HAROLD PENNER:  Fresno Real Estate Market Analysis

Fresno Condos: A Good Buy?
 
One of the questions often asked by clients is, “Are condominiums a good investment in the Fresno County area?”
 
Current Price:
Certainly, the price is compelling.  Investors, first time home buyers and retirees are currently picking up Fresno County condos for an average of $106,354 (approx. $74 per square foot).  That means mortgage payments hover around $800 for a 1,200 square foot condo.  For many buyers, condos provide an extremely affordable and attractive option.
 
So price isn’t the question right now.  But, should you buy is the question.  The Central Valley is traditionally a single family home environment.  Is there enough demand for condos in Fresno? With volatile real estate swings how does the value of condos compare with traditional homes?
 
Current Demand:
Well, if there was ever a time to judge the staying power of condos through tough real estate times, it is now!  The statistics are interesting.  Comparing single family home sales from the height of the real estate boom (typically viewed as 2005) to today, the number of homes sold has remained relatively constant.  When viewing Fresno County condo sales under the same parameters, there were 62% less condos sold in the first half of 2010 than in the same months of 2005.  One explanation for this reduction in sales is the relative halt of apartment conversions into condo developments.
 
Current Bank Owned Sales:
This would seem to suggest that condos are a much more questionable investment than traditional homes.  Yet, when you dig deeper you find that of these 2010 sales, the percentage of single family homes and condos sold as foreclosures and short sales is nearly identical.  63% (2,445 of 3,851 sales) homes sold in 2010 to date were foreclosures and short sales compared to 62% of condominiums (85 of 137 sales). 
 
Also, while the numbers are certainly jarring for those owning homes, the overall worth of these two different types of properties dropped at a similar pace in our area.  The average single family home purchased today would be 54% less in value in Fresno and Madera County than in 2005.  The average condo is close behind with a 58% reduction in value. 
 
Overall Value:
So, yes, condos plummeted in value within our area.  But, they are keeping pace with traditional home sales in percentage of value.  Prices for both types are currently flattening out.  If you compare sales in January 2010 vs. May 2010, the average price per square foot of both types of homes rose $4 each.  In Fresno County, condos in January sold for an average of $70 per square foot and last month sold for $74.  Single family homes selling for $97 per square foot increased to an average of $101 for May. 
 
So, bottom line, for those who may desire the simplicity of a condo but worry that they aren’t as secure an investment as a home, the numbers should speak for themselves.  There may not be as many condos on the market today as in the past, but they are here to stay!   
   

Contact my office for the latest Fresno real estate deals!

JUNE MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in May 2009 vs. 2010 - $155,311 vs. $159,189 (2.5% Increase)
• Sold Homes in May 2009 vs. 2010 - 990 vs. 892 (10% Decrease)
• # of Foreclosures and Pre-Foreclosures Sold in May 2009 vs. 2010 - 711 vs. 503 (30% Decrease)
• Avg. Loan Percentage Rate in June 2010 – 4.60% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

FEATURED LISTING

8645 N. Ann Ave.
Fresno, CA 93720

• $300,000
• 4 Bedrooms
• 2 Bathrooms
• 2,290 sq. ft.

Clovis North Schools!  Built in 2005, this 4 bedroom, 2 bathroom home is located near the Clovis walking trail in a quiet neighborhood.  Large, open floorplan with upgraded tile flooring throughout entertaining areas.  Kitchen features granite counters, upgraded cherry-stained cabinets, gas stovetop, walk-in pantry and eating bar overlooking large great room.  Isolated master bedroom overlooking backyard features 8×11 walk-in closet and separate soaking tub and shower.  Freshly painted with high quality finishes in an excellent location, this home is well-priced and move-in ready!

View 8645 N. Ann Ave.! 

PENNER TEAM NEWS!

Haiti Engineering Escapades!

For the second year in a row, Aaron Quaresma, structural engineer extraordinaire and Harold’s son-in-law, headed to Haiti to serve in missions.  Volunteering with the organization Engineering Ministries International Aaron joined a design group comprised of architects, surveyors, land development, wasterwater and other experts to spend a week assisting in Haiti.
 
The task was to complete designs for two new Haitian communities, (including 7 home designs, community buildings and overall master plan layout) in a week.  These professionals donate thousands of dollars worth of expertise to provide designs to organizations in need.
 
