Real Estate
Buy my house, please!
As the market cools, it will take more work to get that 'For Sale' sign out of your front yard. –
To say that it's been a seller's housing market is the understatement of the year. Homeowners looking to sell in most parts of the country haven't had to wait around very long for a suitable offer, and those in the best markets have seen their homes swooped up in a matter of days, even hours.
In early 2003, in fact, 21 percent of all houses went into contract less than one week after going on the market, according to the National Association of Realtors (NAR). On average, houses sold in just five weeks – nearly half the time it took throughout the 1990s.
"I believe this may be our best year ever," said David Hemenway, a realtor in Cottage Grove, Ore., who's been in the business since 1968. On the other side of the country in Sebring, Fla., realtor Chip Boring is enjoying a record year.
Yet, both are aware that great times can't last forever. "Up until the last 2 1/2 years the average time on the market was anywhere from 180 days to 210 days," Boring said. And Hemenway recalls the early 1980s when his listings lingered on the market, sometimes for years.
As interest rates creep up, buyers' budgets creep down and markets return to more normal levels, sellers will discover that it takes a little more work (and patience) to unload their homes. Many already have. While there is little you can do to change the laws of supply and demand, you have some control over whether your house sits or sells.
Here are the most common reasons houses don't sell, in order of importance.
The price is not right
Even in the best of markets, setting your price too high is a mistake -- unless you really don't want to sell your house.
"Starting too high is the worst thing you can do," said Hemenway.
Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
"Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with," said Hemenway.
In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.
To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. "Everyone thinks there must be something wrong with the house if it hasn't sold," said Boring, adding that for this reason he won't take on a listing if the seller insists on asking more than the house is worth.
To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers' attention. "In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage," said Ron Phipps, a realtor in Warwick, R.I.
The house is in the wrong place
When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most, said Hemenway.
Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it.
"If you have a $300,000 house in a neighborhood of $100,000, be prepared to lower the price or let it sit," said Boring.
Buyers can't get past the front door
Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
"I recently sold a house that from the front was not very inspired," said Phipps. "The buyers came to the open house only because they needed to kill time, but once inside they were interested."
For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.
In the case of houses whose best features are inside or out back, Phipps recommends taking good interior pictures and putting 360-degree tours online.
Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."
Too much chintz and tchotchkes
Less is more when it comes to attracting buyers.
"Put all of those pictures of your family and other personal treasures away," said Sheryl Gregory, a broker in Wynthrop, Maine. "It distracts buyers and makes it harder for them to picture themselves in the house."
She also recommends taking down distracting curtains and putting on a fresh coat of paint. "Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting," she added.
According to Sarah Max cnn/money
I am Alberto Pacheco, a Realtor Associate with Keller Williams Realty my office is located at 19300 Rinaldi St Suite L Porter Ranch,CA 91326. (818)481 9211.I consider myself a consultant. I assist home owners with their home sale as well as home buyers with their purchase. I specialize on Probate Home listings , Short Sales and Standard sales.
Monday, October 23, 2006
Real Estate
Buy my house, please!
It's been a seller's housing market is the understatement of the year. Homeowners looking to sell in most parts of the country haven't had to wait around very long for a suitable offer, and those in the best markets have seen their homes swooped up in a matter of days, even hours.
In early 2003, in fact, 21 percent of all houses went into contract less than one week after going on the market, according to the National Association of Realtors (NAR). On average, houses sold in just five weeks – nearly half the time it took throughout the 1990s.
"I believe this may be our best year ever," said David Hemenway, a realtor in Cottage Grove, Ore., who's been in the business since 1968. On the other side of the country in Sebring, Fla., realtor Chip Boring is enjoying a record year.
Yet, both are aware that great times can't last forever. "Up until the last 2 1/2 years the average time on the market was anywhere from 180 days to 210 days," Boring said. And Hemenway recalls the early 1980s when his listings lingered on the market, sometimes for years.
As interest rates creep up, buyers' budgets creep down and markets return to more normal levels, sellers will discover that it takes a little more work (and patience) to unload their homes. Many already have. While there is little you can do to change the laws of supply and demand, you have some control over whether your house sits or sells.
Here are the most common reasons houses don't sell, in order of importance.
The price is not right
Even in the best of markets, setting your price too high is a mistake -- unless you really don't want to sell your house.
"Starting too high is the worst thing you can do," said Hemenway.
Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
"Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with," said Hemenway.
In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.
To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. "Everyone thinks there must be something wrong with the house if it hasn't sold," said Boring, adding that for this reason he won't take on a listing if the seller insists on asking more than the house is worth.
To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers' attention. "In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage," said Ron Phipps, a realtor in Warwick, R.I.
The house is in the wrong place
When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most, said Hemenway.
Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it. "If you have a $300,000 house in a neighborhood of $100,000, be prepared to lower the price or let it sit," said Boring.
Buyers can't get past the front door
Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
"I recently sold a house that from the front was not very inspired," said Phipps. "The buyers came to the open house only because they needed to kill time, but once inside they were interested."
For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.
In the case of houses whose best features are inside or out back, Phipps recommends taking good interior pictures and putting 360-degree tours online.
Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."
Too much chintz and tchotchkes
Less is more when it comes to attracting buyers.
"Put all of those pictures of your family and other personal treasures away," said Sheryl Gregory, a broker in Wynthrop, Maine. "It distracts buyers and makes it harder for them to picture themselves in the house."
She also recommends taking down distracting curtains and putting on a fresh coat of paint. "Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting," she added.
According to Sara Max CNN/MONEY
Buy my house, please!
It's been a seller's housing market is the understatement of the year. Homeowners looking to sell in most parts of the country haven't had to wait around very long for a suitable offer, and those in the best markets have seen their homes swooped up in a matter of days, even hours.
In early 2003, in fact, 21 percent of all houses went into contract less than one week after going on the market, according to the National Association of Realtors (NAR). On average, houses sold in just five weeks – nearly half the time it took throughout the 1990s.
"I believe this may be our best year ever," said David Hemenway, a realtor in Cottage Grove, Ore., who's been in the business since 1968. On the other side of the country in Sebring, Fla., realtor Chip Boring is enjoying a record year.
Yet, both are aware that great times can't last forever. "Up until the last 2 1/2 years the average time on the market was anywhere from 180 days to 210 days," Boring said. And Hemenway recalls the early 1980s when his listings lingered on the market, sometimes for years.
As interest rates creep up, buyers' budgets creep down and markets return to more normal levels, sellers will discover that it takes a little more work (and patience) to unload their homes. Many already have. While there is little you can do to change the laws of supply and demand, you have some control over whether your house sits or sells.
Here are the most common reasons houses don't sell, in order of importance.
The price is not right
Even in the best of markets, setting your price too high is a mistake -- unless you really don't want to sell your house.
"Starting too high is the worst thing you can do," said Hemenway.
Why? Because your greatest opportunity for selling your house is immediately after it goes on the market. That's when the majority of serious buyers will see the house.
"Even if you lower the price to reflect the market, you'll have fewer people coming through than if you'd just priced it right to begin with," said Hemenway.
In fact, it's not until after you bring the price down below the market – something few sellers want to do – that interest will pick up again.
To make matters worse, say real estate agents, the longer a house sits the harder it is to sell. "Everyone thinks there must be something wrong with the house if it hasn't sold," said Boring, adding that for this reason he won't take on a listing if the seller insists on asking more than the house is worth.
To drum up new interest among buyers, sellers sometimes pay for extra advertising or offer to, for example, pay for closing costs as a way to get buyers' attention. "In markets where people don't have a lot of cash, paying for closing costs or buying down interest rates with points up front can put you at a huge advantage," said Ron Phipps, a realtor in Warwick, R.I.
The house is in the wrong place
When markets are good, buyers are more willing to buy on the outskirts of an area or turn a blind eye to busy streets, bad views and other problems. But when markets cool down, it's these spots that suffer the most, said Hemenway.
Short of moving the house, there is not much you can do if it is in the wrong location. But while in the house you can take care to make sure you don't over-improve your property relative to the ones around it. "If you have a $300,000 house in a neighborhood of $100,000, be prepared to lower the price or let it sit," said Boring.
Buyers can't get past the front door
Realtors say that getting buyers to take a look inside a house is the biggest challenge of selling a house. Once they've stepped through the door buyers are more likely to consider a place.
"I recently sold a house that from the front was not very inspired," said Phipps. "The buyers came to the open house only because they needed to kill time, but once inside they were interested."
For this reason, a little time and money spent on curb appeal will go a long way. Trimming the grass, washing the windows and planting a few flowers may be all it takes.
In the case of houses whose best features are inside or out back, Phipps recommends taking good interior pictures and putting 360-degree tours online.
Sellers sometimes get buyers to look past their homes' imperfections with creative extras. "I've seen sellers offer decorating allowances, and pay for cleaning service and landscaping," said Phipps. "Several years ago a seller in the bakery business offered to bring the buyer a different cake every month."
Too much chintz and tchotchkes
Less is more when it comes to attracting buyers.
"Put all of those pictures of your family and other personal treasures away," said Sheryl Gregory, a broker in Wynthrop, Maine. "It distracts buyers and makes it harder for them to picture themselves in the house."
