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Bank is motivated and ready to close! Don't miss
out!
Now's the time to take advantage of this market and move into one of the lowest priced homes in the prestigious Catta Verdera Country Club community! Open single story floor plan. Main entry opens to the living/dining rooms with huge windows overlooking the .45 acre lot complete with salt water pool, fountains, built-in BBQ & firepit. 4 car garage, smart vent, whole house fan, central vac. Enjoy your coffee in the front courtyard by morning and great views of the valley and sunset by evening. |
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Graph to right represents active and sold homes that are not bank owned in the TRI county region. Graph below shows activity of bank owned homes in the TRI county region |
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"The overall market seems to be improving with
inventory continuing to decline and sales doubling
from last year," said Michael Lyon, CEO of Lyon Real
Estate. "But that is not the whole story. Bank-owned
inventory is holding steady and sales are 500%
greater than last year - there is now only 1.6 months
of REO inventory available. Non-REO inventory,
however, is declining as a result of sellers giving up in
a foreclosure dominated market. Banks are willing to
give the big discounts, demonstrating that, when
priced correctly, there are a lot of buyers in-waiting,
whether the property is owned by a bank or a regular
home-owner."
TRENDGRAPHIX's latest report shows that sales decreased 8% during the month of October for the Tri- County region of Sacramento, Placer and El Dorado Counties. October 2008 sales were 106% higher than October 2007 sales. Pending sales increased by 11% from September to October 2008. October 2008 inventory of 10,249 homes for sale is 31% lower than October 2007 inventory. This is a 33% decrease for the regional inventory record high of 15,302 set in August 2007. COUNTY HIGHS AND LOWS Sacramento County Sales decreased 5% Inventory remained the same Pending sales increased 14% 51% of the homes sold < $200,000 42% of the homes sold from $200,000 - $400,000 7% of the homes sold for >$400,000 The average $/sq ft decreased by 1% to $130 Placer County Sales decreased by 20% Inventory decreased 2% Pending sales increased 1% 7% of the homes sold < $200,000 66% of the homes sold from $200,000 - $400,000 27% of the homes sold for > $400,000 The average $/sq ft remained the same at $163 El Dorado County Sales decreased 14% Inventory decreased 5% Pending sales decreased 6% 8% of the homes sold for <$200,000 42% of the homes sold from $200,000 - $400,000 50% of the homes sold for >$400,000 The average $/sq ft increased by 5% to $183 Yolo County Sales decreased 14% Inventory decreased 6 % Pending sales increased 8% 30% of the homes sold for < $200,000 56% of the homes sold from $200,000 - $400,000 14% of the homes sold for > $400,000 The average $/sq ft decreased by 9% to $156 Information from Michael Lyon, CEO Trendgraphix |
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Will 2009 boom or will it be more doom and
gloom?
Now you're probably thinking: "A real estate boom in 2009? You've got to be kidding!" While the market may not exactly boom in 2009, there are a number of factors that may signal a dramatic improvement over the next 12 months. Here's what's happening that could make 2009 better than anyone anticipates. 1. The 10-year real estate cycle All markets are cyclical. While markets differ dramatically, a 10-year cycle is common in many places. The Southern California market provides an excellent illustration. In 1960, 1970, 1980 and 1990, the real estate market was at its lowest point plagued by excessive inventory, foreclosures and short sales. By 1994, the market had stabilized from the downturn in the early 1990s. As market values were beginning to climb, the Northridge Earthquake hit. Extensive damage throughout the area sent the market into a tailspin. It took another three years for the market to stabilize again. The beginning of the next upswing began in earnest in 1998. The market peaked in 2005 -- seven years into the cycle -- and then began the current downward trend. Given a 10-year cycle, California should be pulling out of the bottom and be on its way to a more normal market. This appears to be happening, despite the financial meltdown. The California Association of Realtors reported a 63 percent increase in sales in September. Radar Logic reports increases of year-to- year sales (2007 to 2008) ranging from a low of 16.3 percent in San Jose to a high of 74.3 percent in SacramentoMike Kelly of Keller Williams Sonoma reports that his market has only two months of foreclosure inventory and about four months of short- sale inventory. Foreclosures and short-sale inventory are rapidly being depleted in other areas of the country as well. As this inventory disappears, prices will stabilize and will eventually begin to rise. 2. Pent-up demand Across the country, sellers and buyers have been telling their agents that they are waiting for the presidential election to be over before they buy or sell any real estate. Now that the presidential election is in back of us, the bailout is in motion and the most recent stock market plummet seems to have passed, look for a substantial uptick in buyer and seller activity. People still marry, have children, retire and have to relocate for their jobs. Many of them postponed selling or buying waiting for market conditions to improve. Look for this pent-up demand to make its way into the market in 2009. 3. The credit crunch eases Credit is still tight. As one loan officer put it, "We're back to qualifying buyers the way we did in the 1980s. If you don't have a credit score of 740, forget it!" The bailout in conjunction with the new guidelines for FHA, Freddie Mac and Fannie Mae will result in more money in the system. Many credit unions are flush with cash and some are even making zero-percent- down loans to highly qualified buyers. As credit eases, buying and selling becomes easier. This will be particularly true in the jumbo market where highly qualified buyers are still having problems obtaining financing. 4. Inventory and days on market decline The amount of inventory and the "days on market" statistics are the best harbingers of market changes. Prices always lag behind these statistics. When there is a strong seller's market with upward pressure on prices, there may be only two or three months of inventory. Price stability normally occurs when there are six to eight months of inventory. Thus, when there has been a shortage of inventory, it can take 12 to 24 months before the market recognizes that there is an oversupply. The converse is true for a buyer's market with downward pressure on prices. Unless you're tracking inventory and days on market, you may not be aware of the shift until months after it started. Currently, inventory and days on market are dropping in many areas. 5. Demographics In 2008, the size of Gen Y (born 1977 to 1994) surpassed the size of the Baby Boom generation. Gen Y wants to own real estate. Some researchers claim that there will be a boom in the Gen Y "Mommy Market." While members of Gen X (1965-1976) are delaying both marriage and children, the typical Gen Y mom currently has 2.7 kids. This population explosion is being lead by Latina and Asian women. Gen Y is just now beginning to hit their early 30s, the time when they are most likely to buy their first home. On the other side of the coin, baby boomers (born from 1946- 1964) are most likely to buy a second or a retirement home between the ages of 50 and 60. While builders have cut back substantially on the numbers of new homes being built, an increase in future demand and a limited inventory will result in higher prices. Article by Bernice Ross from Inman News 12.1.08 |
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FOR A FREE MARKET ANALYSIS OF YOUR HOME AND ESTIMATE OF VALUE CALL OR EMAIL ME! I WILL GET YOU THE INFO WITHIN 24 HOURS OF YOUR REQUEST. Please contact me with all of your real estate needs and questions. I am always available to you, your family and friends!
Happy Holidays,
Kia Kapci
Lyon Real Estate
email:
kkapci@golyon.com
phone:
916-782-0558
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