Is Sacramento Area Real Estate close to the bottom? …That Depends…
April 3rd, 2009 Categories: Pre Foreclosures, Real Estate News, Real Estate Trends, Sacramento Economy, Sacramento RE Stats, Sacramento Real Estate, Sacramento Sellers
Multiple offers, great loan programs, excited buyers, well priced homes, phones ringing off the wall, hundreds of buyer inquiries per week, referrals from past clients… There is plenty of activity in our Sacramento area real estate market lately!
I have taken twelve new listings in the last 30 days and my partners all have multiple offers out on multiple properties with multiple buyers. This time of year is always the busiest, and this year will be no different, but there is also a sense of urgency in buyers that we haven’t seen for a long time.
With home prices in our Sacramento Metro area declining for forty months straight now, many people just can’t wait any more.
Have we hit bottom? Many people are saying ‘Close Enough!’
There are some neighborhoods and price ranges of the Sacramento Metro area that will actually increase from current prices! If someone GAVE you the lot and a truckload of lumber, you couldn’t build a home for what they are selling for right now!
But then there are some area and price ranges that still have a long way to go! And the economy is not helping…
The Sacramento area, currently posting a 10.8 percent unemployment rate, is projected to increase above 12 percent in early 2010.
The Alt-A, and Pick-a-Pay, Pay option ARM loans that have just started resetting will continue to burdon our market at those homes will have to be dealt with somehow.
The moratoriums on foreclosures may have just postponed our recovery, by prolonging the inevitable. And it seems that loan modifications have not gone far enough in reducing principle to todays values, so most modifications don’t work. Banks are, for some reason, more interested in paying realtor fees to sell the home for far less than what the original homeowner might be willing to pay in a short refinance.
