Sacramento Real Estate Gal

Real Estate Market Report for Sacramento, El Dorado and Placer County

2009-09-15T08:53:00.000-07:00

I'm sure you're shuttling back and forth now reading market reports over at Sacramento Home as well as here, but I thought to get an overall idea of the real estate market, I would put up the statistics for all three counties combined right here. 2233 homes sold this August in the tri-county area as compared with 2630 last August. This points to a unit volume drop of 15.1% year over year. The hardest hit seem to be foreclosure sales with a 37.4% drop! Short sales in the meanwhile seem to be filling the gap with a 63.7% increase year over year. Non-distressed sales have remained mostly unchanged year over year with a 5.4% increase. Still, the overall market looks healthier with 37.4% of all sales now being non-distressed as compared with 30.2% last August.

Average sold price per square foot is now $127.69, down 15% from last August's $150.34. Average sales price rests at $226,416 also down 15.1% year over year from a high of $266,563. Median sales price in the tri-county area is currently $201,000. That's down 14.5% from $235,000 last August.

Inventory is at 4.1 months regardless of whether you're looking at the last year of sales or the last six months. Foreclosure inventory is hovering around the 0.6 month mark. Short sales have gained traction in the last few months but they still have a long way to go with 15.6 months of inventory based on the last 12 months of sales and 13.5 months based on the last six months.

Foothill Farms Real Estate Market Update: July 2009

2009-08-31T06:28:00.000-07:00

When home buyers are looking for a nice little community to live in close to the highway with solidly built homes with an old-world charm, they usually begin their search in the Foothill Farms area. There haven't been enough real estate buyers however to keep sales buoyed this month. Overall unit volume fell by 40% year over year in the neighborhood and the biggest drop was seen in foreclosure sales. REOs fell by 68% year over year from 53 homes sold last July to just 17 this July. Also, they went from being 88% of all sales to just a little over 47% of all sales. Short sales gained by 125% and non-distressed sales by 233% year over year. Distress sales now make up 72% of all real estate sales in the area.

Average sold price per square foot now rests at $103.37 which is 12.2% lower than last July's average of $117.71. Home buyers thus afforded themselves homes on average 9% bigger than they did last July. Average sales price in Foothill Farms is now $132,882 - 4.2% under last July's price of $138,755. Median sales price is at $134,000.

Inventory in Antelope is at 2.8 months based on the last year of sales and 3.2 months based on the last six months of sales. Foreclosure inventory is at 0.6 months and 0.8 months respectively. Short sale inventory is at 11.7 months and 11.5 months respectively.

Land Park Real Estate Market Update: July 2009

2009-08-28T10:01:00.000-07:00

Hey, welcome back! Since this blog is now part of the family of blogs of Elite Properties, you can now hope to read market updates as well as "ask the Realtor" type of articles along with some real estate quotes and trivia. Today we have a market update for Land Park for the month of July. (Statistics are available for the previous month when we update our database around the fifth of each month.)

Anyway, on to Land Park!

This has been a pretty impressive month for real estate in the Land Park community with unit volume up 108% year over year. 27 homes sold in the area and just 4 of them were foreclosures. None of the 17 short sales on the market sold but home buyers renewed their interest in non-distressed properties with a whopping 23 selling in the month of July.

Average price per square foot is now $257.41, which is a 17.8% drop year over year from a high of $313.20. The average home sold for $384,867 this July which is 4.3% lower than it sold for last July when average price was $402,146. Median sales price rests at $370,000 - 2.8% higher than last July's $360,000. However, keep in mind that the average home sold this July was also 16.4% larger than last July so the numbers can seem a little skewed. The most accurate measure here is the average price per square foot.

Inventory is at 4.8 months based on the last year of sales and 4.4 months based on the last six months of sales. Foreclosure inventory is at 0.4 months.

Dead? Not Quite Yet.

2009-08-22T20:21:00.000-07:00

I've been giving a lot of thought to where this blog is headed. Yeah, I guess you can tell by the fact that there haven't been any posts up lately. No, I haven't given up blogging. And no, I haven't given up selling real estate either. And yes, I still believe real estate can be a very strong investment. I would however temper and moderate that statement by saying you must have reserves to protect that investment.

But more to the point has been the concern that this real estate blog hasn't received the kind of attention lately that I would have liked to give it. As most of you know, my writing has been mainly over at Sacramento Home, the official company blog of Elite Properties. And between writing that and reviewing files for the company and taking care of my one year old (yes, she's officially a whole year old, believe it or not!) I've had my hands full. How in the world do people find time to juggle so much, I wonder sometimes looking at other brokers who have a post a day.

