Comments Off

By admin, July 18, 2010 2:56 am

There are many people considering the Hawaii real estate market as a way to make money in a relatively brief period of time, but there are two different types of people you can find in this field. The real estate investor is the person who continuously makes profit and places it back into the business.

Real estate investors have their own investing tactics and they base their investments on specific criteria; usually, experienced investors know exactly what trends to follow and what to ignore when it comes to the market trend, because they know that the big bucks come from their own business vision and not from the market trend.

However, many times we hear about real estate investors who make investment mistakes or fail in their investments, and people wonder how experienced real estate investors could make such important mistakes.

The truth is that these people are often not at all real estate investors, but rather real estate speculators. This is the second category of people activating in the real estate business domain, and the number of speculators is not small either.

There are important differences between these two categories of people. The most common cases of real estate speculators are people who buy a brand new home from a builder speculating that they would be able to sell the contract or flip it before settlement. There are many such cases, and you’ve probably heard or you know someone in this situation (or maybe you’re one of these people yourself).

You should know that even though there may have been people who succeeded in making a quick profit from this scheme, most of the people who try this tactic end up owning houses they never actually planned on owning.

It is true that some people manage to just walk away from the contract they signed, even if they often have to lose the money they have paid in the form of non-refundable deposits. That is the reason for which many home builders who have large inventories end up having to offer purchase incentives so that they would try and sell off some of it.

However, many of the real estate speculators who chose to complete the purchasing process not only did not recover anything from the investment they made, but they also ended up being faced with foreclosure and they had to lose a lot of money.

The main thing to remember when it comes to real estate is that speculating does not mean investing, so if you really want to make money you should learn how to make it right.

Comments Off

By admin, June 21, 2010 8:22 pm

The Costa Mesa real estate market, a subsidiary of the much larger Orange County housing market, continued to have issues with high rates of foreclosure despite relatively stable median home prices. According to a June 7, 2010 article from the Orange County Register, “According to CoreLogic’s latest late-mortgage report, 8.40% of Orange County home-loan borrowers as of April are 90 days-plus late with their house payments. That’s +2.60 percentage points vs. a year ago.” The piece, composed by Jon Lansner, went on to state that “2.37% of Orange County homes were in the foreclosure process; +0.15 percentage points vs. a year earlier. 0.35% of Orange County homes were repossessed by banks as REO (real estate owned); -0.10 percentage points vs. a year earlier. Orange County 90-day delinquency rate is -3.20 percentage points vs. the state’s slow-pay rate -0.50 percentage points vs. national pace.”

The average sales price of a Costa Mesa home for sale rose along with the rest of the O.C. in the most recent tracking period, according to a June 4, 2010 piece from the Orange County Register. The piece noted that “For the 22 business days ending May 18 – DataQuick’s latest real estate buying report – Orange county saw…$440,000 median selling price that is up 12.8% vs. a year ago yet -32% below June 2007’s peak of $645,000. A median of $440,000 was last seen in Orange County in August 2008.” The article by Jon Lansner went on to state that “The most recent median is 19% above the cyclical low hit in January 2009 at $370,000 – a current bottom that was 43% below the peak. The median selling price of an Orange County single-family home is 30% less than their peak pricing (June ’07) while condos sell 37% below their peak in March 2006.”

About half a month earlier, the average home price for Costa Mesa real estate declined slightly, according to a May 18, 2010 article from the Orange County Business Journal. This piece, written by Mark Mueller, found that “Orange County’s median home price edged down $2,000 in April from March, but still stands $50,000 higher than the prices seen here a year ago.”

Comments Off

By admin, June 19, 2010 8:16 pm

The Brea real estate market, a portion of the larger Orange County real estate market, continued to have serious problems with mortgage delinquency and foreclosure despite relatively stable housing prices. According to a June 7, 2010 article from the Orange County Register, “According to CoreLogic’s latest late-mortgage report, 8.40% of Orange County home-loan borrowers as of April are 90 days-plus late with their house payments. That’s +2.60 percentage points vs. a year ago.” The piece, written by Jon Lansner, continued to state that “2.37% of Orange County homes were in the foreclosure process, +0.15 percentage points vs. a year earlier. 0.35% of Orange County homes were repossessed by banks as REO (real estate owned); -0.10 percentage points vs. a year earlier. Orange County’s 90-day delinquency rate is -3.20 percentage points vs. the state’s slow-pay rate and -0.50 percentage points vs. national pace.”

