October, 2008
Foreclosures Decline 29.5% in September in Sacramento Real Estate
October 29th, 2008 categories: Market Commentary, Market Statistics
California State Law Slows Foreclosure Rate in September
The rate of foreclosures slowed dramatically in September due to state intervention in the foreclosure process for homeowners in the Sacramento region and California. The new law, SB 1137, took effect in early September, requires lenders to make contact with buyers prior to filing a notice of default. The law which was designed with the thought that lenders would help homeowners to make loans more affordable by locking in lower or initial interest rates for 24 months or reducing the principal. Unfortunately, the net effect is a delay in the amount of homes coming on the market for the majority and not actual help for struggling homeowners.
California’s foreclosure rate slowed 51% September over August but accounted for 27% of foreclosure activity nationwide. If the same thing happens in California that happened in Massachusetts, California is in for an inventory increase of epic proportions.
A Flawed Plan, Good Thought But Flawed
In Massachusetts, a similar law was passed that had the same effect in June, July and August. The foreclosure rate slowed dramatically but in September jumped 465% as the lender required 90 day waiting period had elapsed before filing a notice of default.
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The Calm Before the Storm
October 23rd, 2008 categories: Market Commentary
There is a Glut of Inventory Coming
A week or so ago, I wrote an article on the foreclosure rate dropping 61% from August to September due to a law that the State of California created to stem the tide of foreclosures in our state. The likely consequence of this was that foreclosures, while some will be averted, would be backlogged and the Sacramento region would be in “foreclosure constipation”. Well, folks, that’s what we’re seeing.
Yesterday, the team that I’m on had to bring in additional people to handle all of the BPO’s (broker price opinions) that we had to get done on homes given us by the bank. We did 55….in one day. 55 BPO’s in one day. That is simply incredible and a testimony to the fact that government might want to think twice about intervening in this mess. A pipe dream I know but look at what’s happening here.
An Increase in Inventory at Just the Right Time….For Who?
Traditionally, this time of year, things begin to slow down, inventory decreases and values tend to hold their own without much appreciation or depreciation due to the lack of inventory. Not this year. No this year, the State of California has guaranteed you that you will lose more value on your home over the holidays. Merry Christmas!
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Warren Buffett and Sacramento Real Estate
October 19th, 2008 categories: It's All About Mindset, Market Commentary
An article I read today from the New York Times written by Warren Buffett gave wisdom that can be directly related to the mindset needed to be successful in the Sacramento real estate market or any investment scenario. There is a lot of fear out there right now about not only real estate but the economy, personal finances and shadows moving in the night.
There is fear of fear itself. If I remember the quote correctly, the only thing to fear is fear itself.
On this point, Mr. Buffet wrote;
“A simple rule dictates my buying: be fearful when others are greedy, and be greedy when others are fearful. And most certainly, fear is now widespread, gripping even seasoned investors.”
Warren Buffet
My guess from this statement is that it’s time to be greedy.
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California Foreclosures Drop 61% in September
October 14th, 2008 categories: Market Commentary
According to ForeclosureRadar.com, the filing of notices of default declined 61% from the August level of 42,790 to the September level of 16,352. This was primarily due to a new state law requiring lenders to notify owners of the filing, their options and waiting 30 days before proceeding.
While this is a nice headline on the surface, it seems that it will only delay the process of foreclosure not eliminate it altogether.
“The drop indicates that the lenders were not ready for the impact,” said Sean O’Toole, founder of ForeclosureRadar.com.
The move by the state was to encourage lenders to modify loans to help make the homes more affordable and thus help people keep their homes. The only issue then becomes that, according to Sean O’Toole, it might encourage non-defaulting homeowners to default in hopes of getting a principal amount reduction of their mortgage balance and still be able to keep their homes.
The decline of default notices aside, trustee sale notices and the number of properties auctioned off were both down as well and I don’t know how much that has to do with the law passed by the state as these properties have already been through the foreclosure process.
Is the state and national legislation taking the bite out of foreclosures? Wouldn’t that be a nice turn of events?
Looking for a home in the Sacramento or Placer county areas? Give me a call, I’d love to help you too.
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First Time Homebuyer Program - Roseville New Homes
October 12th, 2008 categories: Market Commentary, New Home Communities, Standard Pacific Homes, Roseville
Standard Pacific and the City of Roseville Team Up
The City of Roseville and Standard Pacific have teamed up to provide special financing, with some income restrictions, to first time hombuyers. I got an email this week from Standard Pacific with one of their recent deals on a completed home talking about the advantages of the program.
The Models
The Lily
The Lily is 3 bedrooms, 2.5 bathrooms and is 1319 square feet. The home qualifies for the First Time Homebuyer program with the City of Roseville. Click here for a info on this one.
The Iris
Here is where I can help you get a much better deal than where they have it priced. The Iris is 4 bedrooms, 2.5 baths at approximately 1500 square feet. They have one available for a quick close at $270K and with the builder paid 2-1 interest rate buy down, your first year payment can be as low as $1600 per month. Click here for the info on this one.
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The Next Nicklaus
October 10th, 2008 categories: A Boy and His Dad
The Whirly Bird
My son Ryan started swinging and hitting shots when he was two. Now at almost 4, he’s plugging them out there pretty well.
I was a PGA golf professional for 12 years and it’s hard for me not to give him instruction beyond the obvious..”line up your club”. Fact is, most mechanical instruction is worthless if you’re not thinking correctly in the first place. Goal #1, have a good time.
Enjoy the video and while it’s a departure from my core focus, what the heck.
