View Mobile Site

10% of all Manteca homes sell

2-year turnover highest ever thanks to foreclosures

Text Size: Small Large Medium
10% of all Manteca homes sell

This two-story home at 1539 Daniels Street is among 165 currently on the market in Manteca.

HIME ROMERO/The Bulletin


POSTED November 30, 2009 2:36 a.m.

It is without a doubt the biggest two-year period of home ownership turnover in Manteca’s history.

Manteca is on target to record almost 2,300 closed escrows on existing homes during 2008 and 2009.

That means one out of every 10 homes with the city limits will have changed hands when 2010 is ushered in 32 days from now.

Even at the height of the growth spurt in the late 1990s and early part of this decade there is no two-year period that comes close to matching that mark.  The nearest was 1999-2000 when 1,100 existing homes were sold within the city limits. At the end of 2000 there were 17,891 housing units within Manteca meaning just over 6.1 percent of them changed hands.

Back then virtually all were being sold to allow move-up purchases. Today, an estimated 90 percent plus are the result of foreclosures or owners resorting to a short sale.

While there was some looking to flip back in 1999-2000, most purchases were for owners to occupy. This time around – especially in the past five months – the vast majority of homes are being snapped up by investors who see a relatively short-term return given the fact homes are now selling for less than what it would cost to build new.

Manteca has sold 2,252 existing homes out of a housing stock of 23,000 residential units in the past 23 months. There were a record 1,165 resale home deals closed in 2008. As of Nov. 25 this year, 1,087 homes have closed escrow. Based on the amount of sales closing in the past months, Manteca should have another record setting year for closed escrows.

214 pending sales
currently in Manteca

Although there are still more foreclosures coming, the good news is that the median selling prices has become relatively stable bouncing between $175,000 and $179,000 since April. Prices dropped an average of $4,000 a month for the previous 10 months and $10,000 a month during the 12-month period before that.

As of Nov. 23, the median selling price was $175,900. There are 214 pending sales as of Nov. 23 with a median pending price of $185,000.

That is another sign of the market stabilizing since for long stretches in 2008 and earlier this year the median pending price was lower than the median sold prices.

It took on average 24 days for the 1,087 homes to go from being listed to have a signed contract for purchase. The homes currently in escrow, however, went pending quicker in a median time of 16 days.

There are also 165 homes available through the Multiple Listing Service with a median listing price of $208,000. The median days on the market is 35.

The extension of the $8,000 tax credit through April 30 for first-time buyers who haven’t owned a home in the past three years and the $6,500 tax credit added for other owner occupied buyers is expected to prevent the market for slowing down at the first of the year.

Homes in escrow by April 30 who have buyers that qualify can still secure the credit providing the deal is out of escrow by June 30, 2010.

 

Commenting is not available.

Commenting not available.

Please wait ...