We were talking the other day about what happened during 2008 in the local Ventura County real estate market.  We thought you, too, would be interested in hearing reading our combined observations.

Looking back down the 2008 real estate road -

• Many sellers who could not get ‘their price’ took their house off of the market and decided to wait or rent their property.
• Short sale listings dominated the available homes for sale in the price range below $500,000.
• Lots of real estate agents were ‘flushed out’ and are no longer working in the business.
• Pricing strategies changed - very aggressive list prices to attract Realtors and buyers.
• Buyers were misinformed by national media which failed to relate that real estate is a local commodity and each community/neighborhood is unique.  What was happening in Detroit was very different than what was happening in Camarillo or Thousand Oaks.  Plus what was happening in Oxnard or Simi Valley was likewise very different than TO or Camarillo.
• Buyers were looking for a ‘bargain’ not just a good deal.
• Bank-owned homes (REOs) amounted to 5% of the active listings in Thousand Oaks and Camarillo.
• Move-up buyers (selling a lower priced home and buying a higher priced home in the same area) were few and far between.
• The median sales price fell approximately 25% from the previous year; likewise the number of sales was down approximately 30%.
• A substantial number of cash buyers emerged (perhaps their money came out of the stock market?).
• “Beat up” houses (fixers) with LOTS of deferred maintenance seemed to be the norm.
• Cost of roofs went up dramatically due to oil costs.
• Short sale approvals could take up to six months or longer for an answer from the lender.
• Buyers needed a higher FICO score than previously required.
• Lender-owned properties and short sale sellers USUALLY made no repairs, no termite, and few disclosures.
• Listing inventory (the number of homes on the market) was reduced since most ‘traditional’ home sellers did not want to compete with short sales or bank-owned properties.
• With prices down, investors and first time buyers came out to purchase homes.
• Several real estate offices closed; escrow and title companies downsized which diminished their services. 
• Interest rates ended the year at a 37-year low; buyers were required to qualify for their loan; stated income loans were extinct.
• Homeowners petitioned the county to get their property taxes re-assessed.
• Affordability increased making it possible for people who could not afford in the past be able to attain home ownership.
• Many lenders cancelled homeowners’ home equity loans.  FHA loans resurfaced. 
• The financially strapped Los Angeles Times stopped printing their huge Sunday real estate section.
• Majority of buyers began their home search on line.
• There were  lots of ‘fence sitters’ - people who wanted to buy but were afraid of making the wrong decision.  (Could this mean a lot of pent up demand?  Let’s hope.)
• Appraisers worked with tighter guide lines.
• It was a great time to be a buyer with lower prices and lower interest rates!!
• Multiple offers?  Yes, multiple offers were common on well priced bank-owned properties.
• We hope next year - 2009 - will be a better year all around!

This year the National Association of Realtors which is celebrating a 100 year anniversary has been honored to be selected to have a float in the Rose Parade.   The parade theme this year is “Hats off to Entertainment.”  The inspiration for the NAR float is the Swiss Family Robinson.  The story/movie is about a  shipwrecked family and instead of giving up built a home in the trees. 

Check out  NAR’s webisodes below which takes you  behind-the-scenes in the design, building and even the float’s own theme song.  It is amazing how much goes into the final product.  Be sure to watch on January 1, 2009, as NAR celebrates the dream of home ownership for 100 years.

We would have loved to work on the NAR float but the location of the barn housing the float was just much too far to travel, work all day and drive back home to Ventura County.  We just have to settle to watch the float on television like everybody else.  Maybe next year?  If you are interested in volunteering to work on a Rose Parade float, there are many websites where you can get information.  It’s a great way to make a family tradition!!

In checking through several emails this morning, we discovered that today, December 23, is Festivus.  How could we forget the episode of Seinfeld where George’s father creates the ‘new holiday for the rest of us.’  It is so absurd - it is funny.  Ben & Jerry even made an ice cream called Festivus. 

