Whittier home sales in first six months of 2012 outpaced the first half of 2011 with an additional 143 closed transactions. The average sales price for a typical three bedroom home was almost identical at just over $322 per square foot. According to the LaRoche Teams’ Whittier Housing Report.
In a typical real estate market, a 30% increase in home sales from the previous year would usually indicate an increase in home values, but a high percentage of all closed transactions have been from investors buying short sales and foreclosures at a discounted price. There have already been 55 additional, all-cash transactions over this same period last year.
Home owners looking to capitalize on historic low interest rates and great affordability levels are buying second homes and rental properties. Rental rates have skyrocketed in the larger metropolitan markets and the affordability index currently shows that purchasing a home is more economical than leasing.
An indicator that lenders are beginning to favor home owner retention and short sales of distressed assets over foreclosures, the number of closed and pending Whittier foreclosures for 2012 is at equal pace with last year. With 71 current Bank foreclosures in Active, Back-up-Offer, and Pending status, Whittier is on track to hit the same number of closed transactions for bank owned homes this year at 302.
The 120 homes selling at over $400,000 during the first half of this year represent just over 15% of all Whittier home sales and total 17 additional homes at this price point when compared with this same period in 2011. Short sales represent 15 percent of the 120 sales over $400,000. There are a total of 221 Whittier homes on the market with an average list price of $455,471. Inventory levels are low and homes listed between $200,000 and $399,999 are selling at a brisk pace. Whittier homes sold since January in the price range of $200,000 to $399,999, account for 561, or 71% of the 786 homes sold this year.
There are 347 Whittier short sales on the market in either Active, Back-up, or Pending status. With the 2009 Mortgage Debt Relief Act set to expire at the end of this year, there are many owners of distressed homes favoring a short sale their home to avoid tax ramifications and minimize the impact on this type of sale will have on their credit.
The average number of days Whittier homes are on the market from initial listing until close of escrow during the first six months of 2012 is 54; a positive sign for this housing market.
With a lack of inventory and a flood of qualified home buyers, home owners have more ability to market their existing home and improve their purchasing power of a larger home. Sales of homes in most price ranges have become competitive as home buyers are offering above the listing price for many properties. Historically low interest rates are creating great opportunities for those seeking real estate investments.
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