A FEW INTERESTING STATISTICS

As reported by Don Scordino, President of The Fresno Association of Realtors. Pending sales in Fresno and Clovis were up in March 2008 to 556. Pending sales in March 2007 were at 395, and in March 2006 Pendings were at 515.

Total Solds have gone up every month since November 2007 (there was a small exception in the shorter month of February). November 2007 had the low of 254, and March 2008 had 299.

Also, approximately 62% of the Solds have been traditional seller to buyer transactions with the other 38% being REO’s.

FROM THE CALIFORNIA ASSOCIATION OF REALTORS

What You Need To Know About The Market
Will government and private initiatives aimed at saving troubled borrowers be enough? A State Foreclosure Prevention Working Group comprised of attorneys general from 11 states reports that 70 percent of homeowners at least two months behind on their mortgage payments are not receiving any help whatsoever. According to the study, the number of loan modifications made by loan servicers increased by 50,000 between October 2007 and January 2008, but the number of loans that were 90 days or more delinquent grew by 90,000 over the same period – a gap of some 40,000.

Recent numbers coming out of the Sacramento area indicate some modest signs of improvement in the real estate market. In mid-April, pending sales in El Dorado, Placer, Sacramento and Yolo counties reached their highest level since 2005, which seems to indicate the market is finally burning off some inventory. Proof? Inventory has declined to the 13,000-unit range, the lowest in a year. On the new home front, a flattening of home sales (albeit at the lowest levels in a decade) may be a blessing in disguise. As one observer noted: “One way to look at it is that the region just wants to get this over with now, an entire market ripping off the Band-Aid instead of pulling it off slowly.”

Subprime loans are within months of becoming much less of a problem for California, according to a report from First American CoreLogic that says the rate of mortgages subject to large interest rate re-sets should begin to slow dramatically by the end of the year. That said, California hasn’t yet experienced the full impact of so-called “Alt A” loans and Option Adjustable Rate Mortgage borrowers, some of whom have been electing to make lower payments during an initial period with the balance added to their monthly payment when the loan adjusts. That may be the next shoe to drop, according to Credit Suisse.

The San Francisco Chronicle also reports worries that subprime mortgages originated during the peak real estate market would sideswipe borrowers with giant monthly payment increases have been reduced by Federal Reserve rate cuts and other steps to stimulate the nation’s credit markets. In fact, some borrowers with resets occurring today are finding their monthly payments staying much the same. Without the Fed’s rate cuts, more than $100 billion in subprime ARM’s would have jumped at least two percentage points. Now, only about $60 billion in these mortgages will adjust up by more than two points.

FROM THE ASSOCIATED PRESS

Banks could be fined $1,000 a day for failure to maintain foreclosed properties if legislation that passed the California Senate becomes law. The bill moves on to the Assembly and would take effect as soon as it can be signed into law. An earlier version defeated in January was opposed by banks and mortgage companies.

Keep in mind communities throughout inland California have been hit hard by properties that are left uncared for after a family moves out due to foreclosure. These untended properties tend to negatively affect the value of surrounding properties and entire neighborhoods.