CA Real Estate Trends

Bottom of the Housing Market in the Rear View Mirror

Cathy Sarmento (Granite Real Estate "Cool Team") — Wed, 30 May 2012 10:33:03 -0700

We were talking about it in 2011 and for our area, I can say with conviction - the BOTTOM OF THE HOUSING MARKET IS IN THE REAR VIEW MIRROR!

We have been seeing increased buying activity from both owner occupancy buyers that intend to live in the home and investors. Many of the lower price ranges are finally beginning to see very modest price increases, but all price ranges below the $400k market are seeing increased activity.

Entry level priced homes unter $225k are seeing multiple offers and are moving in days to hours, with homes priced from $225-$400k seeing multiple offers if they are in good shape.

Inventory has been dwindling and many buyers are frustrated to see short sale homes under contract still reported as active on many internet sites. This may change in the near future as MLS - Metrolist the aggregate listing site for our tri-county area and over 20 other counties is going to change the current reporting status of those listings from Active Short Sale - Contingent to Pending Sale Short Sale Contingent. This simple move will clean up a lot of the confustion as sights such as Zillow and Trulia pull Active listings, not pendings. This will also give us much more accurate reporting data reflecting homes that are under contract, pending sale in relationship to those active or sold.

So don't be surprised if the general media starts reporting dramatic shift in numbers on a month over month basis. The real estate world is not going bonkers, it is just the media taking the facts out of context.

The truth is, we have been in a seller's market for more than 6 months. Our next challenge will be having enough appraisers to process sales and getting people through the arduous task of getting preapproved which is now taking up to 10 days.

If you've been waiting for the right time to purchase a home, don't let this opportunity pass you by!

Bank of America's Merril Lynch says housing crisis is over!

Cathy Sarmento (Granite Real Estate "Cool Team") — Fri, 06 Apr 2012 18:21:35 -0700

Bank of America Merrill Lynch's economics team declared that housing prices have hit bottom earlier than they expected as reported to Bloomberg News.

Placer County Local trends and sales activity are showing strong signs towards recovery. Housing prices have near stablized, ranging in price from $118 per square foot to $131 over the last 15 months.

Based on current closed sales the county has less than 3 months of inventory at the current rate. Sellers are not having to adjust their initial pricing much to attract buyers, netting an average of 94% of their original asking price. The average sold home has taken only 86 days from list to offer.

Pending sales have steadily increased over the last three months are up nearly 38% over 15 months ago and inventory is down 46.7%

In price ranges under $200,000. multiple offers are common.

The reality check is we will see increased inventory as word gets out and banks will begin to release properties held back until file reviews could be completed post "robo signing settlement" and compliance with changes in California laws affecting distressed properties. Couple that with challenges buyers face in obtaining new mortgages and we still have a way to go, however the future looks bright for Placer County.

To view statistics go to: Placer County Statistics

Cathy Sarmento
Local Realtor since 1990

*Data from Metrolist MLS Trend Vision

California Homeowners Still Having Trouble Make Mortgage Payments

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 05 Mar 2012 09:17:10 -0800

Photo by B Rosen

According to credit reporting bureaus Placer County has 1044 homeowners with at least 1 late mortgage payment: 370 are 30 days late, 181-60 days late, 100-90 days late and 393 are more than 120 days late.
El Dorado shows 485 homeowners with at least 1 late mortgage payment: 185 are 30 days late, 71-60 days late, 46 are 90 days late and 183 are 120 days late or more.

There is help and there are options. In California it is illlegal to charge distressed homeowners for assistance with modifications or related services to remedy mortgage lates. The sooner you act to find out what your options are and arm yourself with knowledge the more time you will have to prepare and have more solutions to help you plan strategies.

There are several consumer protection laws that, unless extended will expire this year. Don't let the clock run out and leave you in a worse situation than you think you are in now.

Get a free Home Owner's Guide eBook from www.HomeRetentionConsultant.com

Whether you want to keep your home or move on, you need to be proactive. For guidance and information, just reach out. Compassionate, non-judgemental help is available for free.

