Yes, this is a confusing market

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!

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.

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.

The Sacramento Jazz Festival

The 33rd annual Sacramento Jazz Festival is taking place this weekend and my parents and their large group of friends came up for the event. It is the 25 straight year my parents have come up from the Bay Area for this event!

Yesterday, Kim & I packed up our two kids and joined my parents for the event. What a great time we all had. Of course there was lots of music and some fantastic people watching. Also the event allows you access to the museums and we spent a good hour at the Train Museum in Old Sacramento. The weather wasn't so great this year but it didn't matter. The music was great and our kids had a blast.

For those of you looking for a great family outing put this on your list. It happens every year on Memorial Day Weekend. The good time we had wore our kids out . . .evidenced by the fact that it is after 8am and they our still asleep. Our 2-year old typically is awake by 6am. The quiet peaceful morning is just icing on the cake!

HEY! GIVE ME BACK MY SIGNS!

As Realtors we run into some strange situations during our daily tasks. Well this last Sunday was an example of this.

Sunday I was getting ready to do an open house. This is one of the ways we find clients to meet and help find homes. I got up early to put out my open home signs and headed off to get a cup of coffee. On my way back to the home I noticed that one of the signs I put up was gone. As I travelled the neighborhood I noticed other signs are gone. Then I came upon a van with balloons inside of it. Yep, this is the van that has taken my signs which had balloons attached to it.

I parked my car and walk up to the van and it sped off before I could get to the drivers window. I hopped into my car and followed him. Finally he pulled over and got out of the car and started screaming at me. I demanded and got my signs back.

Turns out he was the owner of the home before the bank foreclosed on him and was angry that we were trying to find a buyer for it.

This was something they didn't prepare me for in Real Estate school.

Need a Home Equity Loan?

If you're thinking about getting a home equity loan, you should definitely check this out. Charles Schwab is offering a very attractive option.

They are offering a loan with an interest rate of "prime - 1.01%". In today's market, that translate into a loan of 3.99%! Obviously, you and your home need to qualify, but from the research I've done it is unbeatable.

Spring Has Sprung

Here in the Sacramento area the last week or so has hit many of us with a case of spring fever. The "City of Trees" as some refer to Sacramento, has exploded with fresh leaves in blossoms in all directions.

This last week I've broken out my yard tools and have begun getting my yard ready. I've fertilized the plants and lawn and have made my latest attempt to improve and amend some of the troubled areas of soil that we have.

It is also the traditional buying season for homes and the table is set for a fantastic season for home buyers. Lots of options, great loan programs & excellent prices await.

Would you like to arrange a time for us to show you what is available for you in your price range?