Real Estate Market

Sacramento Hits Bottom? Any Thoughts?

May 6th, 2009 categories: Real Estate Market, Real Estate News

smoke-and-mirror Some say Sacramento has hit the bottom of the real estate market. The New York Times and the Sacramento Bee along with many bloggers are busy typing those long awaited words…

Sacramento has hit the bottom of the real estate market of homes for sale.

Lots of twittering about hitting the bottom on twitter and facebook.

It is true that new home buyers are busily buying foreclosed homes for sale but equally true there are many more foreclosures yet to hit the market. Due to the moratorium of banks foreclosing on homeowners as set forth by Obama, to seek loan modifications, inventory of newly foreclosed homes declined over the past few months.

There have been 28,898 foreclosures in Sacramento County since 2005. Also, 24,000 homes and apartments are currently vacant with 3,500 of them empty longer than two years.

In my opinion, this is just smoke and mirror…we have NOT reached the bottom.

We are still going to see declining prices and many more foreclosures in and around the Sacramento area. The moratorium has been lifted and it’s my guess that over the next few months we will see many more foreclosures. There are still homeowners loosing their jobs in our area which can only have a direct impact on their ability to pay their house payments. There is no loan modification if you don’t have a job in which to pay house payments.

I think we have another year to go before we reach true bottom with another slew of foreclosures in the upcoming years from those who have currently been granted loan modifications.

It is further my opinion that based on the loan modifications I have seen that this is just a temporary band-aid and those same homeowners will eventually go into foreclosure. Time will only tell but I think that this will come back to haunt us.

Why you ask? Loan balances on loan modifications have NOT been reduced. The mortgage loan has simply been extended from 30 years to 40 years. Granted, many have lower interest payments and lower monthly payments but unfortunately, this will NOT help when these homeowners when they need to sell due to job relocation, divorce, job loss, retirement and life in general in the next few years.

The only way loan modification, in my humble opinion will work is to reduce the principal. Cram-Down seems to be the only way loan balances will be reduced. But many reject this idea so here we are.

Some are waiting for prices to sky rocket and values to go back to 2005 but this is a pipe dream. In my opinion…ain’t going to happen anytime soon. Prices when they do inch up will be slow and gradual. But, as I’ve said before, until we have finished the foreclosures don’t look for stabilization in the real estate market.

Banks need to get those foreclosed homes on the market that they are holding onto so we can hopefully see the bottom next year.

The other aspects that no one seems to address are:

Vacant homes bring squatters
Vacant homes are being defaced
Homeowners are stripping their homes and selling items on CraigsList before vacating
Vacant homes further reduce the neighborhood value
Vacant homes bring crime

And to this end, most new home buyers are FHA home buyers which means they can’t buy these homes that the banks will not fix and restore…means more vacant homes over the long run which means less property taxes for the cities and counties…which means higher taxes for the rest of us and less fire and police protection. Got the picture?

Do you agree or disagree and why?

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe

to get the latest articles sent to your email.

Click Sacramento MLS where you can pick any community or city around Sacramento and see homes for sale or simply click on the search icon and pick the area you are interested in finding a home or condo for sale in

If you have a real estate question that you would like an answer to, be sure to check out

and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate

Authored by Gena Riede | Discussion: 2 Comments »

Sacramento Falling Home Value

March 11th, 2009 categories: Real Estate Market

Sacramento, CA - Map of upside down equity The Sacramento Bee recently wrote an article about how many Sacramento homeowners are walking away from their houses and mortgages.

The map to the right by Nathaniel Levine at the Sacramento bee, is a compilation from dataquick of each area in Sacramento County with falling negative equity in homes.

Sacramento County as a whole has fallen by 36.1%, Placer County by 15.9%, Yolo County by 12.5% and El Dorado County by 10.6%.

There are refinance programs available for those homeowners who are current with their payments but have been unable to refinance due to the loss of value in their home. You need to know if your loan is a Freddie Mac or Fannie Mae.

The ultimate question is if your loan is financed through Freddie Mac or Fannie Mae and to find out, you can either call the servicer you pay or you can contact Freddie and Fannie directly and ask.

Freddie Mac contact form or call 1–800–Freddie (8 am-8pm EST)
Fannie Mae contact form or call 1–800–7Fannie (8 am-8pm EST)

You may be able to qualify for a refinance, so check to see if your loan is with either of these two institutions.

