Archive for the 'Sacramento Real Estate Trends' Category

Choosing The Right Mortgage Program in Today’s Competitive Sacramento Real Estate Market

Mortgage Application

Buying a home in the Sacramento area means choosing the right mortgage program.

Home Buyers in Sacramento frequently ask me “What Type of Mortgage Should I Get?” Especially here in our Competitive Sacramento Real Estate Market, Choosing The Right Mortgage Program  is an important part of the home buying process.

Before you Decide on a Home Loan. There are a few things you should be clear on as a home buyer.

First, just be ready to enter a competition: As a home buyer in today’s Sacramento Home Market, you are one of many, many, well informed and well educated price hunters. And you are all judges in a very complex beauty pageant! Price and value are so important and so critical to today’s Sacramento home buyers, that homes that are priced well and conditioned correctly are attracting multiple offers.  And these Beauty Pageant and Price War winners are going for full or above full asking prices quickly. Buying a home in Sacramento has become very, very competitive  over the last few years.  Even with the recent increase in the number on homes for sale here, we are seeing many, many homes selling for asking or over asking price, within days of being placed on the market-

So, if you see a home and fall in love with the condition, location and price… in nearly every single case, many other buyers will find it and fall in love as well- and the sellers must pick through multiple offers to find the offer that meets their needs and also represents the strongest, most likely offer to be successful and close on time -The next step in for you home purchase is actually deciding who you want on your team. Having the right Lender, the right Agent and  has become critical in this competitive real estate market.

No matter Which Home Loan You Decide to use, it’s best to be clear about certain points-

How long will I live in this house?

What are my five or ten years goals

Do I want to make home improvements?

Do I need cash on hand for other expenses or  other investments?

Do I like to take financial risks?

Do I want to be debt-free?

Getting clear on these basic, fundamental goals. This always seems to make Choosing Your Home Loan much easier-

The next step in choosing a mortgage for you home purchase is actually deciding who you want on your team. Having the right Lender, the right Agent and choosing the right type of home loan has become critical in this competitive real estate market.

So as a home buyer in the , building a winning team of professionals, people who have a winning track record and a track record of success is the most critical thing you can do-

All of these scenarios and choices will need to be considered as you and your mortgage lender Discover Which Loan Program Works Best for you.

Once you choose a lender and provide the Documents Needed for a Home Loan, you will be asked to clarify your goals, your objectives in order to identify the different  types of home loans you qualify for and that meet your needs and goals:

The conventional 30-year fixed loan may not be for you. Consider and compare all the options. There are hundreds of mortgage products out there, so be sure to find the right one for your needs. Before you approach any lenders, figure out your financial strategy.
Now that you have a reasonable picture of your financial philosophy, shop around and evaluate your options. Don’t rush into the first loan offer you get.

If you can afford to take financial risks and have the assets and credit score to back it up, you can get the best deals. Go for mortgage products that allow you to pay the least amount of cash while still satisfying your loan obligation. Consider these:

You can choose a longer loan term, such as 30 years or more. The longer your amortization period, the lower your monthly payments would be, but the more interest you’d pay. If you borrow $100,000 at 8 percent interest over 30 years, you would pay $164,000 in interest along with the principal by the end of the term. Your mortgage payment would be $733 a month. A 15-year mortgage, in contrast, would require a $955 monthly payment.
Skip the down payment and go for an “80-20” loan. A standard loan funds the first 80 percent and a second loan with higher interest rates finances a 20 percent down payment. This option also gets rid of private mortgage insurance, or PMI, which is typically required for homes bought without 20 percent down payments. PMI protects the lender in the event that a borrower defaults on a loan.

Consider an adjustable rate mortgage (ARM) if you want to keep some cash or take advantage of a low interest rate. The rate is fixed for the first few years, then begins floating. But be aware of market conditions – if rates rise, so do your payments. This option makes sense for serial relocators, who don’t plan to be in a home for more than five years. A three or five-year ARM lets you make low payments and gets you through the typical mortgage cycle. If rates drop, you can refinance. If rates rise, you can sell.

Interest-only mortgages also let you keep more cash. They do not require principal payments during an initial period, typically three, five or 10 years. After the initial period, borrowers must begin repaying principal over the remaining life of the loan. By comparison, a traditional amortizing loan requires principal and interest payments from day one, with more of the monthly payment going to interest in the early years and to principal in the later years.

Homeowners can lower their monthly payment by 20 percent to 25 percent by skipping principal payments in the early years, but they must be prepared for a big jump in payments when the interest-only period ends. A lower initial monthly payment may also allow you to qualify for a bigger home loan. The downside? When housing prices fall, you could end up owing more on your home than it’s worth.
To qualify, you normally must have good credit or pay a slightly higher fee or interest rate. Balloon payment mortgages are short-term, fixed-rate loans that involve small payments for a certain time period and then one large payment (the balloon payment) for the remainder of the loan.

If you don’t like debt and risk, you may want to stick with conventional loans with fixed rates and shorter terms, making big down payments and extra principal payments whenever possible. If you go with a 30-year mortgage, you could refinance after 10 years. You could get a lower rate and dramatically reduce your principal balance in a shorter period.
Here are more tips for finding the right home loan:

Buying or selling a home in the Sacramento area is a huge project.  Get educated and take your time- interview several professionals in each area where you will need a consultant and advisor- Real Estate Agents and Mortgage Lenders are not all created equal!

Before you interview us, listen to Listen to what our past clients and what you have to look forward to! 

The Hoyt Group Testimonials

Click to hear recent
testimonials 

from happy clients

 

Then, give us a call, text, or email!

Forth 

p.s. Do you know what your home is worth? Forth does! 

Forth Hoyt 
CRS, CDPE, IMSD, A-REO, SFR, SRES,  
e-PRO, RDCPro, PFC,Certified HAFA Specialist, 
Master’s Club Life Member

The Hoyt Group Keller Williams Realty 
916-248-7777 
DRE 01319540

[email protected]

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El Dorado Hills Short Sales And Folsom Short Sales Not Closing. Why?

