Sacramento Real Estate Views

Homes Sales Report – Sacramento – August 2009

Pace of Home Sales Slows

The number of existing home sales in Sacramento declined in August to it’s lowest level of the year.  This is due to dramatic reductions in the number of homes available for sale and the time of year.

New home builders throughout the region, for instance, have been hammering out emails with quick move-in specials and increased commissions for agents to sell their homes since mid-July as sales are typically slow during this time of year.

Vacation months can be slow for home sales.

Click here to search for homes in any area of Sacramento or Placer County.

I wouldn’t be surprised to see and increase in volume by the end of September.  That said, without a significant increase in homes to sell, we may not see an increase.

The second slowest month of sales was February with 956, January with 962.  The rest of the year, sales numbers have exceeded 1000 homes sold per month in Sacramento.

Average Sales Price Increases In Sacramento Real Estate

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Tags: homes sacramento, real estate agent sacramento, sacramento real estate

Sacramento Home Sales – April

Sacramento Real Estate Market Takes a Breath

The April numbers, honestly, aren’t that surprising.  That said, I expected the average sales price to be closer to the numbers in the first quarter of this year.  I guess buyers, especially investors, are taking a bit of a break from the harried pace of the last 4 months.  With fewer sales, prices have come down.

Average Sales Price and Homes Sold Dips

The average sales price of homes in Sacramento County dropped almost 16% in April.  Compared to the numbers in the first quarter, this is a little startling.  While not surprising due to the number of homes that are not occupied AND not on the market. This has created a “false bottom” in the Sacramento real estate market and investors are waiting to see what’s going to happen going forward.

This news has gained national attention and it’s my guess that buyers, especially investors, are waiting to see what the next couple months will bring.  It’s been my advice to investors to sit tight for a month or so to get a better read on what the banks will do with the homes that have been foreclosed on but aren’t on the market.

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Tags: sacramento home sales, sacramento real estate, sacramento real estate statistics

Get $18000 To Buy a Home In 2009

Tax Credit for First Time Home Buyers in 2009

Some time ago, I was in a meeting with some local lenders and they brought up a great point worth mentioning about the consumer tax credits given by the government to inspire first time home buyers to purchase in 2009.

The lenders we met with told us that a first time home buyer could file for the $8000 tax credit on their 2008 taxes BEFORE the home is purchased.  This, as it has turned out, was dead wrong.   See below.

CORRECTION: It has been brought to my attention that this information was incorrect as it was presented to me by the lenders in question.  According to sources since this article was published, the IRS considers filing before the close of escrow tax fraud.  Again, you will need to verify all tax related information with a tax professional.

(Disclaimer:  Check with your accountant or a tax professional to verify any and all tax related information!)

It’s free money to buy a home in 2009 when the prices are going to be at the lowest point in this market cycle. (Hopefully!)  You must purchase by December 1, 2009.

Last year, there was a $7500 “loan”, that’s what it amounted to, that had to be repaid in $500 increments until satisfied.   This year a purchase could result in a $18000 wind fall depending on who is buying and where.

$8000 First Time Home Buyer Tax Credit

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Tags: sacramento real estate

Active Listings Watch – Sacramento Real Estate

Geez, it’s great to be home!  I love Disneyland as I have fond memories of it from my childhood.  Sharing those with my 4 year old son was very special.  Back to work!

Home Prices Stabilize

The average sold price for a home in Sacramento real estate has stabalized over the last 2 months.  So far for the month of March, there appears to be an increase in the average sales price but that was also the case in the beginning of February.  The difference in average sales price from January to February is less than .04%.

There are still many vacant homes that are not on the market in the Sacramento region.

What will happen to those at this point is anyone’s guess and the guessing is proceeding in full force!  I believe that they will be “metered” out in smaller releases in an attempt to control the inventory levels and increase demand. This may result in increased values across the region.  Additionally, many could go to bulk sales as this is the fastest way to rid non performing assets from the banks books.

Something similar to this happened with the RTC in the late 80′s and early 90′s.

Inventory Levels Decrease

Over the last month and a half, the total number of homes for sale in Sacramento county has decreased almost 6%.  There are still multiple offers on every home that I submit for my clients but that said, we’re picking up some properties at lower prices than what they offered for.  My most recent escrows were exactly that way.

The variables here don’t seem to line up:  Less inventory for sale, multiple offers on every listing and getting homes for less than the listed price yet prices have stabilized over the last 2 months?   That formula doesn’t seem to add up.

