The real estate market and general economy are so difficult to forecast or to know what to do with that just reading some statistics didn’t help much while trying to figure out what was going on with the Turlock real estate market specifically. Although sometimes on a downturn, the real estate market is always active because people will always need places to live. There are still plenty of people looking for real estate agents near me as well as in the surrounding areas so that they can find a house that they can make a home.
Coldwell Banker Endsley & Associates Sales Manager Neil Weese explained Turlock’s real estate market and gave TurlockCityNews.com his best analysis of the statistics provided up through June 2009.
While nationally the real estate market is being reported as terrible, Coldwell Banker Endsley & Associates Sales Manager Neil Weese said “That’s true on a national level. Real estate is very local, so we have actually gone through what most of the country is now going through, especially the east coast (that’s where all the news generates from). You know California went through that in 2007-08, especially in the Central Valley. And in our area locally, we’ve seen the worst. We’re actually in a place where we’re starting to see prices level off.”
While the Turlock single family home market has shown a 61.2% decline in homes for sale and a 10.5% increase of homes sold in the last year, the median price has gone from $200,000 to $137,000. The average home sale was $214,000 in June 2008 and $146,000 in June 2009. Some homeowners are desperate to sell their homes because of the economic downturn but with the value of property decreasing, it’s hard to get a sale. Of course, homeowners have been able to use services such as sell my house as is in Indy and benefit financially, however, selling in a downturn will never be easy. Some people are able to buck the trend, however. There are people in other areas who use sites and services like those House Buyers of America provides, and have made a decent profit because of it.
The median home sale price did go up $7,000 in May from $133,000 to $140,000.
“It’s really hard to forecast but we’ll probably start to see segments of the market increasing in price within the next 6-12 months, and those segment basically being the lower end,” said Weese. “When you get into the move up or the upper end homes, that’s still pretty soft because we don’t have the demand in that segment that we do in the lower end for the first-time buyers and the investors.”
Neil Weese went on to explain a little about Turlock’s upper end market.
“The higher end houses are… Well real estate is all about location,” said Weese. “Typically when you look the Turlock area, the north area up around the university where all the growth was in the last 7 or 8 years had a tremendous amount of impact from this foreclosure market, because a lot of those goofy loans at a higher percentage, than those over on the eastside were most of those homes were already established with a fixed rate mortgage.”
Weese said “So what we’ve seen is homes up in the north area are actually selling on a per square foot basis for a lower amount than they are on the eastside where it was impacted less by all this foreclosure market. And it’s specific to where you see the larger homes too. As far as luxury homes, it is not uncommon to see 3,000 square foot homes in the north area but they’re on a 6,000 square foot lot. They’re big houses, but they’re not upper end homes that you would find in Bristol Park or on Daubenberger. So yeah, there is an impact in that market place but it has not been quite as near, the price hasn’t come down as far on a sq. ft. basis, but they have come down substantiality.”
Now the lower end market, this is the market that Realtors get more of a chance to help out first-time buyers. The Coldwell Banker Endsley & Associates Sales Manager explained how much demand there is right now in the low end of the market.
With stats showing that the average home is only on the market for 55 days now and only about 1.8 months worth of inventory at the selling rate we’re at here in Turlock, some low end priced homes are getting many offers and quick too.
“There’s so much demand out there, we’re seeing five, ten, up to twenty offers on properties that are coming on the market and that’s causing prices to go back up because that’s all supply and demand,” said Weese. “If people are thinking about buying, we have a great combination of low interest rates and low prices… They need to act on it.”
Weese advises first-time home buyers that they need to know that the market is pretty hectic right now, especially when looking at the lower price range. There are so many issues with short sales, auctions, foreclosures, and homes with multiple bids. Buyers really need do their homework and get a real estate agent that knows the area specifically, whether they be going through the 1031 exchange real estate options or any other out there.
“My advice is to find an agent that knows the market place and can give you advice based upon today’s market value. What we’re talking with our agents here is buyers need to know not just what the property is listed at but what is the market value,” said Weese. “We’re seeing some lenders, especially on REO (real estate owned) properties, they’ll list it at 10% or 20% below market value to get 10 or 15 offers that jack the price up. So you need to be informed of market value, and any good agent can do that for you.”
Weese says “You’re going to get a great deal (historically) speaking but you still need to go in educated, know what’s going to happen, what the value is on your property, find an agent who knows the market place and has seen it on a continued basis.”
“So if people are waiting for all those foreclosures to come onto the market, there is so much demand right now that I think the banks could bring a steady flow of those properties on and it won’t reverse the trends of the market place right now.”
Turlock is still is seeing foreclosures and pre-foreclosures. These foreclosures help prove Weese’s forecast that Turlock may still see a continuing of our market kind of bumping along the bottom here for the next 6 -12 months.
Foreclosures have played a big part in downing prices in the real estate market. There are foreclosure issues that can still affect the market but it can get complicated.
Weese stated that we’re still seeing foreclosures happening. There’s been a lot of talk about this 90 day moratorium on foreclosures that California put on and people are saying that’s going to have them backed on the market place.
“Well it really doesn’t because that only dealt with lenders that weren’t part of this program to modify the terms of these buyers’ loans. Any lender that had a loan modification program already in place was exempt from that,” said Weese. “A vast majority of major lenders already had that in place.”
There are still foreclosures going on but the pace has probably slowed a little bit. Part of our frustration buyers and agents are dealing with is that the lenders are still foreclosing but they’re not putting them on the market right now.
If you’re a buyer waiting for those foreclosures to get put on the market and hope that they will bring down the prices, Weese suggests the leveling off or upswing in the market may still be able to continue because there is so much supply and demand right now. Limiting the inventory by holding back foreclosed homes may raise prices and current properties are already getting multiple offers in a short time.
“If people are waiting for all those foreclosures to come onto the market, there is so much demand right now that I think the banks could bring a steady flow of those properties on and it won’t reverse the trends of the market place right now,” Weese said.
Just to give people some kind of an idea of what the low end market looks like here in Turlock, Weese reported that he showed a condo that was listed for $105,000 and pulled up a list of around 15 properties under $120,000.
For more information, contact a Realtor at Coldwell Banker Endsley & Associates at www.cbendsley.com.
Note: The American Recovery and Reinvestment Act of 2009 authorizes a tax credit of up to $8,000 for qualified first-time home buyers purchasing a principal residence on or after January 1, 2009 and before December 1, 2009.