How's the Market?

                                                   
How's the Market - Spring/Summer 2104

Brisk is a good word to describe our current real estate market.  Homes in the median price range are selling quickly and upper end homes are selling at a good pace.  The inventory shortage continues to diminish and we have more homes to choose from.  The nice homes are selling very fast and for top dollar.  It is very wise to properly prepare you home for market and even spend some money to make your home appealing to buyers.  Fresh paint, updated kitchens and baths, curb appeal all mean more money in the sellers pocket.  Home prices continue to rise, but pace of the increase has slowed.  Current Folsom average sold price/sq ft is $213 with some active listings price up to $280/sq ft!  Most homes are selling within 6 weeks.  It remains a great time to sell!

Buyers have it pretty good too!  Interest rates remain extremely cheap - in the 4% range.  The lenders have been warning of rising interest rates for a long time now, but so far things are holding steady.  I personally think the rates will be tied to the economy and as the overall economic outlook improves, rates will go up.  Buyers need to remember a raise in interest rates is just like a jump in housing prices.  Monthly payment is based on loan amount AND interest rate.  So unless you are paying cash, rates really matter!

Investor competition has backed off as home prices have increased.  The return of rental income on the investment is not as attractive as prices have gone up.  Investors often had cash making it difficult for a buyer with financing to compete.  This is good news as well for home buyers.

I am here ready to serve my clients - call/email/text anytime!

Cheryl

 
How's the Market - Winter 2014


Someone once said, “The only thing constant in life is change”.  That perfectly describes what has happened in the real estate market. 

In 2013 we had a major shift in the market and what had been a buyer’s market suddenly and very dramatically became a seller’s market.  Bidding wars were everywhere and buyers were desperate to buy.    Everything changed in an instant in July.  The Federal Reserve Board mentioned they might start tapering their bond buying program and mortgage interest rates promptly went up about 1%.  The buying frenzy door slammed shut.  Buyers had to figure out what the rate change meant to their buying power and suddenly got very nervous.  Sellers couldn’t understand what happened to all the buyers.  As the year ended, things began to stabilize and we ended the year in a more normal market……which begs the question; is there a normal market?

That brings us to 2014 and the present.  I would describe the market as balanced.  Our overall inventory of homes is low, but number of buyers has decreased.  Homes are taking an average of 30 -40 days to sell and more often than not, buyers are negotiating with sellers instead of trying to be the winning bidder.  There are still multiple offers on some homes if priced well and nice, but sellers should no longer think they will receive 10+ offers on their home. 

So what does this mean for those who plan to buy or sell this year – or at least now?

Sellers – prepare your homes to show their very best and price your homes according to area comps.

Buyers – get preapproved for a mortgage loan and make fair and reasonable offers on the home you are interested in.

Not too complicated is it?

As always, I stand ready to help you and your friends/family with all things real estate.

Warmest regards always,

Cheryl


How’s the Market – Winter 2013

The Sacramento real estate market continues to recover!  Homes are selling quickly and sellers are smiling.  Prices are up and the trend is continuing.  Buyers are finding themselves in fierce bidding wars if they are looking for homes in the median price market.  Interest rates have crept up just a little, but still fantastically low.  Short sales and REO properties are dwindling and as prices increase, less home owners are underwater.  News sources are reporting on the change in real estate, so the word is getting out to the masses.

In my opinion, the market went too low in 2011/2012 and has corrected itself.  Buyers have realized that this golden time will not last forever, and the rush to buy finally kicked in.  Results are price increases, low inventory, and buyer competition.  If the rising prices continue, I believe we will see homeowners who were “stuck” due to declining values are now finally seeing that they may be able to sell in this market.  It will take a while, but these folks who have been waiting to sell will start to put their homes on market and maybe ease the inventory shortage.  But I still think 2013 will be a challenging year for buyers and they will need to bring their best offers to the table, and maybe even stretch themselves to get what they want!

The upper end market is traditionally the slowest to recover.  This presents a wonderful opportunity for move up buyers……sell high, buy low.  If this is you, it is time to really think about this. 

Statistics – Greater Sacramento Area (comparing Feb 2012 to Feb 2013)

Sales Prices  - up 27%

Average price/sq ft -  up 26%

Days on Market  -  down 61%  - average is 34 days till sold

Inventory  -  1.2 months (the amount of time to sell all current listings)

 

If you want to know your specific area stats, by all means give me a call or email.  I will have good news for you!!!!

 

 

Cheryl

January 2013 - Sizzling Hot Sellers Market

I can’t believe I am writing these words; this is the best market possible for a seller.  What a difference a few years makes.  Right now we have more buyers than sellers and homes are a hot commodity.  How does a bidding war, multiple offers, fast sales, rising prices sound?  If you have a nice home, it will not last long on the market.  Buyers are often in shock as to the change of market, but are catching on quickly as low offers are outright rejected.  Even the short sales and bank owned homes are getting multiple full price (and often over asking price) offers. 

Why the market change?  While I am not an economist, I can see how the market forces have changed. Right now it is clearly a supply and demand issue; there are simply not enough homes to go around.  End result is rising prices and pretty quickly.  Here are the stats -

  • Inventory is down almost 60% from last year

  • 3 weeks of inventory (if no additional homes were listed; length of time until inventory is depleted)

  • 70% of market is traditional sales – waning supply of short sales and bank owned homes

  • Average price/sq ft has increased 8.3%

  • Sellers are getting 100% of asking price (on average)

If you have been considering selling or know someone who is, now is the time to act!  The market is always changing and this market will stabilize at some point.  If you are just wondering what your house might be worth, I will create a comparable market analysis for you.

Call or email anytime.  I am always happy to talk about the market and be of service!

Warmest regards and Happy New Year!

 

Cheryl

 

 

Fall 2012 - Market Recovery

Pretty much everyone has heard that the real estate market in on the rebound by now.  The trends remain the same this fall with extraordinarily low inventory (65 homes on market in Folsom) and prices continuing to rise.  The fall and winter markets traditionally are slower and prices typically fall a little, but doesn’t look like that this year!  We continue to have more buyers than sellers.  Buyers often need to wait for the right house to come on market, and then pounce!  Sellers are pushing prices and often are getting what they want.  Homes on average are getting 98% of asking price and in some cases over asking price. 

Short sales and bank owned properties are declining and the numbers of owners behind in their mortgages are starting to decrease.  The tax forgiveness from the state and federal government for the home owner’s deficiency is set to expire at the end of December.  If the tax forgiveness is not renewed, I think many owners in default may rethink their position knowing any shortage to their lender will result in that amount taxed at their ordinary income tax rate – Yikes!  We will have to see what the end of year brings on this issue.

Interest rates are just crazy low.  Truly, it doesn’t get better than this.  30 year loans are in mid 3% and 15 years loans in high 2% range.  Lenders are busy with refinances.  Buyers, this is your time to seize the moment.  A 1% increase in interest rates mean a 10% reduction in home price qualification – meaning you can afford to buy a lot more house at these interest rates……next year, who knows? 

As always, I am prepared to assist you or anyone you might refer with buying or selling their home.  Just call or email anytime!

        For sale/Sold trends                                                               Average price/sq ft trends

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Cheryl

916-798-3537

Cheryl.states@norcalgold.com