Monday morning real estate snapshot Feb 28 '11

Here is your quick Monday morning rundown on the current real estate market in Folsom and houses for sale here. These numbers reflect properties listed by a variety of broker members of our local MLS.

Numbers for all current listings:

·         380—number of homes for sale (including short sales and bank-owned homes or REOs)

·         $290,000—median price of homes for sale

·         109—average days on the market

·         $166—average price per square foot

The numbers for the short sale listings:

·         188—number of short sales on the market

·         $273,500—median listing price

·         136—average days on the market

·         $155—average price per square foot

The numbers for the REO listings:

·         46—number of short sales on the market

·         $256,250—median listing price

·         59—average days on the market

·         $154—average price per square foot

Best real estate deal in Folsom today? If you go on a price per square foot basis, that would be a 3/2 condo near City Hall going for $53 a square foot.

These numbers were pulled this morning from MetroList, our local multiple listing service. all4now

For a change, possible good news on the housing market from WSJ

We don’t get much good news on the housing market these days as far as homeowners are concerned. The past few years have seen steady declining equity. The market has been good for investors flocking back to the real estate market and first-time homebuyers—at least those who could navigate the mortgage waters to secure a loan. But otherwise it's been bleak.

But today, it was a hint of light at the end of the tunnel from The Wall Street Journal. In an article entitled “Why 2011 May Be the End of the Housing Crash” (reprinted in today’s SacBee Business section), author Simon Constable makes his case for why he believes we are nearing/or are at the bottom of the housing market. He also points to numbers that show that housing is the most affordable it’s been in decades.

I wish the article got into some regional analysis. Especially as we know that (in Sacramento, and even Folsom) we've been among the harder hit markets in the nation and struggling with economic recovery.

Based on the article the news seems to be: hang-in there for homeowners, and for buyers, it’s worth seriously considering buying or investing in real estate.

You can find the full article on WSJ’s web site.

all4now

Recent home sales in Folsom's Cobble Hill Ridge and Reflections

Here are some recent home sales in Folsom’s Cobble Hill Ridge and Reflections neighborhoods, as recorded by MetroList during the past six months. These properties were listed and sold by various broker participants in the MLS.

·         131 Cobble Ridge Dr, 3 bed/2 bath, 1245 sq ft, sold 12/30/10 for $225K

·         100 Whiting Way, 3 bed/2 bath, 1258 sq ft, sold 8/31/10 for $270K

·         154 Gilded Rock Cir, 3 bed/2 bath, 1446 sq ft, sold 9/28/10 for $271K

·         126 Cobble Ridge Dr, 2-3 bed/2 bath, 1245 sq ft, sold 9/17/10 for $272K

·         155 Gilded Rock Cir, 3 bed/3 bath, 1677 sq ft, sold 11/02/10 for $285K

·         104 Gilded Rock Cir, 3-4 bed/3 bath, 1938 sq ft, sold 10/29/10 for $295K

·         115 Whiting Way, 4 bed/3 bath, 1858 sq ft, sold 10/28/10 for $305K

Wondering about a recent sale or any current homes for sale in Folsom, drop me a line and I’ll look it up for you! Also, as careful as I work to be, please verify all information independently before making a decision based on the above information.  all4now

Good news for home buyers from Wells Fargo

Just read about some good news for home buyers (especially first-time home buyers)  in my latest Realtor magazine. Anyone who has bought a home recently knows how challenging it can be to secure that mortgage--even with a good credit score. Well finally, there is a new policy from Wells Fargo that they are now providing FHA mortgages to borrowers with credit as low as 500. Under the new policy, Wells Fargo will accept borrowers with credit scores of 500 to 599 if the buyers can make a down payment of at least 10 percent (note that gifted funds or other down payment assistance is not allowed). If, as a buyer, your credit score is between 580 and 599, you must put down 5 percent (same gifted funds/down payment assistance restriction as above applies). And, if your credit score is 600 or higher, you can make a 3.5 percent down payment. For more, just contact Wells Fargo directly. all4now

El Dorado Musical Theatre's production of "Hairspray" opens Friday

We’re just days away from opening night of the El Dorado Musical Theatre’s production of Hairspray! The musical opens this Friday, Feb. 25, and runs through March 13. Should be a blast.