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Statistics: Homes Sales in Roseville Increase
October 10th, 2008 categories: Market Statistics, Roseville
48% Increase in Sales 2007 to 2008
The encouraging news with all of the negative things going on in the economy is that homes are selling. The activity has been increasing all year in the South Placer county area with increases across the board with few exceptions.
As the graph shows, from September 2007 to September 2008, sales increased 48% with 156 homes selling in 08 vs. 80 sales in 07 combined in all zip codes of Roseville. A majority of that activity is short sale and foreclosure based but and increase is an increase. This is helping the reduction in inventory that we’re seeing across the region.
Median Sales Prices in Roseville Real Estate
The increase in sales is directly proportional to the decrease in values in the area although Roseville and other South Placer county price declines have not been as dramatic as other areas of the region. Roseville is one of the best cities in the region with lots of parks, a great school system and it’s own electric company that helps to keep energy costs down for residents.
Median sales price year over year has decreased a little over 18% from September 2007 numbers. Acceptable, all in all, considering what’s going on out there.
Current Days On Market in Roseville Real Estate
It’s taking less time to sell a home in the region that it did a year ago. The Roseville real estate market is no exception to this. Last year, the market seemed to be asking “ok, what the heck is going on here?” Besides prices being unaffordable, no one knew quite what was looming on the horizon and only the extreme minority could even have been close to predicting what has occurred, especially over the last few weeks.
The average days it takes to get a home sold has improved by 56% over the last year. In September 07, the average was 61 days vs. 39 days in September of 08.
Year to Date Sales in Roseville Real Estate
Sales this year have increased every month. Again, regardless of the negative aspects of the market, movement is a good thing. Backsliding or stagnant sales isn’t good for our economy.
With exception to the seasonal slowdown in September, the Roseville real estate market has increased every month this year.
The Synopsis? It’s a Buyers Market in Roseville Real Estate
This all adds up to the fact that it’s a buyers market in our region at the moment. If you’re looking to buy or sell a home in the Roseville area, please contact me, I’ll be happy to help you purchase or get your home sold as quickly as possible.
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EXCLUSIVE NEW HOME OPPORTUNITY!
October 7th, 2008 categories: Centex, Lennar, Market Commentary, New Home Communities, Pulte Homes, Westpark, Roseville
New Home Builder in Westpark, Roseville Makes Exclusive Offer for Buyers of SREV.com!
I got a call today from a new home builder in Westpark. The context of the conversation was that “hey, we’ve got (”X” amount) homes to sell before December 1. Make us an offer and we’ll consider it.” It was music to my ears!
This is one of the most well respected builders in the Westpark, Roseville community and the nation. They have authorized me with all of the information I need to get you the best possible price on a new home this year. I’ve been asked to withhold the name of the builder and the prices to share them only with serious buyers.
Some of these homes are move in ready or on a 30,45 or 60 day close schedule.
How Buying a New Home Benefits You
New Home Warranties vs. Existing Home Warranties
There is just no comparison. Buying a new home and buying an existing home are two different animals altogether. I know, I’ve sold both. As I’ve mentioned in previous posts, new homes come with customer service and warranties that an existing home will not. The best you will do with an existing home is a 1 year home warranty that will have to be renewed every year, if you wish to, with a price tag of about $500. Then, 
if you have an issue, you’ll get the run around with the warranty company while they try to ascertain if the condition existed before you purchased the home.
In new homes, you call, they come and they fix it. Period. Unless the damage was caused by you either accidentally or intentionally, it’s covered. Something fails, it’s no cash out of pocket and they are there for you. The home warranty company in existing homes, well, let’s just safely say that the service isn’t even comparable.
Builders, if you know the right one to chose, stand by their homes. It guarantees future business, referrals and a high JD Power ranking.
The Most Up to Date Building Codes and Energy Features
Building codes change every year especially in California. Existing homes, all of them, are exempt from updating unless a ma
jor modification is made to the structure. Otherwise, existing homes just sit there and get old and outdated. New homes are built with the most up to date changes in construction standards.
While it’s true that what is new today is old tomorrow, certain features of new homes today won’t go out of style for some time. The builder who has made the EXCLUSIVE OFFER to Sacramento Real Estate Views buyers equips every home with low maintenance solar energy cells in the roof panels. Combine that with living in Roseville, who has their own electric company, and your electric bills will be almost non existent. Watching the electric meter running in reverse is an awesome sight!
Also, the windows of these homes are very special, Low “E” windows that reflects heat that hits them back outdoors in the summer and back indoors in the winter. They are the most energy efficient component of your new home. Dual pane windows alone don’t compare.
In addition to all of these highly sought after features, these homes also include a radiant barrier that is laminated onto the reverse side of the roof sheathing. This keeps the attic temperature roughly 30% cooler in the summer and the interior of your home warmer in the winter further reducing your “carbon footprint”.
The Best Prices of the Year on a New Home
All this stuff is nice but the bottom line is what matters most lately.
If you could get all the benefits of buying new at the price of an existing home, would you move forward?
With all of the fallout on Wall Street, everyone is a bit on edge. I have a list of homes, the base prices and the discount they’ll tell me about. They will go lower and I have a strategy for that.
If you’re interested in buying a new home in Roseville, please give me a call. We can get together, look over what I’ve got and if it looks good to you, we’ll form an attack strategy and get moving.
It’s the 4th quarter of the year and the builders have inventory they want to move before the end of the year.
Check out “It’s Bargain Time in New Homes!”
(images are from random brochures obtained and are not meant to be representative of any specific builder)
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