Laguna Beach

Christmas is past and we are wrapping up 2007. I thought this holiday season might be slow with some time to catch up on some of those things you always put off, but that was not the case. Of course some of my “busy” has been related to starting MagnumOne Realty but I do have a new listing that I am excited about. It is in the Barrett Ranch area of Antelope which is so new that the streets of this subdivision are not shown on the major map sites or my car GPS system.

What is so interesting about the Laguna Beach Way home is that is loaded with upgrades and virtually new. A wonderful couple bought it from the builder and added almost every upgrade thinking this would be their dream family home for years to come. Plans changed for various reasons and they moved out leaving this wonderful home and all the extras for someone else. Take a look at it, we have some good photos, and let me know what you think.

Friday before Christmas!

Today is the last school day before Christmas vacation for Mikie and most kids; do you remember how great that felt?

Here in the Sacramento real estate market we are not following the law of supply and demand which says as supply declines demand increases. In real estate this would normally mean as the inventory of homes for sale declines the asking prices of those on the market would increase. For the past seven weeks according to HousingTracker inventory of homes for sale has been declining but there has been no sign of asking prices increasing or even firming. In the last month alone, inventory has dropped over 6 percent. During that time asking prices have fallen 4.2 percent which is even faster than the three month figure of 9.6 percent.

Looking back a year, although we are seeing declines in the current inventory of available homes, we still have over 19 percent more homes on the market now. The median asking price which currently stands at $334,500 is down 18.2 percent from a year ago.

By the way, the tax break for mortgage loan debt forgiveness I mentioned several months ago has now become a law. This is a pretty nice Christmas present for those folks who were able to complete short sales this past year.

Last but not least, only 4 shopping days until Christmas. There is always more to do so the only time I know I am done getting ready for Christmas is when time runs out!

Sellers: New Formula for Pricing

In difficult times successful people become creative rather than relying on what has worked in the past. In the slower Sacramento area real estate market determining how to price your house if you are a seller is a key ingredient in obtaining the most money in the shortest period of time. Check out my latest column over at Rocklin & Roseville Today, “Price Your House to Sell,” and see how the use of comparables has changed. I have also published the article on the Real Estate News page.

Farewell Alliance Title

I want to acknowledge the fine people at Alliance Title who lost their jobs last week when management decided to close the operation. We were customers of Alliance and enjoyed working with the staff and especially Christine Moore who always had a smile on her face and went the extra step to make sure our clients and needs were met. We will miss working with Christine and the team! I know it has been a difficult year in the real estate industry, especially here in the Sacramento area but, when a company the size of Alliance Title, with the customer base they had developed, just “closes the door” rather than sell the business you have to wonder if there is something more to the story.

By the way, the market reception to our new company, MagnumOne Realty has been so very positive and I want to thank all you who have taken the time to send me emails and notes about starting a new company. I am delighted to say we are busy and are looking to add one or two experienced agents to the team. If you are an agent and considering a move to a smaller firm with a strong commitment to agents and customer support, please let me let me know.

Lots happening for a slow time of year!

Normally this is a very slow time of year for the Sacramento and other real estate markets. Not many people want to sell or buy homes during the holidays and Realtors get some needed rest and a chance to catch-up with the rest of the world. Not so, at least so far this year.

Check out my column over at Rocklin & Roseville Today, “Costs up + Attractive Rates = Increased Mortgage Applications” and see what is happening and some of my own observations. I have also published the article on my News Page at jalone.com.

31 Gone and More to go!

Since November 28^th when I recommended looking at the Catalog Choices where you can have your name removed from almost any catalog mail list I have been collecting the catalogs we receive and have now eliminated us from 31 mail lists. I hated to say good bye to Godiva Chocolates but I really don’t need the calories and paper. In addition I have suggested about another 10 catalogs I would like to see added to their list. It is a really easy site to use and although it won’t reduce much this holiday season, I am sure our mail box will have more room when the spring catalogs are sent out. I am on a mission, join me!

30-Year Mortgage Rates Fall to 2-Year Low

Concerns over a severe housing downturn and prolonged credit crisis could shake consumer confidence and hurt the economy contributed to a drop in mortgage rates this week, according to Freddie Mac. Interest on 30-year fixed loans sank to 5.96 percent from 6.10 percent last week, landing at the lowest point seen since September 2005.

Borrowing costs on 15-year fixed products fell to 5.65 percent from 5.73 percent over the week and five-year adjustable-rate mortgages were down to 5.75 percent from 5.86 percent, but one-year ARMs bucked the southward trend by bumping up to 5.46 percent from 5.43 percent.

"With lower consumer spending and personal income gains in October, interest rates on U.S. Treasury securities fell lower this week and mortgage rates followed," said Freddie Mac chief economist Frank Nothaft.

Sacramento Market Down but Not Out

There are a number of local sites that do a good job of reporting the monthly real estate statistics for the Sacramento real estate market. This month I am looking at Sacramento Real Estate Statistics where the author just posted some November numbers for our area. The comparisons below are pretty ugly but I caution readers to remember that we have a strong and diverse local economy and our real estate market will improve.

Average $/SF Median $/SF
2006 - $234 2006 - $226
2007 - $198 2007 - $187

Average Sales Price Median Sales Price
2006 - $419,543 2006 - $375,000
2007 - $360,271 2007 - $320,000

In addition the site includes a chart showing the number of closing in the four county Sacramento area. In September there were 1,287 closings compared to 1,386 in October and 1,158 in November. Looking at November for the past two years reveals in 2005 there were 2,172 and in 2006 there were 1,710 closings. The 1,158 for this November clearly demonstrates the doldrums the market is currently in.