530-823-5783

Real Estate Market Trends El Dorado County Cool, Pilot Hill, Georgetown, Greenwood, Garden Valley

Cathy Sarmento (Granite Real Estate "Cool Team") — Tue, 29 Nov 2011 14:50:33 -0800

Real Estate Market Trends by town, just click to get the link to the November 2011 Sales Statistics:

Cool Real Estate Market Trends

Garden Valley Real Estate Market Trends

Georgetown Real Estate Market Trends

Greenwood Real Estate Market Trends

Pilot Hill Real Estate Market Trends

The entire Georgetown Divide as a whole

In general our foothill communities are out-pacing the nation. Inventory is down year over year and entry level properties are seeing stiff competition from investors that are now convinced that low interest rates coupled with affordability make for a good investment and hedge against inflation as these properties recover and not only generate income now but also have great potential for future appreciation. California Association of Realtors is stating by 2015 California will see a substantial housing shortage and that by 2020 we will see home prices double. The cause? influx of new people, the age of youth will be of home buying age, renters realizing that ownership at low interest rates is cheaper than renting and the formerly displaced homeowners from short sales and foreclosures will have sufficient credit recovery and be able to buy again.

We are now experiencing multiple offers on those properties priced well and in great condition with updates completed! The time on the market for these homes are days not weeks. Many buyers are lamenting there are not as many to choose from as they expected. With these new sales stats it is likely we will start to see prices moving from stability to marginal increases.

Barring major economic changes and global catastrophies, we are now leaving the bottom of the market. Don't wait too long to answer opportunity's knock, it could cost you more and the home you really wanted may have someone else living in it.

Real Estate Market Trends for Placer County: Auburn, Meadow Vista, Newcastle

Cathy Sarmento (Granite Real Estate "Cool Team") — Tue, 29 Nov 2011 13:25:33 -0800

Here are the most current real estate market trends for November 2011 for Placer County and the communties of:

Auburn Real Estate Market Trends under $300k Auburn Real Estate Market Trends over $300k

Foresthill Real Estate Market Trends

Meadow Vista Real Estate Market Trends

Newcastle

Weimar-Colfax-Applegate

National Health Care Real Estate TAX takes affect 2013

Cathy Sarmento (Granite Real Estate "Cool Team") — Fri, 14 Oct 2011 18:34:17 -0700

If you or someone you know is considering selling their home, you can add this to list of reasons to do it sooner rather than later.

If you have substantial equity and are in a high income bracket (above $200k or $250k joint income) and are thinking about selling; you may want to divest yourself of that home in the next 12-14 months. I've attached a flyer that goes into greater detail about how a new tax will be imposed as of January 1, 2013 on capitol gains of real estate sales among other things.

It also would apply to the sale of stocks, so you may want to consider doing a 1031 into rental income to avoid the additional tax.

Please consult your tax professional as this should not be substituded for professional tax advice. Each individuals situation is unique, make sure you are making decisions based on facts to serve your best interest.

This 3.8% tax is part of the National Health Care Package that was voted in the dark of night in 2010.

National Association of Realtor Flyer on 2013 Tax

Auburn to Cool California Foothills May Find Foreclosure Relief

Cathy Sarmento (Granite Real Estate "Cool Team") — Sat, 01 Oct 2011 17:07:16 -0700

Efforts to help California homeowners avoid foreclosure and keep their homes received a big boost recently when Bank of America agreed to participate in a principal-reduction program.

It became the first major mortgage service company to join the program, which can offer cash-strapped mortgage holders up to $100,000 in relief on their loans. Bank of America services more than 2.2 million home loans in the state.

The program aids home-owners at risk of default because of economic hardship and a severe decline in their home values.

Those who qualify are eligible for up to $50,000 in assistance from the Keep Your Home California program and, with the mortgage lender required to match the program dollar for dollar, a total principal reduction of as much as $100,000.

While other mortgage modification programs may stretch out monthly payments or lower interest rates to make the loans more affordable, they don't reduce the principal balance.

"The principal-reduction program is one of those that many homeowners have been waiting for," said Evan Geberding, marketing manager for Keep Your Home California, a nonprofit corporation administering $2 billion in federal funds through a program to help state residents who are struggling to pay their mortgages.

It could prove a lifesaver for borrowers who find other mortgage-modification or loan-assistance programs fall short.

"We're asking homeowners to make one more phone call, give us one more chance, so you can find out if this might work for you," Geberding said. "This one really is different."

Still, it may not help everyone.

For example, mortgages owned or guaranteed by Fannie Mae or Freddie Mac are not eligible for the Principal Reduction Program.

Also, it is being supported by eight mortgage service companies.

For more information, call Keep Your Home California toll-free at (888) 954-KEEP (or (888) 954-5337) or visit KeepYourHomeCalifornia.org.

