April Median Home Prices on the Increase

Great News for the Sacramento area real estate market.  April, 2013 Home Sales Prices are on the increase.  Check on detailed information in this article in the Sacramento Bee:

Sacramento County‘s median home resale price up nearly one-third

Published: Thursday, May. 16, 2013 – 12:00 am | Page 6B
Last Modified: Thursday, May. 16, 2013 – 7:53 am

In Sacramento County, the median price of detached resale homes rose by nearly a third in April compared with the same month a year before, DataQuick reported Wednesday.

The median price of resale homes in El Dorado County jumped by about 33 percent last month compared with April 2012. Placer and Yolo counties also experienced double-digit percentage gains, the San Diego-based real estate information service said.

“These eye-popping increases in medians remain a function of two things: home values going up because a lot of people are trying to buy in a supply-constrained market … and we’re seeing a lot more move-up activity,” said DataQuick analyst Andrew LePage.

The median is the price at which half of houses sell for more and half sell for less. Factors that influence it include the mix of homes sold.

Last year at this time, investors snapping up foreclosures dominated the region’s market. Today, foreclosure sales have plummeted and traditional buyers account for the majority of the open market, with many buying pricier move-up homes.

Sales of Sacramento County homes in the $300,000 to $800,000 range nearly doubled in April compared with the same month a year ago, while the number of homes that sold for less than $200,000 dropped by 26.5 percent, LePage said.

Median prices in all four counties also rose from March to April. In Sacramento County, for instance, the median sale price for detached single-family homes went from $162,000 in April 2012 to $208,000 in March to $215,000 last month.

Sales volume has also been picking up across the region, though the number of homes on the market remains at historic lows. Last month, the number of resale homes bought in Placer County was the most for any April since 2005, near the peak of the housing boom.

Call The Bee’s Hudson Sangree, (916) 321-1191.

Read more here: http://www.sacbee.com/2013/05/16/5424557/sacramento-countys-median-home.html#storylink=cpy

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HUD-Owned Homes Expected to Increase

The following article appeared in REALTOR Magazine on April 30, 2013:

HUD-Owned Homes Expected to Surge

Daily Real Estate News | Tuesday, April 30, 2013

The U.S. Department of Housing and Urban Development is reportedly going to be releasing more of its homes to the market, which could be welcome news to buyers who have faced slim pickings in for-sale inventories.

Over the next two years, experts predict that HUD homes on the market will increase significantly as lenders work through the backlogs of foreclosures and foreclosure reviews.

“The inventory is there, [it’s] just not being released during the banks/servicers review of the loan/mortgage documents,” says Nat Genis, a HUD listing broker in Riverside County, Calif., which is already seeing an increase in HUD-owned homes.

“HUD homes are back,” Genis told HousingWire. “FHA financing went away with the ‘creative’ financing of the 80/20 loans, and now with the increase of FHA financing, these government-backed loans guarantee that if the borrower defaults, HUD will pay off the mortgage, obtain the deed, and re-sell the home.”

HUD-owned homes can be appealing because of the discounted sales price, even though they can be in poor condition often times, HousingWire reports.

HUD had 39,442 homes in its REO inventory nationwide as of Feb. 28, 2013—with 20,536 of those having pending contracts on them, according to HUD.

SOURCE: Housingwire (04/29/13)

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Is Cash still King??

We are in the middle of a crazy real estate market the Greater Sacramento area.  First time home buyers are being outbid by Cash Investors and Cash Buyers.    It is not uncommon to write over 10 offers for a first time home buyer in this market and sometimes still not get a home.  FHA home buyers are constantly being out bid due to the fact that they don’t have the necessary funds to pay more than the appraised value of the home and conventional buyers and cash buyers are purchasing the homes.

With this recent lack of inventory, the cash buyers are now being outbid by other cash buyers and we have seen homes selling for $20,000 over the list price.   Everyone is scrambling to find the deals only to find out that ship may have already sailed.

With spring a few month’s away and home prices on the increase, we should see more inventory coming on the market and some sellers with enough equity to move up in the market (an area we haven’t seen for many years).

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Sacramento Homes Prices on the Rise

Sacramento is suffering from lack of inventory for sale.  Due to the lack of available homes, the home prices in December, 2012 are on the rise.