She also recommends taking down distracting curtains and putting on a fresh coat of paint. "Buyers sometimes get scared if they wander through a house and think they're going to have to do a lot of painting," she added.
According to Sara Max CNN/MONEY
Thursday, October 19, 2006
Real Estate
More Homeowners Going Into Default
A housing market slowdown combined with rising payments on adjustable-rate loans is leading to a sharp hike in notices from lenders.
By David Streitfeld and Martin Zimmerman, Times Staff WritersOctober 19, 2006
The number of Californians who are significantly behind on their mortgage payments and at risk of losing their homes to foreclosure more than doubled in the three months ended Sept. 30, providing the latest evidence of trouble in the housing market, figures released Wednesday show.Lenders sent out 26,705 default notices — the first step toward a foreclosure — during the July-to-September period, up from 12,606 during the same quarter in 2005, according to DataQuick Information Systems.
Defaults are still well below their peak level of 59,897, which came in the first three months of 1996, as the state's last housing slowdown was ending. But the report shows that the slumping housing market is taking a toll on more homeowners especially those with mortgages that offer low initial payments at the cost of higher bills down the road."We were putting buyers in homes with loans they could not afford to sustain over the long haul," said Bob Casagrand, a San Diego real estate agent. "If you're a marginal buyer with an adjustable mortgage, you're rolling the dice on the future."Foreclosures are rare when the housing market is strong and prices are rising. In those conditions, borrowers can usually sell their homes quickly, or they have enough equity to allow them to refinance their loans. But in another disquieting sign, DataQuick reported that 19% of the owners who went into default earlier in the year actually lost their homes to foreclosure in the third quarter, more than triple the 6% in 2005.Mortgage payments are such a big part of the household budget for many Californians that it takes only a little trouble to fall behind.
For Stacey and Mike Broussard, all it took was an exceptionally rainy spring. That meant Mike Broussard was laid off from his job as a heavy equipment operator."I tried to juggle things around — we were eating a lot of peanut butter and a lot of beans — but it got out of control," said Stacey Broussard, 39.She was in charge of the bills and each month would pay what she could of the $1,300 the lender expected for the mortgage on their home northeast of San Francisco in Antioch. At the end of August, she said, she tried to make another partial payment, but the lender said anything less than a full payment would lead to a default.
One day her husband said she had a notice from the post office to pick up a special letter. She knew what it was, but he didn't. "I was trying to fix it before I told him," she said. "That was the worst moment."Mike Broussard is now employed again, and the couple — who are lucky enough to have equity in their home — are working with TerraCotta Group, a Manhattan Beach real estate and mortgage company that specializes in helping delinquent homeowners get out of default.
When she started TerraCotta 2 1/2 years ago, company President Tingting Zhang said two or three people would come through her door on the typical day looking for help. Now, it's 30 to 40. "And we haven't reached the peak yet," said Zhang, who believes that the combination of rising interest rates and high-risk mortgages could spell defeat for a rising number of borrowers.Just Wednesday morning, Zhang dealt with a Lancaster resident who had taken out a $310,000 adjustable-rate mortgage with a starter interest rate of 5.4% and a monthly payment of $1,050. In July, the interest rate climbed to 8.5% and the monthly payment jumped to $2,306. A year-end adjustment will send the monthly payment to $2,744."The borrower is totally unprepared for this rate adjustment," Zhang said.The fallout is starting to show up in the workload at credit counseling outfits.
Gary Aguilar, counseling manager for Springboard, a nonprofit credit counseling agency in Riverside, said the amount of mortgage-related work he and his staff were doing had "pretty much tripled this year."The softening of the housing market was the trigger, as new homeowners with little or no equity in their properties found themselves unable to sell at a high enough price to pay off the balance of the loan and still cover all of the sale expenses."Whereas a year ago, people could have put their house on the market and sold their way out of the problem, now they're stuck with the house," said Richard Pittman, housing services coordinator for credit counselor ByDesign Financial Solutions in Los Angeles
Provided by Los Angeles Times
More Homeowners Going Into Default
A housing market slowdown combined with rising payments on adjustable-rate loans is leading to a sharp hike in notices from lenders.
By David Streitfeld and Martin Zimmerman, Times Staff WritersOctober 19, 2006
The number of Californians who are significantly behind on their mortgage payments and at risk of losing their homes to foreclosure more than doubled in the three months ended Sept. 30, providing the latest evidence of trouble in the housing market, figures released Wednesday show.Lenders sent out 26,705 default notices — the first step toward a foreclosure — during the July-to-September period, up from 12,606 during the same quarter in 2005, according to DataQuick Information Systems.
Defaults are still well below their peak level of 59,897, which came in the first three months of 1996, as the state's last housing slowdown was ending. But the report shows that the slumping housing market is taking a toll on more homeowners especially those with mortgages that offer low initial payments at the cost of higher bills down the road."We were putting buyers in homes with loans they could not afford to sustain over the long haul," said Bob Casagrand, a San Diego real estate agent. "If you're a marginal buyer with an adjustable mortgage, you're rolling the dice on the future."Foreclosures are rare when the housing market is strong and prices are rising. In those conditions, borrowers can usually sell their homes quickly, or they have enough equity to allow them to refinance their loans. But in another disquieting sign, DataQuick reported that 19% of the owners who went into default earlier in the year actually lost their homes to foreclosure in the third quarter, more than triple the 6% in 2005.Mortgage payments are such a big part of the household budget for many Californians that it takes only a little trouble to fall behind.
For Stacey and Mike Broussard, all it took was an exceptionally rainy spring. That meant Mike Broussard was laid off from his job as a heavy equipment operator."I tried to juggle things around — we were eating a lot of peanut butter and a lot of beans — but it got out of control," said Stacey Broussard, 39.She was in charge of the bills and each month would pay what she could of the $1,300 the lender expected for the mortgage on their home northeast of San Francisco in Antioch. At the end of August, she said, she tried to make another partial payment, but the lender said anything less than a full payment would lead to a default.
One day her husband said she had a notice from the post office to pick up a special letter. She knew what it was, but he didn't. "I was trying to fix it before I told him," she said. "That was the worst moment."Mike Broussard is now employed again, and the couple — who are lucky enough to have equity in their home — are working with TerraCotta Group, a Manhattan Beach real estate and mortgage company that specializes in helping delinquent homeowners get out of default.
When she started TerraCotta 2 1/2 years ago, company President Tingting Zhang said two or three people would come through her door on the typical day looking for help. Now, it's 30 to 40. "And we haven't reached the peak yet," said Zhang, who believes that the combination of rising interest rates and high-risk mortgages could spell defeat for a rising number of borrowers.Just Wednesday morning, Zhang dealt with a Lancaster resident who had taken out a $310,000 adjustable-rate mortgage with a starter interest rate of 5.4% and a monthly payment of $1,050. In July, the interest rate climbed to 8.5% and the monthly payment jumped to $2,306. A year-end adjustment will send the monthly payment to $2,744."The borrower is totally unprepared for this rate adjustment," Zhang said.The fallout is starting to show up in the workload at credit counseling outfits.
Gary Aguilar, counseling manager for Springboard, a nonprofit credit counseling agency in Riverside, said the amount of mortgage-related work he and his staff were doing had "pretty much tripled this year."The softening of the housing market was the trigger, as new homeowners with little or no equity in their properties found themselves unable to sell at a high enough price to pay off the balance of the loan and still cover all of the sale expenses."Whereas a year ago, people could have put their house on the market and sold their way out of the problem, now they're stuck with the house," said Richard Pittman, housing services coordinator for credit counselor ByDesign Financial Solutions in Los Angeles
Provided by Los Angeles Times
Wednesday, October 11, 2006
Real Estate
HOME VALUESHousing's hottest markets
REAL ESTATEHome prices dip Existing-home prices fell in August for the first time in 11 years.•
Bakersfield once hot, now cold
Census survey looks at the biggest winning cities in home values from 2000 to 2005.• Ready for 'me' time at home• Fishy rehab-at-closing scheme• The condo-investment hangover
TRENDSLiving it up by living smallDefying trends, some homeowners have decided to do more with less.• Using design to ease downsizing• The weeHouse way
INSURANCEOverpaying on the house Homeowners' claims behavior may be costing them hundreds of dollars on policies.
RealEstateJournal coverage
House TalkWall Street Journal writer June Fletcher answers your questions.My investmentLearn firsthand from those who buy and sell income property.Search houses for sale or rent
MORTGAGESShouldering a big burden
Facing payments that could double, holders of option ARMs now find their choices limited.• Legal cash back at closing•
Senate hears of loan confusion
Dip in gas prices should ease winter heating bills WASHINGTON (MarketWatch) -- The recent drop seen in natural gas prices is likely to help soften U.S. consumer heating bills this winter, the
American Gas Association said at a briefing on Monday.
Realty Q&A: More tricky ways mortgage fraudsters seek to prosper WASHINGTON (MarketWatch) -- Question: I have read your articles and enjoy them and learn from them. Now I have a question. A "friend" has $300,000 in equity in his house. A broker asks him to flip to another mortgage, guaranteeing him a $6,000 dollar profit every three months if every three months he agrees to do this. Also, the broker agrees to take care of all the cost; "friend" pays nothing, zip, zero, nada. How is it possible? Sean.