California: New Fee - Fire Prevention Will Cost Homeowners $150. per year

Cathy Sarmento (Granite Real Estate "Cool Team") — Fri, 12 Aug 2011 13:24:27 -0700

Cal Fire Fee

Gov. Jerry Brown recently signed into law a $150 annual wildfire protection fee for property owners in rural areas of California. While the regulators are still working out the details and some counties are even preparing to seek answers from the courts, we want you to be as prepared as possible with knowledge of the areas likely to be affected by this new fee. We have provided a copy of the map showing those proposed affected areas in yellow.

Shh, Auburn CA secret McCaulou's is OPEN

Cathy Sarmento (Granite Real Estate "Cool Team") — Thu, 28 Jul 2011 00:25:15 -0700

The company that went into the old Gottchalk's building did a soft opening today. Get a sneak peek and great deals before the formal grand opening!

Home Values for Auburn, CA 95603

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 27 Jun 2011 18:16:29 -0700

Pricing is beginning to stabilize. We are at home values the same as 14 months ago and with inventory dipping below sales activity we may even see some price improvement sooner than expected.

	1 month	1 year	15 months
	Apr 11	May 11	% Change	May 10	May 11	% Change	Mar 10	May 11	% Change
Avg. Sq. Ft. Price	142	144	1.4%	153	144	-5.6%	160	144	-9.9

Real Estate Market Trends for Auburn, California 95614

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 27 Jun 2011 18:10:18 -0700

From the graph below you can see the local foothill market of Auburn is bucking the national trend. Our sales are up in a big way! Closed sales are up a whopping 77% from last year and pending sales are up 45%, while the inventory has dropped just under 12%. If these patterns hold we will begin to see prices rise. Simple economics of supply and demand. Many price ranges and micro markets are seeing multiple offers for the most desireable properties. For home values see the next chart

	1 month	1 year	15 months
	Apr 11	May 11	% Change	May 10	May 11	% Change	Mar 10	May 11	% Change
For Sale	102	105	2.9%	119	105	-11.8%	114	105	-7.9%
Sold	23	32	39.1%	18	32	77.8%	32	32	0%
Pended	42	45	7.1%	31	45	45.2%	23	45	96%

Auburn Cruise Night on Friday the 10th

Cathy Sarmento (Granite Real Estate "Cool Team") — Thu, 02 Jun 2011 15:05:58 -0700

Plan to make a evening out with family friendly cruise night in Auburn, CA 95614.

If you haven't been to one lately you are missing out on a whole lot of fun in Auburn!

Head for the clock tower or the Chamber of Commerce if you want to walk downhill.

Breaking news on FANNIE & FREDDIE Short Sales Policies

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 02 May 2011 16:59:09 -0700

I just read this and wanted to pass it on!

Maybe somebody is listening to us agents!

http://theagentinsider.com/uniform-short-sale-standards-coming-for-fannie-mae-and-freddie-mac-short-sales/

Auburn Real Estate Trends in the $500,000. price range & up

Cathy Sarmento (Granite Real Estate "Cool Team") — Thu, 28 Apr 2011 21:02:58 -0700

Sales have remained somewhat consistent for the last 15 months, allowing for seasonal fluctuations. The inventory is nearly half of what it was a year ago, however there is still a great selection of quality homes at bargain prices. Speaking of Prices, we have seen an uptick in higher end home sales in great condition with extravagant upgrades, correspondingly we see an increase in the price per square foot; which might mean we will see prices stablizing; however with 12 months of inventory at the current absorption rate, it is too soon to tell. California is on SALE, no sale lasts forever - don't miss a golden opportunity to own the home of your dreams.

Auburn Home Sales Trends Priced under $250,000.

Cathy Sarmento (Granite Real Estate "Cool Team") — Thu, 28 Apr 2011 19:58:42 -0700

California is ON SALE! Buyers are recognizing this and have come out along with the Sunshine to take advantage of great deals. Correspondingly, inventory has dropped just as home buyers take action, leaving even less to choose from. Simple economics indicate at this pace prices will start to rise! Buyers who continue to wait may miss out on the best selection, as pending sales have increased dramatically tying up the most desirable homes

Will a HARP refinance Help Upsidedown Homeowners?

Cathy Sarmento (Granite Real Estate "Cool Team") — Wed, 30 Mar 2011 14:11:38 -0700

Could the Home Affordable Refianance Program (HARP) (which is scheduled to expire in June) be a good solution for folks trapped in a high interest mortgage?

