Market Report for Murrieta's West Side, August 2010
Here are my market reports since March 2010 and now in August 2010 in the Murrieta's West side community, with analysis to follow:
The market for homes for sale in Murrieta's West Side appears to reflect what the overall housing market has done:
- In May, homes Pending sale increased as buyers were looking to take advantage of the Federal Homebuyer tax credit. Our personal experience with our brokerage's many buyers in that Spring 2010 time frame, too, was that the clients saw the value of purchasing a home at monthly costs lower than renting. So for our clients, the Federal Tax Credit was just an added bonus to doing what they already thought was the smart financial move for them. Similarly on the west side of Murrieta, there was a clear spike in purchases, with buyers trying to get into contract by April 30 or close by June 30 (the original Fed Tax credit deadline).
- The higher number of Pendings in the market for West Side Murrieta homes over these months relates to Short Sale activity, where buyers are stuck waiting for the bank that holds the seller's note to approve a sale price at far less than the seller owes. This can take from 2 to 6 months to play out. That means there were a lot of Murrieta West Side homes that went Pending in April and showing as Pending in May, June, July, and August when they finally closed, keeping the Pending figure for Murrieta homes looking like there are lots of homes going into escrow, when in fact, they were sitting for months as "Pending" while waiting on the short sale bank's approval.
- It therefore appears the Murrieta West Side market was bought into by people at risk of having the home later go to short sale, due to factors of Bubble-high pricing, appraisals including homes that sold as "kited" prices (buyers offering a lot OVER the list price and getting appraisers to go along, falsely lifting market prices) as well as, of course, the Non-traditional loan products that were foisted on some buyers. The markets in Murrieta and Temecula that had far more Short Sales are typically the tracts with master-developed floorplans and on similar-sized lots.
- Timing of a buyer's offer on short sale homes in Murrieta's West Side is very important in this market. In Short Sales, the home stays on the market as Pending while the buyer with the first accepted offer gets anxious to be moved into a new home, and in fact the seller's bank allows the short sale approval deadline in the buyer's Short Sale Addendum to pass. This frees the buyer to move on and go ahead on offers on homes that might allow for a quicker close date. At that point, the home is much closer to an approval on the short sale. Then, a buyer who comes into the market at this later time has a good chance to get their offer to the front of the line and buy a short sale home in the market Murrieta's West Side while waiting much less time than an original offeror would have had to wait.
We are helping our clients in this market, trying to keep the wait as short as possible to get into a Murrieta West Side home. Clients should consider both the speed of getting into the home, and the ease or difficulty of selling at some point down the road. Analyzing the market report for the West Side of Murrieta and surrounding areas helps prepared you ahead of time in making these decisions.
You can search Murrieta homes for sale at our website. Or you can have us set up an automated search through the MLS that emails you West Side Murrieta homes - or any other geographically-determined area here - as soon as they hit the market. We would be happy to help.
Lisa Delzompo (951-704-4559)
"May your home always be too small ... to hold all your friends!"
CA Dept of Real Estate, Real Estate Broker License #01379811;
NMLS Identifer #331744
REAL ESTATE: www.SandToSeaProperties.com. Covering northern San Diego, Oceanside, Temecula, Murrieta, Riverside County and desert areas of Yucca Valley, Joshua Tree and Twentynine Palms, CA.
LOANS: PRW Lending, Inc. Call direct 951-704-4559, or email me at lisa(@)sand2sea.us
Information is deemed reliable but is not guaranteed. Information is general and may not address your particular situation. Do not rely solely on this or any information you find on the internet. You should consult relevant professionals directly about your real estate, financial, etc., situation.