U.S. mortgages hold at 7-month lows CHICAGO (MarketWatch) -- Mortgage rates held at seven-month lows this week, propelling a round of refinancing, according to Freddie Mac's weekly survey released Thursday.
Who's exposed to the housing chill? Look around your home SAN FRANCISCO (MarketWatch) -- It's not just homeowners and homebuilders that have a lot to lose if tremors roiling the real estate market turn into a full-scale quake.Contractors see their prices rising faster than inflation Pending-home sales rise 4.3% in August Can U.S. curb the mortgage frenzy that puts homeowners at risk?
Real Estate Library
•
Home Buying & Selling
•
Home Improvements
•
Mortgages & Home Loans
•
Renting
More...
See More Stories in the Library
HOME VALUESHousing's hottest markets
REAL ESTATEHome prices dip Existing-home prices fell in August for the first time in 11 years.•
Bakersfield once hot, now cold
Census survey looks at the biggest winning cities in home values from 2000 to 2005.• Ready for 'me' time at home• Fishy rehab-at-closing scheme• The condo-investment hangover
TRENDSLiving it up by living smallDefying trends, some homeowners have decided to do more with less.• Using design to ease downsizing• The weeHouse way
INSURANCEOverpaying on the house Homeowners' claims behavior may be costing them hundreds of dollars on policies.
RealEstateJournal coverage
House TalkWall Street Journal writer June Fletcher answers your questions.My investmentLearn firsthand from those who buy and sell income property.Search houses for sale or rent
MORTGAGESShouldering a big burden
Facing payments that could double, holders of option ARMs now find their choices limited.• Legal cash back at closing•
Senate hears of loan confusion
Dip in gas prices should ease winter heating bills WASHINGTON (MarketWatch) -- The recent drop seen in natural gas prices is likely to help soften U.S. consumer heating bills this winter, the
American Gas Association said at a briefing on Monday.
Realty Q&A: More tricky ways mortgage fraudsters seek to prosper WASHINGTON (MarketWatch) -- Question: I have read your articles and enjoy them and learn from them. Now I have a question. A "friend" has $300,000 in equity in his house. A broker asks him to flip to another mortgage, guaranteeing him a $6,000 dollar profit every three months if every three months he agrees to do this. Also, the broker agrees to take care of all the cost; "friend" pays nothing, zip, zero, nada. How is it possible? Sean.
U.S. mortgages hold at 7-month lows CHICAGO (MarketWatch) -- Mortgage rates held at seven-month lows this week, propelling a round of refinancing, according to Freddie Mac's weekly survey released Thursday.
Who's exposed to the housing chill? Look around your home SAN FRANCISCO (MarketWatch) -- It's not just homeowners and homebuilders that have a lot to lose if tremors roiling the real estate market turn into a full-scale quake.Contractors see their prices rising faster than inflation Pending-home sales rise 4.3% in August Can U.S. curb the mortgage frenzy that puts homeowners at risk?
Real Estate Library
•
Home Buying & Selling
•
Home Improvements
•
Mortgages & Home Loans
•
Renting
More...
See More Stories in the Library
Real Estate
Mortgage defaults up 67% in California
Notices filed on late loans highest in more than three years
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By Nick Godt, MarketWatch
Aug 3, 2006
NEW YORK (MarketWatch) -- The number of defaults on mortgage payments rose to a three-year high in the second quarter in California, a 67% increase from the year earlier period, according to DataQuick, a real estate data-compiling firm.
Lenders sent 20,752 default notices to homeowners across the Golden State, up 10.5% from 18,778 the previous quarter and up 67.2% from 12,408 in the second quarter of 2005. Notices of default are formal documents filed with the county recorder's office which mark the first step of the foreclosure process.
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The 20,752 defaults were the highest since 25,511 were filed in the first quarter of 2003.
"This is an important trend to watch but doesn't strike us as ominous," said Marshall Prentice, DataQuick's president. "We would have to see defaults roughly double from today's level before they would begin to impact home values much."
Because the number of defaults had fallen to extreme lows in recent years, it was widely expected that they would start spiking up as home-price appreciation slowed, he said.
"We hear a lot of talk about rising payments on adjustable-rate loans triggering borrower distress," Prentice said. "While there's no doubt some of that is going on, as far as we can tell the spike in defaults is mainly the result of slowing price appreciation."
Slowing prices make it harder for homeowners who fall behind on mortgage payments to sell their homes and pay off the lender. Price increases level off
Some parts of California, along with others in Florida and the northeast region, had seen some of the sharpest increases in home prices in the nation over the past few years, fueling what many observers described as a speculative bubble.
Historically low interest rates helped fuel the surge in home sales and prices, also encouraging homeowners to borrow on their home equity to finance their consumption.
But with the Federal Reserve gradually lifting short-term rates over the past two years, the housing market began to slow late last year.
California defaults had hit a low of 12,145 in the third quarter of 2004, a year during which home prices were on average rising by more than 20% annually. But so far this year, annual price gains have slipped into single digits in many of the state's key housing markets, DataQuick said.
In July, median home prices in San Diego and Sacramento counties dipped about 1% from the year earlier. As a result, second-quarter defaults rose by 99% in San Diego County and 109% in Sacramento County. Still, that represented just 1,778 default notices in San Diego and 1,352 in Sacramento. DataQuick said overall defaults remain about one-third their peak level reached in 1996 in the last housing recession in California.
Among the banks that have issued the largest amounts of mortgages in California, such as Wells Fargo & Co (WFC :
Wells Fargo & Company
Sponsored by:
WFC36.22, -0.06, -0.2%) , most said credit quality remained solid when they reported second-quarter earnings.
But a slowing housing market has still caused some trouble. Earnings at Golden West Financial (GDW :
Golden West Financial Corporation
GDW77.25, 0.00, 0.0%) , which is in the process of being acquired by Wachovia (WB :
Wachovia Corp
WB56.02, +0.19, +0.3%) , came in below expectations as mortgage demand slowed.
Golden West specializes in adjustable-rate mortgages, which have fallen out of favor as interest rates increased.
Countrywide Financial (CFC :
Countrywide Financial Corp. The largest mortgage lender in the U.S., saw a 26% improvement in earnings but lowered its outlook for new loan production, while its chief executive warned that expectations of a "soft landing" in housing is overly optimistic.
Many banks have been ditching lower-quality loans while some have gone further, selling entire slices of the business.
Washington Mutual (WM : Reported a 9% drop in second-quarter earnings on charges stemming from the sale of mortgage-servicing rights to Wells Fargo.
KeyCorp (KEY : It is exploring the sale of its subprime mortgage lending unit. Three weeks ago National City Corp
(NCC :
National City Corporation said it has similar intentions. Nick Godt is a MarketWatch reporter based in New York.
Mortgage defaults up 67% in California
Notices filed on late loans highest in more than three years
Del.icio.us
By Nick Godt, MarketWatch
Aug 3, 2006
NEW YORK (MarketWatch) -- The number of defaults on mortgage payments rose to a three-year high in the second quarter in California, a 67% increase from the year earlier period, according to DataQuick, a real estate data-compiling firm.
Lenders sent 20,752 default notices to homeowners across the Golden State, up 10.5% from 18,778 the previous quarter and up 67.2% from 12,408 in the second quarter of 2005. Notices of default are formal documents filed with the county recorder's office which mark the first step of the foreclosure process.
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The 20,752 defaults were the highest since 25,511 were filed in the first quarter of 2003.
"This is an important trend to watch but doesn't strike us as ominous," said Marshall Prentice, DataQuick's president. "We would have to see defaults roughly double from today's level before they would begin to impact home values much."
Because the number of defaults had fallen to extreme lows in recent years, it was widely expected that they would start spiking up as home-price appreciation slowed, he said.
"We hear a lot of talk about rising payments on adjustable-rate loans triggering borrower distress," Prentice said. "While there's no doubt some of that is going on, as far as we can tell the spike in defaults is mainly the result of slowing price appreciation."
Slowing prices make it harder for homeowners who fall behind on mortgage payments to sell their homes and pay off the lender. Price increases level off
Some parts of California, along with others in Florida and the northeast region, had seen some of the sharpest increases in home prices in the nation over the past few years, fueling what many observers described as a speculative bubble.
Historically low interest rates helped fuel the surge in home sales and prices, also encouraging homeowners to borrow on their home equity to finance their consumption.
But with the Federal Reserve gradually lifting short-term rates over the past two years, the housing market began to slow late last year.
California defaults had hit a low of 12,145 in the third quarter of 2004, a year during which home prices were on average rising by more than 20% annually. But so far this year, annual price gains have slipped into single digits in many of the state's key housing markets, DataQuick said.
In July, median home prices in San Diego and Sacramento counties dipped about 1% from the year earlier. As a result, second-quarter defaults rose by 99% in San Diego County and 109% in Sacramento County. Still, that represented just 1,778 default notices in San Diego and 1,352 in Sacramento. DataQuick said overall defaults remain about one-third their peak level reached in 1996 in the last housing recession in California.