Tickets and info are available on line at http://www.edmt.info/HS.html. Performances will be at Folsom High School’s Jill Solberg Performing Arts Theater, 1655 Iron Point Road.

Recent home sales in Folsom's The Parkway

Here are recent home sales in Folsom’ The Parkway neighborhood. These sales were recorded by MetroList, our local multiple listing service (MLS) during the past six months. These properties were listed and sold by various broker participants in the MLS.

·         1488 Willow Bend Rd, 3 bed/3 bath, 1823 sq ft, sold 12/2/10 for $247,050

·         1138 Meredith Way, 3 bed/2 bath, 1803 sq ft, sold 2/9/11 for $292,000

·         1188 Grey Fox Ct, 3 bed/2 bath, 1506 sq ft, sold 9/29/10 for $305,000

·         1109 Souza Way, 3-4 bed/2 bath, 2300 sq ft, sold 11/10/10 for $389,000

·         1009 Houston Cir, 5 bed/3 bath, 3133 sq ft, sold 9/15/10 for $405,000

·         1224 Souza Way, 3 bed/3 bath, 2457 sq ft, sold 11/30/10 for $410,000

·         1277 Humbug Creek Ct, 5-6 bed/3 bath, 3261 sq ft, sold 12/22/10 for $410,000

·         1653 Bowen Dr, 4 bed/3 bath, 2648 sq ft, sold 12/29/10 for $420,000

·         1100 Pond View Dr, 4-5 bed/3 bath, 3134 sq ft, sold 2/1/11 for $430,000

·         1637 Manasco Cir, 5 bed/4 bath, 3449 sq ft, sold 11/24/10 for $530,000

Wondering about a recent sale or any current homes for sale in Folsom, drop me a line and I’ll look it up for you! Also, please verify all information independently before making a decision based on the above info. all4now

Own even just one rental property? New law applies to you

I just ran across this item in the February issue of Realtor magazine: If you own even just one rental property, be aware that starting this year, a new law requires all rental property owners (no matter how small) to start tracking all vendors doing at least $600 worth of work for them and to send the vendors an IRS 1099 form. This requirement has been around for larger rental property owners but the enactment of last year’s Small Business Jobs Acts of 2010 expanded the reporting requirement to all rental property owners even if you only have one property.

So if you own a rental and have a vendor do work for you of at least $600 during the whole year, you are legally required to obtain certain information from that vendor, such as name, address, social security number or tax ID, and what you paid them during the year.

Be sure to check with your bookkeeper or tax specialist to make sure you stay on the correct side of the law on this one.

all4now

Monday market snapshot Feb 21

Better late than never, here is the quick rundown on the current real estate market in Folsom and houses for sale here. These numbers reflect properties listed by a variety of broker members of our local MLS.

·         384—number of homes for sale (including short sales and bank-owned homes or REOs)

·         $295,750—median price of homes for sale

·         106—average days on the market

The numbers for the short sale listings:

·         190—number of short sales on the market

·         $277,450—median listing price

·         132—average days on the market

The numbers for the REO listings:

·         47—number of short sales on the market

·         $274,500—median listing price

·         54—average days on the market

These numbers were pulled from MetroList, our local multiple listing service, this morning. all4now

Errors in public records can hurt home buyers, sellers

If there is one thing we think we should be able to trust when buying or selling a home is the information on the home that we find in the local public record. But it is buyer (and seller) beware when it comes to those public records. Did you know that when an agent fills out their local multiple listing service’s property information when listing a home, the field regarding square footage of the home is often auto-filled from the tax record? And, I can tell you that that information is not always correct for a variety of reasons, including, additions made to a house without proper permitting, so that the new correct square footage or information such as number of bedrooms or baths is not be reflected in the public record.

I just read an article today from Inman News on this topic and here are a few of the examples in the article on how things can go wrong: A house has 3,000 square feet of space but for some reason the public record show only 2,200 square feet. A buyer making an offer on this property may have trouble securing a loan after a low appraisal comes in based on a smaller square footage.

Advice to buyers: if square footage (rather than the flow of the home, for example) is important to you, you need to verify independently the square footage.

