Tuesday, July 17, 2007

Local market update

Two local market updates.

The first one is from a post by ichabod:

Thought you might like to know.

1.) Current REALTORS who have MLS access now number 1,993. I remember late last year that number being almost 3,000.

2.) Offices are closing. There are only two Help-U-Sell offices in Bakersfield, and one in Delano (one agent, 4 listings). There are no more Assist 2 Sell offices anymore.

The second update is from an auction by thefunsucker:

Here's some info on a Williams and Williams aution I attended this morning...

The house is 3,154 sf and located in Shilo Estates, 2444 Ollie Ct. The house has been on the market for about 2 yrs was was on the market due to a relo. Was purchase on 8-15-03 for 327k and then sold to Land America One Stop (something to do with the relo) for 602k on 2-1-07. It sold at auction for a whopping $106 a Sf for a grand total of 335k, quite the loss.

There were about 20 folks onsite but only 2 bidders. What was funny were all the high power RE agents in their 7 series bimmers watching the market crumble before them. Wonder why they weret't bidding???This was the 4th home in Shilo to go on the auction block and I don't believe any of them fetched more than 150 a foot.

Great news for the comps bad news for all those poor souls trying to sell....no pity!


the shortender said...

universal home loans??
notice that all of the pyramid borrowing schemes end borrower is a single person!!!! heavy heavy Hispanic and southeast Asian borrowers

xs10shell said...

Under what conditions does PMI kick in? I never paid that much attention to it but I always thought borrowers were forced to buy it when making low down payments to protect the lender in case of defaults. What is happening with PMI companies these days, anyway?

Bakersfield Bubble said...

PMI news:

Some housing bubble news from Wall Street and Washington. Bloomberg, “MGIC Investment Corp., the largest U.S. mortgage insurer, said second-quarter profit plunged 49 percent as it paid more in claims. MGIC, which protects banks against defaults on home loans, said losses climbed 61 percent to $235.2 million.”

“‘We know California is a developing problem. We know Florida is a developing problem,’ said Geoffrey Dunn, analyst at Keefe Bruyette & Woods Inc. ‘It’s simply the amplitude that’s the surprise in the quarter. We’re going to need help from management and a lot more color on specifically what happened.’”

subsonic22 said...

Under what conditions does PMI kick in?

When there is a loss on a foreclosure, the lender makes a claim to the MI company, just like you or I would when do when we have an insurance claim.

I don't the MI companies are going to get hit as hard as you would expect. Most of the 100% financing deals I've seen are either 100% subprime loans or 80/20 combo loans to avoid MI. I saw today that 2nd mortgage MBS's have just been downgraded by the bond rating services. MI companies do have some exposure to Alt-A loans such as No Ratio, No Doc, and stated income, but again, most of the time the originator structured those types as combo loans. MI companies historically only insured Fannie/Freddie quality deals. Only the last few years did they expand into the Alt-A arena, probably because it was losing market share. MI will pretty much be required since lenders will want to have protection when loans go bad. I see the Alt-A guidelines are getting much tighter. No more combo loans. Higher credit scores. Lower LTV's, even for full doc loans (no more 100% financing). Payment shock limits. More reserves. Things are going back to a more traditional underwriting guidelines.

Ichabod said...

xs10shell said...
Under what conditions does PMI kick in?

Mortgage Insurance is needed to cover your mortgage when you have put down less than 20% of sale price.