The average sales price of a Brea home for sale rallied along with the rest of Orange County in the month of April. According to a May 18, 2010 piece from the OC Metro, “Orange County saw gains in its median home price and sales activity in April, compared to the same time last year, according to a new report from MDA DataQuick.” The article, written by Kristen Schott, went on to state that “The county’s median home price hit $430,000 last month, up 13 percent from $380,000 in April 2009. But, the price dipped slightly from March, when the median reached $432,000. For the six-county Southern California region, which includes Orange, L.A., San Diego, Riverside, San Bernardino and Ventura, the median rose 15 percent to $285,000 in the period, compared to April 2009. The number was unchanged from March.”

Compared to last month, however, the median home price in the Brea and Orange County real estate markets, declined slightly. According to a May 18, 2010 article in the Orange County Business Journal, “Orange County’s median home price edged down $2,000 in April from March, but still stands $50,000 higher than the prices seen here a year ago. The median price of a home sold here in April was $430,000, a less than 1% drop from a month earlier, according to San Diego-based MDA DataQuick, a unit of Canada’s MacDonald Detwiller and Associates.”

Comments Off

By admin, June 17, 2010 7:37 pm

The Morgan Hill real estate market, a subsidiary of the larger Silicon Valley and Santa Cruz housing markets, saw a slight decline in some sectors in April, despite the nationwide trend towards recovery. According to a May 20, 2010 article from the Silicon Valley/San Jose Business Journal, “Bay Area home sales fell slightly below the year-ago level and remained well below average in April, according to a report Thursday by MDA DataQuick. In April a total of 7,003 homes closed escrows in the nine-county Bay Area, up 0.2 percent from 6,992 in March but down 1.9 percent from 7,139 in April 2009.” The piece went on to state that “The median price in Santa Clara County in April was $489,000, up 20.70 percent from April 2009’s median of $405,000. There were 1,656 sales, up from the year-ago period’s 1,606 sales.”

The relative strength of home prices in Morgan Hills and other portions of Santa Clara County can be at least partially attributed to lower interest rates. According to a June 3, 2010 press released from the Santa Clara County Association of Realtors, “Record-low interest rates continue to fuel the Santa Clara County housing market, boosting home prices and spurring brisk sales. The 30-year fixed-rate mortgage averaged 4.78 percent with 0.7 point for the week ending May 27, down from the previous week when it averaged 4.84 percent, according to Freddie Mac.” The piece, composed by SCCAOR President Karl Lee, went on to say that “Rock-bottom interest rates and lower housing prices make homes more affordable than they have been in years. In Santa Clara County, multiple offers are common and many properties are snapped up within a few days.”

The Morgan Hills real estate market, along with the larger Bay Area, saw a shift towards foreclosures on more expensive properties in the most recent tracking period. According to a June 1, 2010 article in the San Francisco Chronicle, “Foreclosures are going upscale across the Bay Area. Nearly 1,000 homes valued above $730,000 were repossessed by banks in the nine-county region in each of the past two years, according to a Chronicle review of public records compiled by MDA DataQuick, a San Diego research firm.”

Comments Off

By admin, June 15, 2010 7:19 pm

The Rocklin housing market, a subsidiary of the Sacramento-area real estate market, showed strong signs of recovery despite a slight decline in home sales. According to a June 10, 2010 article from the Sacramento Business Journal, “Foreclosure filings in the Sacramento region, including notice of default, trustee sales notices and repossessions by banks, were down 12.53 percent in May compared with the same period one year ago, real estate information firm RealtyTrac reported Thursday.” The piece, composed by Michael Shaw, went on to note that “According to the report, 1,488 homes in the four-county region became bank owned through foreclosure sales during the month, the company said. The trend in Sacramento mirrors that in California, where foreclosure filings were down 22 percent on a year-over-year basis. The state still accounted for 22 percent of the nation’s foreclosure filings.”

The average sales price of a Rocklin real estate climbed from near-record lows along with the rest of the Sacramento area. According to a May 24, 2010 article from the Sacramento Business Journal, “Sacramento-area home prices are climbing off the mat, increasing 12.4 percent from the bottom reached in April 2009, according to a report released Monday.” The piece, written by Ron Trujillo, went on to state that “The four-county region – arguably one of the hardest hit, with an abundance of foreclosures and 35 percent-plus home prices declines – had a median-home price of $188,100 in April, compared to the so-called ‘trough’ price of $167,340 a year ago, according to the California Association of Realtors…Sacramento County was the only county in the region that enjoyed a price increase compared to a year ago.”

The Rocklin housing market did suffer from a slight decline in home sales, possibly as a result of the higher prices. According to a May 20, 2010 article in the Sacramento Business Journal, “Home sales in the four-county Sacramento region were slightly lower in April than the same month last year, according to figures released Thursday from real estate information company MDA DataQuick.” The piece, written by Michael Shaw, noted that “There were 2,873 home sales of all types, including new homes, and existing homes, and existing homes and condos, in April compared with 3,036 sales a year ago, the company reported.”

