Sunday, June 20, 2010

Ramona, CA Home Values Remain Steady Over the Past Year

Over the past year, the median $/Sqft of homes in Ramona, CA is less than 1% different than it was last year, indicating a stable property values trend.  The demand/supply trend is in balance, indicated by 5.1 months of current housing inventory.  The marketing time trend is under 3 months, indicated by an average marketing time of 82 days over the past 3 months.  These statistics may not be an indicator of actual stabilization but may instead be a reflection of a decrease in the number of bank owned home listings and sales, an increase in the prevalence of preferable financing terms through entities such as FHA and VA, and a decrease in the ratio of sub-average condition properties common of some foreclosed properties.  For example, over the past 3 months 26% of all sales were bank sales compared with 43% during the same period last year - a 60% decrease.

Foreclosure activity remains high and there is evidence of market manipulation by banks and other entities holding foreclosed properties, suggesting that future declines from distressed sales are possible.  According to First American CoreLogic, 26% of all sales over the past month were bank sales, there are currently 139 bank owned homes, 163 homes in foreclosure, and 114 properties with mortgages 60+ days late, but that are not in foreclosure yet.  The MLS reports that there are only 18 bank owned properties currently listed for sale which translates to 87.1% of all bank owned properties not being actively marketed through the MLS.  It is possible that banks and other entities are holding foreclosed properties off of the market to create scarcity and to promote property value increases.

Brian Ward