Buyer’s Market or Seller’s Market?  The discussion about whether we are in a buyer’s market or a seller’s market comes up a lot these days.  A buyer’s market is defined as having 6 months or more of inventory and a seller’s market as having 6 months or less of inventory. The way that is calculated is by taking the listed homes on the market and dividing it by the sales for that month. 

This may help in determining who has the negotiating power in a situation but when it comes to putting in an offer or listing a home for sale, there are several other factors that come in to play and the answer is not so cut and dry and you need to look further for correct pricing.   

 First thing to consider is the locality.  Real estate is local and it has to be looked at on the local level first to determine where the inventory stands in that area.

 From there you will find that different price ranges have different inventory levels and you need to look at the status in that price level. For instance, in El Dorado Hills where I live and work, the under $400K price range shows 4.3 months of inventory but the $750K and above price range shows 34 months of inventory according to September statistics.

 This month Lyon Real Estate’s Trendgraphix press release states that the lower price ranges have stabilized and even moved up slightly.  This is because there are so many buyers in that range and they are keeping the inventory to a minimum. With multiple offers on homes in that range, what we are seeing is a seller’s market with offers at full price and even over. Buyers in this instance have little negotiating power. 

 As the price of homes go up there are fewer and fewer buyers in those price ranges and as I stated in my El Dorado Hills example there can be several months’ worth of supply. Buyers in this scenario tend to have more negotiating power and it is considered a buyer’s market. But not always!   Sometimes we find that the house itself is a big factor. As an example, in El Dorado Hills there can be several buyers who are looking for the same thing in a house and when a new listing comes on the market that fits that criterion, they can be facing competition from multiple offers.  Whenever there are multiple offers the seller takes control.

 To summarize, if you are in the market to buy or sell a home, don’t let the “buyer’s market” or “seller’s market” talk guide your offers and pricing.

 What’s your scenario?  Feel free to post it in a comment and we can discuss it!

WHERE IT ALL COMES TOGETHER

www.eldoradowcr.org

Please join us as  El Dorado County Chapter WCR and EDCAR Proudly Presents:

Gov Hutchinson, Assistant General Counselof the California Association of Realtors

For this month's business resource luncheon.  

Topic:  "Legal Update"  

  October 16, 2009 

11:00am  - 1:00pm

Cameron Park Country Club

Cost: $20  

Agenda:

11:00am  - Networking

11:30am - Lunch 

RSVP Required by October 14th. To reserve your seat email me at driley@golyon.com   

^{Please keep in mind that a Reservation Made is a Reservation Paid We encourage you to invite a friend or business associate you feel would benefit from the Educational topics and Networking opportunities our Women's Council of Realtors Chapter has to offer its' members.}

The Women's Council of REALTORS - El Dorado County Chapter will host an REO Panel for this month's business luncheon on the Ins and Outs of REOs. 

August 14, 2009

11:00am - 1:00pm

Cameron Park Country Club, Cameron Park, CA

$20 WCR Member / $25 Non-Member Guest

The panel consists of:

Carlos Kozlowski, Realtor with Coldwell Banker - In 2008 Carlos was the #1 agent for Coldwell Banker in the Sacramento/Tahoe Region and ranked #12 nationally by the Wall Street Journal Lore Report for closing 455 transactions.

Ian Maker, Realtor with ReMax Gold - Ian began in the REO business in 1990.  His REO team is ranked #22 in the nation with ReMax and has a proven track record for success using their streamlined procedures.

Warren Adams, Founding Broker with Security Pacific Real Estate - Recently selected "Top Performing Agent" at a national conference in Los Angeles.  In 2008 Warren closed over 500 transactions totaling over $100 Million in sales volume and has ranked #1 in sales for the last 20 years at Security Pacific.

Please RSVP by August 11 to DeeDee Riley, Lyon Real Estate, driley@golyon.com

This year's charity golf tournament, organized by the El Dorado County Association of REALTORS®, will be held at the Cameron Park Country Club on Monday, August 31st with proceeds to benefit "Backpacks for Kids".  Players arrive at 10:00am. 

Foster care children often relocate, toting their possessions in plastic garbage bags because they cannot afford to purchase backpacks and suitcases of their own. "Suitcases for Kids" is a National Association of REALTORS® project that collects and distributes new backpacks, suitcases, and duffel bags for these special children. EDCAR manages its own independent operation we call "Backpacks for Kids" and buys material and accepts donated items to put together our own age and gender-specific backpacks for children in El Dorado County. These backpacks are distributed by Child Protective Services case workers.

