequately exceeds the number of new listings per day.

Moreno Valley Home Prices 2000-2007

Chart of the median home prices for the 4 Moreno Valley zip codes from September 2000 to September 2007 from dqnews.com.