Figures released by DataQuick show that the median home prices in Sacramento County rose 18% in December compared to December, 2011 from $155,000 to $183,000.

 

 

 

 

 

 

 

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Fiscal Cliff and Real Estate

Late in the evening of Tuesday, January 1st Congress reached a settlement in the “fiscal cliff” negotiations, and President Obama signed the legislation January 2nd.  As a result, the Mortgage Forgiveness Debt Relief Act was extended another year.  The measure will continue to exempt from taxation mortgage debt that is forgiven when homeowners and their mortgage lenders negotiate a short sale, loan modification (including principal reduction), or foreclosure.
The same provision also expired in California, but Senator Ron Calderon (D-Montebello) introduced SB 30, which would waive the potential tax bill for Californians for all of 2013.  C.A.R. already signed on as the bill’s sponsor, and the two hope to fast track the bill through the Legislature.

Also under the fiscal cliff agreement, the so called “Pease Limitations” that reduce the value of itemized deductions are permanently repealed for most taxpayers but will be reinstituted for high income filers.  These limitations will only apply to individuals earning more than $250,000 and joint filers earning above $300,000.  The thresholds have been increased and are indexed for inflation so will rise over time.  Under the formula, filers gradually lose the value of their total itemized deductions up to a total of a 20 percent deduction.  The reinstitution of these limits has far less impact on the mortgage interest deduction (MID) than a hard dollar deduction cap, percentage deduction cap, or reduction of the amount of MID that can be claimed.

Capital gains rates on the sale of principal residences will remain unchanged and continues to exclude the first $250,000 for single taxpayers and $500,000 for married couples.

REALTORS® should encourage their clients to consult with their own tax advisers about their own individual tax situation.

Information provided by Sacramento Association of Realtors.

 

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Sacramento home prices climb in November

Sacramento‘s median home prices on the rise again!

The median home price in Sacramento County rose nearly 17 percent in November from the same month a year before, DataQuick reported this morning.

It was the largest year-over-year price gain in November since the housing market was booming in November 2004, according to the San Diego-based information service.

The county’s median home price of $185,000 last month was up from $158,500 the prior November. It was also up over October’s median of $180,000, DataQuick said.

However, sales volume was slightly down in November from October.

Strong investor activity coupled with a shortage of homes for sale has boosted home prices in the past half year.

In the last few month, more move-up buyers have been entering the market, seeking to take advantage of rock-bottom prices and interest rates near historic lows.

Read more here: http://www.sacbee.com/2012/12/13/5052791/sacramento-home-prices-climb-in.html#storylink=cpy
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Sacramento Housing Market Home Prices on the Rise

The numbers are in and Sacramento’s Housing Market continues to heat up!  In November the average Price per Square Foot hit a new high of $135.8, this was a 2.2% increase over last month and a 16% increase over the last year.  This increase can clearly be traced to the lower inventory numbers that continue to drive prices up.  The number of homes for sale decreased by-10% from last month and is down by over -52% from last year.  Another effect of this lower inventory is that houses are selling faster than we have seen in a long time, the average Days on Market for a home in the Sacramento Region dropped again to only 48 days!

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Home Equity back on the Rise

Sacramento area homes on the increase, don’t miss this great article:
sacbee.com
Sacramento’s uptick in housing aids underwater owners

Published Saturday, Nov. 24, 2012

After the housing bubble burst, tens of thousands of people across the Sacramento region were trapped in homes worth less than they owed, with experts predicting it could be many years before they recovered their lost equity.

In the past six months, however, rising prices have substantially reduced negative equity in the region, real estate tracking firm Zillow said in a recent report.

Today, nearly 5,000 underwater homeowners are nearing the point where their home values exceed their loan balances.

If prices continue to rise next year, as Zillow and others predict, an increasing number of area residents will be able to sell their homes without harming their credit scores through short sales, in which lenders take less than what is owed.

Some have already taken advantage of their newfound freedom.

“It was a miracle from God,” said Leisha Aitken, who cleared her loan, paid her real estate agent and walked away with money to rent an apartment after she sold her 2,100-square-foot home in Folsom’s Empire Ranch in September.

Aitken, a pharmacist, found herself out of work earlier this year and struggled with her $2,800 monthly mortgage payment. She was sure she would have to do a short sale and put a major strike on her credit rating.