Among the banks that have issued the largest amounts of mortgages in California, such as Wells Fargo & Co (WFC :
Wells Fargo & Company
Sponsored by:
WFC36.22, -0.06, -0.2%) , most said credit quality remained solid when they reported second-quarter earnings.
But a slowing housing market has still caused some trouble. Earnings at Golden West Financial (GDW :
Golden West Financial Corporation
GDW77.25, 0.00, 0.0%) , which is in the process of being acquired by Wachovia (WB :
Wachovia Corp
WB56.02, +0.19, +0.3%) , came in below expectations as mortgage demand slowed.
Golden West specializes in adjustable-rate mortgages, which have fallen out of favor as interest rates increased.
Countrywide Financial (CFC :
Countrywide Financial Corp. The largest mortgage lender in the U.S., saw a 26% improvement in earnings but lowered its outlook for new loan production, while its chief executive warned that expectations of a "soft landing" in housing is overly optimistic.
Many banks have been ditching lower-quality loans while some have gone further, selling entire slices of the business.
Washington Mutual (WM : Reported a 9% drop in second-quarter earnings on charges stemming from the sale of mortgage-servicing rights to Wells Fargo.
KeyCorp (KEY : It is exploring the sale of its subprime mortgage lending unit. Three weeks ago National City Corp
(NCC :
National City Corporation said it has similar intentions. Nick Godt is a MarketWatch reporter based in New York.
Monday, October 09, 2006
Real Estate
California August Home Sales
By Real Estate Analyst John Karevoll-->September 20, 2006
A total of 49,800 new and resale houses and condos were sold statewide last month. That's up 12.5 percent from 44,250 for July and down 25.1 percent from a revised 66,500 for August 2005.
The median price paid for a home last month was $472,000. That was down 0.6 percent from July's $475,000, and up 3.5 percent from $456,000 for August a year ago.
The typical mortgage payment that home buyers committed themselves to paying last month was $2,258. That was down from $2,353 in July, and up from $2,034 for August a year ago.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. The numbers cover all sales, new and resale, houses and condos.
Market stress indicators are still low: Down payments are stable, speculation buying is moderate, there are no significant shifts in market mix and default rates are rising, but still low. Earlier increases in non owner-occupied purchase activity and flipping activity have leveled off. The use of adjustable-rate mortgages has dropped the last half year.
California August Home Sales
By Real Estate Analyst John Karevoll-->September 20, 2006
A total of 49,800 new and resale houses and condos were sold statewide last month. That's up 12.5 percent from 44,250 for July and down 25.1 percent from a revised 66,500 for August 2005.
The median price paid for a home last month was $472,000. That was down 0.6 percent from July's $475,000, and up 3.5 percent from $456,000 for August a year ago.
The typical mortgage payment that home buyers committed themselves to paying last month was $2,258. That was down from $2,353 in July, and up from $2,034 for August a year ago.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts. The numbers cover all sales, new and resale, houses and condos.
Market stress indicators are still low: Down payments are stable, speculation buying is moderate, there are no significant shifts in market mix and default rates are rising, but still low. Earlier increases in non owner-occupied purchase activity and flipping activity have leveled off. The use of adjustable-rate mortgages has dropped the last half year.
Wednesday, September 13, 2006
Real Estate
FORECLOSUES SPIKED IN AUGUST
Rising payments on adjustable-rate mortgages contribute to 53% jump in foreclosures.
With real estate markets slowing and mortgage rates well above levels of recent years, times are getting tougher for homeowners - the number of homes entering into some stage of foreclosure is surging, according to a survey released Wednesday.
In August, 115,292 properties entered into foreclosure, according to RealtyTrac, an online marketplace for foreclosure sales. That was 24 percent above the level in July and 53 percent higher than a year earlier.
Where foreclosures are jumping Year over year gain in homes in foreclosure. Click for more stats on each state.
Nevada: Up 255%
California: Up 160%
Florida: Up 62%
Buying Foreclosed Homes
The 3 stages of foreclosures
Before you try it, it helps to know the landscape. (more)
It was the second highest monthly foreclosure total of the year; in February, 117,151 properties entered foreclosure.
Some of the bellwether real estate market states are among the leading foreclosure markets. Florida, had more than 16,533 properties in foreclosure in August. That led all states and was 50 percent higher than in July and 62 percent higher than in August 2005.
California foreclosures are increasing at an even faster annual rate, up 160 percent since last year to 12,506. And the formerly red-hot Nevada market recorded a spike of 24 percent compared with July and a whopping 255 percent increase from August 2005.
Rick Sharga, RealtyTrac's vice president of marketing, says the rising foreclosure numbers are in part the result of rising monthly payments on adjustable-rate mortgages, which have a low introductory interest rate that heads higher after an initial period.
"Usually, foreclosures are a lagging [market] indicator," he says. "But we've never had a situation like this with adjustable-rate mortgages amounting to $400 billion to $500 billion coming up for adjustment over the rest of the year."
For a homeowner with a 5/1 ARM (an adjustable rate loan with an initial fixed rate for five years that then adjusts annually) that's now resetting, the adjustment could add at least two percentage points to the interest rate. That could send the payment on a $200,000 loan up from about $950 a month closer to $1,200.
These exotic mortgages, which have been issued by lenders at much higher numbers the past few years, default at a higher rate than do fixed-rate mortgages. And sub-prime loans, which are much more common than in the past, have a higher default rate as well.
But, Sharga says, "The real wild card is the nature of the loans themselves. Historically, ARMs were underwritten pretty conservatively. There has been a loosening of standards with lower credit worthiness and smaller down payments."
Underlying causes
Homeowners are also in Dutch because of underlying economic conditions. Many of the worst hit markets, such as in the Midwest, are in areas hard hit by layoffs or other economic ills.
When housing markets were hot, homeowners could often avoid default through two ready made options, according to Sharga: They could sell to a ready market or they could use the increase through appreciation in their equity to refinance their homes. Increasingly, both those options are evaporating.
Contrary to what many consumers may believe, lenders are not anxious to foreclose on homes and put families out on the streets. Foreclosures tend to be money losers for lenders and are done mostly as a last resort.
Sharga says lenders are beginning to recognize that a problem is brewing and are taking steps to address it. They are much more amenable to a short sale, for example, in which they accept a low-ball, cash bid early in the default process that may not even cover their mortgage, in order to avoid a larger loss later. That can help homeowners by preserving their credit scores and easing their transitions into the rental market.
"Lenders say they're looking for ways to work with homeowners in trouble," reports Sharga. "So for homeowners looking at a default situation, the sooner they talk to their lender - and see what options are available - the better."
More real estate news: Leading home builders lower profit outlook. Companies warning include: Lennar (Charts), KB Home (Charts) and Beazer Homes (Charts).
FORECLOSUES SPIKED IN AUGUST
Rising payments on adjustable-rate mortgages contribute to 53% jump in foreclosures.
With real estate markets slowing and mortgage rates well above levels of recent years, times are getting tougher for homeowners - the number of homes entering into some stage of foreclosure is surging, according to a survey released Wednesday.
In August, 115,292 properties entered into foreclosure, according to RealtyTrac, an online marketplace for foreclosure sales. That was 24 percent above the level in July and 53 percent higher than a year earlier.
Where foreclosures are jumping Year over year gain in homes in foreclosure. Click for more stats on each state.
Nevada: Up 255%
California: Up 160%
Florida: Up 62%
Buying Foreclosed Homes
The 3 stages of foreclosures
Before you try it, it helps to know the landscape. (more)
It was the second highest monthly foreclosure total of the year; in February, 117,151 properties entered foreclosure.
Some of the bellwether real estate market states are among the leading foreclosure markets. Florida, had more than 16,533 properties in foreclosure in August. That led all states and was 50 percent higher than in July and 62 percent higher than in August 2005.
California foreclosures are increasing at an even faster annual rate, up 160 percent since last year to 12,506. And the formerly red-hot Nevada market recorded a spike of 24 percent compared with July and a whopping 255 percent increase from August 2005.
Rick Sharga, RealtyTrac's vice president of marketing, says the rising foreclosure numbers are in part the result of rising monthly payments on adjustable-rate mortgages, which have a low introductory interest rate that heads higher after an initial period.
"Usually, foreclosures are a lagging [market] indicator," he says. "But we've never had a situation like this with adjustable-rate mortgages amounting to $400 billion to $500 billion coming up for adjustment over the rest of the year."
For a homeowner with a 5/1 ARM (an adjustable rate loan with an initial fixed rate for five years that then adjusts annually) that's now resetting, the adjustment could add at least two percentage points to the interest rate. That could send the payment on a $200,000 loan up from about $950 a month closer to $1,200.
These exotic mortgages, which have been issued by lenders at much higher numbers the past few years, default at a higher rate than do fixed-rate mortgages. And sub-prime loans, which are much more common than in the past, have a higher default rate as well.
But, Sharga says, "The real wild card is the nature of the loans themselves. Historically, ARMs were underwritten pretty conservatively. There has been a loosening of standards with lower credit worthiness and smaller down payments."
Underlying causes
Homeowners are also in Dutch because of underlying economic conditions. Many of the worst hit markets, such as in the Midwest, are in areas hard hit by layoffs or other economic ills.