We are seeking support from our community for our "Backpacks for Kids" program, by way of sponsorship and/or participation in this year's annual Charity Golf Tournament  as well as through the donation of related goods, auction and live auction items for the event, funding, or items for the backpacks themselves.

If you are a golfer, we are still looking for players.  Ticket prices for players are $150 who register by July 31, 2009 or $175 after that date.  

Tickets for Players Will Include:

• Golf Carts (one shared per every two players)

• Golf Shirts customized with the EDCAR logo for this event

• Tee Bag with Goodies

• Lunch (served in advance of play)

• Country Club Dinner (following play)

• Prizes Awarded to 1st, 2nd, and 3rd Place Teams

• Contests for "Closest to the Pin", "Longest Drive", "Putting", etc.

• Raffle Tickets for Great Prizes as well as Live Auction Items

• "Hole in One" Contests for Luxury Items

Lunch and Dinner is also open for registration to spouses and other non-players who would like to enjoy the day and festivities.

For more information visit:  http://edcar4kids.com/ where you can find a registration form to download and instructions for building a back pack.  This is a wonderful event and cause.  Any support is greatly appreciated.   

Here is the newest press release for our Lyon Real Estate Trendgraphix that summarizes the statistics from the previous month.  This report is based on June 2009 sales and numbers. 

This month's Trendgraphix talks about our low inventory.  To go along with the press release and give you an idea of what is actually happening in the different price segments of homes I pulled statistics by county for four different prices levels.  I've charted them showing the sales and the average price per square foot average of those sales. These stats are for all single family home sales (including bank owned).  If you'd like to see what those statistics would look like for a particular zip code, email me at driley@golyon.com and I will be happy to pull those for you.

TRENDGRAPHIX MONTHLY REAL ESTATE REPORT

BROUGHT TO YOU BY

Lyon Real Estate

3640 American River Drive, Suite 100, Sacramento, CA  95864

 F O R   I M M E D I A T E   R E L E A S E

July 13, 2009

CONTACT:  Michael Lyon

CEO

(916) 978-4266

FAX (916) 481-7592

Low Inventory Pushes Prices Up

 For the third month in a row, price per sq/ft, median and average prices have risen for homes priced below $750,000.00. With fewer than expected bank-owned properties hitting the market together with low interest rates, buyers are finding slim-pickings. The opposite is true above $750,000.00, where we have two years of inventory. The third month of increased prices should help appraisers establish a better base to value homes in the market.

TRENDGRAPHIX's latest report shows that sales increased 1 percent during the month of June for the Tri-County region of Sacramento, Placer and El Dorado Counties. June 2009 sales were 10 percent lower than June 2008 sales.  Pending sales increased by 12 percent from May to June 2009.

June 2009 inventory of 6,331 homes for sale is 43 percent lower than June 2008 inventory.  This is a 59 percent decrease for the regional inventory record high of 15,302 set in August 2007.   

COUNTY HIGHS AND LOWS

Sacramento County sales decreased 3 percent from May to June 2009. Inventory decreased 2 percent during the month of June.  Pending sales increased by 12 percent in the month of June. 56 percent of the homes sold for under $200,000; 37 percent of the homes sold for between $200,000 and $400,000; and 7 percent of the homes sold for over $400,000.  The average price per square foot increased by 3 percent during the month of June to $121.       

Placer County sales increased by 15 percent and inventory increased by 1 percent during the month of June 2009.  Pending sales increased by 11 percent from May to June. 12 percent of the homes sold for under $200,000; 64 percent of the homes sold for between $200,000 and $400,000; and 24 percent of the homes sold for over $400,000.  The average price per square foot increased 1 percent during the month of June at $154. 

El Dorado County showed an 11 percent increase in sales from May to June, and the inventory decreased by 1 percent from May to June.  Pending sales have increased 19 percent during the month of June.  16 percent of the homes sold for under $200,000; 43 percent of the homes sold for between $200,000 and $400,000; and 41 percent of the homes sold for over $400,000.  The average price per square foot increased by 3 percent during the month of June to $159.       

Yolo County sales increased by 6 percent for June 2009 and the inventory increased by 2 percent.  Pending sales increased 8 percent during the month of June. 34 percent of the homes sold for under $200,000; 48 percent of the homes sold for between $200,000 and $400,000; and 18 percent of the homes sold for over $400,000.  The average price per square foot decreased by 2 percent during the month of June to $162.