Take a minute to have a laugh and MERRY CHRISTMAS (or Festivus)……..

Since the host (judge) had been ill, he used comfort foods as the ‘awards.’   We got the chicken soup award or 5th place.  (Sounds better than the Pepto Bismol award!)

Our winning post was ”The Short Sale that NEVER Happened.”  Whether the reason a deal fell through was due to a low-ball offer, loan fraud by the original borrower or even simply a lender being overwhelmed, this post will help you avoid taking the loss of a short sale personally.

If you are interested in looking at short sale properties in Ventura County, email us (info@805Local.com) or call us at (805) 340-5811. 

 Related Posts to check out about Short Sales:

• “Short Sale Secrets” - What you need to know  before you put an offer on a short sale
• “Lesson Learned about buying a bank-owned House” - Bank-owned transactions are a different breed!

We looked at each other and we each knew that the media snippets had gotten to them…..and we had our work cut out to inform them what was really happening in the market.  If our friends had these misconceptions, it was possible the people coming into our open house the next day could have similar misconceptions.

On that note, we hurried home to put together a sheet to give out at our upcoming open house.  Below are the talking points we handed out at our open house last Sunday at 7112 Los Coyotes, Camarillo:

1. People can’t get real estate loans.  Wrong.  Last week the interest rate was 5.75%  for a thirty year fixed conforming loan.  The kicker is the buyer must now qualify for the loan and also much have good credit.  Banks are lending and rates are great!
2. The majority of homes on the market in Camarillo are bank owned.  Wrong.  Banked-owned properties currently on the market in Camarillo represents about 9% of the active listings.
3. Nothing is selling.  Wrong.  Yes, the number of sales is down but if you are currently active in Camarillo’s real estate market, don’t be surprised if you are involved in a multiple offer situation - very common today.  In fact our last three sales where we have represented buyers, we prevailed over other hopefuls and even had to go over the listed price.  Houses are selling!
4. More choices than in 2005.  Right.  Remember those days?  We had to write offers on the hood of our cars and be the first offer in.  It was a foot race!.  Now there is a wide range of homes to select!
5. Lower home prices.  Right.  Isn’t that what buyers have been waiting for?  Lower prices = lower payments = lower property taxes = lower insurance.  The time is right for lower prices!
6. People are waiting for the ‘bottom’ of the market.  Good luck.  No one can tell when or if that has happened.  Even working in the real estate business daily for many years, we don’t know until after it has occurred; it is like looking in a rear view mirror.  What constitutes the bottom for the country is meaningless for people looking to buy and sell homes in Ventura County.
7. It’s a great time to buy.  Right.  Prices are down and so are interest rates.  How often does that happen?  Now is your opportunity!

We had a tremendous turn out of people at open house last Sunday.  It appears that potential buyers are starting to realize that the sky is not falling but prices and interest rates have. 

Next Sunday, December 14, we will be again holding an open house at 7112 Los Coyotes Place in Camarillo.  Come visit the house and us.  We will be there from 1p.m. to 4 p.m.  See you there!

Yesterday we posed this question on Trulia Voices and within a very short time period we received six answers from Realtors from Florida, Arizona and California. (All were from ’sunshine states’ –wonder if their answers had something to do with their location?)  

Five of the six thought it best to keep a house on the market during the Holidays.  One stated he ‘wouldn’t have a problem with that and change the MLS for a couple of weeks.’ 

Here’s our thoughts (and the other five Realtors’ thoughts) about having a house on the market during the Holidays:

• If buyers are looking this time of the year, they are serious.
• Many people are off from work and this is the time that both husband and wife can look at homes together.
• When is a home more beautiful than when it is decorated for Christmas? So warm and inviting.
• Better chance of selling since there are fewer homes for a buyer to view -less competition!
• Many corporate relocations happen before January 1– potential buyers.
• Winter visitors looking to have a home in a sunshine state.

