Archive for the 'Sacramento Home Buyers' Category

What Will the First Anniversary of the Credit Crunch Mean to Sacramento?

In some ways, I can’t believe it’s already been a year… But in other ways it seems like this market is just the ‘new normal’, and its been like this forever…

Ben bernenke said just over a year ago that  “Troubles in the subprime sector seem unlikely to seriously spill over to the broader economy or the financial system”.

Wonder what he has to say about that now; with the Dow Jones down almost 15%, economic growth down more than 50% and eight major U.S. banks along with thousands of employees now gone.

Michael Burry,head of Silicon Valleys Scion Capital’s says “I doubt we’re even a third of the way through it,”see full story.

Add the financial woes of the California State Budget  , four dollar a gallon gas… the future seems a little scary…

I’ve done some numbers crunching and it seems that the Sacramento area housing inventory of homes for sale over the $350,000 mark is now growing.  Demand for the lower prices up to around $350,000 is still running neck and neck with supply.

 

 

 

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Mortgage rates headed up… Sacramento buyers: Hurry!

Asset managers and Homeowners have finally dropped prices enough to stimulate buyers interest here in the Sacramento area.  But in order to do it, median price of an existing, single-family home in Greater Sacramento declined to  $233,230 in May, a 34.5 percent fall from a year earlier. The California Association of Realtors reported a 18.1 percent increase in sales last month.

For the first time in 30 months we had a year over year increase in number of homes sold.

Now or newest alarm is on mortgage rates…  As if we needed more to challenge our housing market.

Bloomberg says:Homes Less Affordable as Prices Fall, Rates Rise.

We all knew it would happen sometime…

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How long until Sacramento Short Sales become more successfull?

We dread it.  Yet We still do it… Showing the shortsale listing to clients, and then explaining reason why they should “Just Walk Away”…

Like the web site that offers a ”customized” plan to homeowners in default, I find myself many times giving the same advice to buyers in this market to just ignore most short sales. We still go look, to compare pricing and make sure we are not missing the deal of a lifetime, on the home of their dreams, but most of the time, we just look…

If the home is perfect for the buyer, we do write, but we always coach our buyers to keep looking. Most of the time, after weeks of no communication from the listing agent and/or no word form the bank, a comparable home will come on the market that we can actually close on.

In our Sacramento area, Less than five percent of short sales that go pending are actually closing and transferring ownership.  Most of the nine transactions I have closed successfully have taken over 90 days to complete; one took 7 months.

We have been successful on the buyers side only twice, the listings I have closed are usually closed with the third, fourth, fifth buyer contract.

We just lost another listing to the foreclosure sale, it was with Wells Fargo, who for OVER FOUR MONTHS complained that we had never faxed in our sellers package, that they had technical problems, that the fax machine was broken, that the original fax number was no longer a good number (even though our transmission reports indicated ok)… we heard that the account manager assigned had quit and had to re-start the entire process, not once but twice! We heard that the sale date had been extended and that the bpo had finally been ordered…

Then one day an agent called to say she had been assigned the property and wanted our lock box off.  During this five month process, we had seven offers submitted to the bank with completed packages, pre-approval letters, our own BPO, and showing reports… hours upon hours of work…

We tell this and other horror stories of the fifteen or twenty listings we have lost to the forclosure sale at the courthouse steps to  our buyers and usually  get them to concede that it would be far more appealing to get into a transaction on a listing where we could actually plan on closing.

However, in the cases where buyers have parents who live on the same street, or where kids can walk to an important school or buyers who grew up next door and played in the backyard as a child, we will write a strong offer on a shortsale; as long as the listing agent has had shortsale experience or is using a professional  negotiator, that they have a full package submitted to the lender and as long as there is only one bank involed (not a fist and a second) and it is not Wells Fargo!

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Sacramento Housing Inventory nearly triples compared to last year!

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Sacramento Real Estate Buyers’ outlook…

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What Will Happen In Sacramento?

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Alert to Sacramento Homesellers: More Lower Priced Competition Coming Soon; HURRY!!

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Sacramento Real Estate Feels The “Mortgage Meltdown”, Real estate values recoil and…

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How will Bush’s plan be anything more than just lip service for our Sacramento real estate market?

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Sacramento Real Estate Troubles: How Long Will this Last?

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