When housing markets were hot, homeowners could often avoid default through two ready made options, according to Sharga: They could sell to a ready market or they could use the increase through appreciation in their equity to refinance their homes. Increasingly, both those options are evaporating.
Contrary to what many consumers may believe, lenders are not anxious to foreclose on homes and put families out on the streets. Foreclosures tend to be money losers for lenders and are done mostly as a last resort.
Sharga says lenders are beginning to recognize that a problem is brewing and are taking steps to address it. They are much more amenable to a short sale, for example, in which they accept a low-ball, cash bid early in the default process that may not even cover their mortgage, in order to avoid a larger loss later. That can help homeowners by preserving their credit scores and easing their transitions into the rental market.
"Lenders say they're looking for ways to work with homeowners in trouble," reports Sharga. "So for homeowners looking at a default situation, the sooner they talk to their lender - and see what options are available - the better."
More real estate news: Leading home builders lower profit outlook. Companies warning include: Lennar (Charts), KB Home (Charts) and Beazer Homes (Charts).
Monday, September 11, 2006
California Home Sales Statistics For July 2006
Real Estate
CALIFORNIA JULY HOME SALES 2006
A total of 44,250 new and resale houses and condos were sold statewide last month. That's down 17.6 percent from 53,700 for June and down 28.8 percent from 62,150 for July 2005.
The median price paid for a home last month was $475,000. That was down 0.6 percent from June's record $478,000, and up 5.3 percent from $451,000 for July a year ago.
The typical mortgage payment that home buyers committed themselves to paying last month was $2,353. That was down from $2,362 in June, and up from $1,974 for July a year ago.
Market stress indicators are still low: Down payments are stable, speculation buying is moderate, there are no significant shifts in market mix and default rates are rising, but still low. Earlier increases in non owner-occupied purchase activity and flipping activity have leveled off. The use of adjustable-rate mortgages has dropped the last half year.
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
CALIFORNIA JULY HOME SALES 2006
A total of 44,250 new and resale houses and condos were sold statewide last month. That's down 17.6 percent from 53,700 for June and down 28.8 percent from 62,150 for July 2005.
The median price paid for a home last month was $475,000. That was down 0.6 percent from June's record $478,000, and up 5.3 percent from $451,000 for July a year ago.
The typical mortgage payment that home buyers committed themselves to paying last month was $2,353. That was down from $2,362 in June, and up from $1,974 for July a year ago.
Market stress indicators are still low: Down payments are stable, speculation buying is moderate, there are no significant shifts in market mix and default rates are rising, but still low. Earlier increases in non owner-occupied purchase activity and flipping activity have leveled off. The use of adjustable-rate mortgages has dropped the last half year.
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Wednesday, August 23, 2006
California Foreclosure Activity in 2006
Real Estate
California Foreclosure Activity Hits Three-Year High
Second quarter California foreclosure activity rose at the fastest pace in at least 14 years, the result of waning home price appreciation.
Lenders sent 20,752 default notices to homeowners statewide during the April-through-June period. That was up 10.5 percent from 18,778 the previous quarter and up 67.2 percent from 12,408 in the second quarter of last year, DataQuick Information Systems reported. Last quarter's year-over-year increase was the highest for any quarter since DataQuick began tracking defaults in 1992. Notices of default are formal documents filed with the county recorder's office and mark the first step in the foreclosure process.
Despite the second quarter surge, defaults remained below historically normal levels. On average, lenders filed 32,762 notices of default each quarter over the past 14 years. Last quarter's 20,752 total was the highest since 25,511 were filed in first quarter 2003.
"This is an important trend to watch but doesn't strike us as ominous," said Marshall Prentice, DataQuick's president. "The increase was a statistical certainty because the number of defaults had fallen to such extreme lows. We would have to see defaults roughly double from today's level before they would begin to impact home values much."
"We hear a lot of talk about rising payments on adjustable-rate loans triggering borrower distress," Prentice continued. "While there's no doubt some of that is going on, as far as we can tell the spike in defaults is mainly the result of slowing price appreciation. It makes it harder for people behind on their mortgage to sell their homes and pay off the lender."
Other factors that contribute to higher defaults include the amount of equity owners have in their homes, the type of mortgage and how long the mortgage has been held.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
Foreclosure activity hit a low during the third quarter of 2004, when lenders filed 12,145 default notices. That year California home prices rose at an annual rate exceeding 20 percent. This year annual price gains have slipped into single digits in many of the state's larger housing markets. Last month San Diego and Sacramento counties saw their median home prices dip about 1 percent compared with a year ago. Second quarter defaults shot up about 99 percent in San Diego County and 109 percent in Sacramento County from last year.
Still, today's statewide foreclosure activity amounts to about one-third of the peak level in the first quarter of 1996, when 59,897 defaults were filed. The state was in a housing slump back then and foreclosure activity tugged home values down by about 10 percent in some areas.
Today, only about seven percent of homeowners who find themselves in default lose their homes to foreclosure. Most stop the process by bringing their mortgage payments current, or by selling their home and paying the home loan(s) off.
Notices of Default houses and condos
County/Region 2005Q2 2006Q2 % Chg
Los Angeles 3157 4587 45.3%
Orange 697 1280 83.6%
San Diego 894 1778 98.9%
Riverside 1121 2287 104.0%
San Bernardino 1093 1839 68.3%
Ventura 250 452 80.8%
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
California Foreclosure Activity Hits Three-Year High
Second quarter California foreclosure activity rose at the fastest pace in at least 14 years, the result of waning home price appreciation.
Lenders sent 20,752 default notices to homeowners statewide during the April-through-June period. That was up 10.5 percent from 18,778 the previous quarter and up 67.2 percent from 12,408 in the second quarter of last year, DataQuick Information Systems reported. Last quarter's year-over-year increase was the highest for any quarter since DataQuick began tracking defaults in 1992. Notices of default are formal documents filed with the county recorder's office and mark the first step in the foreclosure process.
Despite the second quarter surge, defaults remained below historically normal levels. On average, lenders filed 32,762 notices of default each quarter over the past 14 years. Last quarter's 20,752 total was the highest since 25,511 were filed in first quarter 2003.
"This is an important trend to watch but doesn't strike us as ominous," said Marshall Prentice, DataQuick's president. "The increase was a statistical certainty because the number of defaults had fallen to such extreme lows. We would have to see defaults roughly double from today's level before they would begin to impact home values much."
"We hear a lot of talk about rising payments on adjustable-rate loans triggering borrower distress," Prentice continued. "While there's no doubt some of that is going on, as far as we can tell the spike in defaults is mainly the result of slowing price appreciation. It makes it harder for people behind on their mortgage to sell their homes and pay off the lender."
Other factors that contribute to higher defaults include the amount of equity owners have in their homes, the type of mortgage and how long the mortgage has been held.
DataQuick, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates, monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.
Foreclosure activity hit a low during the third quarter of 2004, when lenders filed 12,145 default notices. That year California home prices rose at an annual rate exceeding 20 percent. This year annual price gains have slipped into single digits in many of the state's larger housing markets. Last month San Diego and Sacramento counties saw their median home prices dip about 1 percent compared with a year ago. Second quarter defaults shot up about 99 percent in San Diego County and 109 percent in Sacramento County from last year.
Still, today's statewide foreclosure activity amounts to about one-third of the peak level in the first quarter of 1996, when 59,897 defaults were filed. The state was in a housing slump back then and foreclosure activity tugged home values down by about 10 percent in some areas.
Today, only about seven percent of homeowners who find themselves in default lose their homes to foreclosure. Most stop the process by bringing their mortgage payments current, or by selling their home and paying the home loan(s) off.
Notices of Default houses and condos
County/Region 2005Q2 2006Q2 % Chg
Los Angeles 3157 4587 45.3%
Orange 697 1280 83.6%
San Diego 894 1778 98.9%
Riverside 1121 2287 104.0%
San Bernardino 1093 1839 68.3%
Ventura 250 452 80.8%
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Monday, June 19, 2006
Real Estate
Top 5 Reasons Buyers Won't Commit To Purchase
Spring is the traditional peak sales season for houses and condos. Summer is usually very good until the traditional Agust slump, especially for families who want to relocate before school starts. More prospective home buyers are in the market at this time of the year than during any other season.
But 2006 is proving to be a bit different. Although 2005 was a record home sales volume year, the number or residence sales has slowed this year. There could be several reasons such as adverse weather in many areas and slowly rising mortgage interest rates. In a few communities home sales prices have taken s slight dip so prospective buyers might be waiting to see if desperate home sellers reduce their asking prices.
Another reason for waiting to buy a house or condo is the inventory of available listings is slowly rising, thus offering more homes available for sale.
In summary, for most communities it is definetely a "buyers" market". That means there are more homes listed for sale than there are qualified home buyers.
The result can be a bargain prices for savvy home buyers.
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Top 5 Reasons Buyers Won't Commit To Purchase
Spring is the traditional peak sales season for houses and condos. Summer is usually very good until the traditional Agust slump, especially for families who want to relocate before school starts. More prospective home buyers are in the market at this time of the year than during any other season.