Most Realtors agree that taking your home off the market during the Christmas season is a big mistake.  It is understandable that you might consider taking your house off the market at this time but the house isn’t going to sell if it is off the market!

Realtor.com is owned -get this- by National Association of Realtors who collects fees from Realtors to belong to the association and then again collects more fees to be part of Realtor.com.  But wait there’s more, if you (the Realtor) wants to be a featured agent tack on an additional say $750 a month depending on the area of the country.  But it’s exclusive and they only offer so many.  Better hurry while the gettin’ is good.   Come on folks - enough.  And you still are a pain to use!

I just tried entering an address of a property that I KNOW is for sale and it took me fifteen minutes to find the property.  That’s crazy.  Enough I’ll get off of my soapbox and I just logged off of Realtor.com.

This year Kay is again organizing “Barbie Care and Share” with friends and family to donate Barbies, clothing and accessories to needy children in various Ventura County agencies.  Last year’s “Barbie Care and Share” was a community effort with a Camarillo Girl Scout troop and others helping to clean, dress and package the dolls donated by generous citizens through out Ventura County. 

Kay is looking forward to another positive response from the people of Ventura County.  Anyone interested in donating gently used dolls, clothing, or accessories can email Kay or call her at (805) 482-4560. 

Each doll come with its own cloth carrying bag which Kay needs help sewing the dozens of bags that are needed to package the dolls.

Thanks Kay for your fine work and contribution.  Just another reason why living in Ventura County is so special — the people!!

An ambitious mass-market loan modification programs was outlined on November 11 by the Federal Housing Finance Agency along with the 33 banks and mortgage servicers that make up the private-sector Hope Now Alliance. 

The program is scheduled to start nationwide December 15 and is aimed at thousands of subprime mortgage holders and other borrowers who are three months or more behind on their payments.  To be eligible, homeowners need to document that they can handle mortgage payments of as much as 38% of their monthly gross income.

In additional borrowers need to demonstrate that they have experienced some form of financial reversal that made them delinquent on their payments and prove that they did not intentionally go into default just to get better terms. 

All of this sounds good but how does a homeowner - say in Camarillo or Thousand Oaks - get started lowering their mortgage payments???  Here are four ways to get started:

1. Contact your lender directly. 
2. Work through Hope Now Alliance (www.hopenow.com)
3. U. S. Department of Housing and Urban Development (www.hud.gov/foreclosure)
4. Paul Stansen (www.stansen) will review and prepare a written summary of findings confirming whether a loan modification is possible.  He can also give advice regarding short sales. 

Bottom Line– if you need help, ask for it.  But be careful that the new loan modification program does not just put a band aid on the problem rather than solving it.

CAMARILLO 

This week in Camarillo (Mission Oaks, Santa Rosa Valley, Las Posas Estates, Leisure Village, Camarillo Springs, etc) there is a total of 27 bank-owned properties on the market.  Two weeks ago, the total of bank-owned properties on the market in Camarillo stood at 23 properties. 

These properties range from a small condo to a large estate.  Click here for the Camarillo complete list of REOs, real estate owned (by the bank).  Currently in Camarillo there are 305 properties on the market. 

CONEJO VALLEY

The Conejo Valley (Newbury Park, Westlake, Agoura, Thousand Oaks, Oak Park) currently has 60 properties on the market that are bank-owned; two weeks ago the bank-owned properties amounted to 58.  These homes range from condos to castle.  Click here for the latest list of the Conejo Valley REOs, real estate owned (by the bank).  Currently the Conejo Valley has 866 properties on the market.

BUYING A REO?

Would you like to buy a bank-owned property?  Each transaction is different but there are similarities; we wrote a post to help explain to buyers how the banks are working.  Be sure to read “Lessons learned about buying a bank-owned house” to better understand the process.  We have learned from actually working with buyers throughout Ventura County. 

Want to start looking at REOs?  Call us (805) 340-5811 or email us at info@805Local.com.   There are some really good deals out there!!  What are you waiting for?