Lingering Summer Agony In Real Estates

Posted in Foreclosure, Foreclosure Homes, July 7th, 2007 |

Usually summer seems to come and go with a flash. One day it is the 4th of July and soon November and Halloween celebrations seem to be round the corner. This happy season jumps fast from Independence flags to arranging pumpkins with eyes as well as small costumes within a short notice. But those who are suffering the threat of foreclosures, time hang heavily and do not want to move. Real estate processing crawls between today and September. It seems to be from here to eternity! For those about to loose their hearth and home there seems to be no end to the road. Here various economic factors are at play.

In Santa Clara County last week more than 5,500 houses and condos were up for sale. This was an all time high since June 2001.This is according to the figures collected by Coldwell Banker of North California. Movoto.com reports that in Santa Clara County 22% of those on the sale list (as of 30th June) had been on the market list for over 90 days. To get a clearer picture the figures can be compared with Monterey County where 46% are facing the same fate. In fact some have crossed the 90 days line. The reports are there on the Movoto blog.

Also to be noted is another point made by Movoto. It included a new data point to their report on the listings – ‘distressed properties’. The listing agents had mentioned these in the ‘notes’ section with short sale, REO, bank owned or foreclosure. In Santa Clara, San Mateo and Santa Cruz counties these included 8% of the lists. In San Benito it was as high as 17%.

As summer drags on most probably more and more sellers will decide to come to a deal. Buyers should definitely take note of this. The point to be underlined is that the average rates for 30-year loans are lower than what they were last summer. Freddie Mac says that the fixed mortgage rate (FRM) was about 6.63% (an average of 0.4% for the week ending 3rd July 2007). It means that from last year’s average of 6.67% it is down. Last year at this time the average of FRM was 6.79%.
As summer drags on the victims simmer in the heat of foreclosures, not knowing what to do and where to go to cool and rest.

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