But 2006 is proving to be a bit different. Although 2005 was a record home sales volume year, the number or residence sales has slowed this year. There could be several reasons such as adverse weather in many areas and slowly rising mortgage interest rates. In a few communities home sales prices have taken s slight dip so prospective buyers might be waiting to see if desperate home sellers reduce their asking prices.
Another reason for waiting to buy a house or condo is the inventory of available listings is slowly rising, thus offering more homes available for sale.
In summary, for most communities it is definetely a "buyers" market". That means there are more homes listed for sale than there are qualified home buyers.
The result can be a bargain prices for savvy home buyers.
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Monday, May 15, 2006
Real Estate
Pricey Homes and Lots of Them
Fewer sales mean more houses to choose from. Buyers have gained breathing room, if not a lot a great deals.
This is the time when buyers have time to shop and compare and cam make a throughful purchase. It is not like a year ago when buyers were walking around with a check in their pocket and writing offers on the hood of their car.
There were 69,499 single family homes sold in the first three months of the year in Los Angeles, Orange, Riverside, San Bernardino, Ventura and San Diego counties, according to Dataquick Information Systems, a decline of more than 8% from the same period a year earlier.
Buyers don't have that panicked feeling. 'If I don't buy therefore the post goes up, I'll get into the multiple offers and lose out'
Althogh most buyers are focused on specific neighborhoods and follow median sales prices more closely thatn the price per square foot measurements, real estate agents and idustry analyst say the latter number offers the most reliable snapshot of how a market is performing over a wide area. Homes are also clearly lingering longer on the market. Southern California had a six month supply of homes for sale in January 2005.
The lowest performing zip code in Los Angeles County was 91390 in Santa Clarita, which was still up 7.7% for the same period according to Dataquick
Pricey Homes and Lots of Them
Fewer sales mean more houses to choose from. Buyers have gained breathing room, if not a lot a great deals.
This is the time when buyers have time to shop and compare and cam make a throughful purchase. It is not like a year ago when buyers were walking around with a check in their pocket and writing offers on the hood of their car.
There were 69,499 single family homes sold in the first three months of the year in Los Angeles, Orange, Riverside, San Bernardino, Ventura and San Diego counties, according to Dataquick Information Systems, a decline of more than 8% from the same period a year earlier.
Buyers don't have that panicked feeling. 'If I don't buy therefore the post goes up, I'll get into the multiple offers and lose out'
Althogh most buyers are focused on specific neighborhoods and follow median sales prices more closely thatn the price per square foot measurements, real estate agents and idustry analyst say the latter number offers the most reliable snapshot of how a market is performing over a wide area. Homes are also clearly lingering longer on the market. Southern California had a six month supply of homes for sale in January 2005.
The lowest performing zip code in Los Angeles County was 91390 in Santa Clarita, which was still up 7.7% for the same period according to Dataquick
Thursday, May 11, 2006
Real Estate
Foreclosure Activity UP
Softer Appreciation rates drove foreclosure activity to its highest level in two years during the first quarter, including a 19.1% annual spike in Los Angeles County. However foreclosure activity is coming off all time low levels and would have to double or triple to cause market distress, said DataQuick Information Systems.
In the year's first three months, lenders issued 18,668 default notices to California homeowners, up an annual 28.7% and 23.4 increase from the 2005 fourth quarter. The Last time it was this high was the 18,738 notices at the fourth quarter of 2003.
Across the county, 4,211 homeowners received the notices, the first step in the foreclosure process. That's the most since 4,736 in the first quarter of 2004.
By comparison, an average of 11,211 default notices were issued each quarter in the county over the past 14 years. We're coming off the bottom here. We though this would happen stronger, so this is an indicator of a stronger market that we anticipated.
Factors other than appreciation also affect foreclosure activity. They include the amount of equity people have in their property, the type of mortgage, they used and how long they've had that mortgage.
The low point for statewide foreclosure activity came in the third quarter of 2004, when property owners received 12,145 default notices. Activity peaked in the 1996 first quarter which 59,897 notices. Default statistics go back to 1992.
Market watchers have been predicting for months that annual price appreciation rates would narrow and that is now happening.
Statewide, the annual appreciation rate hit a high of 22.8% during the second quarter of 2004. Since then, it's fallen to 12.4% in the first quarter of this year. Only 5% of homeowners who find themselves in default actually lose their homes to foreclosure.
Most are able to stop the foreclosure process by
bringing their mortgage payments current or by selling their home and paying off the mortgage balance.
According to the Deputy Chief Economist at the California Association of Realtors, if this market continues softening the most risk will be faced by relatively new buyers financed with interest only, straight adjustable or other creative loan products.
While the supply of properties for sale increased in the years first two months and helped mitigate the price increases, it fell in March. Inventory is still lean enough to drive price increases, something that will ease the foreclosure risk.
The underlying economic conditions that five rise to large number of foreclosures are really nowhere in sight. You need to have quite a bit of economic distress and we don't expect that over the near future.
Foreclosure Activity UP
Softer Appreciation rates drove foreclosure activity to its highest level in two years during the first quarter, including a 19.1% annual spike in Los Angeles County. However foreclosure activity is coming off all time low levels and would have to double or triple to cause market distress, said DataQuick Information Systems.
In the year's first three months, lenders issued 18,668 default notices to California homeowners, up an annual 28.7% and 23.4 increase from the 2005 fourth quarter. The Last time it was this high was the 18,738 notices at the fourth quarter of 2003.
Across the county, 4,211 homeowners received the notices, the first step in the foreclosure process. That's the most since 4,736 in the first quarter of 2004.
By comparison, an average of 11,211 default notices were issued each quarter in the county over the past 14 years. We're coming off the bottom here. We though this would happen stronger, so this is an indicator of a stronger market that we anticipated.
Factors other than appreciation also affect foreclosure activity. They include the amount of equity people have in their property, the type of mortgage, they used and how long they've had that mortgage.
The low point for statewide foreclosure activity came in the third quarter of 2004, when property owners received 12,145 default notices. Activity peaked in the 1996 first quarter which 59,897 notices. Default statistics go back to 1992.
Market watchers have been predicting for months that annual price appreciation rates would narrow and that is now happening.
Statewide, the annual appreciation rate hit a high of 22.8% during the second quarter of 2004. Since then, it's fallen to 12.4% in the first quarter of this year. Only 5% of homeowners who find themselves in default actually lose their homes to foreclosure.
Most are able to stop the foreclosure process by
bringing their mortgage payments current or by selling their home and paying off the mortgage balance.
According to the Deputy Chief Economist at the California Association of Realtors, if this market continues softening the most risk will be faced by relatively new buyers financed with interest only, straight adjustable or other creative loan products.
While the supply of properties for sale increased in the years first two months and helped mitigate the price increases, it fell in March. Inventory is still lean enough to drive price increases, something that will ease the foreclosure risk.
The underlying economic conditions that five rise to large number of foreclosures are really nowhere in sight. You need to have quite a bit of economic distress and we don't expect that over the near future.
Tuesday, May 02, 2006
Real Estate
Hot Home Market Eases Into Slower Gear
First-quarter numbers are in and the evidence is irrefutable. The real estate market is off to its weakest start in years and the sellers are making big adjustments in therir asking price to fantasy ratio.
For January to March period sales are well undcr year ago levels across the state, Los Angeles County and San Fernando Valley.
Inventory is up, giving buyers more leverage than they've had in years. Inventory levels, also offer a glimpse of what direction prices might take. To find a market this anemic in the Valley we have to go back to 1997.
In this year's first quarter 2,153 previously owned houses changed owners down 22.8% from 2,789 sales in the 2005 first quarter. The last time sales were this week came in the 1997 first quarter, 2,120 single family transactios.
Preliminary numbers from the California Association of Realtors show a similar trend. Statewide sales fell 18.3% from last year first quarter, one that was on a record pace. Los Angeles County sales dropped 19.1%
Prices have stayed in a narrow range since last July, rising from a low of $ 590,000 in September and December to March's high. Lots of market analysts and economists expect prices to behave in this fashion for a while.
There are also ample signs of the inventory build up. Neigborhoods are festooned with the most "For Sale" sales signs in years, some sporting "Price Reduced" tags. Sellers, can no longer slap 20% on top of what their neighbor's house sold for, sit back and wait for the cash to roll in.
The bigger the supply the more downward pressure is exerted on prices. Research found that when inventory levels are seven months or lower, the state media price goes up 11% on average. When inventory streches nine months or more, the median fall on a consistent basis.
March ended with state-wide inventory at 5.2 months. A year ago was 1.8 months. Inventory in the Valley was 3.6 months.
Last March it was 1.2 month supply. The market is going to continue to unwind. Wheter it's more that 10 years worth remains to be seen.
Hot Home Market Eases Into Slower Gear
First-quarter numbers are in and the evidence is irrefutable. The real estate market is off to its weakest start in years and the sellers are making big adjustments in therir asking price to fantasy ratio.
For January to March period sales are well undcr year ago levels across the state, Los Angeles County and San Fernando Valley.
Inventory is up, giving buyers more leverage than they've had in years. Inventory levels, also offer a glimpse of what direction prices might take. To find a market this anemic in the Valley we have to go back to 1997.