El Dorado Hills And Folsom Short Sale Information

El Dorado Hills And Folsom Short Sale Information

El Dorado Hills Short Sale Agent and Certified Short Sale Specialist Reports:

El Dorado Hills and Folsom, only minutes apart and with so many similarities in many ways also have have short sale markets that are similarly failing…  why is that?

El Dorado Hills Active Short Sale numbers have actually gone down over the last 14 months, but just because they are going pending so quickly!  Monthly new listings has doubled, the number  going pending (short sale approved by lender) has almost tripled.  Why then, has the number of homes successfully selling (successfully closing escrow) actually gone down from year ago levels? Successful Short Sales in El Dorado Hills are actually lagging! Just like Folsom Short Sales, Short Sales in El Dorado Hills are not closing escrow…

Find out Why:

Short Sale Agent in Folsom Reports Why Short Sale Escrows In Folsom May Be Failing


El Dorado Hills Short Sale Numbers for the past 14 months:

Date 12/09 1/10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 2/11
For Sale 84 68 74 57 65 62 74 90 80 85 75 60 75 68 67
New Listing 16 28 31 29 36 29 29 34 31 36 23 23 16 36 32
Sold 14 19 12 12 16 12 23 12 11 17 12 19 23 12 10
Pended 17 23 13 20 21 10 14 9 26 14 19 13 8 36 44
Months of Inventory based on Closed Sales 6.0 3.6 6.2 4.8 4.1 5.2 3.2 7.5 7.3 5.0 6.3 3.2 3.3 5.7 6.7

Folsom Short Sales are now nearly 30% of all closed sales! Successful Shot sales are now the norm in Folsom. The graph below ith the Folsom Short Sale Numbers show the amount of active short sales has more than doubled.  Look at the number of Folsom’s pended short sales; those going pending are short sales that have been approved by the bank and the buyer can start their inspection period… Successful Sort Sales in Folsom have remained stable while pending and active short sales are surging!

Folsom Short Sale Numbers, for the past 14 months:

Date 12/09 1/10 2/10 3/10 4/10 5/10 6/10 7/10 8/10 9/10 10/10 11/10 12/10 1/11 2/11
For Sale 31 39 43 45 52 65 56 61 76 75 77 78 74 78 67
New Listing 21 21 21 33 26 29 29 23 41 23 25 24 23 36 31
Sold 15 12 12 16 6 19 14 8 12 12 11 7 16 11 15
Pended 17 13 12 15 15 9 20 16 19 18 14 12 12 30 54
Months of

Inventory based on Closed Sales

2.1 3.3 3.6 2.8 8.7 3.4 4.0 7.6 6.3 6.3 7.0 11.1 4.6 7.1 4.5

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To Sign or Not To Sign: Short sale agreement with lender when they reserve the right to pursue deficiency?

Deficiency Judgements on First Mortgages in California- Not any more?

Deficiency Judgments on First Mortgages in California- Not any more?

Sacramento Certified Short Sale Specialist explains the brand new California anti-recourse Short Sale  law:

Do you sign a short sale approval letter that reserves the right to pursue a deficiency.

As a Sacramento Short Sale Specialist and Certified Short Sale Expert I get questions all the time from other agents.  Other short sale agents here in my office,  other Sacramento area short sale agents, and even (sometimes most frequently) agents from other California Short Sale Markets who find my Sacramento Short Sale Center websites  and contact me with their short sale questions.

One of the most frequently asked questions I hear is “I have successfully negotiated this short sale file but, what do I do; the  short sale agreement letter from the lender contains language where the investor/servicer  is reserving the right to pursue a deficiency judgment on the balance …do I have my clients sign it?”

First of all, I am a short sale Realtor Although I have taken hundreds of hours of training and I’m Certified many times over,  I know the ins-and-outs of successfully negotiating a short sale,  but I am not an attorney and I make sure everyone I talk to knows that-

But I do know there are new  California laws that stop banks from pursuing deficiency judgments on first mortgages.  There have always been (since the 30’s) laws stopping deficiency on purchase money loans on homeowner occupied units, but there was danger for income properties and refinanced loans where there was money taken out… before 580e; as I understand, there was valid law giving the lenders power to file for  a deficiency judgment for the amount the lender wrote off in a short sale.

Here’s what I  know about California SB931 and California Civil Code Section 580e:

Read  More on California Short Sale Anti Deficiency Law SB931.

Questions on your particular situation? Is your second mortgage non-recourse too? Contact us Today At Forth Hoyt’s Sacramento Short Sale Center
If you area homeowner faced with the decision of whether or not to sign the lender consent agreement in a Short Sale or lender short sale approval letter, be sure to get competent legal advice first from a real estate attorney. No matter what. even if you feel like you are getting great information from your lender, from the internet, from other sources- definitely spend the couple hundred dollars and talk to a real estate attorney!

You can also read  the full law here:  California SB931 and Civil Code 580e

New Government Foreclosure Prevention Program Eligibility- Which Programs Do You Qualify For?

Contact us Today At Forth Hoyt’s Sacramento Short Sale Center

In closing, always obtain legal and tax advice before making a decision between a short sale or a foreclosure.

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El Dorado Hills and El Dorado County Approved Short Sales Continue To Surge

El Dorado Hills County Approved And Pended along With Closed Short Sales

El Dorado County Approved And Pended Along With Closed Short Sales

Looking For Short Sale Information in El Dorado County?

Need Short Sale Market Stats or Short Sale Market Information For El Dorado Hills? Sacramento Area Multi-Certified Short Sale Specialist Forth Hoyt Shares Short Sale Market Facts for El Dorado County and El Dorado Hills

The Short Sale is becoming a more viable foreclosure option in El Dorado Hills and El Dorado County.  Short Sales are going pending and approved in El Dorado County much much more successfully than in the past. See the graph above and the chart below that illustrate that short sales are going pending and approved much more that in the past.

