CA Home Sales & Prices

California home sales and price edge up from July.

California home sales edged up 1.8 percent in August compared with July, but were down 14.9 percent from August 2009, C.A.R. reported today. The statewide median home price also increased 1.2 percent from July and was up 8.6 percent from a year ago.

“Buyers who are holding out should consider the opportunities in today’s market,” said C.A.R. President Steve Goddard. “Favorable home prices and interest rates at or near historic lows make housing affordability the best in recent memory. Anyone who is in a position to buy a home should do so before either of these key factors rise.”

The statewide median home price posted its 10th consecutive year-over-year gain in August. The median price of an existing, single-family detached home sold in California during August 2010 was $318,660, an 8.6 percent increase from the revised $293,400 median price recorded in August 2009, C.A.R. reported. The August 2010 median price was up 1.2 percent compared with July’s $314,850 median price.

“The housing market is transitioning from the conclusion of the housing tax credits as is evidenced by stronger home sales in the higher-price range and weaker sales in entry-level homes and condominiums, which are typically favored by first-time home buyers,” said C.A.R. Vice President and Chief Economist Leslie Appleton-Young. “As a result of the strength in the upper-end market and inventory levels that are higher but still lean by average, we’re seeing home prices holding steady.”

Sacramento County Sales Data

Latest Market Values for Sacramento.
July data is still being compiled.

Prices are dipping as expected due to the expired tax credits. Prices and interest rates are keeping the sales up. Some areas are still experiencing slight price increases due to competition. I'm expecting a normal lull this winter in activity but rates might start to edge up.

Source: C.A.R. Research and Economics Department

Median Price Jun-10: $196,215

Median Price May-10: $191,428

Median Price Jun-09: $182,400

Price Chg from Prior Mo May-10: $4,787 - 2.5%

Price Chg from Prior Yr Jun-09: $13,816 - 7.6%

Sales Chg from Prior Mo May-10: 3.5%

Sales Chg from Prior Yr Jun-09: 1.7%

Please call me if I can be of further help.

Rates to remain STEADY

Fed Won’t Change Rate Until 2012 on Labor Woes

June 23 (Bloomberg) -- The U.S. Federal Reserve will keep its key rate unchanged until 2012 because of high unemployment and low inflation, said Edward McKelvey, senior U.S. economist at Goldman Sachs Group Inc. in New York.
Goldman predicts no rate change until 2012 “because the unemployment rate is very high, because inflation is well below the Fed’s objective, and is actually drifting down,” McKelvey said in an interview with Bloomberg Television’s “Inside Track” program today. “They’re really missing on both their targets and there’s no reason to raise rates at this point.”
Fed officials, who are likely to repeat the commitment to an “extended period” of low interest rates in a Washington meeting today, are contending with joblessness that’s still close to a 26-year high. Rising foreclosures and a drop in new home sales are threatening to harm the recovery.
Weaker home sales are “the reflection of an extreme excess supply in the industry which has been apparent for several years and will persist for a while,” McKelvey said. “As long as that’s the case it’s hard to forecast significant improvement.”


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Hello Neighbors,
I just wanted to pass along some statistics.
Jim, our Broker and owner of Neighborly conducted a specific search today and here are his results. -----

I did a quick search for a client today, using some very high level criteria:

- 2000 to 2500 square feet
- $220,000 to $300,000
- 3 to 4 bedrooms
- 2 to 3 bathrooms
- 1990 or newer construction
- Single and Two stories
- Rocklin, Roseville, Granite Bay.

The results?

Not much fun.


77 homes came up in the search.
Of those 77:

- 70 are short sales!
- 1 is a HUD / HomeSteps home
- 1 is bank owned (a foreclosure)
- the other 5 are in a variety of different statuses.

Over 90% of these homes are in Short Sale status.


Buyers - THANK YOU for sticking with us as we continue to work through the short sale offer and escrow processes.

Pending Home Sales

Wow! The tax incentives have caused a flurry of Pending Home Sales in the Sacramento Metro area. Check out the graph... You have to be in contract no later than tomorrow (4.30.10) and escrow closed by June 30 to take advantage of the Fed's tax incentive.

Cheers!

Kev
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Rates are Moving Up!

Federal Mortgage Buy Back Program Ends - Interest Rates Are Moving Up

March 31st was the last day of the Federal program to buy mortgage backed securities. That is the program that has been removing the bad loan debt from the market at an enormous rate. It’s been going for well over a year now, and we know it’s been keeping mortgage interest rates artificially low.