In this year's first quarter 2,153 previously owned houses changed owners down 22.8% from 2,789 sales in the 2005 first quarter. The last time sales were this week came in the 1997 first quarter, 2,120 single family transactios.
Preliminary numbers from the California Association of Realtors show a similar trend. Statewide sales fell 18.3% from last year first quarter, one that was on a record pace. Los Angeles County sales dropped 19.1%
Prices have stayed in a narrow range since last July, rising from a low of $ 590,000 in September and December to March's high. Lots of market analysts and economists expect prices to behave in this fashion for a while.
There are also ample signs of the inventory build up. Neigborhoods are festooned with the most "For Sale" sales signs in years, some sporting "Price Reduced" tags. Sellers, can no longer slap 20% on top of what their neighbor's house sold for, sit back and wait for the cash to roll in.
The bigger the supply the more downward pressure is exerted on prices. Research found that when inventory levels are seven months or lower, the state media price goes up 11% on average. When inventory streches nine months or more, the median fall on a consistent basis.
March ended with state-wide inventory at 5.2 months. A year ago was 1.8 months. Inventory in the Valley was 3.6 months.
Last March it was 1.2 month supply. The market is going to continue to unwind. Wheter it's more that 10 years worth remains to be seen.
Friday, April 28, 2006
Real Estate FSBOs ( For Sale By Owners) May Be Losing Millions.
For Sale By Owners, are home owners who sell their own houses without professinal help. It seems that in the desire to save the 5% or 5% fee that real estate brokers charge for their services, The For Sale By Owners earn 16% less than owners of comparable houses who put the transaction into the hands of an experience agent according to a survey conducted by National Association of Realtors.
A poll of 7,813 recent buyers and sellers located through county deed records found that the median price achieved by sellers with agents was $ 230,000 compared with $ 198,200 for those without agents. That's a difference of nearly $ 32,000 or 15%, with no significant diffferences between the types of homes sold.
A research by two intructors at the University of Texas at San Antonio found that sellers realize little gain when they turn to limited service agents to perform some but not all the tasks needed to close a sale.
The study revealed that limited service listings sold for 1.7% less than full service ones and took 17.1% longer to sell. It seems that a limited service brokerage offers "no dollar advantage".
FSBOs who participated in the Realtor survey also said they had more difficulty in undertanding and completing the necessary paperwork, preparing their homes for the marked and setting the proper price that they did in attracting buyers.
FSBOs don't price their property correctly, they don't have the resources to determine a fair and solid asking price.
For Sale By Owners, are home owners who sell their own houses without professinal help. It seems that in the desire to save the 5% or 5% fee that real estate brokers charge for their services, The For Sale By Owners earn 16% less than owners of comparable houses who put the transaction into the hands of an experience agent according to a survey conducted by National Association of Realtors.
A poll of 7,813 recent buyers and sellers located through county deed records found that the median price achieved by sellers with agents was $ 230,000 compared with $ 198,200 for those without agents. That's a difference of nearly $ 32,000 or 15%, with no significant diffferences between the types of homes sold.
A research by two intructors at the University of Texas at San Antonio found that sellers realize little gain when they turn to limited service agents to perform some but not all the tasks needed to close a sale.
The study revealed that limited service listings sold for 1.7% less than full service ones and took 17.1% longer to sell. It seems that a limited service brokerage offers "no dollar advantage".
FSBOs who participated in the Realtor survey also said they had more difficulty in undertanding and completing the necessary paperwork, preparing their homes for the marked and setting the proper price that they did in attracting buyers.
FSBOs don't price their property correctly, they don't have the resources to determine a fair and solid asking price.
Tuesday, February 28, 2006
Real Estate
January Home Sales Lowest For Month in 5 years
Home sales accross Souther California fell 7.4 percent last month to their lowest level for January in five years as the real estate market continued to cool.
Potential buyers morphing into fence sitters accounted for the dip in the market's off-season. Last month buyers scooped up 28,085 new and resale housed and condos in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. Sales plunged 30,6 per cent from 28,952 transactions in December, but a monthly decline at this time of year is typical, the company said.
December is one of the year's strongest months and January one of the weakest. Sales last month were the fewest in January since 2001, when there were 18,010. The low point for the month was 1992 with 10,994 sales and the high was in 1989, with 23,379.
We're past the frenzy, and it's kind of normalizing re-reaching a balance. Sales have now fallen for two consecutive months, but this does not signal a trend. It will take until March to get a sense of how the market concludes a long boom cycle.
While sales are following expectations, the median price is not January's median across the six county region rose an anual 13 percent to $ 469,000.00
However the rise was well below the year ago rate of increase. We actually thought it would be lower than that by now. It's just coming down slower than we anticipated. That's because demand continues to be strong. The DataQuick president notes that there are no troubling signs for the market n the horizon.
In Los Angeles County 6,761 propertis changed hands down an annual 11.4 percent. The median price, the point at which half the units cost more and half less, increased 17.6 percent to
$ 487,000.
In Ventura County, sales fell 21.3 percent to 731 transactions, and the median price increase 18,8 percent to $ 608,000.
January Home Sales Lowest For Month in 5 years
Home sales accross Souther California fell 7.4 percent last month to their lowest level for January in five years as the real estate market continued to cool.
Potential buyers morphing into fence sitters accounted for the dip in the market's off-season. Last month buyers scooped up 28,085 new and resale housed and condos in Los Angeles, Riverside, San Diego, Ventura, San Bernardino and Orange counties. Sales plunged 30,6 per cent from 28,952 transactions in December, but a monthly decline at this time of year is typical, the company said.
December is one of the year's strongest months and January one of the weakest. Sales last month were the fewest in January since 2001, when there were 18,010. The low point for the month was 1992 with 10,994 sales and the high was in 1989, with 23,379.
We're past the frenzy, and it's kind of normalizing re-reaching a balance. Sales have now fallen for two consecutive months, but this does not signal a trend. It will take until March to get a sense of how the market concludes a long boom cycle.
While sales are following expectations, the median price is not January's median across the six county region rose an anual 13 percent to $ 469,000.00
However the rise was well below the year ago rate of increase. We actually thought it would be lower than that by now. It's just coming down slower than we anticipated. That's because demand continues to be strong. The DataQuick president notes that there are no troubling signs for the market n the horizon.
In Los Angeles County 6,761 propertis changed hands down an annual 11.4 percent. The median price, the point at which half the units cost more and half less, increased 17.6 percent to
$ 487,000.
In Ventura County, sales fell 21.3 percent to 731 transactions, and the median price increase 18,8 percent to $ 608,000.
Monday, February 13, 2006
Sales Up For New Homes
Strong demand and contiune low interest rates pushed new home sales across the state to their highest level in 20 years during 2005, with the best markets in Southern California.
Last year consumers bought 136,228 new homes up 4.4% from 130,480 in 2004.
Since the market start slowing down Builders are a bit more careful these days, that's acting as a hedge agains getting caught with an inventory overload that characterized the end of the 1980's market.
Los Angeles County had the state's third strongest market with 10,872 sales up 19.2%. The median price dipped 0.2% to $ 454,000.
These number include condo conversions and (that) activity increased sharply last year. Since they are lower cost homes, they pull down the median price.
Strong demand and contiune low interest rates pushed new home sales across the state to their highest level in 20 years during 2005, with the best markets in Southern California.
Last year consumers bought 136,228 new homes up 4.4% from 130,480 in 2004.
Since the market start slowing down Builders are a bit more careful these days, that's acting as a hedge agains getting caught with an inventory overload that characterized the end of the 1980's market.
Los Angeles County had the state's third strongest market with 10,872 sales up 19.2%. The median price dipped 0.2% to $ 454,000.
These number include condo conversions and (that) activity increased sharply last year. Since they are lower cost homes, they pull down the median price.
Home Affordability in 2005
Affordability Still At A Record Low
Housing affordability remain at 14% in December matching its record low label as rising prices and interest rates continued to slow the market.
In December the median price for a home in the state soared 15.6% to $ 548,430.00 and sales plunged 17.6%
In Los Angeles County, where the median price home cost $ 552.760, affordability fell an annual 5 percentage points to 12%
The minimum household income needed to purchase a median price home in California in December was $134,200 based on an average mortgage interest rate of 6.33% and assuming a 20% downpayment.
This is the beginning of a slowdown in the market that's been anticipated. Prices are still going to go up, but below the 10% range, and the volume of sales will slow significantly.
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Housing affordability remain at 14% in December matching its record low label as rising prices and interest rates continued to slow the market.
In December the median price for a home in the state soared 15.6% to $ 548,430.00 and sales plunged 17.6%
In Los Angeles County, where the median price home cost $ 552.760, affordability fell an annual 5 percentage points to 12%
The minimum household income needed to purchase a median price home in California in December was $134,200 based on an average mortgage interest rate of 6.33% and assuming a 20% downpayment.
This is the beginning of a slowdown in the market that's been anticipated. Prices are still going to go up, but below the 10% range, and the volume of sales will slow significantly.