1 month 1 year
May 10 June 10 % Change June 09 June 10 % Change
For Sale 187 203 8.6% 227 203 -10.6%
Sold 40 46 15% 21 46 119%
Pended 59 98 66.1% 48 98 104.2%

With the short sale being approved, going pending, and actually closing escrow in El Dorado County so much more frequently and consistently, I wondered how they were doing as a foreclosure option in El Dorado Hills? So lets take a look at El Dorado hills short sale information

But first:

The Chart Below shows that El Dorado Hills has an inventory of Active Short Sales that is barely more than 1/4 of the active short sales in El Dorado County, yet Pended and Approved Short Sales and Closed Short Sales that is nearly half of the entire El Dorado County Short Sale Inventory for these categories!

El Dorado Hills Short Sale Market Stats for 6/09 to 6/10

El Dorado Hills Short Sale Market Stats for 6/09 to 6/10

With so much talk about short sales as an option to foreclosure, and with many new Government short sale Programs it’s nice to see they are actually closing and getting short sale approval on more and more short sales.

When you look at the year over year numbers, you can really see that short sales in El Dorado Hills are definitely trending upward and being successfully used as an anti-foreclosure tool in El Dorado Hills

The Chart above and graph below show that, not surprisingly,nearly half of the pended short sales in El Dorado County were short sales that were approved and went pending in El Dorado Hills.

1 month 1 year
May 10 June 10 % Change June 09 June 10 % Change
For Sale 55 68 23.6% 79 68 -13.9%
Sold 12 20 66.7% 5 20 300%
Pended 19 46 142.1% 18 46 155.6%

With so much talk about  giving homeowners foreclosure options, stopping foreclosure and working homeowners to avoid losing their homes, (except for a principle reduction loan modification that makes sense!) you might think that the foreclosure filings such as notice of default and notice of trustee sales in El Dorado Hills And El Dorado County would both be down. NOT THE CASE!  Foreclosure filings for both El Dorado Hills and El Dorado County are both way up, yet the postponement of the El Dorado County Trustee Sale (at the courthouse steps) have just continued…


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The Sacramento Housing Market: Is There Another Bubble?

Sacramento housing market outlook; The double dip?

A lot of people have been saying lately that there may be another crash coming nationally. More Foreclosures than last year, more short sales, higher interest rates and worse economic times coming… What will the effects be on the Sacramento Real Estate Market?  What more will the Sacramento housing market need to endure still?

Many sources say that the housing recovery in hard hit states like California, Nevada, Florida and Arizona are ten years off, here’s why:

United States Longest Running Housing Graph- can you say bubble?

United States Longest Running Housing Graph- can you say bubble?

The New York Times:  Don’t Bet the Farm on the Housing Recovery

MUCH hope has been pinned on the recovery in home prices that began about a year ago. A long-lasting housing recovery might provide a balm to households, mortgage lenders and the entire United States economy. But will the recovery be sustained?

Alas, the evidence is equivocal at best.

The most obvious reason for hope is that, unlike stock prices, home prices tend to show a great deal of momentum. Correcting for seasonal effects, home prices as measured by the S.&P./Case-Shiller 10-City Home Price Index increased each month from June 1995 to April 2006, then decreased almost every month to May 2009. Since then, they have risen through January, the latest month for which data is available.

So, because home prices have been climbing of late, isn’t it plausible that they’ll keep doing so?

If only it were that simple.

Home price booms and busts do end, sometimes quite suddenly, as was the case for the boom of 1995 to 2006 and the bust of 2006 to 2009. Today, we need to worry about strong headwinds, as the government begins to withdraw its support of a still-troubled lending industry and as foreclosures are dumping millions of homes onto the market.

Consider some leading indicators. The National Association of Home Builders index of traffic of prospective home buyers measures the number of people who are just starting to think about buying. In the past, it has predicted market turning points: the index peaked in June 2005, 10 months before the 2006 peak in home prices, and bottomed in November 2008, six months before the 2009 bottom in prices.

The index’s current signals are negative. After peaking again in September 2009, it has been falling steadily, suggesting that home prices may have reached another downward turning point.

But why? Unfortunately, it is hard to pinpoint causes for a change in demand for housing. The factors clearly include government economic policy, like interest-rate changes and tax credits. But these moves don’t line up neatly with major turning points in the market.

Sociological processes may be driving these changes. Trends in news media coverage, for example, generate conversations in barbershops and hotel lobbies, which in turn alter the conventional wisdom about investing.

Consider how that process might have worked during the run-up to the 2006 turning point in home prices. In May 2005, two months before the peak in the N.A.H.B. traffic index, Consumer Reports magazine had a cover article, “Your Home: How to Protect Your Biggest Investment,” that conveyed a very bullish sentiment.

“Despite years of dire warnings from some economists that the housing boom is about to end, it hasn’t,” the magazine said. “Indeed, last year prices rose even more — about 11 percent nationally.”

The article went on to give advice: “You can no more time the real estate market than you can the stock market,” it said. “If you need a house, and can afford one, go ahead and buy.”

The article extended to the housing market the conventional wisdom that then prevailed about the stock market — namely, that it was quite efficient, without identifiable bubbles and bursts. According to this theory, there was an identifiable profit opportunity: buy and hold stocks, and by extension, housing, and watch your wealth grow.

But as 2005 continued, the conventional wisdom began to change. Some people in the United States were by then aware of the 2004-5 home price decline in Britain. Some were learning a new lexicon: “housing bubble,” “housing crash” and “subprime mortgage.” Newspapers and magazines began to include some derisive reviews of a March 2005 book by David Lereah, “Are You Missing the Real Estate Boom?” And accounts began to appear of the risky behavior of an army of real estate flippers.

In May 2005, I included in the second edition of my book, “Irrational Exuberance,” a new data series of real United States home prices that I constructed, going back to 1890. I was amazed to discover that no one had published such a long-term series before.

This data revealed that the home price boom was anomalous, by historical standards. It looked very much like a bubble, and a big one. The chart was reproduced many times in newspapers and magazines, starting with an article by David Leonhardt in The New York Times in August 2005.

In short, a public case began to be built that we really were experiencing a housing bubble. By 2006 a variety of narratives, taken together, appear to have produced a different mind-set for many people — creating a tipping point that stopped the growth in demand for homes in its tracks.

THE question now is whether a strong case has been built for a new bull market since the home-price turning point in May 2009. Though there is no way to be precise, I don’t believe it has.

