Archive for the 'Sacramento Real Estate Trends' Category
July 25th, 2010 Categories: Foreclosure News, Sacramento Foreclosure News, Sacramento RE Stats, Sacramento Real Estate, Sacramento Real Estate Trends, Short Sales, Shortsales
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
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…
Authored by Forth Hoyt |
April 11th, 2010 Categories: Graphs and Charts, National Real Estate Trends, Sacramento Real Estate Trends
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?
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.
Authored by Forth Hoyt |
March 19th, 2010 Categories: 1, Sacramento Real Estate Trends, Short Sales
Sacramento Short Sales have exploded!
- 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
- Prior to taking a Seller’s Short Sale Listing, we collect the “Seller’s Financial Package” from the Seller which entails all of the information their bank has asked for. At this time the Seller also agrees to cooperate within our system and agrees to the process you will read below.
- The day the home goes in MLS we send the Seller’s Authorization Form to the bank. This document allows us to communicate with the bank directly.
- We market the property and price the home at, or slightly below, market value until we get an offer.
- The Seller is only looking for ONE contract to send to the bank. The Seller is looking for ONE qualified Buyer with an appropriate offer price that has serious intentions on closing the transaction. When we have this, the seller will fully execute ONE contract to send to the bank.
- The Seller does not accept multiple offers – our transactions function as normal as possible.
- We do not send multiple offers to the bank
- Once an offer is received, we present the offer to the Seller for their review. While the Seller’s bank is the one that approves the Short Sale, the Seller is still the owner of the home and the decision maker on all offers received. The Seller will fully execute the contract if it meets the criteria mentioned above.
- When a contract is fully executed between Buyer and Seller, the home is changed to Short Sale Contingent in the MLS, per MLS rules.
- Once the contract is fully executed, we submit the fully executed contract, a HUD-I, and all of the Seller’s financial documents to the bank to begin the 60-90 day Short Sale process (this is the average length of processing time – some are much quicker).
- The bank then does a valuation on what they feel the home is worth, reviews the offer and all corresponding documentation, and finally issues their decision.
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
Authored by Forth Hoyt |
March 19th, 2010 Categories: Real Estate News, Sacramento Real Estate Trends
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
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.
Authored by Forth Hoyt |
March 9th, 2010 Categories: Sacramento Real Estate 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
Here is more information on this same group of homes: all under 250,000 Active Price in Sacramento, Placer, El Dorado Counties.
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
As you can see below, these homes have an inventory of 6.1 months, and their median price is only 321k!
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
Thes Homes are flying off the shelf
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!
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
600-800k
Slowing even more… but definately still selling!
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.
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-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!!
Authored by Forth Hoyt |
March 5th, 2010 Categories: 1, Sacramento RE Stats, Sacramento Real Estate Trends
Sacramento Real Estate Market Stats For January
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 |
January 27th, 2010 Categories: Sacramento RE Stats, Sacramento Real Estate, Sacramento Real Estate Trends
Courtesy of SacBee-
By Jim Wasserman
jwasserman@sacbee.com The Sacramento Bee
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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.
Authored by |
December 31st, 2009 Categories: Default News, National Real Estate Trends, Pre Foreclosures, Sacramento Home Buyers, Sacramento Real Estate Trends, Shortsales
Buying a Sacramento short sale will definitely become easier and easier in the next several months and the process will continue to evolve, change, and morph into a more traditional transaction for years to come.
Buying A Short Sale
Contact a Certified Short Sale Agent about buying a short sale.
However; your Buyers Agent- if they are at all experienced with with todays market- will know that there are some short sales will never close!Secondary Mortgages (any Junior Liens) that have been added after the purchase or have been refinanced (any non purchase money loans) are full recourse in California– the first will go away with the house– no matter what; if it goes to foreclosure, closes as a short sale, whatever… but non-purchase money seconds may stay intact and become non-secured debt… just like credit card debt.Short Sale qualifying is just asking questions; the right questions will allow yor agent to find shortsales that have a high chance of being approved: Your Short Sale Specialist will find out things like:1) The Kind of loans involved; recourse or non-recourse.2) If recourse; the sellers (think homeowners) financial situation, hardship status and/or their willingness/ability to make a contribution, sign a note, or otherwise pay off any secondary note holders demand (which may be full recourse).3) Which banks are involved and their policies regarding first liens, secondary liens, recourse debt, hardship rules etc.4) Know the market, the absolute market value of the home– (banks don’t like to leave money on the table) what the Broker’s Price Opinion, or Appraised value of the home will be and the amount of money the first will be short; and the policies of each bank involved–If you don’t know these things gong in, you will find them out during the process, usually weeks or months into the short sale process… Contact a Certified Short Sale Agent about buying a short sale right here. Many, many times, the short sale you have fallen in love with and cannot live without may very well become an REO.There is also the chance that your short sale will, at the eleventh hour, not be approved because the banks or servicers suddenly want to include language stating the seller agrees that the lender has the right to pursue a deficiency judgment or the balance unpaid on the promissory note… Many homeowners, when they realize this problem is not going away, file bankruptcy– again, at the eleventh hour- after you and your family have been waiting months for the home of your dreams.Make sure your Buyer’s agent is also a Sacramento short sale listing agent and a Sacramento Short Sale Specialist and works with a team that specializes in these complicated and ever-changing transactions!Short sale negotiating is definitely a moving target– it is nearly a full-time job just to stay on top of educated of all the different banks, servicers, secondary investors rules of procedure and the institutional/political policy changes.Some short sales will never close! Find out why!By the way…here’s where I remind everyone that I am NOT a lawyer, and that if you have any questions or concerns about your legal situation– get an attorney! I have several great Real Estate Law, Mortgage Law, Contract Law and Bankruptcy Law specialists that I can refer you to!