Comments Off

By admin, June 14, 2010 7:14 pm

The Mesa real estate market, found in the midst of one of the hardest-hit parts of the country, showed some promising trends in the month of May. According to a June 9, 2010 article from the Phoenix Business Journal, “New research from Arizona State University shows foreclosures as a share of overall Valley homes sales are declining. The latest ASU Realty Studies report from the W.P. Carey School of Business says the number of foreclosures dropped from 40 percent of the market’s recorded activity in March to 33 percent in May.” The piece went on to caution that “Despite the decline, there is no guarantee the trend will continue. ‘Defaults and late payments are still at record levels and could be a precursor of additional foreclosures.’ said Jay Butler, associate professor of real estate and author of the report. ‘The main issues center on whether income will increase enough for people to hold on to their current homes, and whether they can maintain payments on their homes.’”

The prevalence of foreclosures amongst Mesa homes for sale declined, as more home sales in the Phoenix area were of the traditional variety. According to a June 10, 2010 article from KGUN 9 News, “A new report shows foreclosed homes made up a smaller share of existing home sales in the Phoenix area last month. The Arizona State University Realty studies report shows foreclosed homes dropped from 40% of all sales in March to 33% in May.” The piece, also released by the Associated Press, continued to state that “Butler says some homeowners may choose to walk away because their home’s value has sunk and because they owe too much on their mortgages. Foreclosures and sales of previously foreclosed-on properties still made up 60% of sales in May.”

Despite a low level of sales overall, some recent tracking indicators had positive news for Mesa real estate, according to a May 22, 2010 article from the Arizona Republic. The piece, composed by Catherine Reagor, noted that “April figures for existing-home sales in metro Phoenix reveal several promising shifts for those searching for signs of a housing-market recovery.”

Comments Off

By admin, June 13, 2010 7:12 pm

Despite a decrease in sales volume, the Millbrae real estate market is showing mostly signs of strength, such as a fall in foreclosures and a higher median sales price. According to a May 20, 2010 article from Reuters, “Home sales in the nine-county San Francisco region continued to shift toward its more expensive markets in April, reducing overall sales and lifting the area’s median sales price from year-earlier levels, a report by MDA DataQuick said on Thursday.” The piece went on to state that “The region posted 7,003 sales of houses and condominiums in April, up 0.2 percent from March and down 1.9 percent from a year earlier, while the area’s median home price last month of $370,000 marked a decline of 2.6 percent from March and an increase of 21.7 percent from a year earlier, the report by the real estate information service said.”

The average purchase price of a Millbrae home for sale jumped in the month of April, along with the median price in the rest of the Bay Area. According to a May 21, 2010 article from the San Francisco Chronicle, “Median resale home prices in the Bay Area rose 30 percent in April compared with the prior year, in a market that featured fewer foreclosures and more activity in higher end neighborhoods, according to a real estate report released Thursday.” The piece, written by Robert Selna, went on to say that “Meanwhile, the total number of homes resold in the Bay area – that is, not newly constructed – fell slightly year-over-year as the higher-priced sales activity could not offset declines in the more affordable areas, according to data analyzed by MDA DataQuick, a San Diego real estate research firm that produces monthly market updates.”

The number of distressed mortgages in nearby markets such as East Bay declined in the month of May, a development that should decrease negative pressure on Millbrae real estate. According to a June 10, 2010 article from the Contra Costa Times, “Default notices – the first step in the foreclosure process – fell by about half in the East Bay during May from a year ago as more homeowners opted for short sales…In the Bay Area – which RealtyTrac.com defines as Alameda, Contra Costa, Marin, San Francisco, and San Mateo counties – a total of 2,230 homeowners received a notice of default, down 38.9 percent from a year ago.”

Comments Off

By admin, May 14, 2010 2:12 am

The Palo Alto real estate market is very closely related to the greater Bay Area real estate market, and seems to be showing some signs of improvement. According to a March 11, 2010 article from ABC 7 News, “For the first time in a long time, some of the Bay Area’s hardest hit counties are seeing their foreclosure numbers drop compared with last year. In San Joaquin County, foreclosure filings have dropped 42 percent since February 2009; in Alameda, foreclosure filings are down 16 percent and in Contra Costa County, filings are down 3 percent.” In the words of Elaine Brooks-Cox, a foreclosure contractor with Pacific Community Services, “Just recently we’ve seen a small slowdown. Our inventory for foreclosure inventory and short-sale inventory and a short-sale inventory in the local 680 corridor is down; we’re seeing probably a decrease by as much as 60 percent over what it was last year.”