Since that turning point, most public discourse on housing has not been about a new long-term view of the market. Instead, it focused initially on whether the recession was over and on the extraordinary measures the government was taking to support the housing market.

Now we’re shifting into a new phase. The recession is generally viewed as being over, and those extraordinary measures are being lifted.

On March 31, the Federal Reserve ended its program of buying more than $1 trillion of mortgage-backed securities, and the homebuyer tax credit expires on April 30.

Recent polls show that economic forecasters are largely bullish about the housing market for the next year or two. But one wonders about the basis for such a positive forecast.

Momentum may be on the forecasts’ side. But until there is evidence that the fundamental thinking about housing has shifted in an optimistic direction, we cannot trust that momentum to continue.

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Writing a Killer Short Sale Offer in Sacramento

 

Sacramento Short Sales have exploded!

Sac Placer ED Counties Short Sales 03 19 10
Sac Placer ED Counties Short Sales 03 19 10

If you want to buy a home in the Sacramento area; you’d better get honed up on Short Sales! In some Sacramento area neighborhoods, short sales represent way over 75% of the inventory of active homes for sale.  Short sales are getting easier to close and Short Sales are going pending much faster now too.  As our Sacramento real estate market evolves; short sales will continue to be approved faster, smoother and more efficiently.  Buying any home that represents a great deal in our market is not easy.  Well priced homes are selling with multiple, many times over asking price offers, whether it is a short sale, REO or equity sale; buyers all appreciate value and want a great deat. Sacramento real estate has become just as competitive as the hottest of sellers markets the area has ever seen.  So as Sacramento area short sales become less of a  ‘crap shoot’ and more of a legitimate, clearly defined and organized part of our market it is becoming more and more of an art form to write a  killer short sale offer.

Sacramento Short Sale sellers and their agent’s know that the final decision is being made by the bank and that there is no real reason to counter an offer when it comes in, but well priced short sales will generate multiple offers that will give the sellers and their agents the opportunity to ‘sort through’ and pick the offer most likely to close.  That’s the offer you want to write; an offer that represents the best chance to be be perceived as THE  winning offer from the seller, one that will compel the seller to believe that  are willing to hang with it and wait for an answer; even if it takes several months. Your offer should be written in a way the bank will have no reason to counter it and that will be easily accepted by the bank.

One way to be taken seriously as a buyer is to agree that your deposit be cashed and the money be held in escrow for up to ninety days.

 Here is a link to offer instructions and our custom  addendum that can be found on one of our great sister sites;            realestate-sacramento.net that helps agents writing offers on our short-sales to write the best offer for their clients;

  Forth Hoythas dedicated himself to helping distressed property owners. He has spend hundreds of hours learning from the pre-foreclosure experts and has obtained several designations in this field.  In an effort to offer his clients the best possible results with their short sale transaction…

More questions?

Contact us Today At Forth Hoyt’s Sacramento Short Sale Center

At The Hoyt Group, we have implemented the the following procedures 

 Tips How to Submit a (Good, Clean) Short Sale Offer 

 

1)      Include our customized version of the CAR Short Sale Addendum

2)      Include an As-is Addendum with your offer

3)      On page 1 of the contract

              1.D   Close of Escrow 45 days or sooner after 3rd party approval

                                 (see SS Addendum) where it ask for COE Date

              2.C (2)   Be sure and “check” FHA or VA if your buyers loan is

                                       a FHA or VA loan. 

             2.D   If requesting closing costs assistance please do so on

                                 these lines, in this format.  “Seller’s lender shall credit

                                 Buyer “X” dollar amount of “X” percent of sales price

                                 towards Buyer’s closing cost including but not limited to

                                 the costs of items 4.A – 4.E on page 2 of the contract.”

4)   Page 2 of the contract

                         4.A  (1) Most banks will pay for Pest Inspection, However,

                                       they will not pay for any  Section 1 repairs. 

                         4.B  (1-5) With the exception of Chase, most banks will pay for

                                           these inspections. Not Repairs.

                         4.C  (1-2) Most Banks will pay for these Government

                                           Requirements.

                         4.D  (1-2)  Please mark all closing costs as being paid for by

                                            the Buyer. (we’ll address how to ask for those

                                           appropriately on page 1 if the Buyer needs

                                           closing costs assistance)

                         4.E   (1-2)  Please mark paid by Buyer. These cost can be

                                            added into Buyers closing costs.

                         4.E   (3-4)  Most banks will pay all fees associated with

                                            HOA’s.

                         4.E   (5-6)  Do not request the bank to pay for a home

                                             warranty. If the buyer would like a home

                                            inspection, mark “Buyer to Pay”.

5)  Page 3 of the contract

                         8.B   (1-5)  Unless included in the MLS listing, all personal

                                             property items are not included in the sale.

6)  Page 6 of the contract

                         25.E   Add Short Sale Addendum and Addendum A.

 

Be the first one there, write a good, clean offer!

 

More questions?

Contact us Today At Forth Hoyt’s Sacramento Short Sale Center

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Sacramento Real Estate and California Sales for February

Sacramento County has seen a huge increase in  homes that went pending in February but actually saw a decrease in the number of closed escrows both month over month and year over year.

 

Sacramento County Real Estate Report 03 19 10

Sacramento County Real Estate Report 03 19 10

Dataquick Roperts California Market Stats:

An estimated 28,111 new and resale houses and condos were sold statewide last month. That was up 0.9 percent from 27,858 in January, and down 3.8 percent from 29,225 for February 2009. California sales for the month of February have varied from a low of 20,513 in 2008 to a peak of 48,409 in 2004, while the average is 32,325. MDA DataQuick’s statistics go back to 1988.

The median price paid for a home last month was $249,000, up 0.8 percent from $247,000 in January, and up 11.2 percent from $224,000 for February a year ago. The year-over-year increase was the fourth in a row, following 27 months of year-over-year declines. The median peaked at $484,000 in early 2007 and hit a low of $221,000 last April.

Of the existing homes sold last month, 44.3 percent were properties that had been foreclosed on during the past year. That was up from a revised 43.8 percent in January and down from 58.8 percent in February a year ago, the all-time high.

