Healthiest Real Estate Market since 2008

The real estate market in Alhambra is stronger than it has been since 2008. The market is still held back by too few homes for sale, but the data on the sales is definitely showing signs of a healthier real estate market. Seventy eight percent of the homes sold in 2012 were equity sales, (standard sales where the seller was able to sell for more than they owed). The number of foreclosures and short sales accounted for only twenty two percent of the transactions. According to the California Association of Realtors (CAR), the percentage of equity sellers in the state reached 63% which was the highest since June of 2008. That number had been as low as 30% in January of 2009. Alhambra’s market has always been stronger than the state’s but the trends have moved in unison. The number of sales in Alhambra for 2012 rose by 21% over 2011 while prices were virtually flat. Towards the end of the year we began to see prices moving higher which should help boost the amount of equity that the sellers recognize from their sale. This should further reduce the number of foreclosures and short sales. As prices move higher the banks are not losing as much on the foreclosures either, with many of the asking prices covering the amount of the original mortgage. If December is any indication of what 2013 will be like, we will be quite active. Normally the slow time of the year, this December did not slow down a bit. Now we are headed into the spring which is traditionally the busy time of year. Another factor that could really assist buyers could be an improved lending environment. Buyers rated the difficulty of working with lenders to be the biggest problem. Lenders received lower marks in 2012 than even in 2011, a situation that can only get better. The average down payment in 2012 was 25% down from over 30% in 2011. In a recent survey conducted by CAR, buyers indicated that the number one reason (by far) for buying now was the decline in prices over the last five years. Coupled with historically low interest rates monthly payments are quite attractive. I am seeing interest rate in the high two’s and low three’s. This could add up to the best time in a generation to buy a home.

                    # Homes             Median #             Condos            Median

                    Sold                    Price                    Sold                 Price

November    18                       460,000               10                    382,500

2012

November     15                      442,500                10                    312,000

2011

 

# Active on 33 Homes 21 Condos 12-15-12

Ziad Abughazaleh

Ziad Abughazaleh
Broker Associate

Office
626-289-8584

Email

019054112

Lee Lieberg

Lee Lieberg
Broker

Office
626-289-8584

Email

01907381

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