Then she met with agent Gillian Long, of Intero Real Estate Services’ Folsom Lake office. The two decided to test the fast-changing market and push the asking price above $400,000 – enough to pay off Aitken’s $373,000 loan balance and cover commissions and moving expenses. The house sold quickly for $400,000, or about $191 a square foot, higher than comparable sales in recent months.

“Gillian said if I had called her a couple of months earlier, I would have had to do a short sale,” said Aitken, who has a new job and is hoping to buy a condominium. “It was a good feeling to sell that house and get out. I never want another mortgage payment like that again.”

A major factor in Aitken’s favor was that she never sank too far underwater on her home loan. Even at the bottom of the market in January she owed only about 10 percent more than her home was worth. Thousands of others are in similar situations.

Almost half of area homeowners – nearly 168,000 households – remain upside-down on their mortgages to varying degrees. The total amount of negative equity in the Sacramento region is nearly $17 billion, according to Zillow.

Some homeowners are much closer to breaking the surface than others. About 53,000 homeowners across the region are underwater by 20 percent or less, Zillow estimates. About 9,000 owe less than 10 percent more than their homes are worth. And about half that number, 4,770, owe less than 5 percent more than their homes’ value.

That last group is “extremely close to being in positive equity territory,” said Zillow spokeswoman Camille Salama.

The Seattle-based firm, among the more conservative of forecasters, predicts home prices in the Sacramento region will increase by about 6 percent through the third quarter of 2013.

“As home values continue to rise in the Sacramento area there will be homeowners who will switch from being underwater to above water,” said Svenja Gudell, Zillow senior economist.

When that happens, she said, a larger number of traditional home sales could come on the market.

In recent years, foreclosures and short sales have made up the bulk of the market, and investors have been the major buyers. Having families buy and sell homes in the traditional manner would help restore a sense of normalcy to the market, she said.

And those who have positive equity will start spending again on home upgrades, she said. “It has to do with confidence and seeing return on investment,” she said.

Economist Jeffrey Michael, director of the University of the Pacific’s Business Forecasting Center in Stockton, said he agrees that “the prospect of those folks (who are only slightly underwater) getting above water in the next year or two is pretty good.” But he said he was skeptical they would help drive the housing market with new purchases.

Those who are newly above water will “be able to sell their house,” he said, but they “won’t have a ton of equity.” Only those who can bring other sources of cash to the table can buy another house, he said.

Local real estate professionals take a more optimistic view.

Pat Shea, president of Lyon Real Estate in Sacramento, said he thinks there is pent-up demand from people who have been in their homes for years and need more room to accommodate growing families or less room because their children have grown up.

Many will be eager to sell, and even if they can manage only a small down payment, will look to take advantage of today’s low prices and interest rates.

“You know there are some people itching to move up, down or sideways,” he said. “When they can do it, they will.”

© Copyright The Sacramento Bee. All rights reserved.

 

6W24ABOVEWATER_Jump

 

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Who said Real Estate isn’t a good investment?

Sacramento‘s Real Estate Market has been one of the Nation’s worst hit areas with Foreclosures and Short Sales.   It appears that the bottom of the market came and went overnight and home prices are on the increase again.   In the event you missed this article in the Sacramento Bee check it out on who’s buying up a lot of the local Real Estate.

Article:

BIG INVESTMENT FIRM BUYS HUNDREDS OF HOUSES IN SACRAMENTO AREA

 

 

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August Foreclosure Statistics

Foreclosure filings rose in August, as more homeowners fell behind on their mortgage payments.  

Filing were up 7% compared to July, but were still 33% lower than a year ago. 

According to Realty Tract’s report, 228,098 homes in the US received some kind of foreclosure filing in August.  Foreclosure auctions and bank repossessions, which come later in the process, both fell slightly. 

The increased in default notices may signal that lenders are starting to finally push through foreclosure paperwork that was previously delayed by “robo-signing”. 

The good news is that bank repossessions have been falling.  Lenders repossessed 64,813 homes in August, a six-month low and a 37% decline after they hit a peak in September last year. 

Meanwhile, foreclosure auctions were scheduled for 84,405 homes, the lowest number in more than three years. 

Nevada, California and Arizona housing markets are the hardest hit by foreclosures. 

Information from CNNMoney.com

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