The typical mortgage payment that home buyers committed themselves to paying last month was $1,068. That was up from $1,064 in January, and up from $976 for February a year ago. Adjusted for inflation, last month’s mortgage payment was 50.2 percent below the spring 1989 peak of the prior real estate cycle. It was 59.6 percent below the current cycle’s peak in June 2006.

MDA DataQuick is a division of MDA Lending Solutions, a subsidiary of Vancouver-based MacDonald Dettwiler and Associates. MDA DataQuick monitors real estate activity nationwide and provides information to consumers, educational institutions, public agencies, lending institutions, title companies and industry analysts.

Indicators of market distress continue to move in different directions. Foreclosure activity has declined somewhat but remains high by historical standards. Financing with multiple mortgages is low, down payment sizes are stable, cash and non-owner occupied buying is up, MDA DataQuick reported.

Copyright MDA DataQuick Information Systems. All rights reserved.

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A Tale of Two Markets: Sacramento Real Estate Market Trends

Sacramento real estate trends are showing a huge disparity between homes priced under $250,000 and those priced over $250,000

Check out the numbers:

under 250k over 250k 250-350k 350-450k 450-600k 600-800k 800-1mil over 1mil

It is no secret that lower priced homes sell faster.  That is true in any market and is definitely true here in Sacramento.  I was doing some research on our new Trendgraphics while getting ready for a listing appointment tonight and started moving the minimum-maximum prices around on the search tool/website and was surprised to find where our median price of homes available is her in Sacramento/Placer/El Dorado Counties.

The median price of all 6159 homes on the market in these three counties is somewhere between 250 and 300k.  Now this is  the lower half of the median price of all active homes for sale in these three counties. I thought I’d error on the conservative side and picked $250,000 for my reports: the system doesn’t have capabilities to search any closer than in 50k increments.  There are 2903 under 250k and 3256 over 250k…

I looked at the homes in the lower half of median into one statistical group.  The upper price range I took apart and went much deeper to reveal some startling trends.

This first chart is all homes who’s active price is less than 250k. This group of homes have  1.3 Months  of Inventory based on Pended sales and  2.9 months of inventory based on closed sales. This includes ALL types of sales; including Bank Owned (REO,)  Short Sale, and Equity Sale.  On the same chart, those same homes have an median price of $160,000 an average active price of 167k and an average sold price of  157k.

Sacramento  Placer El Drado Homes Under $250,000 Active Price

Sacramento Placer El Drado Homes Under $250,000 Active Price

Here is more information on this same group of homes: all under 250,000 Active Price in Sacramento, Placer, El Dorado Counties.

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 4894 4596 3821 3384 3049 2352 2167 2125 2302 2330 2571 2797 2903
New Listing 1804 2285 1816 1795 2050 2127 1933 2013 2097 1747 1873 2100 2056
Sold 1387 1553 1564 1496 1602 1634 1418 1478 1562 1270 1459 1086 1004
Pended 1761 2112 2201 1941 1973 2127 2010 1714 1584 1357 1307 1678 2247
Months of Inventory based on Closed Sales 3.5 3.0 2.4 2.3 1.9 1.4 1.5 1.4 1.5 1.8 1.8 2.6 2.9
Months of Inventory based on Pended Sales 2.8 2.2 1.7 1.7 1.5 1.1 1.1 1.2 1.5 1.7 2.0 1.7 1.3
Absorption Rate based on Closed Sales 28.3 33.8 40.9 44.2 52.5 69.5 65.4 69.6 67.9 54.5 56.7 38.8 34.6
Absorption Rate based on Pended Sales 36.0 46.0 57.6 57.4 64.7 90.4 92.8 80.7 68.8 58.2 50.8 60.0 77.4
Avg. Active Price 154 157 160 160 161 162 165 166 167 168 165 165 167
Avg. Sld Price 141 143 141 148 154 151 155 155 157 159 157 154 157
Avg. Sq. Ft. Price 101 100 100 101 106 107 107 107 109 111 110 108 109
Sold/List Diff. % 99 99 99 99 100 101 101 101 101 101 100 100 100
Sold/Orig LP Diff. % 91 90 91 92 95 96 97 97 98 98 97 97 97
Days on Market 51 56 55 56 51 52 46 47 48 46 52 52 57
Avg CDOM 77 79 79 78 71 70 64 64 62 62 68 70 69
Median Price 142 145 140 152 159 156 160 159 160 161 160 155 160

Contrast This

This  portion of the real estate market (under 250k)  in the Sacramento Metro Area is much different from those homes that are in the higher side of the median active sale price.

Please understand, this is really no big surprise; we all know the higher priced homes take longer to sell. My big AHA!! was how many of these there are…

Sacramento Placer El Dorado County Real Estate Trends and Statistics

Sacramento Placer El Dorado County Real Estate Trends and Statistics

As you can see below, these homes have an inventory of 6.1 months, and their median price is only 321k!

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 4961 4827 4689 4604 4406 4128 4045 3928 3726 3474 3175 3148 3256
New Listing 1398 1524 1512 1481 1457 1603 1406 1409 1307 1023 962 1361 1383
Sold 627 753 774 829 884 947 830 816 895 737 819 557 538
Pended 785 1054 1091 1031 1070 1101 1013 948 887 712 654 859 1141
Months of Inventory based on Closed Sales 7.9 6.4 6.1 5.6 5.0 4.4 4.9 4.8 4.2 4.7 3.9 5.7 6.1
Months of Inventory based on Pended Sales 6.3 4.6 4.3 4.5 4.1 3.7 4.0 4.1 4.2 4.9 4.9 3.7 2.9
Absorption Rate based on Closed Sales 12.6 15.6 16.5 18.0 20.1 22.9 20.5 20.8 24.0 21.2 25.8 17.7 16.5
Absorption Rate based on Pended Sales 15.8 21.8 23.3 22.4 24.3 26.7 25.0 24.1 23.8 20.5 20.6 27.3 35.0
Avg. Active Price 543 551 561 568 581 592 594 586 579 567 553 544 539
Avg. Sld Price 373 369 380 388 388 383 369 375 373 389 383 388 365
Avg. Sq. Ft. Price 150 149 150 154 156 154 150 152 149 152 149 149 145
Sold/List Diff. % 98 97 97 97 98 98 98 98 98 98 97 97 97
Sold/Orig LP Diff. % 91 91 91 92 92 92 93 93 93 92 92 91 93
Days on Market 67 71 71 65 65 64 58 63 64 65 71 78 69
Avg CDOM 90 97 102 89 94 88 81 84 82 86 93 99 93
Median Price 335 329 332 330 341 336 330 328 330 340 335 330 321