Aaron’s team was housed at an orphanage for the week which presented the unusual challenge of designing while surrounded by fascinated children who wanted to play!  Adventures included bathrooms with tarantulas, spotty internet connections, jolting 8 hour trips on unpaved roads and running out of shower/bathroom water for the last four days.  While exhausting, it was an experience that Aaron would repeat again in a heartbeat!
 
Caption:  Bob, an orphan with specials needs, was a constant visitor during the week and is here assisting Aaron with some serious structural work!

HAROLD PENNER: Fresno Real Estate Market Analysis

Craigslist Real Estate Scams

As with any form of free online advertising, Craigslist.org provides a perfect vehicle for scammers to prey upon people searching for real estate.  These scams are now taking on a disturbing level of sophistication.  Scammers are now copying descriptions and pictures of active homes for sale from public real estate sites such as realtor.com, trulia.com, and others.  Those homes are then re-posted as rental properties on Craigslist for low monthly rent.  The actual name of the seller is used (most likely obtained by public tax assessor records) but with a false email address. 

Recently, a client was shocked to learn that his home had been posted for rent on Craigslist when he discovered prospective renters exploring his backyard.  The email explained the presence of the for sale sign by stating that the house had been pulled off the market and the sign would be taken down shortly.  My office also received a frantic call from a renter who wired a large rental deposit for this home to the scammer. 

Here are some ways to avoid being scammed:

1. Meet prospective landlord in person - As with the case above, the scammer will typically state they live or are visiting Africa or a European country and are unable to meet in person. 
2. Confirm that the home is not for sale – Visit a real estate site (zillow.com, trulia.com, etc.) to check if the supposed rental property is actually for sale.  You can also go a step further and contact the real estate agent on the listing to confirm that the home is for sale and not for rent.
3. Tour Inside of Home – Driving by and confirming the location, neighborhood, etc is not sufficient.  Arrange to view the interior of the home prior to any money exchange.
4. Extremely Low Price – If the price appears too good to be true, it probably is.  Renters eager to take advantage of a great deal let down their guard.  Scammers will also take legitimate homes listed for rent on Craigslist, slash the prices and repost the same home.  Be wary of low rental prices and take the above precautions.

Here are some helpful links:

Craigslist
Wikipedia
Scam Calculator

Contact my office for the latest Fresno real estate deals!

MAY MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in April 2009 vs. 2010 - $155,311 vs. $172,004 (11% Increase)
• Sold Homes in April 2009 vs. 2010 -1091 vs. 936 (14% Decrease)
• # of Foreclosures and Pre-Foreclosures Sold in April 2009 vs. 2010 - 801 vs. 613 (24% Decrease)
• Avg. Loan Percentage Rate in May 2010 – 4.71% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

FEATURED LISTING

1914 N. Pamela Ave., Clovis, CA 93619

• $420,000
• 5 Bedrooms
• 3.5 Bathrooms
• 3,060 sq. ft.

Harlan Ranch Beauty!  An exceptional Wathen-Castanos  home built in 2007.  Over 3,000 square feet including downstairs guest suite and expansive (18’x15’) upstairs master bedroom with large walk-through closet.    The kitchen features granite counters throughout, a center island sit-around bar, stainless steel appliances, and gas stove top. The huge family room is open to the kitchen, gas fireplace and has great windows overlooking the back yard.  The back yard is a relaxation retreat, with covered sitting areas, outdoor spa, and wandering paths between tasteful landscaping. This home, its upgrades, and all its interior and exterior touches are irreplaceable at this price. See it today!

View 1914 N. Pamela Ave.!

PENNER TEAM NEWS!

Ruth the Realtor!

Ruth Showerman joined the Penner Team in September 2008 and quickly jumped into the role as Short Sale Coordinator.  Ruth spends her days navigating through the complex world of bank negotiations and helping homeowners understand their options.

Always a goal oriented person, this college grad decided to add real estate license to her list of accomplishments.  She quietly set about studying and taking a crash course on the intricacies of real estate law.  We are quite proud to announce that she passed on her first try!  Congratulations Ruth!

HAROLD PENNER: Fresno Real Estate Market Analysis

California Short Sale Tax Awareness!

As many of you know, one of my specialties is short sales.  For those who have explored all other options and are faced with the unfortunate reality of being unable to continue to own their home, a short sale is much more advantageous than a foreclosure.