So, this is where this blog is going: I've made the decision that it's going to be another of Elite Properties' company blogs. You know we have Sacramento Home and Roseville Homes and Land and now we're adding Sacramento Real Estate Gal into the mix. What does this mean to you? Just that besides writing more here, I'll be adding more market updates and "ask the broker" kind of posts. And if you love reading them at the other blogs, chances are you'll enjoy them here as well!

Been a While...

2009-07-16T19:45:00.000-07:00

Well, hello! It has been a while and I'm happy to see you're back here. What can I say? Life got in the way of blogging... but you can see my market updates every day almost at Sacramento Home, so if you miss me, just hop over there and take a look!

So, the latest on the Sacramento real estate scene? I wish it was the same old, same old. I really wish it was something. Lately though the market seems to have gotten so lackadaisical that it refuses to get people (homebuyers and homesellers alike) interested in it. Even tenants seem to have trouble hanging on. We should know. Our tenants have decided to move out - get this - after fifteen days in the new home. Something between the husband and wife. And relatives. But they weren't on a lease, so what can we do? Just say okay. End of next month you're free to go.

Hmmm... this is going to be a looong summer.

Rent Slashed!!! Open House this Saturday 11 to 1!

2009-06-02T07:46:00.000-07:00

If you have been a regular visitor to this website, you should know that I have a rental home in Colonial Village that is looking for a tenant. Our last tenants were great - lived there for almost two years and we miss them.

Anyway, if you're interested, here's a link to the 3 bedroom 1 bath home in excellent condition. It's ready to move in now! So call me or email me for more information and to schedule a showing.

Also, I should mention that if your home has been foreclosed, we will still consider you as tenants if everything else on your credit report looks sound. We understand the financial hardships homeowners have been going through and will not hold a foreclosure against you if everything else looks okay.

For more information about this rental, you can reach me at 916-712-4255

Yes, We're Still Selling Homes!

2009-05-29T05:13:00.000-07:00

As Realtors and brokers cut down massively on their advertising budgets lately, our clients are beginning to wonder if we're still selling homes. Mention to someone that I'm a real estate broker and the look on their face changes. "How IS the real estate market?" is always the next question.

Look, it isn't a great market if you're a seller or a homeowner. I know. I have checked comps on my houses and I don't want to see them for a long, long time. But then, my brother isn't interested in looking at his stock portfolio either. For now. And he's a CPA and a very savvy investor. No one's happy right now.

Oh wait, did I say no one? I'll tell you who's happy. Home buyers are happy. They're more than that - they're ecstatic. And they should be. One look at our tenants' faces when they just bought the house of their dreams could tell you their story. And yes, they deserve it. Excellent care and not one month of missed payments.

So yes, if you're a homebuyer, wipe the worried look off your face. You're going to be just fine. And quit asking how the market's doing. We're still here. We're still selling homes! And it's a great time to buy!

Real Estate Article Worth Reading

2009-05-28T07:54:00.000-07:00

At a time when real estate prices have plunged - farther down than most people anticipated - it might seem like a good idea to just get rid of the mortgage payment. A disinclination to be in any kind of debt is one of the goals of most people but you might want to read this article before you get too hasty with paying off that mortgage. Then decide for yourself if it's really, really that high on your list of priorities.

Forget real estate, look towards men's underwear!

2009-05-27T06:49:00.000-07:00

This one gave me my first laugh of the day, so I'm sharing it here. Those of you who are homeowners might find this interesting. As we know, it isn't the homebuyers or even the home sellers and potential home sellers looking for signs of the market recovering. Home sellers and home owners believe the market will look much, much better in the coming six months. (Whether this means they will put their homes up for sale has to yet be seen.) The Sacramento Bee has already reported that median sale prices of real estate are beginning to stabilize in Sacramento.

But if you want to know the real state of the economy, forget real estate! Says Michael Brush of MSN Money, look towards men's underwear. Since they're not easily seen (thank God!) most men put off buying underwear during a recession. And that can give you a clue as to where the economy is headed.

Interesting read.

It's Here!

2009-05-26T20:23:00.000-07:00

If you're a novice real estate investor, the market is great for being a landlord or jumping into investment property. But, do you know the landmines to avoid? No? Then, pick up my book "Landlord Landmines." Available NOW at Amazon!

Amazon.com Widgets

Foreclosure Alternatives Program Details Announced

2009-05-14T20:21:00.000-07:00

The California Association of Realtors has just sent out news that new details have been announced under the Foreclosure Alternatives Program. According to the CAR email, the program "requires that prior to proceeding with a foreclosure, servicers must determine if a short sale is appropriate." The program is in place until 2012.

Incentives to lenders in this program include:
- $1,000 for servicers for successful completion of a short sale or deed-in-lieu of foreclosure
- $1,500 for borrowers/homeowners to help with relocation expenses
- up to $1,000 toward the cost of paying junior lien holders to release their liens

As we have seen in the market updates, it is the short sale inventory that worries everyone and could hurt the return of a normal real estate market. If this program works, it could just be the answer. It's too soon to tell, however.

