Archive for May, 2008
Chico Homes Foreclosure Listings Coming Soon!
May 29th, 2008 Categories: Chico CA Foreclosure Listings
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Foreclosure Listings in Chico CA
May 26th, 2008 Categories: Chico CA Foreclosure Listings
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Chico CA Real Estate: On the Sunny Side!
May 24th, 2008 Categories: Chico CA Real Estate News
by Mike Wiegert
Last week at the National Association of Realtors (NAR) Midyear Legislative Meetings and Trade Expo, chief economist Lawrence Yun stated that home sales and prices throughout most of the country are poised for improvement in the second half of 2008 and that recovery will vary by market. Yun went on to blame the softening of the housing market last year on the “subprime mess”. Unqualified borrowers with scanty credit were given access to subprime financing with little or no equities. As these adjustable rate loans are being reset, borrowers find themselves unable to make the adjusted payments on the loans and subsequent foreclosures result. “In fact, if you look at where home prices fell the most, it’s the markets where subprime loans were prevalent,” Yun said. Cities with a high percentage of subprime lending are where the markets suffered the biggest downturns, he explained.
With these foreclosure sales thrown into the mix or data used to determine comparable sales in the market, the apparent market value of homes is pushed downward. An interesting twist to that situation is we’re now starting to see Chico homebuyers and investors competing for foreclosed homes. As a result, a sharp decrease in the margin between asking price and actual sales price is becoming evident.
Mmmm… let’s do the math: increased demand for foreclosure sales + increasing sales prices on foreclosure sales + market stabilization in the non-foreclosure market = market prices beginning to rise.
Is this all poppycock? Not at all! Many areas around the country are recently posting modest increases in sales prices. These areas include many portions of New York State, North Carolina, Washington State, Oregon, Wyoming and Utah. In fact, according to the Office of Federal Housing Enterprise Oversight (OFHEO) from January 2008 and February 2008 (month over month reports) overall U.S. prices were up 0.6 percent and 77 percent of the Metropolitan Statistical Areas in the U.S. reported price increases. Several markets that have seen price declines of 20 percent or so are turning around, Yun said, pointing to San Diego, Detroit and Fort Myers, Fla. Yun continued by forecasting that many mid-America cities such as Cincinnati, Milwaukee and Kansas City, MO are likely to experience home price gains in the 20 to 30 percent range over the next five years. Active markets like Miami, Las Vegas and Phoenix could go up as much as 50 percent in that time period.
Although the negative news-bearers continue to report what seems to be the overdone and worn-out stories of declining prices, there definitely appears to be a new day dawning.
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Chico CA Foreclosure Listings!
May 23rd, 2008 Categories: Chico CA Foreclosure Listings
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Chico Homes Foreclosure Listings
May 20th, 2008 Categories: Chico CA Foreclosure Listings, Chico CA Real Estate News
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Chico Homes Foreclosure Properties
May 19th, 2008 Categories: Chico CA Foreclosure Listings, Chico CA Real Estate News
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Chico Investors Reappear
May 18th, 2008 Categories: Chico CA Real Estate News
by Mike Wiegert
Last week I mentioned that, for the first time in months, residential homes available in the Chico area actually appeared to increase as well as the number of residential units sold.
As we are starting to see signs of stabilization in many California communities a long lost friend of the real estate industry is making a reappearance. I’m talking about the real estate investor. As prices hit record highs at the mid point of the decade, investors all but vanished from the scene. The primary reason appeared to be that as prices soared, the possibility of “cash flow” on investment properties evaporated. With residential and residential income (non-owner occupied) properties at record highs, investors saw little opportunity to “capitalize” or see a desirable return on their cash investments into these properties. With dramatic decreases in property values across the state and nation, investors are starting to emerge and with this reappearance, further strengthening and stabilization of the real estate market is calculable.
Right here in our little corner of the world, the Chico Multiple Listing Service (MLS) “solds” (closed escrows) and five “pendings” While fifteen sales in April might might not seem earthshaking it really is a dramatic increase from January when Chico MLS reported six “solds” and no “pendings” for that month. The numbers are even up significantly from March which reported “solds” at five and “pendings” at two reported last month ten residential income (properties placed in escrow but not closed).
Chico CA real estate statistical reporting is certainly micro-economics, but across the state and nation were beginning to see the same trends. S.F. Gate, a part of the San Francisco Chronicle news reported last week a story about Dan Shiner, a Mill Valley real estate investor examined a dozen different Sonoma County residential income properties and purchased two. “This duplex sold for $599,000 two years ago and now it’s listed for $414,900. That’s why people like me are coming out of the woodwork.” Shiner, who works in financing, shied away from real estate in his area because of inflated prices but now feels drawn back into the market because of many available “bargains”. These type of bargains in our area and the competition to purchase investment homes with “cash flow” is steadily growing.
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Chico CA Real Estate Market Report for Spring 2008
May 17th, 2008 Categories: Chico CA Real Estate Market Stats, Chico CA Real Estate News
The Chico Real Estate Market is Changing!
Although a steady decline of local home prices over the last several months has been reported there’s a change of direction in last months statistics. For the first time in months the median and average home price in the Chico area is in the black.
The Chico area’s median price was up at $272,500 from March at $267,000. Median price refers to the exact middle point of all the homes sold in that month or given period. The average price in April was up at $340,881 from $311,232 in March. Average price is defined as combining the sales prices of all the sales for a given period and dividing by the number of unit sales for that period.
In addition to this good news, the number of residential Chico area units sold was up significantly at 80 in April in contrast to March sales at 45. Of course many would say that this increase of number of sales is due to the traditional increase caused by seasonal changes, and they would be right. The overall increase in sales of residential units has little to do with the median and average home prices.