Since 75% of the home sales in Sacramento are foreclosures and short sales, as a Sacramento home buyer you will find some exceptional deals in this real estate market.

Click to see all foreclosed homes for sale in Sacramento.

Click to see all foreclosed homes for sale in Roseville and Granite Bay, CA

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

If you have a real estate question that you would like an answer to, be sure to check out and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate

Authored by Gena Riede | Discussion: 2 Comments »

Loan Modification Plan and “Cram-Down”

February 18th, 2009 categories: Real Estate Market, Real Estate News

Eye of Storm_Use with Houses The Stimulus package to help troubled homeowners with $75 billion will begin March 4, 2009.

If banks want bailout money, they will need to start helping the homeowners with loan modifications. The guidelines would require no more than 38% of the homeowner’s income. And bring down the mortgage payments to 31% of their income.

This may be a bit of a problem for most of California, Florida, Nevada and Arizona where loan to value is as high as 105%.

Those with higher debt to income will be able to qualify but must enter a HUD-certified consumer debt counseling program.

Furthermore, it has been a proven fact that loan modifications have not worked with homeowners ending up in Foreclosure 6 months after obtaining a loan modification.

There is a very simple reason for this, in my opinion…mortgage loan balances were not reduced to home value. Unless and until this occurs, I do not think that loan modification is a viable solution to our housing crisis that effects our nation in each neighborhood.

For some that still have equity but less than 20%, they will be able to refinance through Freddie Mac and Fannie Mae.

Not sure how many that will help here in California.

What is called a “cram-down” is also part of the package but requires an Act of Congress to change the bankruptcy laws in order for bankruptcy Judges to reduce mortgage loan amounts. If passed this will not use any of the monies set aside by the government.

Apparently, Bankruptcy Judges have always had the authority to reduce the terms of an investment property or vacation home but not the principal residence of a homeowner.

In my opinion, again reducing the loan mortgage amount is the only way to stop the downward spiral.

Here is a simple example of the problem:

Mortgage amount of house: $400,00
Value of house today: $250,000
House for Sale as Short Sale: $250,000 (bank doesn’t respond)
House for Sale as Foreclosure: $230,000 (house sells for $235,000)

Now, tell me why the banks won’t just lower the mortgage amount of this house to $250,000 and let the homeowner/borrower stay in their home?

If you are interested in understanding more about the Homeowner Affordability and Stability Plan be sure to read the FACT Sheet and Summary.

What are your thoughts about how to solve this National problem? Do you think loan modification will solve the current problem of Foreclosures or do you think it only puts off the inevitable?

If you have a real estate question that you would like an answer to, be sure to check out and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate Voice.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

Authored by Gena Riede | Discussion: 2 Comments »

Sacramento Year End Home Sales Report with 11 Year Look at Homes Sold

January 7th, 2009 categories: Real Estate Market, Sacramento RE Stats

Sacramento single family homes market stats are ready. The homes sold in 2008 for each month Sacramento 2008 Homes Sold is shown in the chart below and as you can see we had a steady increase in home sales for most of 2008. The month of December picked up from November with 1,891 homes throughout the Sacramento County area sold. The average sold price of a home in Sacramento County was $198,919 and the average list price was $200,719 taking an average of 45 days to sell.

There is 4.2 months worth of inventory over the past year with 1.9 months of foreclosure inventory.

Today in January 2009, there are 6,627 active listings on the market for sale for an average of $261,213.

11 Years of Sold Homes in Sacramento

The chart to the left shows the last 11 years of single family home sales from 1998 through 2008. This chart clearly shows 2007 as the worst year Sacramento has experienced in an eleven year period. 2008 was the year of the come-back for Sacramento, CA real estate.

Now, with interest rates at an all time low, home buyers and investors will find 2009 to be one of the best times to buy a house or condo.

Each month I try very hard in between helping new home buyers and sellers to tabulate the home sales for each of the areas in Sacramento County by zip code. Obviously, the home sales report is not ready to enter until the following month, typically no later than the 2^nd week of the month.

Just click Neighborhood County Market Statistics and chose the County in CA that you are interested in looking at as well as the month and year. There you will find cities and communities like Carmichael, Citrus Heights, Elk Grove, Fair Oaks, Folsom, Galt, Mather, North Highlands, Orangevale, Rancho Cordova, Gold River, Rio Linda, Rancho Murieta, Downtown Sacramento, Midtown Sacramento, Arden Arcade, Land Park, Curtis Park, Elder Creek, Fruitridge, South Land Park, Greenhaven, Franklin, Freeport, Rosemont, College Greens, Mayhew, Florin, Natomas, Del Paso Heights, Antelope and Wilton. Each one of those communities have the real estate market statistics each month for single family homes for sale, in pending sale and sold homes.