I took this portion of the market apart even more and did $100,000  and $250,000″traunches” for  a closer look of the inventory and days on the market of our upper median priced homes and into the Luxury Home prices here in the Sacramento area. More Surpises…

250-350k

Sac Placer Eld 250-350k

Sac Placer Eld 250-350k

Thes Homes are flying off the shelf

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 1885 1783 1649 1551 1415 1259 1243 1258 1294 1295 1239 1258 1321
New Listing 609 685 627 628 637 740 679 693 666 537 533 639 700
Sold 350 435 424 450 459 522 481 466 498 392 454 311 335
Pended 435 582 574 548 570 606 585 510 465 384 374 487 654
Months of Inventory based on Closed Sales 5.4 4.1 3.9 3.4 3.1 2.4 2.6 2.7 2.6 3.3 2.7 4.0 3.9
Months of Inventory based on Pended Sales 4.3 3.1 2.9 2.8 2.5 2.1 2.1 2.5 2.8 3.4 3.3 2.6 2.0
Absorption Rate based on Closed Sales 18.6 24.4 25.7 29.0 32.4 41.5 38.7 37.0 38.5 30.3 36.6 24.7 25.4
Absorption Rate based on Pended Sales 23.1 32.6 34.8 35.3 40.3 48.1 47.1 40.5 35.9 29.7 30.2 38.7 49.5
Avg. Active Price 294 295 295 296 297 298 298 298 298 297 298 298 296
Avg. Sld Price 292 288 289 289 288 291 290 288 289 291 290 288 292
Avg. Sq. Ft. Price 134 134 131 132 135 135 135 137 135 135 132 129 134
Sold/List Diff. % 99 98 98 99 99 99 99 99 99 99 99 98 99
Sold/Orig LP Diff. % 94 92 93 94 94 94 95 95 95 95 95 95 96
Days on Market 58 68 65 58 59 59 51 56 60 56 66 65 61
Avg CDOM 81 95 93 81 84 82 68 71 73 74 82 82 75
Median Price 289 282 287 287 285 288 288 285 286 290 285 285 290

350-450k

Sac Placer ED County Homes Active Price 350-450k

Sac Placer ED County Homes Active Price 350-450k


Inventory really starting to slow down in this price range- over six months of inventory makes this the first pricerange that is truly a buyer’s maket!

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 1073 1061 1023 1021 1003 961 943 893 805 738 675 681 680
New Listing 347 364 369 371 367 390 337 334 294 232 225 355 306
Sold 162 190 199 214 225 199 210 191 233 186 195 133 113
Pended 196 253 284 253 254 259 234 246 224 162 165 209 260
Months of Inventory based on Closed Sales 6.6 5.6 5.1 4.8 4.5 4.8 4.5 4.7 3.5 4.0 3.5 5.1 6.0
Months of Inventory based on Pended Sales 5.5 4.2 3.6 4.0 3.9 3.7 4.0 3.6 3.6 4.6 4.1 3.3 2.6
Absorption Rate based on Closed Sales 15.1 17.9 19.5 21.0 22.4 20.7 22.3 21.4 28.9 25.2 28.9 19.5 16.6
Absorption Rate based on Pended Sales 18.3 23.8 27.8 24.8 25.3 27.0 24.8 27.5 27.8 22.0 24.4 30.7 38.2
Avg. Active Price 394 395 395 396 397 398 397 396 395 396 394 396 396
Avg. Sld Price 392 392 388 391 391 390 390 388 390 392 389 391 389
Avg. Sq. Ft. Price 154 149 151 154 158 159 147 151 149 149 145 154 147
Sold/List Diff. % 98 97 97 98 98 98 98 98 98 98 98 98 97
Sold/Orig LP Diff. % 90 92 92 92 93 93 95 94 93 95 93 94 95
Days on Market 76 70 73 67 66 62 50 71 69 53 69 84 67
Avg CDOM 98 93 99 88 94 87 62 89 90 74 83 105 111
Median Price 393 390 385 388 390 388 385 385 387 390 387 389 388

450-600K

It’s getting slower! And more painful! One of the most glaring satistics, and ond that would give some insight into the frustration these sellersare going through: in this pricerange, These homes are on the market for an aerage of 139 days and have a 9% sold price/original list price ratio- in this price range that’s $40,000 to $55,000 Lower than their original List price! And they waited over 4 and a half months to sell!

Sacramento Placer El Dorado County Real Estate Statistics for 450-600K

Sacramento Placer El Dorado County Real Estate Statistics for 450-600K

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 843 812 832 818 785 756 719 709 648 582 524 500 561
New Listing 220 216 260 227 220 231 207 212 198 138 117 208 212
Sold 87 80 86 93 129 152 94 100 103 100 114 60 57
Pended 99 127 142 143 147 146 131 113 118 105 74 106 135
Months of Inventory based on Closed Sales 9.7 10.2 9.7 8.8 6.1 5.0 7.6 7.1 6.3 5.8 4.6 8.3 9.8
Months of Inventory based on Pended Sales 8.5 6.4 5.9 5.7 5.3 5.2 5.5 6.3 5.5 5.5 7.1 4.7 4.2
Absorption Rate based on Closed Sales 10.3 9.9 10.3 11.4 16.4 20.1 13.1 14.1 15.9 17.2 21.8 12.0 10.2
Absorption Rate based on Pended Sales 11.7 15.6 17.1 17.5 18.7 19.3 18.2 15.9 18.2 18.0 14.1 21.2 24.1
Avg. Active Price 522 523 525 524 524 523 525 522 521 523 522 523 524
Avg. Sld Price 509 512 503 506 505 509 505 505 515 519 500 516 495
Avg. Sq. Ft. Price 158 164 161 168 171 165 167 172 159 163 170 157 151
Sold/List Diff. % 96 96 98 96 97 97 97 97 98 97 97 97 97
Sold/Orig LP Diff. % 88 90 91 90 91 92 91 92 95 89 90 93 91
Days on Market 78 73 84 77 84 75 81 67 61 87 86 69 98
Avg CDOM 96 92 108 104 114 92 124 101 84 109 116 85 139
Median Price 500 515 499 500 497 510 498 500 510 518 500 516 485

600-800k

Slowing even more… but definately still selling!