Nevada County sales have increased by 16 percent during the month of June, and inventory increased 1 percent.  Pending sales decreased by 3 percent. 3 percent of the homes sold for under $200,000; 38 percent of the homes sold for between $200,000 and $400,000; and 59 percent of the homes sold for over $400,000.  The average price per square foot decreased by 7 percent during the month of June at $182. 

San Joaquin County sales have increased by 6 percent during the month of June, and inventory decreased 7 percent from May to June.  Pending sales are up 17 percent. 49 percent of the homes sold for under $200,000; 42 percent of the homes sold for between $200,000 and $400,000; and 9 percent of the homes sold for over $400,000.  The average price per square foot remained the same during the month of June at $93.

The El Dorado Chapter of Women's Council of Realtors will be hosting our 6th Annual Grape Escape Event Friday, May 8th, 2009 - 5:30-9:00PM at Mercedes Benz of El Dorado Hills.  We will have local food and wine vendors, live music, and a silent auction.  

This year we will be benefiting Family Connections - "Strengthening Families and Enriching Communities" and CASA - Court Appointed Special Advocates.

Tickets may be purchased as Lyon Real Estate in El Dorado Hills, 3900 Park Drive- $25 each.

This is a wonderful event and well worth the time and effort. Please join us.

For more information contact:  Nancy Murphy 530.957.1950 or Judy Hawkins 916-955-2198

As a local realtor I am hearing reports from clients and friends about their refinancing difficulties and many are due to our decline in values.  That is an issue all of us as homeowners are facing refinance or not.  I decided to find out what can be done as far as having our property taxes reassessed to reflect our current values and at least help lower our property taxes.  I contacted the El Dorado County Assessors Office directly and here is what I found out.

Our taxes we are paying now are based on the values from January 08.  They will base 2009-2010 taxes on the value as of January 2009.  The assessors office will be looking at homes purchased 2003 or since.  They believe any home purchased before that time is still in the black and worth more than their current assessments.   If you did purchase in 2003 or since you will need to fill out their online Decline in Value Request Form.  You can find that at http://co.el-dorado.ca.us/assessor/prop8form.asp.   Include in the comments what you believe your home is worth.  They will be using their own comps for now to assess our properties. However, if you have had an appraisal recently, explain that in the comments and then fax your appraisal to 530-642-8148. Make sure to include your parcel number at the top of the page.    They will be closing the tax roll for this year on June 30th so you absolutely need to have the above form in to them by then.  I would suggest not waiting.  It took me about three minutes to fill it out and that included finding my latest property tax statement so that I could enter my parcel number.  

I can't guarantee that taxes will be reduced for you, but we won't know if we don't try.  We should get the notice of assessment in the summer and will then be able to ask for an appeal if you are not satisfied with the outcome. This information is for El Dorado County.  If you have properties in Sacramento County, Yolo County, and Placer County you will need to check with the assessors offices there as to what they require and their time lines. 

For Sacramento County visit:  http://www.assessor.saccounty.net/GeneralInformation/SAC_ASR_DF_Decline_Value

For Yolo County visit:  http://www.yolocounty.org/Index.aspx?page=579

For Placer County visit: http://www.placer.ca.gov/Departments/Assessor.aspx  

Beware of scams to help you get your property reassessed for a fee.  By contacting the assessors office yourself you should be able to handle it at no charge.

DeeDee Riley, Lyon Real Estate El Dorado Hills          

While our Lyon office is buzzing lately with activity and it is such an amazing time to buy, like this month"s Trendgraphix report states, our inventory is very low.  With the moratorium on bank foreclosures, unfortunately what is still out there is either in very bad shape or is selling in a matter of days with multiple offers.  I'm not sure how our officials are thinking this will help.  Most of us in the real estate world just want to see what we have and get them out of the way.  It feels like it is just postponing the inevitable.   

Along with our newest Trendgraphix, I am including a Price Trend and Surplus Analysis that is through February and shows the cumulative per square foot growth since January 2001.  For most areas in our region, we are almost back to those 2001 prices.  For El Dorado County our homes are still comparing in value to the 2005 prices. 

The monthly Trendgraphix report can be viewed on my website at DeeDeeRiley.com by clicking on the link in the left collumn.  The Price Trend Analysis report is updated periodically for our Lyon agents.  To see the latest update, please email me at driley@golyon.com. Feel free to contact me with any questions on either of these reports.