Current Short Sale Statistics:

The number of sold short sales (pre-foreclosed homes) in Fresno and Madera county has increased over 30% from last year.  302 homes were sold in 2010’s first quarter in comparison to only 206 homes in the first 3 months of 2009. 

The irony of referring to these transactions as “short” still remains however.  Average days on market was 154 days (over 5 months!) in 2009 and a slight drop to 140 days in 2010.  The main reasons short sales fail is due to the delays in banks to review and respond to offers and the subsequent inability of buyers to wait for an answer. 

Currently, short sales represent only 15% of the homes sold in our local Fresno and Madera county market.  For the patient buyer though, there are some excellent deals available.

To view more regarding the pros and cons of purchasing short sales, visit: Buying Short Sales
 

Short Sale Tax Information

For those of you who experienced a successful short sale of your principal residence this past year, there is good news regarding taxes.  Prior to the housing crisis, if someone were to sell their principal residence (not an investment property) home as a short sale the amount of debt forgiven by the bank would be viewed as taxable income by the state and federal government.  So, if your home sold for $50,000 less than what you owed on the home and the bank agreed to forgive that debt, the government would view that $50,000 as taxable income.  With the recent state of the housing market, the federal government added provisions that if it is your principal residence this rule does not apply to homes sold before 2013.  California had a similar law that expired and those whose homes were sold in 2009 have been in limbo.

On April 12, 2010, the state of California extended that protection to anyone who sells their home as a short sale between 2009 and January 1, 2013.  For those who already submitted their 2009 taxes, the state is instructing you to file Form 540X to request an adjustment. 

Click here for short sale tax info: Mortgage Debt Relief Law

Contact my office for the latest Fresno, CA real estate deals!

MARCH MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in March 2009 vs. 2010 - $158,322 vs. $164,485 (4% Increase)
• Sold Homes in March 2009 vs. 2010 -1010 vs. 842 (17% Decrease)
• # of Foreclosures and Pre-Foreclosures Sold in March 2009 vs. 2010 - 780 vs. 533 (32% Decrease)
• Avg. Loan Percentage Rate in April 2010 – 4.95% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.
 

FEATURED LISTING
943 Oak Ave., Clovis, CA 93619

• $238,000
• 3 Bedrooms
• 2 Bathrooms
• 1,767 sq. ft.

Close to Old Town Clovis! A beautiful home in meticulous condition with 3 car garage, within the prestigious Clovis Unified School District. The wood floor entry opens up to a bright living room with vaulted ceiling. The kitchen has black appliances with working countertop that has a great view out to the eating area (with bay windows), back yard and family room. The cozy family room boasts a beautiful brick fireplace. You’ll be impressed with the great lighting (cam lights) and the natural light coming through the shuttered windows. The master bedroom has sliding doors to the back yard, vaulted ceiling and 2 windows. Two sinks in the master bath, a shower, no tub. Ceiling fans in all rooms. White interior doors throughout. Wired for security system, but it has never been connected. Long-lasting cinderblock fencing in back yard! What a great place!

Click here to view 943 Oak Ave.!

PENNER TEAM NEWS!

Michael Jackson Lives!

Our very own Blake Smittcamp (Harold’s son-in-law) has been a die-hard Michael Jackson fan for as long as we’ve known him.  So, therefore his wife Cherie thought it only fitting that his surprise 30th birthday party should be a Michael Jackson theme party.

Hilarious MJ costumes included pregnant surrogate mothers and Billie Jean impersonators, plastic surgeons, pajama clad stars being escorted to court and even a doll dangling from MJ’s shirt (think showing off baby from hotel room).  And of course there were plenty of silver gloves!  Blake had his own costume provided and showed off his dance skills throughout the night.

Here’s a picture of Blake and Cherie in all their Michael Jackson and Dirty Diana glory!

HAROLD PENNER: Fresno Real Estate Market Analysis
2010 Hot Real Estate Deals!

A lot of my buyers interested in newer homes are being lured by the prices of Fresno homes along the Highway 99 corridor. New communities sprang up along the 99 during the housing boom of 2005 and 2006 and now with so many homeowners defaulting on their loans, there are some excellent buys in the area.

Clovis vs. West Fresno Foreclosures:
This past month there were 22 homes sold in 93722 and 93723 that were built in 2000 or sooner. 21 of those 22 homes were foreclosures or short sales with the only remaining house being brand new.