Contact a Certified Short Sale Agent about buying a short sale.
Tags: Buying+a+short+sale, Sacramento+short+sale+listing+agent, Short+sale+negotiating, Short+sales, Sacramento+short+sale, Short+Sale+Specialist, short+sale+process, Sacramento+Short+Sale+Specialist
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December 31st, 2009 Categories: Default News, Sacramento Home Buyers, Sacramento RE Stats, Sacramento Real Estate, Sacramento Real Estate Trends, Shortsales
Sacramento Foreclosure Solution Expert Report
Short Sale Help Is On The Way! BofA Implements The REOTrans Equator Short Sale Process Module.
Sacramento Short Sales are here to stay… and with more and more defaults and homeowners in foreclosure, short sales will become even more and more rampant in Sacramento.
Bandk of Amerioca Short Sale System
Short Sale Help
The problems with most Sacramento short sale transactions are the extremely slow communication, processing, negotiating and approval of short sale files.Even though their are several banks that have been really good to work with; Wachovia has been good for a long time, Chase is becoming a breeze; Wells Fargo is getting things lined up, and now even Freddie Mac and Fannie Mae are pledging to help the Short Sale Process to become smoother.
Click here for Sacramento short sale help.
The “writing is on the wall” for 2010 to become the year that servicers, banks, institutions and secondary investors all get their act together to help make the short sale process more mainstream, less painful, confusing and stressful for buyers!
Over the last few years; often times, after Sacramento buyers have written offers on two, three, even four or more short sales without success, they just quit looking at short sales altogether and look for an REO or equity sale…
We will Surely look back at 2010 as the year the game changed… as more and more banks implement systems to make the Short Sale Processmore streamlined, easier to manage and even transparent; more like traditional real estate transactions! Sacramento’s real estate market will see a huge change as Bank of America gets its act together and starts closing short sales faster and more consistently
Click here for Sacramento short sale help.
The new Equator Short Sale Processing Module (formerly known as REOtrans) has been launched as the industry’s first short sale processingonline portal. The amount of people I talk to here in the Sacramento area just amazes me; its like one of every three or four people I visit with about their mortgage have a BorA or Countrywide BofA
Although Equator has declined to name the lender, the new Internet based platform, as recently reported by the San Francisco Chronicle, will be used by Bank of America. A representative from BofA recently told the Chronicle that they were using the Equator platform to manage the short sale process. Great news, as Bank America is hands down the WORST bank to deal with on short sale files right now!
The Short Sale platform will allow everyone involved in the transaction to work together, in real time with access to all documents, processing requests etc. and will be a huge asset in helping to shorten the time frames of short-sale approvals.
As reported in DSNews:
“This is the first time that short sales have been handled through an electronic platform,” said Equator CEOChris Saitta. “With our new system, everyone works together in real time, dramatically improving communication and approval timeliness for our client, its borrowers, vendors, and real estate agents.”
Just think– The short sale process becoming more like traditional real estate!
Click here for Sacramento short sale help.
If you are a buyer or a homeowner with questions about your options, Contact me today for Sacramento Short Sale Help!
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December 22nd, 2009 Categories: Default News, Loan Modification, Real Estate News, Sacramento Real Estate Trends, Shortsales
Sacramento Foreclosure Solutions Expert Report
Sacramento Short Sales now 21.5% of Market
Well First of all, Let’s just quickly define short sales:
A real estate short sale is a sale of property in which the sale proceeds fall short of the balance owed on the property’s loan or loans.
Sacramento’s Real Estate Market has recently been a perfect storm for short sales.
There have always been short-sales. Since the beginning of real estate. Market prices go up and market prices go down, and when a homeowner has to sell when they are upside-down… well, you get the picture.
Homeowners can have many reasons to sell their home in a Short Sale; any time there is a reduction in market value along with the need for relocation, sickness, job loss, death or divorce, there is no other way besides just letting the bank take it back. So Short Sales are the best solution to keep a homeowner out of foreclosure when it is clear they cannot keep the home…
But in this economy, Sacramento shortsales most often occur when a homeowner just cannot pay the loan payment on their property. With Sacramento unemployment at 12.3% and a 41 month long drop in median home prices that has taken over 55% off the 2005 highs in Sacramento County. Sacramento Short Sales are now over 20% of the market!
Short sales in Sacramento have become a popular pre-foreclosure option to keep homeowners out of foreclousure, when loan modifications just don’t provide a solution to foreclosure.
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