So, are we on the road to recovery? A little early to tell, but many economists and analysts are indicating trends in that direction. Michael Feder, CEO of Radar Logic, Inc., a reputable company known for statistical reporting of national and regional sales data and trends, recently stated on Bloomberg.com that several national metropolitan areas not only showed signs of stabilization, but actual significant price increases in recent months. New York’s borough of Manhattan, Houston, Dallas, Virginia Beach, Seattle, Charlotte, Salt Lake City, Austin and Buffalo all have reported gains in recent months. Even our local neighbor, San Francisco, demand exceeded supply and median and average sales prices posted increases.
When taken into perspective, all the sensationally negative news is really only taking into account recent year over year sales data, which is indeed somewhat depressing, especially to folks who purchased during the housing boom of 2004 to 2006.
In ancient times when I began my real estate career, my mentor first told me that real estate is a long term investment and that I should be certain that my customers understood this basic principle. Along the line we forgot this concept and rushed to buy real estate at inflated prices in order to make a quick buck or just get in while the getting was good.
Prices have come down the last year, but when looked at over a five year perspective, homes nationally have appreciated at 4.7 percent annually.
Even neighbor Sacramento/Roseville, one of the hardest hit areas in the country, experienced a 1.5 percent increase in home prices over the last five years. In fact, of all the national Metropolitan Statistical Areas (MSA’s), only Detroit, Cleveland and Denver reported decreases in homes sales prices when calculated over the last five years. Michael Feder expressed optimism without forecasting by saying that home prices should improve based on Financial Services Committee Chairman, Barney Frank’s commitment to reopen the mortgage credit conduit.
In Chico, we are seeing a re-emergence of FHA mortgage loans thus enabling credit worthy buyers in our area to purchase with less that the standard twenty percent down payment.
And a reminder, with over fifty million mortgaged homes in this nation, less than two percent are in peril of foreclosure at this time. It is certainly apparent that these foreclosure sales when calculated in the the homes sales data and indexes are really what are influencing current market prices. Equally apparent is the Federal governments determination to come to the assistance of these desperate homeowners with a variety of programs to stem off the flow.
There’s no doubt that nationally, statewide and locally here in Chico CA, real estate investments have been rendered a strong blow, but the wound is healing.
| Discussion: 2 Comments »
Chico CA Real Estate Foreclosure Properties
May 16th, 2008 Categories: Chico CA Foreclosure Listings
Chico CA Real Estate Foreclosure Properties
Updated: 05/16/2008
Chico (and surrounding areas) Foreclosure Properties Coming Soon!
Want the inside scoop on Chico foreclosure properties not yet listed? The following are scheduled for marketing within the next 30 days:
254 E 15th Street, Chico
174 Artesia, Chico
15 Comstock, Chico
CHICO FORECLOSURES
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| $125,900 1 Bedrooms 1 Bathrooms 676 Est. Sq. Ft. |
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| $150,500 2 Bedrooms 1 Bathrooms 1,296 Est. Sq. Ft. |
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| $198,000 3 Bedrooms 2 Bathrooms 1,320 Est. Sq. Ft. |
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| $259,000 3 Bedrooms 2 Bathrooms 1,402 Est. Sq. Ft. |
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| $277,900 # of Units Not Listed |
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| $299,900 2 Bedrooms 2 Bathrooms 1,502 Est. Sq. Ft. |
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| $354,900 3 Bedrooms 2 Bathrooms 2,116 Est. Sq. Ft. |
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| $359,000 3 Bedrooms 2 Full | 1 Partial Bathrooms 2,131 Est. Sq. Ft. |
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MAGALIA FORECLOSURES
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| $49,900 0.22 Acres |
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| $135,700 2 Bedrooms 1 Bathrooms 896 Est. Sq. Ft. |
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| $144,900 2 Bedrooms 2 Bathrooms 1,189 Est. Sq. Ft. |
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| $145,000 3 Bedrooms 2 Bathrooms 1,486 Est. Sq. Ft. |
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| $149,900 3 Bedrooms 1 Full | 1 Partial Bathrooms 1,080 Est. Sq. Ft. |
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| $154,900 3 Bedrooms 1 Bathrooms 1,564 Est. Sq. Ft. |
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| $199,900 2 Bedrooms 2 Bathrooms 1,261 Est. Sq. Ft. |
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| $212,900 2 Bedrooms 2 Bathrooms 1,751 Est. Sq. Ft. |
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| $215,000 3 Bedrooms 2 Bathrooms 1,696 Est. Sq. Ft. |
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ORLAND FORECLOSURES
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| $123,200 3 Bedrooms 1 Full | 1 Partial Bathrooms 1,080 Est. Sq. Ft. |
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| $124,900 3 Bedrooms 1 Bathrooms 1,015 Est. Sq. Ft. |
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OROVILLE FORECLOSURES
PARADISE FORECLOSURES
WILLOWS FORECLOSURES
Subscribe here: Chico CA Real Estate Blog to receive daily foreclosure updates!Do you need more information on any of these properties? Call your local Chico Realtor, Sandi Bauman. 530-864-5407.MUST HAVE information: Foreclosures: What you should know BEFORE you make an offer, Part 1Foreclosures: What you should know BEFORE you make an offer, Part 2Foreclosures: What you should know BEFORE you make an offer, Part 3Chico, California Foreclosures and West Nile Virus |
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Chico, Paradise, Willows Foreclosure Listings
May 15th, 2008 Categories: Chico CA Foreclosure Listings
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