Sacramento Placer El Dorado County Real Estate Statistics for Homes 600-800k

Sacramento Placer El Dorado County Real Estate Statistics for Homes 600-800k

The Averae days on Mkt are all over the board, but these monsters are still selling great! these homes actually enjoy a hightr % (94%) retio of original active list price to sale price.

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 524 531 543 537 512 488 477 457 390 351 300 289 290
New Listing 106 117 141 120 120 124 95 88 63 69 46 77 87
Sold 16 36 44 46 44 57 29 41 43 36 35 34 20
Pended 38 54 52 60 64 60 39 47 51 34 21 34 54
Months of Inventory based on Closed Sales 32.8 14.8 12.3 11.7 11.6 8.6 16.4 11.1 9.1 9.8 8.6 8.5 14.5
Months of Inventory based on Pended Sales 13.8 9.8 10.4 9.0 8.0 8.1 12.2 9.7 7.6 10.3 14.3 8.5 5.4
Absorption Rate based on Closed Sales 3.1 6.8 8.1 8.6 8.6 11.7 6.1 9.0 11.0 10.3 11.7 11.8 6.9
Absorption Rate based on Pended Sales 7.3 10.2 9.6 11.2 12.5 12.3 8.2 10.3 13.1 9.7 7.0 11.8 18.6
Avg. Active Price 699 701 701 700 701 700 701 700 698 698 699 698 703
Avg. Sld Price 671 672 689 678 673 674 689 678 660 663 688 680 665
Avg. Sq. Ft. Price 196 193 191 192 194 193 198 176 186 186 182 178 173
Sold/List Diff. % 98 96 97 96 96 96 97 97 94 95 95 94 98
Sold/Orig LP Diff. % 87 88 85 89 92 89 85 92 88 85 89 88 94
Days on Market 76 92 100 96 84 70 119 75 81 126 87 133 61
Avg CDOM 88 131 163 140 131 121 199 126 111 152 109 186 102
Median Price 671 665 675 655 653 665 680 670 650 650 685 668 650

This is part of the Big Surprise!!  There are still lots of pople with money out there! and thet are buying Big Houses!!

These are 800k to 1 mil.

Sacramento  Placer El Dorado Counties Real Estate Statistics 800k-1m

Sacramento Placer El Dorado Counties Real Estate Statistics 800k-1mActually Less days on the market and lessactive litings! There are Luxury Home Buyers in the Sacramento Metro Area Buying!Date2/093/094/095/096/097/098/099/0910/0911/0912/091/102/10For Sale233224239264270259268242243195173170150New Listing48525670395340403318293630Sold66131415569111213109Pended9221815151412181417121522Months of Inventory based on Closed Sales38.837.318.418.918.051.844.726.922.116.313.317.016.7Months of Inventory based on Pended Sales25.910.213.317.618.018.522.313.417.411.514.411.36.8Absorption Rate based on Closed Sales2.62.75.45.35.61.92.23.74.56.27.55.96.0Absorption Rate based on Pended Sales3.99.87.55.75.65.44.57.45.88.76.98.814.7Avg. Active Price912912912910909909908912908904906908910Avg. Sld Price853916866866867895877890865886888867845Avg. Sq. Ft. Price246238207194217214219203219213181187220Sold/List Diff. %94939294969796959595989894Sold/Orig LP Diff. %88887885938092898577919184Days on Market117699685511814111711519394132139Avg CDOM166692019512521578192157193291199139Median Price825910855866850950865873860878885848825 Over 1 mil and more surprises Sacramento Placer El Dorado County Real Estate Statistics 1 mil and up

Why are these homes dead in the water? they are only 300koverth median price of teh last goup, yet they have 53 months if inventory!!

Date 2/09 3/09 4/09 5/09 6/09 7/09 8/09 9/09 10/09 11/09 12/09 1/10 2/10
For Sale 505 514 505 527 537 515 503 475 451 392 334 326 318
New Listing 88 115 79 96 89 85 62 60 62 35 26 57 56
Sold 7 10 11 16 16 15 12 13 8 16 12 11 6
Pended 9 26 26 18 26 21 17 20 18 18 11 13 24
Months of Inventory based on Closed Sales 72.1 51.4 45.9 32.9 33.6 34.3 41.9 36.5 56.4 24.5 27.8 29.6 53.0
Months of Inventory based on Pended Sales 56.1 19.8 19.4 29.3 20.7 24.5 29.6 23.8 25.1 21.8 30.4 25.1 13.3
Absorption Rate based on Closed Sales 1.4 1.9 2.2 3.0 3.0 2.9 2.4 2.7 1.8 4.1 3.6 3.4 1.9
Absorption Rate based on Pended Sales 1.8 5.1 5.1 3.4 4.8 4.1 3.4 4.2 4.0 4.6 3.3 4.0 7.5
Avg. Active Price 1580 1574 1586 1554 1566 1593 1602 1613 1606 1639 1638 1606 1638
Avg. Sld Price 1297 1098 1157 1321 1181 1067 1153 1181 1174 1149 1439 1229 1237
Avg. Sq. Ft. Price 272 235 254 270 230 218 261 233 224 256 239 234 229
Sold/List Diff. % 91 95 92 91 94 91 92 91 99 94 89 83 80
Sold/Orig LP Diff. % 80 84 81 88 87 80 80 83 85 86 81 64 68
Days on Market 80 92 77 62 65 127 129 87 98 81 128 197 233
Avg CDOM 221 149 177 96 78 182 287 176 115 135 330 221 260
Median Price 1150 1025 1027 1350 1100 1050 1045 1140 1095 1078 1138 1050 1120

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Pending Home Sales Drop 7.6% Nationally, But Greatly Increase Sacramento Metro Market

 

 

 

Sacramento Real Estate Market Stats For January
All Sac Placer ED Counties All January Sales

All Sac Placer ED Counties All January Sales

 

 

 Sacramento Real Estate Pending Sales Are up 23%

It always happens this time year that pending sales start to increase, but what is so different about this year is the fact that available homes, or active listings have significantly reduced from last year.