HARP is a component of the Make Home Affordable Plan, the fed's bailout for homeowners, which few were able to get through the process with their lenders on the other components. However this under utilized component. If you loan is guaranteed by Fannie Mae or Freddie Mac, you have an opportunity to refinance! (see tools below)

HARP Guidelines state:

You must have a Fannie or Freddie loan
You haven't been late more than 30 days late on your mortgage payments in the last 12 months
Your mortgage loan amount does not exceed your current value property by more than 125%

It is a fixed rate mortgage with prevailing low interest rate!

Tools: www.fanniemae.com/loan/lookup 1-800-7FANNIE

www.Freddiemac.com/mymortgage.com or 1-800-FREDDIE

How are world events affecting interest rates?

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 21 Mar 2011 17:22:02 -0700

Quoted from Debra Jones, Big Valley Mortgage:

Hello, we are seeing mortgage rates pressured upwards for this Monday. Here is the Commentary: The credit market is currently being dominated by events in Japan and Libya. Developing signs of stability in these areas has served to reduce global demand for safe haven investments like Treasury debt obligations and mortgage-backed securities - a condition which has put some noticeable upward pressure on mortgage interest rates this morning.

News that the Treasury Department will begin selling approximately $10 billion per-month out of their $142 billion agency-guaranteed mortgage-back securities portfolio that it acquired in 2008 and 2009 amid the financial crisis nudged the trend trajectory of mortgage interest rates higher as well.

The National Association of Realtors released their February Existing Home Sales figures at 10:00 a.m. ET this morning. The data showed housing demand remains soft. Sales of existing homes slumped 9.6% last month. Most analysts believe the February setback likely reflects a temporary slowing, and there is good reason to expect demand will strengthen as the year progresses. When averaged over three months, existing home sales are still running at their strongest pace since June, when the tax credit ended. With the economy on track to generate an increasing number of jobs this year and with the housing affordability index at its most attractive level in almost a decade -- the probabilities remain high that housing demand will accelerate handsomely before the year comes to a close.

Why wait to buy a home, help a relative buy a home or continue renting? Don't wait for the rebound to be in the rear view mirror. She didn't mention as more people decide to buy that money to lend may tighten even more.

Act now, you'll be glad you did. Call, text or email me today.

Rent Hikes Predicted, Investors should Buy Now!

Cathy Sarmento (Granite Real Estate "Cool Team") — Sat, 19 Mar 2011 20:09:56 -0700

I agree with these statistic quoted from Rent.com For some time I have been saying, "where are all the displaced people going to go after their shortsales or foreclosure? The will only stay with family an average of less than 6 months. I am also getting inquires from many people looking for rentals. In many areas in our vacinity, your mortgage would be less than rents in comparable properties. Why Rent when you could Own?

Here's the article from News Genius: Renters beware: Double-digit rent hikes may be coming soon.

Already, rental vacancy rates have dipped below the 10% mark, where they had been lodged for most of the past three years.

"The demand for rental housing has already started to increase," said Peggy Alford, president of Rent.com. "Young people are starting to get rid of their roommates and move out of their parent's basements."

By 2012, she predicts the vacancy rate will hover at a mere 5%. And with fewer units on the market, prices will explode.

Rent hikes have averaged less than 1% a year over the past decade, according to Commerce Department statistics, adjusted for inflation. Now, Alford expects rents to spike 7% or so in each of the next two years - to a national average that will top $800 per month.

In the hottest rental markets, the increases will likely top the 10% mark annually for the next couple of years. In San Diego, Alford anticipates rents will rise more than 31% by 2015. In Seattle rents will climb 29% over that period; and in Boston, they may jump between 25% and 30%.

This is a sharp change from the recession, when many Americans couldn't afford to live on their own. More than 1.2 million young adults moved back in with their parents from 2005 to 2010, said Lesley Deutch of John Burns Real Estate Consulting. Many others doubled up together.

As a result, landlords had to reduce prices and offer big incentives to snag renters.