Advice to sellers: check out the public record on your property at least 2-3 months before listing your home so you have time to get corrections made is there is an error.

all4now

Folsom real estate snapshot Feb 14 '11

Here is the quick rundown on the current real estate market in Folsom and houses for sale here. We are continuing to see a slow increase in the number of houses coming on the market. These numbers reflect properties listed by a variety of broker members of our local MLS.

·         388—number of homes for sale (including short sales and bank-owned homes or REOs)

·         $299,00—median price of homes for sale

·         108—average days on the market

The numbers for the short sale listings:

·         196—number of short sales on the market

·         $271,000—median listing price

·         135—average days on the market

The numbers for the REO listings:

·         48—number of short sales on the market

·         $275,850—median listing price

·         49—average days on the market

These numbers were pulled from MetroList, our local multiple listing service, this morning. all4now

January real estate statistics are in for Folsom market

The Folsom real estate statistics are in for January 2011. These numbers come from Trendgraphix Inc.—a real estate market research company. So let’s see what we have.

First, for the visually oriented, I’ve included the graph showing the number of homes for sale, sold, and pended for each month from January 2010 through January 2011. These numbers are specifically for single family residences. Just drop me a line if you would like to see the numbers for a different kind of property (i.e., condo, lot, income property etc.), and I’ll get those to you within 24 hours.

As you'll see in the graph above, in January, 231 homes were listed for sale in Folsom. This number includes foreclosures, short sales, and regular sales. That number is down slightly from the previous month and up 36.7% from January 2010. Some 45 homes were sold in January, down a 15.1% from January 2010. However, a huge uptick in the number of homes that went pending (i.e., went into escrow): 91, which is up 68.5% from January 2010.

Interesting to note that at 91 homes in escrow, that’s the highest number in at least a year. Could it be buyers are responding to the still low interest rates?

Quick January 2010 numbers in Folsom

Price per square foot: $161.60

Days on market: 77

Months' Inventory: 5.1

Average Sold Price: $343K

Because distressed properties are such a large component of the current market and have a significant impact on the numbers, I’m including a numbers breakdown by type of sale:

Type of Listing	REO	Short Sale	Regular Sale
# for sale	39	78	114
# new listings	21	37	42
# pended	22	42	27
# sold	13	11	21
Avg. sold price	304K	378K	350K
Sold/list Diff. %	99	99	97
Days on market	35	142	69

REO = Bank-owned property

That’s it for today’s wrap up of the Folsom market numbers for January. Please verify all information independently before making a decision on a home purchase.

Interested in numbers for another zip code? Just let me know and I’ll send them offline.

all4now

Cheaper to buy than rent is latest word from Trulia

For anyone considering buying a home in 2011 in Sacramento, the news from Trulia—a major real estate search site— that it’s cheaper to buy than to rent around Sacramento is good news for prospective homebuyers—whether long-time renters or first-time homebuyers. According to a statement by Pete Flint, CEO and co-founder of Trulia, many former homeowners have flooded the rental market (as they have lost their homes to a short sale or foreclosure) and following the principles of supply and demand, the cost of renting has gone up.

How Trulia arrived at its rent vs. buy index

Trulia arrived at the index by comparing the median list price with the median rent on two-bedroom apartments, condos, and townhomes as of January 10, 2011. The index takes into account the total cost of homeownership compared with the total cost of renting.

Homeownership costs

The homeownership costs include mortgage principal and interest, property taxes, hazard insurance, purchase closing costs, homeowners association dues (if applicable), and private mortgage insurance (if required by the lender). The homeownership cost calculation also includes tax advantages from mortgage interest, property tax, and closing-cost deductions.

Rental costs

The calculations for total rental cost include rent and renters insurance.

The bottom line: a price-to-rent ratio of between 1 and 15 means that it’s much cheaper to buy than to rent in a particular city. And a ratio above 20 indicates that owning is much more costly than renting in a city.

So where does Sacramento ranks?

Sacramento ranked 7^th among the top 10 cities to buy versus rent with a price-to-rent ratio of 10.

For a change, it’s some good news for prospective homebuyers in Sacramento. all4now

Real Estate market snapshot today

Here is the quick Monday rundown on the current real estate market in Folsom and houses for sale here (as of February 7). These numbers reflect properties listed by a variety of broker members of our local MLS.