A similar number of homes were sold in the newer areas of Clovis (93619, 93730) yet the ratios and prices are quite different. Out of 20 homes sold, 9 were foreclosures or short sales, 4 new construction and 7 traditional sales.

For those that are open to expanding their search area to find the best deals, the 93722 and 93723 zip codes are a must see.

Clovis vs. West Fresno Pricing:
The same floorplans can often be purchased near Highway 99 for around $40 less per square foot. In 2009, the average selling price per square foot was only $99 in west Fresno (93722, 93723) compared to $143 in Clovis (93619, 93730). On a 2,000 square foot house that is a difference of a whopping $80,000! A much higher ratio of discounted homes (foreclosures and short sales) are available in the Highway 99.

Contact my office for the latest Fresno real estate deals!

FEBRUARY MARKET STATISTICS* - Fresno and Madera Counties

•     Average Price of Sold Homes in February 2009 vs. 2010 - $149,246 vs. $167,025 (12% Increase)
•     Sold Homes in February 2009 vs. 2010 -763 vs. 639 (16% Decrease)
•     # of Foreclosures and Pre-Foreclosures Sold in February 2009 vs. 2010 - 627 vs. 411 (35% Decrease)
•     Avg. Loan Percentage Rate in March 2010 – 4.89% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com

FEATURED LISTING
2516 E. Prestwick Ave., Fresno, CA 93730

• $615,000
• 5 Bedrooms
• 4.5 Bathrooms
• 4,081 sq. ft.

Over An Acre! Near Copper River Country Club, this sprawling, extensively remodeled home features 5 bedrooms, 4 bath, with fenced pool and 3 car garage. The gourmet kitchen features granite counters, mahogany wood floors, stainless steel Jenn-Air appliances, and a sub-zero fridge. The adjoining pantry is a room in itself! The family room includes an office, bathroom, and laundry. Four bedrooms center around a playroom with two adjoining bathrooms. The isolated, master bedroom suite has double door entry and a private patio. Relax in your jacuzzi tub next to frameless shower. In the center of the home, there is a 34×21 great room, with vaulted ceiling and brick fireplace. The grounds feature mature trees, wonderful entertaining and play areas. An exceptional property and price!

PENNER TEAM NEWS!
Aubrey Rose – Turning 2! Look How She Grew!

There was plenty of green to be seen on St. Patrick’s Day this year! Our little Aubrey Rose celebrated her second birthday in style! She and her friends bounced their way through the evening at Clovis’ “Pump it Up!”

She is fearless with any slide or swing that she encounters and is constantly on the move. Apparently she got some of the tall genes from her daddy because that girl’s already wearing some clothing for four year olds! We are enjoying every minute of watching this little girl grow!

HAROLD PENNER: Fresno Real Estate Market Analysis
Tax Credit Extended!
The big real estate news this month is the extension of the federal tax credit for first-time home buyers from November 30, 2009 to April 30, 2010. A first time home buyer is defined as a buyer who has not owned a principal residence during the three-year period prior to the purchase.

Now even more interesting for many of my sellers/buyers is a new tax credit that was added for repeat buyers. Buyers who already own a home and have lived in the home for five consecutive years are eligible for up to a $6,500 tax credit on their next home purchase. Whether you are interested in moving up or downsizing from your current home, you qualify as long as the new home will be your future primary residence.
Click to Access More Information on Tax Credits
 

So, those are some incentives for buying, but the question I am often asked is whether now the right time to buy in Fresno and Clovis, California. Well, I prefer to let the numbers do the talking when it comes to answering that. There are certainly fewer choices of homes available today than a year ago. 5,010 homes were for sale in October 2008 in Fresno and Madera Counties. Today the number of active properties averages around 2,500. So, there are 50% fewer homes for sale today than a year ago. The primary reason for this is the reduction of foreclosures. The number of foreclosures for sale today have decreased by about by an astounding two-thirds since the beginning of the calendar year.

Many buyers may be waiting for those foreclosures to come back and flood the market with bargains thereby driving the overall price down. But, by looking at the statistics from this past year and by referencing the historical trends of the Fresno market, I don’t anticipate any significant price drops. During the height of active foreclosures, the average selling price was $156,256 (January 2009). With 50% fewer homes to choose from the average pricing this year has inched up to $174,867 (October 2009).