TRENDGRAPHIX MONTHLY REAL ESTATE REPORT    

Bank Owned Inventory is running out

        "It may only be a product of the many moratoriums on REO sales, that has dropped inventory levels down to just one month and below a month for pending sales which have jumped 24%," said Michael Lyon, CEO of Lyon Real Estate.  "The average REO sold price is hovering at $180,000 for the last three months. Even more profound is that the price per foot for REO's in Sacramento County has dropped below $100/ft to $ 99/ft.   Interest rates are below 5%, first time buyer tax credits and REO inventories that are being absorbed as fast as they reach the market are changing the market faster than anticipated.  Let there be no misunderstanding about the REO market, we feel there will be as many REO sales this year as last.  The difference is the drastic drop in prices and very low interest rates have made for an ideal buyers market.  Jumbo mortgages above $700,000 which were very hard to come by are slowly becoming available as Lenders decide that they have enough money to lend.  There still no secondary market for these loans so the Banks have to keep them on their books, but many banks feel a 6% to 7% asset on the books is not a bad investment."

TRENDGRAPHIX latest report shows that sales increased 10 percent during the month of March for the Tri-County region of Sacramento, Placer and El Dorado Counties. March 2009 sales were 43 percent higher than March 2008 sales.  Pending sales increased by 35 percent from February to March 2009.  March 2009 inventory of 7,739 homes for sale is 37 percent lower than March 2008 inventory.  This is a 49 percent decrease for the regional inventory record high of 15,302 set in August 2007. 

COUNTY HIGHS AND LOWS

Sacramento County sales increased 7 percent from February to March 2009. Inventory decreased 7 percent during the month of March.  Pending sales increased by 33 percent in the month of March. 61 percent of the homes sold for under $200,000; 34 percent of the homes sold for between $200,000 and $400,000; and 5 percent of the homes sold for over $400,000.  The average price per square foot decreased by 2 percent during the month of March to $113.

Placer County sales increased by 32 percent and inventory decreased by 3 percent during the month of March 2009.  Pending sales increased by 49 percent from February to March. 15 percent of the homes sold for under $200,000; 65 percent of the homes sold for between $200,000 and $400,000; and 20 percent of the homes sold for over $400,000.  The average price per square foot decreased 1 percent during the month of March at $148.

El Dorado County showed a 7 percent increase in sales from February to March, and the inventory increased by 2 percent from February to March.  Pending sales have increased 29 percent during the month of March.  17 percent of the homes sold for under $200,000; 49 percent of the homes sold for between $200,000 and $400,000; and 34 percent of the homes sold for over $400,000.  The average price per square foot decreased by 1 percent during the month of March to $163.

Yolo County showed a 57 percent increase in sales for March and the inventory decreased by 10 percent.  Pending sales increased 17 percent during the month of March. 42 percent of the homes sold for under $200,000; 42 percent of the homes sold for between $200,000 and $400,000; and 16 percent of the homes sold for over $400,000.  The average price per square foot increased by 11 percent during the month of March to $142.

 Nevada County sales have decreased by 34 percent during the month of March, and inventory increased 5 percent.  Pending sales increased by 30 percent. 0 percent of the homes sold for under $200,000; 43 percent of the homes sold for between $200,000 and $400,000; and 57 percent of the homes sold for over $400,000.  The average price per square foot increased by 2 percent during the month of March at $192.

San Joaquin County sales have increased by 19 percent during the month of March, and inventory decreased 16 percent from February to March.  Pending sales are up 36 percent. 50 percent of the homes sold for under $200,000; 42 percent of the homes sold for between $200,000 and $400,000; and 8 percent of the homes sold for over $400,000.  The average price per square foot decreased 5 percent to $91 in March.

###

Every month, at Lyon Real Estate, our CEO Mike Lyon releases a report on the statistics from the previous month's sales for six counties in our Sacramento region.  These statistics come from our Trendgraphix tool and are available to us as Lyon agents.  Here is this month's report as well as a table I put together to break down some of the areas within these counties to back up my "Real Estate is local" affirmation.  There is a link on my website for this report that I update monthly around mid month.  

