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With prices continuing to decline in the Fresno Real Estate Market buyers are shuffling into the market. Anyone who has read my blog in the past (say since this time last year) knows that I have advised extreme caution and repeatedly stated I believed prices were going lower.

At this time last year sales were abysmal, inventory was peaking (it actually hit a peak in Sept of 07) and prices were substantially higher.

Here are couple of graphs taken from the FAR Grapevine that will help you to see what is taking place in the Fresno Market.

I don’t think anyone really knows where the bottom is with respect to prices but statistics indicate to me — AGAIN, as I have previously stated in other blogs — we are bouncing along a bottom. The only thing I dont know is if this is THE bottom. I certainly hope that it is and that the market is able to mend from here.

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Here’s a tidbit gleaned from a recent publication of the Grapevine:

A FAR survey of 1,800 single family residences in an equal amount of homes from high, medium, and low income in the Fresno Clovis area found that 43 out of 1,800 homes had active notices of default. Translation:

97.5 % of the Fresno/Clovis homes are NOT in default

Which means the GLASS IS MORE THAN HALF FULL!

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The *Fresno Bee reported today that Home Sales in Fresno are UP.

The increase in sales is a function of prices dropping to levels that either make the home prices attractive to investors or providing the opportunity for first time buyers and others to enter the market.

**

I am personally working with 2 first time home buyers which would not be in the market if it were not for the deep decline in prices making properties affordable and purchasing an alternative to renting. One of my clients, if the deal goes through, will have a house payment (including taxes and insurance) that is comparable to what he would be paying in rent for the same home. The other clients, if their deal goes through, will actually be paying LESS to own home then they are currently paying for rent: SUBSTANTIALLY LESS.

If you would like to BUY a home in Fresno California, CALL ME: Lazarus @ 559.301.1647 and let me help you TODAY!

*I would have provide a direct link to the FB article only I could not find the article on their online site.

** I created this chart using the statistics from the Fresno Bee which attributed Data Quick as their source for the information

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I think the most significant aspect of lower prices is that for the first time in many years I am seeing homes that would actually pencil out as rentals and give the buyer a return on investment. If the bank cant attract a retail buyer for a particular property, or the property is in such poor condition that banks will not lend on it, then the bank is forced to sell to an investor and the smart investor does not want to buy unless he can get a decent return on his money invested.

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Anyone who knows anything about the Fresno Ca real estate market knows that we have substantial supply of lender owner properties for sale. Here is one listed by Lazarus Realty that just had a substantial price reduction. The ask price was 118,500 and was recently reduced by the lender to $95,900.

If you would like to preview this home or make an offer on it - Call me @ 559-301-1647

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…and their agents.

In a previous blog I gave an example of an offer that I made on behalf of an investor on a Short Sale. It was an ALL CASH OFFER that was rejected by the lender. A few months later after the home went through foreclosure the home was listed at LESS THAN THE CASH OFFER and probably went into escrow for substantially less than the list price. About 5 weeks ago I made another offer on a Short Sale and to date have not received an answer back from the agent. Other agents I have spoken with have the same stories.

Once again, as a reminder, out of the HUNDREDS of Short Sale listings in the Fresno MLS last year there were only 46 closings.

I say all of this as a preface to a news article I just read titled:

according to the article lenders are saying they will let strapped sellers know whether or not they are approved for help within 45 days. Well I’ll believe it when I see it.

Personally, I would discourage ANYONE from even bothering to with a short sale. Simply too much hassle and scant prospects of producing fruitful results.

And if you happen to be reading this blog because you’re considering a Short Sale and your plan is to sell your home to a relative at a huge discount to what you paid so you can buy it back cheaper: FORGET ABOUT IT! It doesnt work. But hey, dont listen to me - besides because I’m certain you wont have a problem finding a Realtor® who is willing to try and get such a deal done.