The FAP also claims straightforward and streamlined documents and procedures in dealing with short sales.

Watch that real estate inventory!

2009-05-13T09:27:00.001-07:00

The Sacramento Bee has today reported that inventory in the Sacramento real estate market is down to 2005 levels. After the peak in listed homes in 2007, inventory has been declining over the last 20 months. We have already been covering these market updates at the company website, so it's no surprise to us.

Could this be a recovery or the beginning of a recovery? REO listing agents don't believe so because they expect more bank-owned homes to be listed beginning June 1st. Banks don't want to flood the market with REOs all at once because the price drops will be scary. So with banks not listing REOs and individual sellers not willing to sell if they have to, inventory has shrunk quite a bit lately.

We'll just have to see what happens in June to get a better picture.

I love my job!

2009-05-12T09:46:00.000-07:00

At the risk of sounding like I'm tooting my own horn (a little too loudly!) I want you to read this post on Sacramento-Home recently about me taking over as broker of record.

I love my job. Oh wait, did I say that already?

For Sale by Owner?

2009-05-10T21:22:00.000-07:00

I came across this while surfing the internet. Thought it was worth a smile on a Monday morning. Check it out!

Want a Recovery? Look after the Investors!

2009-05-07T07:40:00.000-07:00

I came across an excellent article on Yahoo today that brings up the all-important real estate investor and his role in a potential real estate recovery. I couldn't agree more with what the writer, Bob Hunt, says. Go ahead and read the entire article to see if this makes sense. He brings up a valid point in that most sales today are in the lower range of prices. If there were some way to attract not just the homeowners but the investors into the real estate market, the scene might look very different a few years from today.

Unfortunately real estate investors don't get the respect they deserve. We seem to be lumped in with "real estate developers" and "big business" or "those rich people that kill small business." Most real estate investors I know are middle-class hardworking people that just want to save enough for retirement. Maybe we need an image overhaul!

Real Estate Quote of the Month

2009-05-06T07:54:00.000-07:00

The Englishman, hidden behind his hedge or wall, is not interested in his neighbor’s house, and the idea of wanting to read about houses bought, sold, or built by total strangers is not even funny; it is merely absurd.... But to an American, it is not only important, it is comforting, it is gratifying that other people are improving your home town; even people who have no personal economic stake in the rise of real-estate values feel the same kind of interest that makes a motherly woman smile with genuine amiability on the children of total strangers. The very linguistic difference between “house” and “home” is significant. All Americans who live in houses, not apartments, live in homes; the Englishman lives in his home but all his neighbors live in houses or flats.

D. W. Brogan in The American Character.

A real estate recovery for Sacramento?

2009-05-05T07:36:00.000-07:00

Those of you who follow the real estate market updates I write over at the Elite Properties company blog already know that some areas in Sacramento have hit bottom and have already begun the recovery. But Sacramento real estate as a whole seems to be taking a while.

This article published today suggests mixed information but it's worth a read.

REO Buyers May Pick Title Company

2009-05-04T15:26:00.000-07:00

If you're a homebuyer in today's market, the deeply discounted real estate is definitely there. But if you're distressed by the fact that sometimes the bank wants to call all the shots and you seem to be playing only their game, this news might comfort you a little.

The California Association of Realtors claims that "new language" in AB 957 - Choice of Escrow Bill - "protects fair negotiation over settlement services" like title and escrow providers. So basically, if the seller wants to pick a specific title company they will have to cover title and escrow expenses.

So if you're a homebuyer out there, don't assume you cannot pick title and escrow companies. The new bill claims to impose new penalties on banks who violate this law.

Announcement

2009-04-30T14:09:00.000-07:00

I'm very excited to announce that as of Monday May 4th 2009 I am taking the position of Broker of Record at Elite Properties. Having worked at three different brokerages over my real estate career, I believe at Elite Properties I have found my niche, as have our other agents that continue to do a fantastic job for our clients in spite of the pressures of this very different real estate market.

Elite Properties has always carved its own space out of the mass of other real estate brokerages out there. Our agents are hard-working, detail-oriented and provide exceptional service. Our competitive advantage has been and will continue to be giving the clients information about choices that affect them so that they can make an informed decision.

I am honored to be part of this team of self motivated and strong individuals and hope you will continue to come back to us with your real estate needs year after year.

Thank you!

Good News in Real Estate?

2009-04-15T21:17:00.000-07:00

Maybe! Read all about it here.

The Carnival of Real Estate is Here!

2009-04-13T08:22:00.000-07:00

And since it is tax time, I've decided to pick three entries as winners and divide them according to ease of reading and understanding. I call them the 1040s of real estate.