To sum up, we all know the economy is the worst it’s ever been and foreclosures are at an all time high but on the positive side, this market has opened up for new home buyers and investors who can now purchase homes and condos. As evidenced by the graphs and home sales you can see that real estate is alive and kicking! Homes are selling and I predict that 2009 will be even better.

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

If you have a real estate question that you would like an answer to, be sure to check out and read what other home buyers and home sellers have asked and feel free to ask your Real Estate question by email. Perhaps, your question will be part of the next article featured on Sacramento REAL Estate Voice. Just ask the Realtor, Gena Riede.

Click Sacramento MLS where you can pick any community or city around Sacramento and see homes for sale.or simply click on the search icon and pick the area you are interested in finding a home or condo for sale in .

For a look at all Sacramento Real Estate Market Reports:

Sacramento RE Stats

Authored by Gena Riede | Discussion: Comments »

Sacramento Real Estate Rust

September 19th, 2008 categories: Real Estate, Real Estate Market, Sacramento

Rust in Real Estate Sacramento Real Estate is experiencing a bit of rust.

Rust is the deadening reality of corrosion when left unattended in the elements.

This is what is happening in real estate today with Short Sales and Foreclosure properties.

Banks are allowing the corrosion to continue and spread.

Yesterday, I spent an entire day looking at bank owned homes for sale that were vacant and an eye sore inside and out. To view foreclosure homes for sale, click link. These corrosive homes have a negative impact on the neighborhood.

No home should be left unattended. I think we can all agree that a striving and productive neighborhood is one where people live, love and work. The more homes left unattended and uncared for the more the rust penetrates and spreads throughout the house and homes on the street.

Banks need to take a more pro-active approach to this dilemma. It will not only help the neighborhood and the house in foreclosure or short sale but it will also help the bank.

The CA real estate contract is very specific and requires time lines for inspections and contingency release. And the biggest time line is the date and time a seller must respond to an offer. Banks ignore those dates. They keep silent and answer when and if they are darn ready. They even punish the home buyer if they don’t meet the deadline set by the bank. While the bank ignores the many State disclosures that must be given to the new home buyer.

Home buyers who wish to purchase some of these foreclosed homes and houses in short sale are left hanging. In the meantime, home buyers move on and find another house to make an offer on. This is a loss and it’s time the banks wake up and get a clue…life moves on with or without you! You would be so much better off if you, would simply reply to the home buyer’s offers in a timely fashion.

I certainly realize that the banks have taken a large hit and have very few personnel to deal with foreclosures and short sales but hey, it’s costing you money each and every day that you delay. The bank would be much better off hiring additional staff, answering in a timely fashion and closing on these houses.

And if I dare say, it would be in your best interest to take a look at some of the agents that you have these houses listed with. When I call an agent, the last thing I want to hear is that the agent does not accept phone calls and does not answer them. We seem to have quite a few agents who think they are the banks. Let’s get back to doing a professional job. Answer your phones and return phone calls. Act like a Realtor.

The sooner these houses are off the market and we get through the inventory, the sooner there will be a recovery in our economy. The longer the banks drag this out, the higher the inventory and the longer it will take to recover.

It’s all in your hands BANKS. You have the ability to make this smoother or cause more problems. You need to improve the way you do business. Bite the bullet and let’s put an end to this madness. Get rid of the RUST!

Want to drag this subprime mess out longer or get it over with and either negotiate with the homeowner or start accepting home buyer offers in a timely manner?

If you like what you read here on Sacramento Real Estate Voice simply click and subscribe to get the latest articles sent to your email.

If you have a Real Estate question, check out and read what other home buyers and home sellers have asked.

Other Bank Owned and Short Sale Articles:

Sacramento Realtor Right On Target

Move Out of the Way, Bankers

Don’t be Duped, Homeowner

The Lights Have Gone Out For Many in Foreclosure

Short Sale and Foreclosure Real Estate Tax News

The Blood Continues to Run…

Sacramento Real Estate Writes Letter to All Banks

Are Short Sales and Foreclosures A Good Deal?

What Does Short Sale Mean?