Sacramento Real Estate Views

Archive for the 'Real Estate Market Commentary' Category

Why Bank Owned Homes Are Difficult To Finance

Seller’s Take the Path of Least Resistance

Most bank owned homes are challenged.  Generally they are not in good condition and the homes that are in good condition are receiving multiple offers.  The sellers of these homes would rather take a lower all cash offer than to even attempt to get a financed offer closed.

Add this to the fact that the lenders are more strict than ever in demanding that they asset they are loaning against is in good condition and who can blame them.  They want to make sure all of the safety hazards have been addressed and at a minimum the home is needs as little fix up as possible.

Unless you’re getting a rehab FHA loan, it’s tough out there especially for the first time home buyer.

The home I visited today was typical of the bank owned homes in the Sacramento real estate market.  If you have questions, please feel free to contact me and I’ll respond to your questions promptly.

Thanks for watching!

Tags: sacramento foreclosed homes

First Time Home Buyer Tax Credit

Will Congress Extend The $8K Tax Credit?

As many of you know, the $8000, first time home buyer tax credit expires on November 30th.  There has been rumors that Congress will extend it now that the housing statistics nationwide are beginning to improve and a bottom appears to be in sight. (“appears” being the operative word!)

An article in the Wall Street Journal this week cited about the best evidence that I’ve heard making a case for the extension of the tax credit.

Beyond the fact that our country in deeply in debt and can probably ill afford additional losses in tax revenue, housing is believed to be at or near the bottom as indicated by the nationwide increase in sales. (click here for the MSNBC article)

Additionally, there are many economic factors that indicate that the end of the recession is nearing and sustainable growth could be just around the corner.

Does Congress want to stifle the little growth that housing has showed this year?

Probably not when there are votes on the line…sorry folks, that’s just how it works.

The Argument

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Tags: first time home buyer tax credit

Social Media a Fad?

Still Not Convinced?

Not sure if blogging is here to stay? Want to make sure you’re making the right decision to begin blogging?
When I saw this, I was shocked.   I didn’t even realize the effect social media has had on our society and it’s just getting started.

Enjoy!

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Tags: blogging

Sacramento Foreclosures

The Next Wave

With the “shadow inventory” still out there, lurking, there is a new threat to housing in the Sacramento region as values have declined to pre-2000 levels.  In some areas, even lower.

CNN Money came out with a special report that cited evidence that by 2011 when they see the housing market stabilizing that roughly 25 million borrowers nationwide will be underwater on their mortgages.

That number represents nearly half of all homeowners in the United States.

Half of all homeowners will be “underwater” by 2011!

Housing for the middle class for years has been a source of wealth.  The prevailing thought was that the first step to wealth was owning your own home.  That isn’t the case now.

What this realization is creating nationwide is “strategic default” or in simpler terms, people are walking away from there homes feeling as if it’s impossible for the value to come back to provide them with any possibility of financial recovery.

The article says that 26% of all defaults currently are “strategic” defaults.  And the hardest hit areas?  It’s not hard to find them.  All we have to do is look to our not so distant south.

Modesto and Stockton lead the list here locally and I’m betting Sacramento isn’t that far behind them.

The Question of the Moment

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Tags: sacramento foreclosures

First Time Home Buyer Tax Credit

Ends November 30 – The Clock Is Ticking!

Buying your first home can be very stressful!  While getting an $8000 tax credit can make it easier, there is still a lot of stress involved.

Getting the credit, though, is very easy to do and I thought I’d outline the steps involved so there is at least one less thing to worry about. Here is what you need to do to get the credit:

1) Close escrow on your new home by Novemeber 30, 2009.

2) Make sure you’re qualified for the tax credit under IRS guidelines.

3) Decide which year to file.  Amend 2008 or file it with your 2009 return.

When To Apply

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Tags: first time home buyer tax credit

Selling Your Sacramento Home?

Multiple Offers Make It Easier….On Sellers!

One of the benefits to the reduction in the amount of homes for sale in the Sacramento real estate market is that it makes selling your home easier.

Let’s face it, short sales are such a pain and a lot of buyers agents shy away from them in favor of bank owned homes or home being sold by “mom and pop” otherwise known as “regular real estate”.

The bank owned homes are not as plentiful as they once were leaving agents to find anything but a short sale.

I’d rather show anything but a short sale.  I’d rather stick needles in my eyes than show a short sale!

A prominent foreclosed home agent I was speaking with last week told me that their team is doing roughly 300 BPO’s a month for various bank accounts. (BPO = Broker Price Opinion)  That said, they are only getting from 2 to 8 listings a month.  For some reason, and no one quite knows why, the homes that have been foreclosed on are not coming on the market.

Unless they are very overpriced, the homes that do come up for sale have multiple offers as quickly as they hit the market.

Less Competition = Higher Selling Prices

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Tags: sell a home sacramento

First Time Home Buyers In Sacramento Real Estate

The Gap Between Rents and Mortgage Payments Is Closing

If you’re renting and trying to make a decision whether or not to buy a home, a new report that just came out could help you make up you mind.

A recent MSNBC article cited that the gap between buying and renting is closing.  This means that the cost of renting and the cost of buying are getting closer together.  Buying is generally a better decision than renting as you’re putting your money into your own future rather than the future of someone else.

Nationwide, the gap has gone from $777 a month to just $221 per month over the last three years and in some areas of the country, it’s even less.

Housing Downturn A Boom for First Time Home Buyers

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Tags: first time home buyer sacrament