Mohr Park Market In a Minute

How many homes are on the market in Pleasanton?

As of 4/29/2009, there were 242single family homes available for sale in Pleasanton.  Since the beginning of this year, the inventory has increased at a pattern consistent with the 1^st quarter of the last two years.  By mid April, the inventory had increased to 255.  However, the last two weeks of April have seen strong sales activity with 60 “pending” transactions in April.

How many homes are on the market in Mohr Park?

As of 4/29/2009, only three homes are available for sale in Mohr Park.  This includes the Glens, the Gardens and the Estates of Mohr Park.  Unfortunately the two homes on Rheem Drive are “short sale” transactions so both prices are far below market value.

*Short Sales are distress sales where the current owners mortgage debt exceeds the current market value. Negotiations are in progress with the lender to accept less than the amount owed to complete the sale and avoid foreclosure.

How many homes have gone “pending” in Pleasanton in 2009?.
 

May	Jun	Jul	Aug	Sep	Oct	Nov	Dec	Jan09	Feb09	Mar09
55	50	44	52	58	31	22	25	33	30	43

As of 4/29/2009, 60homes have gone to “pending” status during the month of April. This will represent the highest number of monthly “pendings” since April of 2008.

How many homes have gone “pending” in Mohr Park?

1987 Rheem	List Price $519,000	Sales Price	Calliope(Glens)	1314 SF	2 BR	2.5 Bath	COE Date6/2/2009
2092 Eilene Dr	$599,750		Woodstar(Glens)	1586 SF	3 BR	3  Bath	COE Date5/31/2009
2223 Oakland	$525,000	Short sale	Woodstar(Glens)	1586 SF	3 BR	3 BATH	COE DATEUnknown

 

No Mohr Park homes have closed escrow thus far in 2009.

Two steps: Second liens now covered by modification program; servicers must offer eligible borrowers principal reduction under Hope for Homeowners.

The Obama administration is expanding its foreclosure prevention program to cover second mortgages and to direct more troubled borrowers to the Hope for Homeowners program.

The president’s $75 billion program has gotten off to a slow start. Loan servicers only recently started taking applications and many delinquent borrowers have complained about being left in the cold because their home values have dropped or they’ve lost their jobs.

The administration is seeking to address some of the concerns by tweaking the original modification plan, which calls for adjusting eligible borrowers’ loans so monthly payments are no more than 31% of pre-tax income.

Servicers covering 75% of the nation’s mortgages are now participating in the program, which also allows some homeowners with little or no equity to refinance their mortgages.

During the housing frenzy, many borrowers obtained second mortgages to allow them to put little or nothing down when buying a home. Up to half of at-risk borrowers have second liens, according to the administration.

These loans have complicated the modification process. For one thing, they add to troubled homeowners’ debt levels. Also, mortgage investors have balked at reducing payments on first mortgages when the second loan was left intact.

Under the administration’s new program, the interest rate on second mortgages will be reduced to 1% on loans where payments cover interest and principal and to 2% for interest-only loans. The government will subsidize the rate reduction, with the money going to the mortgage investor.

Servicers will be paid $500 for each modification and an additional $250 annually for three years if the borrower stays current. Borrowers can receive up to $250 per year for five years to pay down their first mortgage.

Investors can also receive a payment in exchange for extinguishing the second lien. They would receive 3 cents on the dollar for loans more than 180 days delinquent and between 4 cents and 12 cents for less delinquent loans, depending on the borrowers’ debt levels.

Servicers who join the new program must modify second loans when a borrower’s first mortgage is adjusted. It will likely take a month to implement, but it should not slow down the modifications of primary mortgages, the administration said.

“By bringing both the first lien and second lien program together, we can reduce monthly payments for borrowers and make it much more likely that they can stay in their homes,” a senior administration official said.

Hope for Homeowners option:

The administration said it is now requiring servicers to offer troubled borrowers access to Hope for Homeowners as a modification option if they qualify.

Expanding Hope for Homeowners would address one of the major holes in the original Obama foreclosure prevention plan. It helps homeowners whose homes are now worth far less than their mortgages.

Servicers had balked at participating in the Hope program because it required they reduce the mortgage principal balance to 90% of a home’s current value.

