Paul Brown Real Estate Blog
Granite Bay, Loomis, Folsom, El Dorado Hills, Roseville, Rocklin and Sacramento, CA Real Estate PerspectiveArchive for Market News
Coldwell Banker’s Folsom Office is #1 in Sales!
It was announced last night that Coldwell Banker’s office in Folsom is #1 in sales in all of Northern California for the month of May. It’s still early but it is a big achievement considering there are 60 offices throughout Northern Cal and it includes all Bay Area offices.
Is this another indicator of the bottom of the market? Perhaps. I personally think the bottom is here in micro-markets. The high-end luxury properties likely have a bit more price depreciation. The truth is buyers are back in force and keeping us realtors busy. Many feel the time is now because the affordability index has increased significantly and mortgage rates are very attractive.
Pricing Not Seen in Years!
I just finished up a 27-home tour today, over the last two days, Thursday and Friday February 26 and 27. The tour was in Roseville 95747 (Woodcreek Oaks and Crocker Ranch areas) and Rocklin 95765 (Whitney Ranch and Whityney Oaks areas). My clients are from out of state relocating and we had a great time searching. And we found one they really liked and they are considering it. The 27th home on a 27-home tour. Murphy’s Law, eh?
The point I want to make is the pricing in Roseville and Rocklin is getting quite good and it seems that homes are really a great value out there. Homes built within 5-10 years, resale and new, are selling below $400,000 for 2,500 -3,200 square feet, 4-5 bedrooms, 2-3 bathrooms.
Both of these communities are quite nice, with plenty of parks, reputable schools, young families and most neighborhoods are close to retail stores, restaurants, freeways and more.
If these communities are not on your tour they may be worth checking out.
Creative Offers and Government Loan Modification Proposal
With the economy the way it is these days, and the daily evolution of the governments stimulus plan, intent to provide homeowners with options to stay in their homes, and avoid foreclosure — there are always opportunities to buy and sell real estate. With that, purchase and sales agreements are getting more and more creative. Some things I am seeing are seller carry backs, banks paying down interest rates, short sales, seller credits towards closing costs, loan assumptions, sellers initiating an offer with a buyer and other incentives to make a ‘deal’ come together.
Interest rates are still historically low. One question I’ve asked myself this week is, “Since when did a 5% interest rate get insulting?” There is much media talk going on about a flat 4% rate and I am not sure at this moment in time if that will be a reality — and frankly I’m not sure where it is coming from. A buyer client of mine is currently getting 4.5% with some points and we negotiated the bank pay for that rate buy-down as part of our Short Sale negotiations.
Your real estate consultant should always have a fresh approach and marketing plan. These are times many of us have never seen and with careful guidance and a sound plan, just about anything is achievable. So, if you are interested in and/or have to buy or sell, there are great opportunities out there, plenty of selection and many ways to do it. And frankly, there is a lot of real estate selling today. This is the busiest first quater I have had in my business in the last 3 years and the momentum continues…thankfully.
The loan modification plan the government announced this week will help millions of people make temporary adjustments to their loans, making it more affordable and there is a qualifying process. That plan will be officially rolled-out on March 4, 2009. I can answer any questions regarding the proposed loan mod program, at least where it stands right now and I am keeping up with any changes to it on a daily basis.
If you have questions about buying or selling in Folsom, Granite Bay, El Dorado Hills, Roseville, Rocklin or other communities in greater Sacramento, contact me via my blog. I am here to help.
Sacramento Posts Record Home Sales in September 2008
Here is some great news to report. Home sales in Sacramento County totaled 2,020 for September 2008, an increase of 8% over August 2008 sales of 1,814. What’s encouraging is it is the first time sales have been more than 2,000 since August 2005 when sales peaked at 2,052. Year-over-year sales (September 2007 to September 2008) the increase is 185.7%. Huge.
So, what’s driving this increase? An enormous volume of foreclosed homes (also referred in the marketplace as “bank-owned” or “REO”. REO is more of an industry term and stands for “Real Estate Owned.”). Many investors, first time home buyers priced out of the market in recent years and others are swarming and finding opportunities to purchase.
The not so good thing is prices are still declining and September 2008 recorded the lowest median price decline in more than six years, $194,950. See changes below.
September 2008 vs. August 2008: $194,950 vs. $218,000 (-10.6%)
September 2008 vs September 2007: $194,950 vs. $320,000 (-39.1%)
While the price declines are not exciting news for sellers, these figures do not automatically apply to each and every home, situation and location. A comparative market analysis (commonly referred to as a “CMA”) of your home will help determine current market value. I can help with that.
Some of the fundamentals signs of a healing real estate market are an increase in sales and declining housing supply. Housing supply, in terms of the amount of time in months it takes to sell all of the homes on the market for sale, was at 3.5 months in September. A 10.3% decrease from August 2008′s 3.9 months, and September 2007′s 14.2 months (an enormous 75.4% decrease!). A general rule of thumb for realtors is a 6 months supply signals a more or less fair market for both buyers and sellers. Under 6 months favors buyers, in general terms.
Based on my observations, conversations with colleagues and business activity, the real estate market in the greater Sacramento area is well on its way to healing. Challenges will likely remain in 2009 and opportunities to buy and sell will present themselves, too.
I’d be happy to give you my thoughts on your home’s market value and prepare a CMA for you.