Now that the recession is easing, many of these young people are ready to find new digs, mostly as renters, not owners. Plus, the foreclosure crisis continues unabated, and the millions losing their homes are looking for new places to live

Auburn, CA 95602, 95603 & 95604 Real Estate Sales Trends

Cathy Sarmento (Granite Real Estate "Cool Team") — Fri, 04 Mar 2011 20:24:32 -0800

The following graphs show the Sales Trends in the Greater Auburn Area. There is still an abundance of homes to choose from, inventory is slightly higher than last year and sales a just below January 2010 but, pending sales in Jan. took a jump up. Prices are leveling out (chart 2) allowing for seasonal changes the overall prices haven't changed more than 0.5 % Chart (3) Sellers are getting 88% of their original asking price on average and it is taking them an average of 96-111 days to sell. Chart (4) tells us at the current rate of homes for sale, if no new ones came on the market, with the current rate of sales it would take 7.4 months to sell everything. With spring coming many homeowners decide to market their homes, however homebuyers are also out looking in greater numbers. So we don't see huge changes on the horizon. With tempting interest rates, NOW is a great time to be in the market for a new home!

May 17 2011 AMGEN Tour of California - Auburn is accepting sponsorships

Cathy Sarmento (Granite Real Estate "Cool Team") — Thu, 03 Mar 2011 14:47:29 -0800

Sponsorships start at $250

for more information contact City Hall c/o John Ruffcorn

1225 Lincoln Way or call Betty Bennett with any questions 530-863-6271

Divide Chamber of Commerce Mixer Tonight

Cathy Sarmento (Granite Real Estate "Cool Team") — Tue, 01 Mar 2011 17:03:00 -0800

Just wanted to let you know that the Georgetown Divide Chamber of Commerce Mixer is tonight a great opportunity for the communites of Cool, Pilot Hill, Greenwood, Georgetown, Garden Valley & Kelsey to network with business owners and community movers and shakers.

AT: Wells Fargo Bank in Cool on the corner of 49 & 193

Refreshments: Hosted by Wells Fargo

STARTS: 6:30 ! ( the bank is open until 6pm)

Choices are good, don't wait to buy a home; if it is one of your goals.

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 28 Feb 2011 13:03:39 -0800

Procrastination or waiting for home prices to inch down further could be what prevents you from obtaining home ownership this year. Prices are near bottom and are not anticipated to drop dramatically this year. However that is only part of the cost of owning a home. The mortgage determines how much you will pay monthly.

Interest rates are sure to creep up as the governments backs away from buying loans from the banks and mortgage brokers. (Google fannie mae & freddie mac) That means private investors (that already got burned in the securities investments) will have to step up and purchase them. They will want far higher interest rate returns on those investments to offset the risk of defaults. The Gov. has artificially kept mortgage interest rates down to encourage the real estate recovery and programs like tax rebates for 1st time home buyers are history.

The Feds have also said they are going to back off on FHA loans, which according to my favorite lenders is aproximately 80% of the market right now. They are also talking about lowering the maximum loan amount through FHA and have already increased upfront costs as well as additional mortgage insurance fees and increased the down required from 3% to 3.5%.

So, what all this means is, you will have less mortgage choices and it will cost you more in the latter half of 2011. Buy now or pay later. You could be deducting mortgage interest from now till December on next year's return. Or you could be kicking yourself for holding out on a deal that never materialized and paying your landlords mortgage. Mortgage prices are sure to go up before home prices, but it really makes sense when frequently your rent is more than a mortgage payment would be.

Spring it typically the time most new listings come on the market, there is a great selection of well priced homes to choose from as well as affordable mortgages and programs. It costs you $0 to look and find out if you qualify. What might waiting cost you?

Why it's important to send in those resgistration cards that come with your purchase.

Cathy Sarmento (Granite Real Estate "Cool Team") — Mon, 21 Feb 2011 16:36:25 -0800

Every year millions of consumers purchase items that they use in their homes regularly that are later found to have significant flaws or are down right dangerous. The only way the manufacturer can contact the owners of these products is if they sent back the registration cards.

If you forgot to send in those cards, you may look at the website below for a list of many of the current recalled products.

RECALLS

Carbon Monoxide Dectectors Required by new California Law - Coupon

Cathy Sarmento (Granite Real Estate "Cool Team") — Sun, 13 Feb 2011 13:19:44 -0800

All residential 1-4 dwellings will require a cabon monoxide detector, in addition to the well established smoke detector outside each sleeping area and one each floor. Multiple detectors might be required depending on if there are different fuel sorces (gas, wood or oil). All homes must comply by July 1, 2011.

One manufacturer is offering 10% off!

Coupon

The law also requires other types of housing to have them, timelines vary.

Great off Road Biking Trails in Cool & Pilot Hill, CA

Cathy Sarmento (Granite Real Estate "Cool Team") — Tue, 18 Jan 2011 11:06:08 -0800

To get the low down on local biking trails check out the following site:

TRAILS COOL-95614 & PILOT HILL 95664