My sense is that this year will be more active than last year if the inventory levels remain consistent.  If they drop lower and the vacant homes out there now don’t come on the market, at the current sales pace, there won’t be much to sell.  It looks as if the pace of sales and values should increase but time will tell.  This could be the year of market stabilization.

The Sacramento real estate market has proved to be very resilient over the years.  We were first in and we will be the first out of this downturn.  Stabilization is the first sign of things turning around for the better.

Thanks for visiting!

Tags: sacramento homes for sale, sacramento real estate

Sacramento Real Estate – Short Sales: Are the Banks Finally On Board?

Short Sales Becoming Fashionable

The banks have been ridiculous with regard to short sales.  The home gets listed, we make repeated attempts to contact the bank to get the home sold and the bank doesn’t respond.  I’ve submitted offers to banks with no response at all only to be phoned later, months later, asking if my buyer is still interested, your offer has been approved.

Thanks!  My buyer closed 2 months ago!

Then the home goes into foreclosure.  Did you know that on average, a short sale sells for about 25% more than a foreclosed home?  No wonder the financial institutions are in the shape they’re in.

The fact is allowing a home owner to sell short will, in most cases, net the bank more money and save money in repairs and maintenance because there isn’t any!

While the process is going on, the home owner is living in the home and handling all of the maintenance associated with living there.   The home isn’t vacant and open to vandalism.  The homeowner is paying the utilities not the bank.  Not only do they sell for 25% more but they don’t cost the bank a dime in maintenance and upkeep.  There is no asset management company to pay as the negotiations are handled directly through the lender.

Why wouldn’t you want to approve a short sale?  Maybe BIG BROTHER knows but it’s a mystery to me.

More Short Sales in Pending Sale Than Ever Before in Sacramento

A recent check of the MLS shows that the percentage of short sale listings being sold has been increasing dramatically, an indication that the banks are getting on board with the process.  That is a good thing as there are many more to come and foreclosing is suddenly not popular.

It seems every bank out there has imposed a foreclosure moratorium and I hear loan modification stories from homeowners almost every day.  The market is changing.

In an article from the mortgagenewsdaily.com, click here, it appears as if this trend toward short sales is increasing in some locations throughout the nation.  Hopefully they will become increasingly easier to work with because selling a home short rather than letting it go into foreclosure is a win for the lender, a win for the buyer and a win for the community.

I hate to sound cynical but would that make too much sense?

(This is my 100th post!)

Tags: sacramento real estate, short sales in sacramento

Sacramento Real Estate Loan Modifications

Sharon Wallace

Today I was out looking at property for a client when I happened on a very nice lady who had a nice story to tell.  It seems her mortgage had gotten a little out of control and she had written to her lender asking for a modification of her loan terms.

Within a couple days or weeks, she had a new packet at her doorstep with all the terms she needed and a little more.  Another homeowner who is able to stay in her home due to a loan modification.

By her own admission, Sharon was very fortunate and blessed.  It was nice to meet her and hear her story.

This Is Happening All Over the Region

I’m hearing more and more stories about people who have been getting loan modifications to help them stay in their homes.  With the new law signed today, many more people will be able to get help to stay in their homes.  It’s about time.

A word of caution: There are many “companies” out there right now claiming to know about loan modifications touting that they can help you for an advanced fee.  My advice is to never pay anyone for a service before you’re absolutely confident in their ability to help you.  There are many scammers out there right now preying on vulnerable people who are seeking aid in staying in their homes and avoiding the foreclosure process.

While there are many stories out there like Sharon’s, there are equally many horror stories out there as well.  Get a referral from someone you know and do your homework.

Tags: loan modification, sacramento real estate

Knowing What to Look For In Sacramento Homes for Sale

Newer Homes In South Sacramento Have a Problem

Over the last few weeks, I’ve been working with investors who are focusing on different parts of Sacramento.  Each one of them has different criteria they work with and that takes me all over the region.  Seeing as many homes as I see, you begin to notice patterns in certain areas of the region with either pest damage or constrcution standards as they vary from area to area.

In South Sacramento, I’m noticing that there are a lot of homes built in the early to mid 1990′s that have what appears to be structural damage.  This damage hasn’t been created maliciously but rather seems to evolve over time.  It appears to be more than just normal settling of the foundation or drywall cracks.

I’ve had 2 homes in the area in escrow and seen 3 more of the same age in the same area have the problem that is outlined in this video to a lesser or greater degree.  It’s definitely a RED FLAG!

The key thing is always have whichever home you’re purchasing professionally inspected.  That way you know going in exactly what’s there.  In the long run, it’s a very smart investment.

Thanks for stopping by and have a GREAT day!

Tags: sacramento real estate