Yesterday was the first day without this program in effect, and guess what?

We are already seeing rates jump. Yesterday they went up a quarter of a point.

Overnight? Some rates aren’t even available now. A few days ago, a client could buy down a rate to the low 4 percents. Now? We can’t even get access to those low 4 percent rates. Buying down will get you into the mid or high 4 percents.

Hmmmm.....

While movement on any day is expected, the move by the Fed in general is signaling that interest rates are going up.

While we have all expected this, to what degree they will change (go up) is anyone’s guess.

Buyers? Be alert.

Re-financing? Get busy.


Kev
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Fair Oaks Trend

Inventory is half of what it was a year ago....there's about a 5 month inventory of homes in Fair Oaks.
Sales Prices may be coming down but Sold Prices are moving up. Average Sales Price was $378K, Average Sold Price was $345K. Last year at this time Average Sales Price was $458K, Average Sold Price was $270K.


Kev
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CA TAX CREDIT

Gov. Arnold Schwarzenegger on Thursday signed a bill aimed at selling California's vacant homes and encouraging new construction by extending a $10,000 state tax credit for first-time homebuyers.
The governor signed a bill the state Legislature passed on a bipartisan vote earlier this week. It provides a state tax credit to first-time homebuyers who buy new or existing homes from May 1 until the end of 2010.
Homebuyers can claim 5 percent of the purchase price against their California taxes, or up to $10,000.

Time to buy continues....Call me...........916.747.6357


Kev
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A piece of notorious Sacramento history up for sale

A little bit of background...
In the late 1980's a boarding house for the elderly and mentally disabled on F Street was the scene of one of the most horrific crimes in the country. The boarding house owner, Dorothea Puente, cashed the social security checks of the residents and anyone that complained was killed and buried in the backyard. Seven bodies were found out of nine she was charged with. On November 11, 1088, she was convicted of three and now serves two life sentences in prison.

...and now the 1834 square foot boarding house with nice upgrades throughout is for sale.

Everyone wants to own a piece of history and now is your chance.

Look before you look

When beginning the house hunt, some buyers go in blindly, not knowing how much house they can afford. Without this knowledge, buyers may find themselves viewing houses that aren’t within their budget. To prevent buyers from spending time viewing homes they may not be able to afford, home buyers need to get pre-approved by lenders before house hunting. By providing copies of a recent credit report, W-2s, pay stubs, and bank and brokerage statements to a lender, buyers will have a better idea of the price range they can afford.

Obtaining financing prior to looking really sets the bar. Most importantly, it helps to prevent disappointment in the emotionally charged, exciting adventure of looking for your home.

Kev
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There's an app for that

While I have to be the biggest fan of the latest most innovative technology, sometimes I lag. My appologies for not updating my blog as much but now that I found the app for that, your going to hear a lot more from me!
Stay tuned for news, views, and opinions for the world of real estate!


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Have we learned anything? What now?

Did we learn a lesson?

The Stock Market Bubble that preceded the Great Depression helped many people make a lot of money on inflated and ever increasing stock prices. The bubble burst and left millions in ruin. Sound familiar?
The Housing Market Bubble that preceded the Great Recession helped many people make a lot of money on inflated and ever increasing home prices. The bubble burst and left millions in ruin.

This is a question that will be answered in time...

What about now?

OPPORTUNITY!

It is too easy to focus on all of the bad news. That's what sells, right? I can tell you that homes are selling, not all listings are short sales or foreclosures, prices in some areas have increased, and the federal tax credit has helped home buyers develop better financial health. What I mean by that last statement is that after the purchase, homeowners end up with OWNING a home AND having MORE money in the bank than when they started out on the house hunt.
Interest rates increasing and home prices wavering are both realities but real estate is a long term investment both financially and psychologically...This is your home.
Affordability will continue to increase, more and more first time home buyers will continue to re-enter the market and home prices and interest rates will remain within reach.
There will always be a need to sell a home and there will always be a buyer for that home.
Overall, home prices are expected to increase from 2% - 4% in 2010.
Increased prices = Increased value.

Here's the bottom line.....
The news is doing its job of reporting.
I am in the trenches. I am experiencing the trials, tribulations, and most importantly, the triumphs, and joys of this market. I have weathered the worst of this market and survived.
Are you ready to jump in? Do your homework but know that I am your trusted advisor whether you want to buy, sell, or invest...The OPPORTUNITIES are out there!