·         376—number of homes for sale (including short sales and bank-owned homes or REOs)

·         $299,00—median price of homes for sale

·         107—average days on the market

The numbers for the short sale listings:

·         191—number of short sales on the market

·         $272,000—median listing price

·         133—average days on the market

The numbers for the REO listings:

·         45—number of short sales on the market

·         $274,900—median listing price

·         46—average days on the market

The numbers tell the story. These numbers were pulled from MetroList, our local multiple listing service, yesterday afternoon. all4now

Home buying tip of the day

As you look for that perfect Folsom home, make sure to always have the following with you when you visit houses:

• a measuring tape (and pencil and pad) to mark down those room measurements
• a flashlight--Bank-owned homes especially may have no electricity to the house so it'll be darker later in the day and evening
• a compass so you can figure out what rooms will get sun/shade at what time of day

all4now

Shadow inventory of homes may take 4 years to clear

The latest from analysts at Standard & Poor’s Ratings Services is that it may take more than four years to clear the so-called “shadow inventory” of distressed homes that aren't yet on on the market. This could, S&P says, undermine real estate prices while the backlog clears.

“Shadow inventory” is defined as properties with borrowers who are 90 days or more delinquent on their mortgage payments, properties currently or recently in foreclosure, or properties that are real estate owned (REOs).

The estimate of how long the backlog would take to clear is up 11 percent from the previous quarter and up 40 percent from a year ago. What’s interesting according to the article I saw on this is that the increase in the estimated time needed to clear the shadow inventory is due to the fact that it’s taking longer for lender to liquidate distressed properties, not because the number of distressed properties is growing, the S&P analysts say.

The good news, says S&P, is that the overall level of distressed loans continues to decline, and that loan-cure success rates (most often the result of loan modifications) have been improving since the second half of 2008.

An interesting statistic from the article is that although some 45-50% of the loans modified or cured in the fourth quarter of 2009 re-defaulted within the first year of modification, that's an improvement from the nearly 80% re-default rate on loans modified or cured during the first quarter of 2008.

I wasn’t able to get the number for the greater Sacramento area but will post those if I can get them. all4now

Some Recent Folsom Home Sales

Here are recent home sales in Folsom, as recorded by MetroList last week. These properties were listed and sold by various broker participants in the MLS. REO means bank-owned.

·         224 Wales Dr, 2 bed/2 bath, 1243 sq ft, sold 1/26/11 for $75K REO

·         2506 Esplanade Cir #2506, 3 bed/2 bath, 1313 sq ft, sold 1/27/11 for $175K Short Sale

·         364 Marsall Dr, 2 bed/2 bath, 1130 sq ft, sold 1/28/11 for $222K REO

·         113 Sierra Woods Cir, 3 bed/2 bath, 1194 sq ft, sold 1/25/11 for $224,900 REO

·         1463 Taupin Ct, 3 bed/2 bath, 1327 sq ft, sold 1/27/11 for $265K

·         1925 Broadford Dr, 3 bed/2 bath, 1827 sq ft, sold 1/28/11 for $278K REO

·         230 Silberhorn Dr, 3 bed/2 bath, 1757 sq ft, sold 1/25/11 for $293K Short Sale

·         1432 Haddington Dr, 3 bed/2 bath, 1973 sq ft, sold 1/26/11 for $375K

·         104 Gold Mine Ct, 3 bed/2 bath, 1843 sq ft, sold 1/25/11 for $365,250

·         1212 Fergusen Way, 4 bed/3 bath, 2347 sq ft, sold 1/27/11 for $377,500 Short Sale

·         127 Yankton St, 5 bed/3 bath, 2687 sq ft, sold 1/28/11 for $400K

Wondering about a recent sale or any current homes for sale in Folsom, drop me a line and I’ll look it up for you! Also, please verify all information independently before making a decision based on the above info. all4now

Savings from the Sun for Homeowners

Solar power is on track to supply household electricity at the same cost as power from the electric grid, so tell us the feds in a recent report. This positive news is the result of improved technologies. The report says that the cost of generating power from rooftop solar panels should drop from 21 cents per kilowatt hour in 2009 to 10 cents per kWh in 2015, which is the same rate that households are paying for electricity today. The report goes on to forecast that the price of solar power could go down to 6 cents per kWh by 2030, thereby saving households about $400 per year compared with today. That is good news indeed! Especially when you consider all that great sun our Folsom homes get most of the year. all4now