Hope for Homeowners, which began in October, is being revamped in Congress. Servicers would have to reduce the principal to 93% of the home’s value. The change would also reduce the program’s high fees, which turned off many troubled borrowers.

As an incentive to participate, servicers will be paid $2,500 for each refinancing, while lenders who originate the new loans will receive up to $1,000 a year for three years, as long as the loan remains current. (Source:CNN)

Click here to read the entire article.

Despite a large number of foreclosures, lower rates of new construction, and a 41 percent decline in the median price of single-family, existing homes, there are signs that California’s housing market may be coming back to life.

Foreclosures have helped lower prices and increase affordability. During the fourth quarter of 2008, 59 percent of the state’s first-time home buyers could afford to purchase an entry-level home in California. The favorable prices also are helping potential home buyers get off the fence. Sales of existing, single-family homes rose 81 percent in February.

The director of Harvard’s Joint Center for Housing Studies predicts continued price declines in California, but at a slower rate, which generally indicates the end of price drops. One measure used to judge market trends is price per square foot. In Long Beach for example, the price per square foot increased 5 percent in February.  

The surge in sales has resulted in a drop in unsold inventory. California Association of Real Estate’s Unsold Inventory Index stood at 6.5 months in February, compared with 15.3 months in February 2008. According to C.A.R. Chief Economist, Leslie Appleton-Young, a normal market is having a six- to seven-month supply of homes. California’s inventory now compares favorably with the rest of the nation, where there’s a 9.7 month supply of homes on the market.

Pleasanton specifically saw an uptick in sales in March and that postive sales trend has continued into April.

Market Commentary

The month of March showed a strong improvement in the number of homes that went under contract. 43 homes went under contract in March vs. 29 homes in January and 27 homes in February-nearly a 72% increase.  Here is the breakdown of those sales:

The total sales of 99 homes in the 1st quarter of 2009 represents a 71% increase over the 1^st quarter of 2008 with 58 sales.

REO and Short Sale Activity

Of the 99 home sales in the 1^st quarter of 2009 over one third include distress sales in the form of REO properties or short sale properties.  REO properties are those homes that have gone through the foreclosure process and are now being sold by the bank.  Short sale properties are those properties where the owners are attempting to work with the bank to sell the property for less than the amount owed in order to avoid foreclosure.

Of the 58 properties that sold in the 1^st quarter of 2008, only 6 properties were REO and 2 properties were short sales. That equates to 14% of the total.  The increase represents a 250% increase from the 1^st quarter of 2008 to the 1^st quarter of 2009.

Homes Currently For Sale

Within the group of homes currently for sale, the percentage of distress sales is only 16%.  That is a dramatic improvement over the 36% from the “pending” sales group above.  It’s unlikely that REO and short sales are done but at least for now the improvement will help to stabilize our market.

The quality of schools is a very important consideration for many buyers. Pleasanton schools are some of the best in the East Bay and have been a strong factor in the decision for many buyers to settle their family in Pleasanton specifically.

Rich Hinke, the superintendent of Dublin Unified Schools, spoke recently at a meeting of Keller Williams Realtors, and reported that Dublin schools match the quality of Pleasanton schools. This factor, along with a lower price point for housing, may be a compelling reason to purchase your next home in Dublin.

Here are some key point’s from Rich’s presentation:

The East Bay has the highest API scores in California. Generally speaking an API score of 800 is high. Dublin has a score of 840.

The standards for Dublin schools have been raised to meet California State standards,with requirements for 4 years of English, 3 years of math, 3 years of science with 2 labs, and two years of foreign language.

Green Elementary in Dublin Ranch opened several years ago, followed by Fallon Middle School, and in 2011 another Dublin Ranch school will open in the Sorrento development.

Dublin’s classroom size is the same as Pleasanton’s, with 325 teachers and 30 administrators in DUSD.

Dublin’s population is growing at the rate of 3% per year, the equivalent of 200 students. To keep pace with this growth, a $184 million renovation bond was passed which will allow the high school to double in size and grow from 1400 students to 2500 students. $10 million of that bond money will be spent on technology upgrades.

Click here to visit Dublin Unified Schools website.

Click here to visit Pleasanton Unified Schools website.

Click here to visit the Great Schools website where you can research schools and read reviews from parents.

Want to see homes currently available in Dublin? Contact us or click here to go to our homes search page.