In the previous article in this series we took a general look at the AVERAGE HOME that sold In San Jacinto, CA during the period of July 21st, 2009 through August 20th, 2009. We learned that there were a total of 110 homes that were sold and closed escrow for an average sale price of $130,834.
In this section of the Market Report for both the combined 92582 and 92583 zip codes we will look at the data as it relates to the type of financing used to buy the properties that were for sale.
This information is to be considered useful, but please do not rely on it for any financial decisions without verifying the data for yourself. There are, of course, no guarantees to its accuracy.
Homes purchased with Government Guaranteed FHA Loans continue to be the story for 2009 with 58 transactions closing escrow, representing 46.03% of all closed residential real estate transactions in San Jacinto CA during this period.
Bank Owned Homes accounted for 47 of the 58 homes sold in San Jacinto, CA After this 81% use of these funds, another 15.52%, or 9, were used to purchase Short Sales and the remaining 2, or 3.45% were for Standard Sales.
Perhaps the cleanest and simplest San Jacinto real estate transaction that takes place is the CASH SALE. During this report period there were 40 closed sales purchased with cash, representing 30.95% of all close real estate transactions in San Jacinto.
In the preceding period of June 21st through July 20th, 2009 there were only 29 Cash Transactions of the 110 total closed sales, or 26.36% of the total sales. This 4.59% increase in Cash Sales follows the pattern we have seen develop making it more and more difficult for buyers depending on financing to get approved for a home loan and close escrow.
Of these, all but six were bank owned, or REO Properties. There were 3 each Short Sales and Standard Sales as well, each representing 7.5% of the Cash transactions, leaving the REOs dominating with 85%.
Further details about the specific characterizes of the Cash Sales will follow in a separate section of this market report.
Conventional Financing is typically used by Investors to purchase Investment property in the current real estate market, found in San Jacinto CA.
Conventional loans typically require between 10% and 25% Cash down by the borrower with the remaining balance being financed with a traditional lender. Typically the larger the down payment, the lower the interest rates and the better the loan terms are for the borrower.
21 Conventional Loans helped buyer's purchase 16.67% of the homes sold in San Jacinto, CA during this period. Interestingly, all but one of the pieces of property purchased were bank owned REO properties. The 1 remaining property was a Short Sale.
Conventional Loans are down 6.05% in San Jacinto from the previous period where there were 25 Closed Conventional Loans, representing a 22.72% share of all closed residential real estate transactions.
Last month in addition to the 3 Standard Sales and 5 Short Sales there were a total of 17 Bank Owned homes, or REO properties. This month in sharp contrast, all but 1 Conventional loan was to buy a bank owned home - the last one was for a Short Sale.
Last month there were the same 5 closed VA Loans we have this month. The big difference is that last month, one was for a Short Sale and this month they all bought REO homes from the bank.
As the market continues to evolve we start to see different financing techniques used to close escrow. This period saw one each Land Contract and an Owner Carry Back. The land Contract was for a Bank Owned REO and the Land Contract for a Standard Sale.
In the next section of this extensive market report we will look at the data broken down by the type of sale. Meaning we will look for the differences between buying an REO, a Short Sale or a Standard Sale.
Blessings to all who read,
John Occhi, REALTOR®
Hemet - San Jacinto Valley
If you want to Track the Market, then please read more about the preceding period at any of these links:
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | The Average Home
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | Averages by Type of Sale
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | FINANCING by TYPE of SALE
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | CASH SALES & THE MARKET
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | CONVENTIONAL LOANS in the Market
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | FHA LOANS in the MARKET
San Jacinto, CA MARKET REPORT: SOLDS | 6/21/2009 - 7/20/2009 | VA LOANS in the MARKET
REPORTS FROM 5/20/2009 - 6/20/2009
San Jacinto Market Analysis - SOLD 5/20/09 - 6/20/09
Financing - CASH
Financing - CONVENTIONAL
Financing - FHA
Financing - VA
Financing - LAND CONTRACT
Market Summary - Why local is Important
Servicing THE REO Needs of Asset Managers, Servicers, Banks and Lending Institutions in the Hemet - San Jacinto Valley, Temecula, Murrieta, Winchester, Wildomar, Menifee, Sun Valley, Perris, Moreno Valley, Romoland, Homeland, Nuevo, Banning, Beaumont, Cherry Valley, Yucaipa, Redlands, Mentone, Loma Linda and throughout South West Riverside County and The Pass Areas of The Inland Empire in Southern California. If you are a buyer, investor, first time home buyer or are just interested in REO real estate, please contact us at the above phone number.
Serving California and Riverside County zip codes of 92501, 92503 , 92551, 92555 , 92562, 92563, 92504, 92505, 92557, 92553, 92506, 92507, 92590 92591, 92508, 92509, 92570, 92571, 92592, 92399 , 92584 , 92596, 92820 , 92571 , 92543, 92544, 92545, 92583, 92582, 92879, 92580 , 92530, 92532, 92881, 92882, 92567, 92518, 92883 , 92549, 92561, 92220, 92223, 92028, 92088