Now, it’s possible that if foreclosures returned with a vengeance, Fresno and Madera counties’ prices would decrease. But, in the past year the demand for homes has also increased. First time home buyers have now seen prices that are affordable and within reach. Out of town investors have again returned to buy rental properties. The overall number of sales has been steadily increasing instead of decreasing.

So, in short, I am advising clients that with historically low loan rates, low prices and this newest tax credit extension this is truly an excellent time to buy.

OCTOBER MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in August ‘08 vs. ‘09 - $190,044 vs. $175,036 (8% Decrease)
• Sold Homes in August ‘08 vs. ‘09 - 907 vs. 891 (2% Decrease)
• # of Foreclosures and Pre-Foreclosures Sold in August ‘08 vs. ‘09 - 595 vs. 577 (3% Decrease)
• Avg. Loan Percentage Rate in September 2009 – 4.83% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

FEATURED LISTING
2765 Rialto Avenue, Clovis, CA 93611

• $312,000
• 4 Bedrooms
• 2 1/2 Bathrooms
• 2,489 sq. ft.

Three Car Garage! Lovely Clovis home with fenced pool and 4 bedrooms plus a loft! This pristine Seller-owned home features hand scraped maple hardwood floors in downstairs entry, hallway, kitchen, nook & bathroom. The kitchen includes granite countertops, built-in gas range & breakfast bar.

Click here for more info on this home!
 

PENNER TEAM NEWS!

Canadian Roots!

October was filled with family visits and fall colors!

Almost 30 years ago, Harold and Margie Penner moved from Canada to Fresno with their young family. Family vacations typically involved traveling back to our hometown of St. Catharines, Ontario (near Niagara Falls) and visiting our huge extended family there. This October, little Aubrey Rose continued the tradition by making her second cross-country trek to Canada to visit her great grandma! While traveling all day on a plane with a 1 ½ year old was definitely a challenge, the time with family made the trip worth it. Plenty of laughter, German food, and memories filled the time!

Christy and Aaron, on the other hand, explored the French-Canadian province of Quebec in October!

There were some entertaining moments of visiting the familiar Canadian restaurants and yet having no clue how to order in French! The beauty, history, culture, architecture and people made it one unforgettable experience, however.
 

HAROLD PENNER: Fresno Real Estate Market Analysis 

First Time Home Buyers – Cashing In!
 

Tax Credit Deadline Approaching!

The clock is ticking and the rush is on for first time home buyers to cash in on the $8000 federal tax credit. They must close escrow by November 30, 2009. With escrows typically lasting a minimum of 30 days, the next few weeks are critical for anyone interested in squeaking in before the deadline!

Here are a few of our recent clients that took advantage of these credits to buy their very first home!

 Mike Bone:

 “I wasn’t even thinking about house hunting until I heard about that $8,000 tax credit,” remarked first time home buyer Mike Bone. He had heard that Harold Penner was an agent with the connections and knowledge to get people into homes fast and thought he would see what was out there. Initially interested in only the 93710 and 93726 area but discouraged by having only fixer-uppers in his price range, the Penner Team steered Mike towards a Cambridge built home in Northwest Fresno near Polk and Herndon.

“I absolutely love the home and the neighborhood. It’s hard to believe that this is all mine,” says Mike. Still at a loss with how to fill 1,600 square feet of space, this bachelor is looking forward to spending some of that $8,000 on home improvement projects this winter.

Mike Bone relaxing at home in his kitchen!

The Downs Family:

Brian Downs, a local Fresno firefighter, and his family were on the hunt for months to find the perfect first home. In addition to Brian and Yvonne’s three kids, they are committed to opening their home to invest in the lives of college students. The addition of these boarders/adopted family members meant that plenty of bedrooms were required! They also wanted to keep their kids in Clovis school district and were interested in having a pool.

After being outbid on a few foreclosures, the Penner Team led them to 2,468 square foot home with a pool near Shepherd and Chestnut that was a perfect fit! “Working with Harold and his son Jesse was wonderful and we know we would have never found this place without them,” said Brian. Even better, the Downs were one of the lucky few in which the wait for an offer on a “short sale” was actually short! “After waiting so many years to buy, it is amazing to be able to own something like this,” remarks Brian.

Click here to request a custom home search set up today!

