Short Sales are expected to become the majority of homes sold next year, with a downward pressure on home prices in Valley Center, CA. during 2010.
Job losses and record numbers of homeowners missing payments are increasing the number of foreclosed or pre-foreclosure homes. The pending withdrawal of the Federal Housing Tax Rebate program will make it harder to sell those homes, putting increasing pressure on short sales and banks to lower prices.
Articles in both the 10news.com and North County Times sites point toward more housing market changes in 2010, including increasing short sales, and a decrease in buyers after the housing tax credit expires in June 2010. Let’s take a closer look at this prediction and see if we can verify any of this information.
Will the majority of homes sold during 2010 in San Diego County, and in Valley Center, will be short sales?
The first place we should look for answers is at the present market…what’s happening right now. 
The chart to the right shows that we have 84 active listings in Valley Center on the Sandicor MLS right now, and over 25% are short sales.
Lots of listings expire over the New Year, and many of those will be coming back on the market…and even more new short sale and foreclosure listings will be coming up for sale.
With all of the distressed sales I expect folks were holding their homes off the market so they could have a quiet family Christmas before they had to sell to avoid foreclosure.
Why do I think that there are lots of homes waiting to come on the active sale market as short sales?
Take look at this chart of pending foreclosure actions:
Right now there are 79 homes with Notice of Default filings, and 137 homes with Notice of Trustee Sale filings.
That’s 216 homes that are in danger of foreclosure in Valley Center alone!
With only 84 Active listings on the market this means we have 250% more homes waiting to go on the market.
Think about that Two-Hundred Fifty Percent more home that will hit the already saturated market in Valley Center. If even HALF of these homes come on the market you will see more price decreases.
What does this mean for homeowners in Valley Center considering Short Sale as an alternative to Foreclosure?
Increasing inventory of homes for sale, increasing interest rates for loans, and the end of the federal mortgage tax credit will mean a tougher market for sellers in 2010.
Increasing pressure on lenders to allow short sale and loan modifications give homeowners more options to solve mortgage problems…but the issue is always how much time you have to fix the problem.
If you’re in a situation where ARM loan resets are happening next year, or any situation where you are having trouble making payments please contact me. The earlier you start looking for the best solution the greater chance you have to make the best choice for you and your family.
Please don’t hesitate to contact me…phone calls are free…knowledge is priceless!
Subcribe by RSS
You must log in to post a comment.