I have a few clients who are VERY motivated to take advantage of the low prices, low interest rates, the first time home buyer tax credit and the FHA loan program requiring only 3 1/2% down. With all these positive incentives, what could be the problem?
The problem is that there is very limited inventory at the price level first time home buyers are looking at. Almost all of the inventory is either bank owned or are short sales (more on those in a minute). The bank owned properties are very difficult to get into for first time home buyers for a couple of reasons. The first problem is that the banks are pricing homes very agressively and the prices get bid up well above asking. The second problem is that bank owned properties are sold "as is" meaning they will not do any repairs. This is a huge problem because the FHA loan program will NOT allow the home buyer to pay for ANY repairs even if they want to and the bank does NOT want to pay for any repairs. In the banks' eyes, cash offers are King and tend to win the deal.
What's the solution? Please stay tuned for my next blog, coming soon!
Wednesday, June 10, 2009
Wednesday, May 20, 2009
Sacramento Sales Statistics from April 2009
As a lifelong sports fan, I've always been fascinated with the statistical side in regards to my favorite sports, teams, and players. I've always enjoyed analyzing and arguing who are the top performers and stastistics are always a part of the equation.
The Sacramento Association of Realtors have released the sales statistics for April 2009 in Sacramento County and the City of West Sacramento. There are some interesting numbers in this report that jumped out at me:
1. The median price of a home appears to be leveling at around $167,000.
2. Inventory stands at 3.1 months (3 months or less is considered a sellers' market)
3. REO sales accounted for 65% of all transactions
4. All cash sales were over 27% of all transactions
If you wish to see the entire report, please go to www.scottandkimsellhomes.com and click on housing reports and articles.
The Sacramento Association of Realtors have released the sales statistics for April 2009 in Sacramento County and the City of West Sacramento. There are some interesting numbers in this report that jumped out at me:
1. The median price of a home appears to be leveling at around $167,000.
2. Inventory stands at 3.1 months (3 months or less is considered a sellers' market)
3. REO sales accounted for 65% of all transactions
4. All cash sales were over 27% of all transactions
If you wish to see the entire report, please go to www.scottandkimsellhomes.com and click on housing reports and articles.
Thursday, May 14, 2009
Back to the Blogging World!
Today I played golf with a friend I have known a long time . . . all the way back to junior high! Amazing how long ago that was!
Of course we spent the obligatory time discussing our former classmates and such. Naturally we discussed the housing market. Like alot of people, he was wondering when we will be hitting the "bottom" of the housing market. While I have no crystal ball there are lots of indications that we are very close.
The best way for me to explain my opinions on the market is to share my resources about the housing market. These can be seen at www.scottandkimsellhomes.com under Housing Reports and articles. We update these frequently.
Of course we spent the obligatory time discussing our former classmates and such. Naturally we discussed the housing market. Like alot of people, he was wondering when we will be hitting the "bottom" of the housing market. While I have no crystal ball there are lots of indications that we are very close.
The best way for me to explain my opinions on the market is to share my resources about the housing market. These can be seen at www.scottandkimsellhomes.com under Housing Reports and articles. We update these frequently.
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