AUGUST MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in August ‘08 vs. ‘09 - $213,590 vs. $176,874 (17% Decrease)
• Sold Homes in August ‘08 vs. ‘09 - 779 vs. 829 (6% Increase)
• # of Foreclosures and Pre-Foreclosures Sold in August ‘08 vs. ‘09 - 453 vs. 601 (33% Increase)
• Avg. Loan Percentage Rate in September 2009 – 5.00% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com
 

FEATURED LISTING
2676 E. Muncie Ave., Fresno, CA 93723

• $274,000
• 3 Bedrooms
• 2 Bathrooms
• 1,858 sq. ft.

Three Car Garage! Granville home featuring three bedrooms including spacious master suite sitting room. Upgraded options include tile flooring, upgraded carpet and fully landscaped backyard with covered patio. Located in the new Clovis North High School area. Neutral and attractive decor throughout this seller owned home make it ideal for move in. Come see today!

Click here for more info on this home!
 

PENNER TEAM NEWS!

Family Vacation!

This picture was chosen for two reasons this month! First, it’s proof of our first successful family vacation in a few years in which all members were able to attend! The logistics of working together in a family business plus having busy schedules always presents a challenge when trying to plan a getaway. But, here is photographic evidence of a fabulous long weekend enjoying the weather and sights of Carmel, CA.

Now, the second reason for highlighting this particular picture is to acknowledge the ingenuity of the photographer, Ms. Allie Penner! This picture was taken by automatic timer while being precariously perched on an old classroom desk on a bumpy dirt hill. That is the level of commitment the Penner family has to good pictures! Took a few tries, some mad dashes back to the tree and some balancing acts, but hey, it’s worth it for a family picture right??

HAROLD PENNER: Fresno Real Estate Market Analysis
Appraisals in Fresno - Challenging Times
 

Appraisal Update

In May 2009, the “Home Valuation Code of Conduct” was adopted by all Freddie Mac and Fannie Mae backed loans (which accounts for over half of the loans in the United States). These regulations were created out of a concern that a lender who directly hires the appraiser for a property could unduly influence or pressure the appraiser to adjust the price. So, the government backed a new policy that appraisals must now be ordered through a third-party company in order to limit communication between the appraiser and the lender or realtor.

The act has had some negative consequences. Local lenders were previously able to choose their appraisers based on quality, knowledge and experience. Now the decision of who completes an appraisal is left to a national or regional appraisal company who often assigns the job to the lowest bidder regardless of experience and expertise. Additionally, many independent appraisers with years of experience in the local market now must join a third party company in order to continue to do business.

Here are some recent news stories covering this issue:

Daily Herald - Utah

Daily Press - Virginia

Detroit Free Press - Michigan

Fresno Real Estate Market Conditions:

These regulations come at a time of change in Fresno/Clovis real estate which makes accurate appraisals all the more critical. In the past 3 months, the average price of sold homes, the speed of selling the home and the number of homes selling above the asking price have all inched up. One reason for this is that there are less homes available today than there were 3 months ago due to a decrease in the number of foreclosures. The other reason is qualified buyers taking advantage of current tax credits (only available until November 30, 2009) and low prices.

Here are the latest statistics for residential homes sold in Fresno and Madera Counties:

Average Selling Price
– All Homes - $167,346 (July 2009) vs. $155,875 (April 2009)
– Foreclosures Only - $130,899 (July 2009) vs. $123,477 (April 2009)

Days on Market
- All Homes - 50% sold in 1-30 Days (July 2009) vs. 30% (April 2009)
- Foreclosures Only - 61% sold 1-30 Days (July 2009) vs. 40% (April 2009)

Listing Price vs. Selling Price –
- All Homes – 101% over asking price (July 2009) vs. 99% (April 2009)
- Foreclosures - 105% over asking price (July 2009) vs. 100% (April 2009)

So, in other words, the majority of houses listed in Fresno and Madera counties are currently selling above asking price. This is especially true in north Fresno and Clovis as well as homes priced under $200,000.

Consequently, the latest challenge in Fresno real estate is not finding a buyer for a home but instead having the house appraise for the sold price. I have seen more and more cases of buyers involved in a bidding war for a house and then the sale being cancelled because a seller cannot afford to lower the purchase price to the appraised value. Or there have been more cases of sellers choosing to sell to a cash buyer for a lower price instead of a buyer with a conventional loan to avoid any appraisal concerns. This makes qualified appraisers all the more important.