Alberto Pacheco
818 481 9211
Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Tuesday, December 27, 2005
Some Of The Open House Visitors Are Curious Neighbors
12/27/05
OPEN HOUSES
When there is an open house in a neighborhood, the first ones to appear are the neighbors and the reason is always to compare that house with theirs. This also helps because they may have friends of family members interested in moving to the neighborhood.
Many seller insit their agent hold them, even though in their more candid moments, agents say that open house don´t generally yield a buyer for the featured house. They do, however, help agents bolster their client list of buyers. And those Neighbors Only open houses are a chance for agents to meet future home sellers.
In terms of effectiveness, the Internet and virtual tours may have surpà ssed the open house as an agent frontline
A 2005 California Association of Realtors Study found that 68% of buyers used the internet to preview homes through tours and photos and 75% used it to identify the homes they wanted their agents to show them.
Alberto Pacheco
818 481 9211
Realtor Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
OPEN HOUSES
When there is an open house in a neighborhood, the first ones to appear are the neighbors and the reason is always to compare that house with theirs. This also helps because they may have friends of family members interested in moving to the neighborhood.
Many seller insit their agent hold them, even though in their more candid moments, agents say that open house don´t generally yield a buyer for the featured house. They do, however, help agents bolster their client list of buyers. And those Neighbors Only open houses are a chance for agents to meet future home sellers.
In terms of effectiveness, the Internet and virtual tours may have surpà ssed the open house as an agent frontline
A 2005 California Association of Realtors Study found that 68% of buyers used the internet to preview homes through tours and photos and 75% used it to identify the homes they wanted their agents to show them.
Alberto Pacheco
818 481 9211
Realtor Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Wednesday, December 07, 2005
Lead Base Paint Disclosures Mandatory on Homes Constructed Pre-1978
Pre 1978 Housing Requires Lead Disclosure
Landlords and Home sellers have to comply with a federal law requiring that lead information be given to anyone purchasing or renovation housing that was built before 1978. Why 1978? That was the year the federal government banned the use of lead based paint in housing.
Since lead paint was widely used for many years, the older the property the higher the lead paint potential. Years of accumulated paint, stretching back before the law took effect, after lurks in layers below the surface. Landlords are specifically required "to disclose known information on lead base paint hazards before leases take effect."
Lease signing now includes a form on which landlords must indicate whether they have any knowledge of lead based paint in the rental. The law does not not require rental property owners or sellers to have the property inspected or tested for lead, nor does it require them to remove lead based paint. For buyers, the law allows 10 days to conduct lead testing if they desire, at their own expense. The buyer's time limit can be extended if mutually agreeable.
The Environmental Protection Agency publishes the helpful brochure titled "Protect Your Family From Lead in Your Home", the 16 page brochure is full of lead information everyone should know. It details how lead enter the body from various sources, including during renovations that stir up lead. Paint chips, lead dust and lead deposits can lead to lead poisoning in the body either by breathing or swallowing the lead.
Lead exposure is partaker dangerous to children, since their bodies are growing rapidly and absorb more lead than adults. As a result, one out of every 11 children in the United States has dangerous levels of lead in the bloodstream, according to the brochure.
If not detected early, children with high levels of lead in their body may experience slowed growth, behavior or learning problems, hearing problems or headaches. The most extreme cases involve damage to the nervous system and brain. Prevention of lead exposure is important.
In adults lead exposure can cause reproductive problems, high blood pressure, digestive and nerve disorders, memory or concentration problems and joint and muscular problems.
Fortunately, testing for lead in the body is easy and inexpensively A simple blood test can detect lead poisoning and establish levels of lead exposure. Treatments can include diet changes or medication. Extreme cases may require hospitalization.
For more information call The National Lead Information Clearinhouse at (800) 424-LEAD
Alberto Pacheco
818 481 9211
Realtor Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Landlords and Home sellers have to comply with a federal law requiring that lead information be given to anyone purchasing or renovation housing that was built before 1978. Why 1978? That was the year the federal government banned the use of lead based paint in housing.
Since lead paint was widely used for many years, the older the property the higher the lead paint potential. Years of accumulated paint, stretching back before the law took effect, after lurks in layers below the surface. Landlords are specifically required "to disclose known information on lead base paint hazards before leases take effect."
Lease signing now includes a form on which landlords must indicate whether they have any knowledge of lead based paint in the rental. The law does not not require rental property owners or sellers to have the property inspected or tested for lead, nor does it require them to remove lead based paint. For buyers, the law allows 10 days to conduct lead testing if they desire, at their own expense. The buyer's time limit can be extended if mutually agreeable.
The Environmental Protection Agency publishes the helpful brochure titled "Protect Your Family From Lead in Your Home", the 16 page brochure is full of lead information everyone should know. It details how lead enter the body from various sources, including during renovations that stir up lead. Paint chips, lead dust and lead deposits can lead to lead poisoning in the body either by breathing or swallowing the lead.
Lead exposure is partaker dangerous to children, since their bodies are growing rapidly and absorb more lead than adults. As a result, one out of every 11 children in the United States has dangerous levels of lead in the bloodstream, according to the brochure.
If not detected early, children with high levels of lead in their body may experience slowed growth, behavior or learning problems, hearing problems or headaches. The most extreme cases involve damage to the nervous system and brain. Prevention of lead exposure is important.
In adults lead exposure can cause reproductive problems, high blood pressure, digestive and nerve disorders, memory or concentration problems and joint and muscular problems.
Fortunately, testing for lead in the body is easy and inexpensively A simple blood test can detect lead poisoning and establish levels of lead exposure. Treatments can include diet changes or medication. Extreme cases may require hospitalization.
For more information call The National Lead Information Clearinhouse at (800) 424-LEAD
Alberto Pacheco
818 481 9211
Realtor Calbre01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
Wednesday, November 09, 2005
Smoke Dedectors Are Mandatory On Every Home Sale In Los Angeles County
Fire preparedness Is More Than Making Sure The Detector Beeps
It is that time of year again when days grow shorter, nights longer and, most of the US clocks "fell back" an hour last month. This time changes serves as an excellent reminder to replace smoke detector batteries. Through valuable changing the battery in an smoke detector is only one step in ensuring that this life saving device does its job.
A smoke detector should be installed in each bedroom and on every level of your home, if you have them make sure they are in good working order. They should be tested once a month, they are equipped with a test button that, when pressed and held down for a few seconds will activate the alarm.
Use a safe contained source of smoke such as incense or "synthetic smoke" in an aerosol can to test the detector. IF the smoke detector are more than 10 years old, consider replacing them. They work 24 hours a day, seven days a week, that's more than 87,000 hours over 10 year period.
With smoke detectors, cleanliness is important. A dusty or lind-laden unit can't do its job properly. It should be vacuum with an upholstery attachment periodically to remove the dust buildup.
A recent released report by the Consumer Product Safety Commission on the audibility of smoke alarms found that linking or interconnecting smoke alarms could provide an earlier warning to fire and smoke. The study also found that wireless technology could be sa solution to better protecting American homes.
With an interconnected device, when one alarm detects smoke, it triggers all other alarms to sound. The immediate reaction provides more warning in more places. There is, on average, only three minutes to escape a house fire after the first smoke alarm goes off.
Families should create and frequently practice a fire-escape plan. Make sure everyone, including children know what the smoke alarm sounds like. Practice the escape plan during the day and at night when family members are asleep to see if everyone responds. If an older child or adult doesn't wake up, assign an adult to wake and assist that individual in the even of a fire. Always assist younger children.
Alberto Pacheco
818 481 9211
Realtor Calbre 01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
It is that time of year again when days grow shorter, nights longer and, most of the US clocks "fell back" an hour last month. This time changes serves as an excellent reminder to replace smoke detector batteries. Through valuable changing the battery in an smoke detector is only one step in ensuring that this life saving device does its job.
A smoke detector should be installed in each bedroom and on every level of your home, if you have them make sure they are in good working order. They should be tested once a month, they are equipped with a test button that, when pressed and held down for a few seconds will activate the alarm.
Use a safe contained source of smoke such as incense or "synthetic smoke" in an aerosol can to test the detector. IF the smoke detector are more than 10 years old, consider replacing them. They work 24 hours a day, seven days a week, that's more than 87,000 hours over 10 year period.
With smoke detectors, cleanliness is important. A dusty or lind-laden unit can't do its job properly. It should be vacuum with an upholstery attachment periodically to remove the dust buildup.
A recent released report by the Consumer Product Safety Commission on the audibility of smoke alarms found that linking or interconnecting smoke alarms could provide an earlier warning to fire and smoke. The study also found that wireless technology could be sa solution to better protecting American homes.
With an interconnected device, when one alarm detects smoke, it triggers all other alarms to sound. The immediate reaction provides more warning in more places. There is, on average, only three minutes to escape a house fire after the first smoke alarm goes off.
Families should create and frequently practice a fire-escape plan. Make sure everyone, including children know what the smoke alarm sounds like. Practice the escape plan during the day and at night when family members are asleep to see if everyone responds. If an older child or adult doesn't wake up, assign an adult to wake and assist that individual in the even of a fire. Always assist younger children.
Alberto Pacheco
818 481 9211
Realtor Calbre 01200694
Keller Williams Porter Ranch
www.granadahills.kwrealty.com
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