California

If you are familiar – even vaguely familiar – with real estate terms, then you have heard the phrases “it’s a buyer’s market” and “it’s a seller’s market”. Those phrases describe who has more “control” of the real estate market.

Well, today we say “it’s a lender’s market”.

“What do you mean by that?” you ask. In our opinion, today’s real estate market is “controlled” by the lenders. If the home buyer wants to get a loan, and if a home seller wants to sell their home to the buyer who has to get a loan, then both the home buyer and the home seller have to conform to the lender’s requirements.

Home buyers must qualify for the loan with strict lender guidelines.

Home sellers know that their property must qualify for the loan via the appraisal, and stringent appraisal guidelines. These appraisal guidelines changed significantly this past May 1. Read more about it here: Home Valuation Code of Conduct, enhancing the independence of appraisers. The result? Strict appraisal guidelines.

So, in today’s real estate market – today’s “lender’s market” – it’s what the lenders want that determines the fate of the transaction.

CBS Channel 2 in Los Angeles has a one hour special on this Sunday that will air after the Super Bowl (at approximately 8 pm). Titled “2010: New Decade, New Hope”, it explores what this new decade may look like and how it will affect our lives.

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A town in San Mateo County in the northern San Francisco Bay are of California, Atherton, California, is home to a population of just over 7,000 mostly affluent residents. The city’s high-priced real estate market has struggled in the past couple of years, as the economic crisis in the U.S. has brought about job losses and decreased residents values, both of their homes and of other financial assets.

Last year, end-of-year figures showed there were 69 sales in Atherton, an improvement on 2008’s total of 63 sales. In 2009, Atherton homes for sale spent an average of 109 days on the market before selling, compared with just 49 days in 2008, showing that inventory piled up and sales were not brisk enough to keep homes off the market for long.

Prices in Atherton showed signs of a struggle too. In 2009, the average sales price was just over $3.3 million, down from over $4 million in 2008. The median price was $2.79 million in 2009, also down from the previous year’s price, which was $3.38 million. Total sales volume for the year fell as well, down by more than $15 million.

In February, prices showed improvement over 2009, however, giving signs for potential optimism for the upcoming year. The median price in February was $4.97 million, although that figure is based on just four closed sales for the month, but the figures were up as compared with January figures. In February, there were 32 homes on the market, and homes were spending an average of 229 days on the market before selling. Of homes sold in February, Atherton real estate sold received nearly 92% of listing prices.

and some of the country’s highest real estate prices to match. Tustin, California, is a community within Orange County that has seen major fluctuations in its real estate market over the past couple of years, like most all communities in Orange County.

According to the Orange County Register, February was a mixed month for the , as it saw an improvement in median prices but a decline in sales volume. February accounted for just 23 sales in Tustin, a decline of 41% from a year ago. However, sales prices for those 23 homes showed a positive trend, with the median price at $390,000, a more than 73% increase from one year ago.

Additionally, realtors at eVantage Real Estate in Orange County reported in March that there were currently 59 detached single-family Tustin homes for sale, with those homes having a median sales price of $599,000 for an average price per square foot of $348. Pricing of the 59 homes ranges from as little as $399,900 for a two-bedroom home to a high of nearly $4.3 million for a five-bedroom.

The condo market in March saw 30 active listings in Tustin. Condos for sale had a median listing price of $345,000 for an average price per square foot of $302. The range of condos stretches from as little as $145,000 for a one-bedroom to $729,000 for a three-bedroom condo. The realtors also report that 48 homes have sold in the past 90 days in Tustin. These homes were sold for a median price of $583,000. Meanwhile, thirty condominiums have sold in the past 90 days in Tustin for a median price of $350,000.

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The Ranch Mirage real estate market in the Palm Springs area of inland California has experienced many ups and downs in recent months as it struggles to combat the ill effects of the financial crisis plaguing broad swaths of America. In the past quarter or so, things have begun to look more positive for the market though, with increasing signs of optimism.

In February, the median price for a single-family home in Rancho Mirage was $544,750, a more than 32% increase from a year ago and a 9% increase from January’s figures. The average price was $758,194, an increase of 13.6% from 2009 and a 28.9% rise from January. Sales activity is up in general, though fluctuating month to month. In February, there were 24 homes sold, an increase of one-third from a year ago but a decline of nearly 30% from the previous month’s figures.

The condo market showed similar trends, with higher prices but fewer sales. In February, according to The Desert Real Estate Report, the median price for condos was $349,500, an increase of nearly 30% from the same time last year and a 6.7% rise from January. The average price stood at just over $344,000, a more than 9% increase from a year ago and another 12.3% higher than January’s figure. There were only 12 condos sold in February, however, a decrease by a third in activity from February 2009 and from a month prior.

Total sales activity in the city in February accounted for 43 sales, including Ranch Mirage homes for sale and condos for sale, according to DQ News. When taken together,  the median price of properties for sale was $459,000, up by more than 33% from a year earlier, when that figure was just $345,000.