JULY MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in July ‘08 vs. ‘09 - $224,822 vs. $167,374 (25% Decrease)
• Sold Homes in July ‘08 vs. ‘09 -773 vs. 953 (23% Increase)
• # of Foreclosures and Pre-Foreclosures Sold in July ‘08 vs. ‘09 - 371 vs. 639 (72% Increase)
• Avg. Loan Percentage Rate in August 2009 – 5.33% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com
 

FEATURED LISTING
4665 N. Bryan Ave., Fresno, CA 93723

• $540,000
• 4 Bedrooms
• 2.75 Bathrooms
• 2,543 sq. ft.

2 Acres! This lovely two-story custom built home features extra-deep 3-car garage, covered RV parking with tack area, pool with deck jets & large horse set up with sprinkled sand arena. Also includes detached mother-in-law quarters with access to a 1-car garage, & include a bedroom, living area & half bathroom.

Click here for more info on 4665 N. Bryan!
 

PENNER TEAM NEWS!

iPhone Fanatic!

We all know that iPhones can be addictive. We just didn’t realize how addicting until the recent technological transformation of Mr. Harold Penner.

While never adverse to electronics, let’s just say they were always a source of frustration. This year alone, he has gone through 3 different types of phones.

Then there was the fateful night when he handed his brand new iPhone over to some die hard fans (thanks Blake and Rob!). They introduced him to the world of iTunes accounts and apps and from that point on there was no turning back! All of a sudden searching for new apps, texting agents for availability and taking pictures for all his contacts is his latest passion!

Here is our latest goofy family picture (after celebrating a wedding) and in HP’s hand is, you guessed it,….that iPhone!

HAROLD PENNER: Fresno Real Estate Market Analysis
Holding Pattern in Fresno Real Estate

For the past few months, the local Fresno real estate market has been in a type of holding pattern. The number of active foreclosures reduced by over two-thirds in the past six months leveling out around 450 active foreclosures beginning in May 2009. Pricing in homes under $250,000 has been slightly rising, but overall the number of sold properties and the average pricing of those homes has remained relatively steady for the past 4 months.

There is plenty of chatter and predictions for when the flood of foreclosures will return. But, for now, one of the points for first time homebuyers to remember is that federal tax credits will only apply for homes purchased before November, 30, 2009. The reduction in foreclosures has meant increased competition for homes coming on the market. Buyers need to act fast and aggressively in order to get the homes they are interested in before they miss this window.

For sellers interested in taking advantage of this time, here are some suggestions for enhancing your home (excerpt from RealtyTimes.com):

1. Go green. Energy efficient products and household goods are attractive to buyers. Renovations or replacements that help make the house more energy efficient are popular. Things such as better insulation, replacing old windows, caulking, and adding skylights can increase value.

2. Crown molding and wider baseboards. Some homeowners are shy to experiment with this, especially if they live in a small home, but it can be very attractive in any size home. Wider baseboard. The measly baseboard that builders often use in tract homes doesn’t draw attention. Adding a wider baseboard and a fresh coat of paint makes the room come to life. Also, framing windows and doors helps complete the look of a room.

3. Textured paint. Faux finishes, accented walls, or even just a little fresh paint on them makes a lasting impression. Choose colors and textures wisely. Don’t get carried away with a color you love (e.g. purple walls—I’ve seen it in a home for sale). Remember, that you want your home to appeal to the masses. You can always paint your new home purple—and then change it when it comes time to sell it!

4. Improved flooring. Wood, tile, and new carpet can be a showstopper. But if the flooring is chipped, torn, or dirty, you’ll get the opposite reaction from buyers. They’ll think your home hasn’t been cared for properly which could result in a lower offer — or no sale at all.

Click to view complete article
 

JUNE MARKET STATISTICS* - Fresno and Madera Counties

Average Price of Sold Homes in June ‘08 vs. ‘09 - $232,076 vs. $164,118 (30% Decrease)

Sold Homes in June ‘08 vs. ‘09 -675 vs. 978 (45% Increase)

# of Foreclosures and Pre-Foreclosures Sold in June ‘08 vs. ‘09 - 371 vs. 663 (79% Increase)

Avg. Loan Percentage Rate in July 2009 – 5.13% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com
 

FEATURED LISTING
2243 W. Magill Ave., Fresno, CA 93711

• $850,000 
• 5 Bedrooms
• 4.5 Bathrooms
• 4,175 sq. ft.

Over Half Acre! Prime northwest Fresno location near Herndon and Van Ness, this 1991 built home includes 3 car garage, RV access and huge yard with pool. With over 4,000 square feet of living space, vaulted ceilings, marble flooring and open layout, this home is ideal for entertaining.