Home prices are another bright spot for Palo Alto homes for sale, according to a  March 18, 2010 online article from the Los Angeles Times. The article stated that “The median price paid for a Bay Area home jumped 20% in February as fewer foreclosures were on the market, the San Diego research firm MDA DataQuick said Thrusday. Sales fell for the second month in a row. Potential buyers had trouble securing financing, were concerned about job security or had a difficult time competing for a home as inventory tightened, DataQuick said.” According to John Walsh, the President of DataQuick, “The market remains fundamentally off kilter. There’s still relatively little lending going on in the upper price ranges, and little adjustable-rate financing, which have been vital to the Bay Area.”

One possible negative influence on Palo Alto real estate for sale was negative news regarding home sales. According to a March 19, 2010 article in the San Francisco Chronicle, “The volume of Bay Area home sales dipped in February compared with a year ago, while the median price continued to rise, according to a real estate report released on Thursday…A total of 3,582 existing single-family homes changed hands in the nine-county region in February…”

Comments Off

By admin, May 12, 2010 2:12 am

Palm Desert real estate, representative of the larger Coachella Valley area, seems to be stabilizing during the first quarter of the fiscal year, according to a March 29, 2010 article in the Desert Sun. This piece found that “The Coachella Valley’s real estate market remained in a ‘stabilizing’ pattern in February with a 14.8 percent jump in prices, while sales rose just .06 percent over February 2009, the California Desert Association of Realtors reported today.” According to Greg Berkemer, the executive directors of the California Desert Association of Realtors, “The desert appears to remain in a stability phase which should remain in place until there is either a change in the market dynamic either some outside force or event and/or buyers’ and sellers’ confidence in the future becomes more evident. Although prices remained flat in February compared to January, sales did move up some by 5.6 percent.”

Palm Desert homes for sale, along with the rest of California’s real estate market, managed to boost a nation-wide measure of real estate health. According to a March 31, 2010 article in the Desert Sun, “A national index of home prices rose unexpectedly in January, with California cities posting strong gains, but some experts warned that the nation’s struggling housing market could be headed for another dip. The closely watched Standard & Poor’s/Case-Shiller index of 20 metropolitan areas rose 0.3 percent from December on a seasonally adjusted basis.” The article continued to note that “That marked eight consecutive months of home values improving or at least holding steady. That rise is good news for people who plan to sell their homes this spring.”

Home sales were one especially positive piece of news for Palm Desert real estate for sale, according to a March 18, 2010 article by John Hussar in the Desert Sun. This article observed that “The Coachella Valley’s ‘season’ of postcard-perfect weather and tourism helped propel a jump in existing home sales 10.5 percent in January while prices rose 17.4 percent over January 2009, the California Desert Association of Realtors reported today…The median price of an existing home in the Coachella Valley was $179,760 in January, up 4.3 percent from December and 17.4 percent from January 2009.”

Comments Off

By admin, May 6, 2010 2:17 am

The Beverly Hills real estate market, traditionally among the most expensive and prestigious in the country, has been recovering strongly from the aftermath of the economic recession. According to an April 13, 2010 article in the Associated Press, “The median home price in Southern California rose 14 percent last month from March 2009, as more high-end homes trickled into the region’s sales mix, a tracking firm said Tuesday. San Diego-based MDA DataQuick reported that last month’s median of $285,000 was up from $250,000 in March 2009 and up almost 4 percent from February’s $275,000.” The article, written by Jacob Adelman, continued to state that “DataQuick President John Walsh said the increases showed that the market was continuing on a slow, upward trajectory, but that sales still remain well below their March average of around 25,000.”

Foreclosures, which have recently been a problem for Beverly Hills homes for sale, have sharply declined in recent months. According to an April 20, 2010 article in the Press Telegram, “The number of Los Angeles County homes slipping toward foreclosure dropped by 43.5 percent in the first quarter of the year, compared to the same period in 2009, a real estate information service reported today. Lenders sent default notices to 15,797 homeowners in Los Angeles County in the first quarter, down from the previous year’s first-quarter total of 27,981, according to La Jolla-based MDA DataQuick.” The piece continued to note that “Statewide, default notices were sent to 81,054 homeowners in the first quarter of the year, DataQuick reported. That was a 4.2 percent decrease from the previous quarter’s 84,568 notices and down 40.2 percent from the same quarter in 2009, when 135,431 default notices were sent.”

This same general trend of positive news for Beverly Hills real estate was echoed by an April 16, 2010 article in the Los Angeles Times. This piece, noted by Alejandro Lazo, found that “The median price paid for a California home in March jumped 14.3% compared with the same month last year, reflecting a reduction in the number of foreclosure properties on the market and the comeback of higher-priced coastal areas.”