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When you blog, you can’t help but to ask yourself this question. The answer, if you happen to be reading this is: YOU

I recently read that if I want to attract people that are in the market to buy and sell homes to my blog then I shouldn’t be blogging about my latest photos, altercations with mechanics, or how to save money on prescription drugs. Makes sense to me. I’ll try to keep this blog focused on real estate. Chances are though, I’ll want to blog about those other things, so I may have another blog @ randymcatee.com .

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Sunday’s Fresno Bee reported that home sales in Fresno are indeed picking up. I read the news and intended to comment on it but even if you ARE the blogging broker you still only have 24 hours in a day. Then last night ABC 30 did segment on the market. Unfortunately, I’m not able to embed the video into my blog but you can go here and see/read the story.

I will add that besides the sales being UP as they mention, the *MSI (months supply of inventory) is WAY DOWN from what it was in the fall of last year when I began reporting the numbers. In September of 2007 the MSI was at 20.2 months. In April the MSI was down to 6.3 months. What an improvement!

As I’ve stated before, the numbers show we hit a bottom in November of 2007 - and AGAIN - whether or not this is THE bottom I can’t tell you. But the numbers are improving and it would be nice to see things continue like this.

Lazarus will be out showing homes this evening and hopes to write and OFFER THAT STICKS

If you are looking to area, call me, Lazarus @ 559-301-1647

*The MSI is calculated by taking the number of properties listed on the last day of the month and dividing it by the number of solds in that month

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The aforementioned slashing of prices by the lenders, which has only just begun, is bringing out the “investors”; bottom feeders who seek to profit from plunging prices. Personally, I would be happy to have a balanced market where buyers and sellers play an even hand. This sign is posted at the corner of Bullard and Fruit, in my neighborhood. The market weakness is arousing the passions of the “get rich quick” crowd. NOT GOOD imo.

If you would like to make an offer on an Foreclosed property in the Fresno / Clovis area contact me. Lazarus @ 559-301-1647

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…is how Miss Manners title would this blog. What I really want to say is:

HEY YOU DUMB S.O.B. WTF ARE YOU WASTING MY TIME?

SO, you might get the idea that I’m a little pissed. I AM.

I called an agent today to check availability on a home. He just happened to be the SAME agent that had the home listed in this blog so I wasnt going to show the home unless I knew for sure it was available. I called both his office and his cell and only got his voice mail - so I left a message asking availability. For whatever reason my phone did not ring when he called back so he left a voice message telling me ONLY that the home is ACTIVE.

My client and his wife are first time home buyers approved for an FHA loan and looking really hard to find something in their budget. They brought this particular home to my attention and they read the same single-line marketing description that I did:

“3 bed 2 bath in estabished neighborhood. Great starter home or investment.”

Ok — nothing in the Agent Remarks to warn me about what I am about to take my clients into. Nothing in his voice mail prepared me for it either. The house is TOTAL DISASTER. Grafitti in every single room. Graffiti on the counters, graffiti on the stove, graffiti on every cabinet door (the ones still attached). Every back window boarded (I think they were all broken). Holes punched in the walls. Sleeping bag(s) in one of the rooms as evidence that transients had been using it for shelter. By far the WORST REO I have ever seen. I wish I had my camera with me so I could show you what I saw.

Why would you say that it’s a “Great starter home”???

Who would finance that home. It wont appraise for anywhere NEAR the ask price. WTF— cant you just let the public and other agents know THE TRUTH? Is that too much to ask? Is truthful dealing and uprightness beyond you? APPARENTLY SO!

CONGRATULATIONS! You succeeded in getting another showing of our property which you can now report to your lender in your weekly communique. But at what expense? You further damage your reputation with me. I have to believe that every agent who has believed your one-liner LIE feels exactly the same as me.

My friend Stan Tucker who who encouraged me to get into this business (he died last year of brain cancer) told me your agency was EVIL. We are not supposed to speak of other agencies in this way — but I BELIEVE HIM.

A POX ON ALL YOUR ESCROWS!

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