Click here for more info 2243 W. Magill!
 

PENNER TEAM NEWS!

Elevator Music Expert!

When Ruth Showerman joined the Penner Team over a year ago, she dove into the world of listings and real estate. As our office began assisting more and more pre-foreclosure (short sale) clients, Ruth began adding on more responsibility and expertise.

Recently, Ruth transitioned into assisting with the Penner Team’s ongoing short sales fulltime. And we believe anyone who spends the majority of their day navigating the bureaucracies of over 20 different financial institutions deserves some acknowledgement!

To balance the frustration of listening to “hold” music all day long, Ruth is using the summer to learn how to wakeboard, perfect her signature criss-cross pie crust, and is striving to control her vacuuming obsession to a few times a week. We love every bit of our ultra-organized, talented Ruth Showerman!

HAROLD PENNER: Fresno Real Estate Market Analysis
Changes in Fresno Real Estate-

For the first time in recent history, active short sales now outnumber foreclosures in the Fresno and Madera county residential real estate market. As of Friday, June 12, 2009, out of 2,727 homes for sale, 22% (591) were short sales and 18% (490) active foreclosures. Yet, due to the delays and potential complications associated with short sales, in May 2009, only 10% of sales (99 homes) were short sales and 61% (578 homes) were foreclosures!

Click here to learn more about the difference between short sales and foreclosures.

This means that despite a recent trend of less foreclosures being available, these foreclosed homes are still dominating the sales in today’s real estate market. This provides a unique opportunity for sellers to take advantage of the current market conditions to sell. With less choices on the market, seller-owned properties garner more attention and, if priced correctly, will sell faster than in the past.

Sellers - Click here for a free assessment of your home!
 

Important News for Buyers:

Recent Rise in Interest Rate – The historically low interest rates hovering around 5% experienced significant increases this past month and are now averaging near 6%. An increase of one percent in loan rates means, for example, that if someone bought a house for $250,000 today, it would cost approximately $156 more per month than it would have cost them last month.

Click below for more information:

BankRate.com

MortgageNewsDaily.com
Down Payment Assistance – Recent legislation benefits first-time home buyers purchasing with FHA loans. Between January 2009 and November 2009, all first time home buyers receive a tax credit of up to $8,000. But, buyers, previously, had to wait until tax time to receive that credit. The new legislation allows for some of those funds to be immediately available at the close of escrow to assist with down payment costs.

For more information:

HUD News Release

News Report on Credit
MAY MARKET STATISTICS* - Fresno and Madera Counties

• Average Price of Sold Homes in May ‘08 vs. ‘09 - $240,304 vs. $159,839 (33% Decrease)
• Sold Homes in May ‘08 vs. ‘09 - 636 vs. 994 (56% Increase)
• # of Foreclosures and Pre-Foreclosures Sold in May ‘08 vs. ‘09 - 313 vs. 681 (Doubled)
• Avg. Loan Percentage Rate in June 2009 – 5.38% (30 Year Fixed)

*Unless otherwise indicated, all stats are based on residential sales in Fresno and Madera counties.

Click here to visit HomesInFresno.com
 

FEATURED LISTING
4924 W Bedford Ave, Fresno, CA 93722

• $548,000
• 4 Bedrooms
• 3 Bathrooms
• 2,757 sq. ft.

Four Car Garage! Located on a quiet cul-de-sac in Northwest Fresno. This Mediterranean style custom home is located in the elite Bellaviera neighborhood on a large corner lot. The open layout includes a central great room with 20 foot ceiling, dining room & kitchen. Three separate wings allow for maximum privacy for 4 large bedrooms & 3 bathrooms.

Click here for more info on this home!
 

PENNER TEAM NEWS!

Our Global Engineer!

Aaron Quaresma, Harold’s son-in-law, recently spent an intensive, yet rewarding week volunteering his structural engineering skills in Haiti. He traveled as part of a Christian organization called Engineering Missions International (eMi) which provides free, complete building plans for Christian organizations worldwide. The 12 person team (including architects, civil engineer, surveyor, electrical engineer and others) collaborated to create a master plan for the future development of an orphanage and supporting buildings on a 16 acre parcel of land.

Aaron will be finalizing the design documents on his evenings and weekends in the coming months. We are so proud of Aaron and how he is using his skills to help others!