Check out my video update for the Santana Row area neighborhoods. Find out how long it takes to sell a home in these neighborhoods and what the market is telling us about the recent sales.
(See Video update)
Available Properties Data*
Total Avilable Properties: 104
Total Available Days on Market: 93
Average List Price: $647,847
Accepted Offers (Pending Properties)*
Total Accepted Offers(in contract): 87
Average Days on Market: 67
Average List price for accepted offers: $499,633
Median List price for Available and Accepted offers: $574,800*
* Source: mlslistings.com
“Overall, Fitch’s expected losses for recent-vintage Option ARMs range between approximately 35%-45%, depending on the collateral quality of the underlying mortgage loans. In addition to expectations of higher defaults, severities have also contributed to higher expected lifetime losses. Fitch has observed that loss severities on Option ARMs have increased significantly to an average of approximately 60% from 40% a year ago. A key driver in the worsening severities is the fact that 75% percent of Option ARM loans are secured by properties located in California, Florida, Nevada, and Arizona, which have experienced average declines of 48% from second quarter-2006 to date. Even without further declines in home values, defaults on Option ARM loans are expected to soar as loan recasts occur, as these borrowers are unable to effectively refinance into alternative mortgage product.”
Incredible to see the long term aftermath continues with the exotic loan products the the very popular Option Arms in California. I feel for those homeowners who are facing the harsh reality of their decision to leverage it all on an option arm. I do sense that there will be a continued effort to mitigate this impending disaster.
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