TRENDGRAPHIX MONTHLY REAL ESTATE REPORT

BROUGHT TO YOU BY

Lyon Real Estate

March 9, 2009

Banked Owned Inventory Declines 20%  

"Bank-Owned (REO) Inventory has declined 40% and ‘Solds' have increased 84% since February 2008," said Michael Lyon, CEO of Lyon Real Estate. "There has been a 20% drop in REO inventory in just the last 30 days in our region. With state moratoriums and enticements of federal aid, the general feeling is that a lot of REO inventory has been delayed entering the market. Meanwhile, the non-REO market above $500k has seen a 6% increase in inventory and a 37% drop in sales, when comparing February over January 2009. It's likely that financing constraints are now affecting upper-end market sales and inventory." 

        TRENDGRAPHIX's latest report shows that sales decreased 5 percent during the month of February for the Tri-County region of Sacramento, Placer and El Dorado Counties. February 2009 sales were 44 percent higher than February 2008 sales.  Pending sales increased by 4 percent from January to February 2009.

         February 2009 inventory of 8,136 homes for sale is 35 percent lower than February 2008 inventory.  This is a 47 percent decrease for the regional inventory record high of 15,302 set in August 2007.  

COUNTY HIGHS AND LOWS

Sacramento County sales decreased 4 percent from January to February 2009. Inventory decreased 5 percent during the month of February.  Pending sales increased by 3 percent in the month of February. 61 percent of the homes sold for under $200,000; 33 percent of the homes sold for between $200,000 and $400,000; and 6 percent of the homes sold for over $400,000.  The average price per square foot decreased by 1 percent during the month of February to $115.       

Placer County sales decreased by 14 percent and inventory increased by 2 percent during the month of February 2009.  Pending sales increased by 7 percent from January to February. 10 percent of the homes sold for under $200,000; 65 percent of the homes sold for between $200,000 and $400,000; and 25 percent of the homes sold for over $400,000.  The average price per square foot increased 1 percent during the month of February at $149. 

El Dorado County showed a 13 percent increase in sales from January to February, and the inventory decreased by 1 percent from January to February.  Pending sales have increased 4 percent during the month of February.  18 percent of the homes sold for under $200,000; 49 percent of the homes sold for between $200,000 and $400,000; and 33 percent of the homes sold for over $400,000.  The average price per square foot increased by 2 percent during the month of February to $165.       

Yolo County showed a 12 percent decrease in sales for February and the inventory decreased by 10 percent.  Pending sales increased 18 percent during the month of February. 46 percent of the homes sold for under $200,000; 47 percent of the homes sold for between $200,000 and $400,000; and 7 percent of the homes sold for over $400,000.  The average price per square foot decreased by 12 percent during the month of February to $128. 

Nevada County sales have decreased by 9 percent during the month of February, and inventory increased 6 percent.  Pending sales decreased by 10 percent. 7 percent of the homes sold for under $200,000; 48 percent of the homes sold for between $200,000 and $400,000; and 45 percent of the homes sold for over $400,000.  The average price per square foot decreased by 4 percent during the month of February at $188. 

San Joaquin County sales have decreased by 18 percent during the month of February, and inventory decreased 8 percent from January to February.  Pending sales are up 3 percent. 48 percent of the homes sold for under $200,000; 43 percent of the homes sold for between $200,000 and $400,000; and 9 percent of the homes sold for over $400,000.  The average price per square foot decreased 1 percent to $96 in February.

###

In regards to the bank owned properties, the banks are lowering the prices to whatever they need to in order to get a home sold. For example, if a home is trashed or "a real fixer upper", it will tend to sit as the average buyer is afraid to take on big projects. The bank just wants it off of their books and keeps lowering and lowering a property until finally some buyer takes the chance.  Larger bank owned homes tend to sit as well because even though the price per square foot can be extremely low, the total home cost is still more than the average buyer of today is willing to spend or can even qualify for.  Again, the bank will continue to drop the price until it attracts the right buyer. 

In regards to the non-bank owned, these figures include short sales, which should really be in their own category as well.  These sellers have to list their homes to the level of bank owned properties in order to attract buyers due to the difficulties in selling them that has been involved and has given them a bad reputation in the real estate world.  They are becoming a significant percentage of the non-bank owned sales and have contributed to the lower price per square foot values.

If you would like some statistics on your zip code email me at driley@golyon.com.     

Based on our Lyon Real Estate Trendgraphix, here is a comparision of market statistics for January 2008 and January 2009 for El Dorado Hill, Folsom, and Cameron Park / Shingle Springs.  These statistics are pulled from the MLS for our area.  

If you would like statistics on a specific zip code in the Sacramento Region, please email me at driley@golyon.com