It's Spring Already....Wow...

....and it looks like buyers a coming back into the market. Even the Sacto Bee had a positive Real Estate Article last week.

It's true, new home buyers who have been waiting for prices to come down, are figuring out that homes are now affordable, and mortgage rates remain great along with first time home buyer programs.

This activity, along with investors now discovering they can earn cash flow with 20% down on rentals in certain markets (Elk Grove, Natomas, and others, soon) is creating a great market for homes selling under about $350k. Many of these being REO (Bank Owned) Homes, and a good amount of short sale homes. Many homes are getting multiple offers and selling above list price.

This is great news, and this is a great first step, but we are still a little while away from the entire market recovering. With some many of these homes in the lower price ranges (say under $500k) being bank owned homes, the owners of those homes have already been evicted or vacated in some way, and probably are not in a position to buy a home. So, the REO purchase transaction does not trigger another purchase by the seller (who is a bank). Are market will begin to get healthy again once this REO inventory decreases significantly, and a majority of the transactions are individuals buying from other individuals, who in turn go buy something else, and the process repeats itself.

Sources indicate there is a large amount of foreclosed homes that have yet to hit the market. Places like El Dorado Hills, should still see a bunch of these homes come on the market this summer, which will probably drive prices even lower.

Bottom line, if you are entering the market, or looking to move up, have good credit and steady employment, it is great time to consider a move.

I am here to help if you need it.....

More ARMs to reset in March...

Look for a whole new batch of homes to come on the market in the spring and summer after another large number of home owners see their adjustable rate mortgages go up. Many mortgages are due to reset in March of 2008, keep a lookout in some of Sacramento's middle to upper end communities where many stretched themselves to buy over that last few years.

Many experts are predicting some communities to get hit pretty hard this year, like El Dorado Hills. With bank owned properties selling for about 80 cents on the dollar compared to similar homes on the market this should drive prices down in these areas.

A quick check of www.realtytrac.com can give you a great idea of the # of homes in pre-foreclosure and are currently bank owned. Keeping an eye on this can give you a great idea of what is going on and about to happen by zip code.

If you would like a detailed analysis of any particular area, just let me know, I am glad to help.