In third place, we have the 1040EZ. Not great for deductions but it sure gets the job done quickly and easily. And for that, the winner is Rev-N-You for tips on How to Deal with Late Paying Tenants.

In second place, comes the 1040A. Slightly more complicated, but hey, at least you got your taxes done. The 1040 winner is Andrew Schultz with What do your Rentals Cost You?

And in first place comes the 1040. A long form, but you know it accounts for every cent you get back and everyone wants bigger deductions (and more of them!), right? The 1040 winner is Pat Friedl with his post Myths that can Sink New Real Estate Investors.

Enjoy! And remember to file your taxes!

What does a Real Estate Broker do?

2009-04-02T07:50:00.000-07:00

As I sit here gloating over the fact that I passed my real estate broker exam (at the first attempt - yeah!) I seem to be getting quite a few questions from my readers regarding the difference between a real estate salesperson and a real estate broker. "Weren't you already in real estate?" they ask. "I thought you already were a broker." "How can you sell real estate without a broker's license?"

Okay. I will answer. Besides the fact that Realtors throw around a lot of acronyms most people don't understand, ("Send me over the TDS and the FIRPTA ASAP or we're going to get a 24 hours NTP!" If you understood all those acronyms, chances are you are a Realtor) we also tend to assume the general consumer understands agency and laws and regulations surrounding them. They have been so drilled into our heads by the time we pass our real estate exams that we think everyone knows.

Okay, so here goes. A real estate salesperson can technically only sell real estate when employed by a broker. The broker is usually the only person in a real estate office who is able to sign into an agency agreement with a client. So, in effect, the real estate salesperson (who also needs a license, albeit a "junior license" so to speak) is an agent of the real estate broker and works under his instructions. The salesperson's license is not effective unless employed by a real estate broker.

A broker on the other hand may sell real estate on his or her own without being employed by a real estate brokerage. A broker may also hire real estate salespeople of his own. There are some real estate brokers however who do choose to work with other brokerages as "associate brokers" in that they in effect become salespeople in their job descriptions even though they keep their broker's license.

There also seems to be some confusion over whether the term "Realtor" applies to all real estate agents or the broker alone. "Realtor" is a term adopted by the National Association of Realtors. Any real estate agent (broker or salesperson) who is a member of this trade group is a Realtor and follows a code of ethics. It is an effort to standardize real estate and also provide important business tools used in everyday real estate activities. Usually, if a brokerage is part of the National Association of Realtors, all its salespeople are also required to pay their dues and are each individual members (Realtors) as well.

Hope all of this helps clear up some confusion regarding real estate salespeople and brokers.

I am now a Real Estate Broker!

2009-03-31T08:54:00.000-07:00

All righty, then! Cheers!

Landlords: Read This!

2009-03-30T05:04:00.000-07:00

Coming Soon! Here are some reviews of what you should be reading coming out soon and available on Amazon. Check back often!

"Landlord Landmines represents the PERFECT balance to all those "How to get rich investing in real estate" books! Only the IRS thinks being a landlord is a "passive" activity! What do they know?
"Purva has written her experience in a light, often funny style, that's easy on the digestion, concise, with a ton of hard earned insights. From me to you: Get a credit report EVERY TIME! People who pay their bills on time will pay their rent on time. Good reading!"
- Huck Ferrill, Sacramento mortgage broker.

“This little book points you in the right direction.
“I like this little book - it contains a lot of what to do and what to avoid. If I was a beginner, I would take it and put tabs on some of the pages, put it in a three ring binder, then add to it whenever something changed or I discovered a great way to do something - Sort of like mom's old cookbook!
“I think the book offers a lot of advice to prospective landlords. You do not have to be certified to be a landlord, but you do need to know a lot about a lot.”
– Michael Mast, landlord for over three decades.

“As a real estate investor herself, Purva and her husband, James, went through their share of landlord horror stories. Landlord Landmines is the book Purva wished they’d had when had when they were getting started. Landlord Landmines is written both from her own experience and from the experience of many other landlords who she interviewed for the book.
“Forget the theory and the spreadsheets — Landlord Landmines puts together decades of collective experience and stories from real investors, who teach you what you need to know and what you need to avoid.”
- John Lockwood, real estate broker of Elite Properties.

Want to know what to avoid without all the jargon? Here’s a simple straightforward book that tells you – without the hype and the legalese! And it might just save you thousands of dollars in mistakes! Check back for details!

If You Live in Folsom...

2009-03-28T19:59:00.001-07:00

...and are a homebrewer, you might want to head over to the Brewmeister for your supplies. Today, we were over there to catch a little brewing session in the parking lot - so this notice is a little late. However, besides the fact that real estate is fairly stable in Folsom you homebrewers in Folsom have a lot to celebrate!

You can visit Brewmeister's website here.