Quick Home Search!
Welcome To SREV
Archive for October, 2008
Foreclosures Decline 29.5% in September in Sacramento Real Estate
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.
The Calm Before the Storm
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!
Warren Buffett and Sacramento Real Estate
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.
California Foreclosures Drop 61% in September
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.
First Time Homebuyer Program – Roseville New Homes
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.
The Next Nicklaus
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.
Statistics: Homes Sales in Roseville Increase
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.
Follow me on:
SREVS Weekly Digest Email
Client Testimonials
Categories
- Market Commentary
- Home Sales Reports
- First Time Home Buyer Info
- Rocklin & Roseville Open Houses
- Rocklin & Roseville New Homes
- Sacramento Foreclosure Statistics
- Sacramento Mortgage Information
- Short Sale Information
- Worst MLS Photos of the Moment
- Local Real Estate Info
- Community Events
- Your Questions Answered!
- My Favorite….
- A Boy and His Dad
Resources Links
- Tim Clegg, Bank REO Cleanup
- College Funding Advisor, Michael Mathews
- CalHFA First Time Home Buyers Program
- City of Rocklin
- City of Roseville
- City of Lincoln
- City of Citrus Heights
- Great Schools.com
- Sacramento PD CrimeMap
- CrimeMapper – Any Address
Archives
Mortgage Calculator
 | ||||
 | ||||
Let’s Network on Facebook!