The chart above goes a long way in explaining our market her in the Sacramento area and explaining the indset of the buyers we are working with.

Frustration that it is so hard to buy a home in a market that is so affordable.  The frustration actually comes becouse of all the inventory available, only about 20% of it is priced right and in a condition to be able to pass inspections and get a mortgage on it…

Who do you kow that is struggling with a mortgage right now?

Contact the Sacramento Short Sale Center for a Sacramento Short Sale Specialist at wereheretohelp.org

National Pending home sales drop 7.6%

According to the National Association of Realtors (NAR), its Pending Home Sales Index, a forward-looking indicator based on contracts signed in January, dropped 7.6% to 90.4 from a reading of 97.8 in December, and is 12.3% higher than January 2009 when it was 80.5. NAR said the harsh winter hampered home sales. “January pending sales, though still higher than one year ago, remain much lower than expected given that a large number of potential buyers are eligible for the expanded home buyer tax credit,” said NAR chief economistLawrence Yun. “Moreover, the abnormally severe and prolonged winter weather, which affected large regions of the US, hampered shopping activity in February.” Analysts say extension of tax credit is doing little to boost pending home sales, and given that the Federal Reserve will end purchase of mortgage backed securities this month, the housing recovery is going to take time. “When you take away all the support from the housing market, the und
erlying demand for housing is a lot weaker than we thought,” said Mark Vitner, an economist at Wells Fargo Securities. “We clearly pushed some demand forward, and there wasn’t that much demand to pull forward anyway. The housing recovery is going to be very, very slow.” On a regional basis, the pending home sales index dropped 8.7% to 71.3 in the Northeast, dropped 13.2% to 102.9 in the West, dropped 8.9% to 81.2 in the Midwest, and dropped 2.1% to 98.1 in the South.

 

Courtesy Chris Mcglaughlin

Authored by Forth Hoyt | Discussion: No Comments »

Sacramento County home prices turned upward in 2009

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Courtesy of SacBee-

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Published: Friday, Jan. 22, 2010 – 12:00 am | Page 6B

New December statistics paint 2009 as the year when

Sacramento County home prices finally ended a dramatic four-year free fall.

Median sales prices for new and existing homes combined rose 0.6 percent in 2009, property researcher MDA DataQuick reported Thursday. The percentage represents a welcome change for thousands of anxious Sacramento County homeowners who saw their values drop 20 percent in 2007 and plunge another 37 percent in 2008.

The newest numbers reveal a 2009 real estate market prodded by government stimulus, more than five months of interest rates below 5 percent and plenty of cheap bank repos in its early months. The year also brought an $8,000 first-time homebuyer federaltax credit and several months of a similar $10,000 state tax credit for buyers of new houses.

Prices for Sacramento County resale homes alone closed at $178,000 for the year, up 2.4 percent from the start of 2009, DataQuick reported. It was a second straight month to beat the previous year – after 41 months of annual losses.

“That’s probably because of the slowdown in (bank repo) sales,” said Bob Bronswick, Roseville-based president and chief operating officer of Coldwell Banker Residential Brokerage. “And if you look at it, our primary market is entry level. There’s been such demand for it, and prices over the asking price. We’ve garnered a lot of multiple offers.”

DataQuick analyst Andrew LePage said Sacramento County sales under $100,000 fell from a year earlier while rising slightly in the $500,000 and $800,000 categories.

The reversal of a long downward trend in prices appeared inside a December report showing that capital-area homeowners closed 40,534 escrows in 2009. The tally was 496 escrows shy of 2008 in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties, DataQuick reported. While robust for a market pocked with foreclosures, job cuts and anxiety, the annual total was one of the lowest since 1998, DataQuick records show.

“Everything I have in escrow right now is a short sale,” said Roseville-based ReMax real estate agent Jaye Crews. Those are sales, increasingly common in distressed newer neighborhoods, in which banks accept offers below what they’re owed. For Crews, short sales and first-time buyers have largely taken the place of her earlier bread and butter – move-up buyers.

The Sacramento Association of Realtors says one in four December sales in Sacramento County and West Sacramento were short sales. DataQuick said Thursday that 50.6 percent of Sacramento County sales were bank repos. That’s down from 71 percent as 2009 opened.

This continued prevalence of short sales and repos shows that the market – while it’s more stable – is still not normal. Collectively, Sacramento, Yolo, Placer and El Dorado counties remain mired in 12.4 percent unemployment.

As 2010 begins, almost 12 percent of the four-county region’s mortgages are late, in the foreclosure process or tied to bank-owned homes, according to First American CoreLogic. That’s a sizable increase from 7 percent at the beginning of 2009, when unemployment was 8.7 percent.

DataQuick reported that 3,450 new and existing homes changed hands in December in the eight-county region, beating 3,183 sales in November. December sales normally rise from November.

While prices have largely stabilized in Sacramento County they’re still under pressure in Placer County, where homes are more expensive. Prices in Placer County finished 2009 down 13.6 percent.

“A lot of stuff is still highly discounted in Lincoln Hills,” said Crews. “We’re definitely seeing stability in markets and places where there aren’t a lot of houses for sale. But, boy, in those new-home tracts even six or seven years old. Ouch.”

With so many newer houses being resold, new homes accounted for just 9 percent of capital-area sales in 2009. That’s down from 25 percent market share in the boom that spanned 2002 to 2006.

Many in real estate circles believe 2010 will proceed with less artificial stimulus. The federal tax credit expires at the end of April. And Wednesday, the Federal Home Administration, which insures many first-time buyer loans, announced it will charge higher fees and require higher down payments from buyers with credit scores below 580. At least 40 percent of Sacramento-area loans in 2009 were FHA loans.

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