Price Reduction

Wow, we just reduced our 53rd Street listing in Sacramento down to $137,500. This is property that is worth looking at by first time home buyers and investors. Not only does it have curb appeal in a rapidly improving neighborhood but it has a double size lot with a cottage in the back. The small cottage has a private driveway off of 20th Avenue and the two structures are separated by a privacy fence. The house needs some work but has the potential to be a real jewel.

Speaking of nice homes on the market, check back later today and check out our newest listing on Meghan Way in Sacramento.

Patience

As you may know we have recently been working on a number of short sales here in the Sacramento area. This includes working with both sellers and buyers. They clearly add a level of complexity and administrative work to each transaction and require an extreme level of patience from everyone involved.

Each lender has their own process and requirements which is understandable but some are so much more difficult to work with.
Wells Fargo in particular seems to be at the top of the “wish we didn’t have to work with” list. They appear to employ a delaying strategy which I don’t understand. Everything you fax to them gets returned asking for one more piece of information. When you place the date in wrong place they send it back. When you correct that they return it again asking for the borrower’s social security number. It just seems to go on and on and makes it frustrating for both buyer and seller.

Short sales have become so prevalent that even our MLS now breaks them out on their various forms. In this world where you can get and do almost anything very quickly, I think we will need some patience pills. Can I order them on the internet with overnight delivery?

The start of something new?

The news and commentary from my National Association of Realtors has not always been something to be proud of. More often than not they have, in my opinion, been guilty of delivering propaganda than telling readers the truth. That may be a bit harsh, but clearly they can find a way to put a positive “spin” about some very negative trends in our National real estate market.

I naturally read their news releases and carry the requisite salt so after reading a story this morning, “Existing-Home Sales Rise in February,” I did some quick looking at our Sacramento market to see if there was any correlation with what the NAR was saying about the National market., Take a look at my column, “Something is Happening” over at Rocklin & Roseville Today and see what I found out.

MagnumOne Ad

As you may know I spend a fair amount of time and money on maintaining a web presence. I believe that more and more people are using the internet to find everything from soup to nuts. That includes homes, where a recent report by the National Association of Realtors said a huge percentage of homebuyers search for a home online before contacting a Realtor.

I know from experience that some of my clients first learn about me from my website. More often than not they are directed there by one of the search engines but more and more seem to be finding me through some of the articles I have written and published on various other sites or from some of my on line social networking that I enjoy.

I have run a few advertisements, mostly over at Rocklin & Roseville Today where I write a weekly column about the local real estate market. They have directed traffic to the website but I can’t say I can attribute any clients to that advertising. I have just started running a new ad on my son’s parent teacher club’s website, http://www.sierraptc.com/ and think it is one of the best we have done.

I like supporting the PTC at Sierra Elementary; they are doing a great job of raising funds and fun for the school community.

Moving in on Easter

As you know this year, Easter is this Sunday. Why is it so early this year? Easter always comes on the Sunday after the first, or Paschal, full moon following the first day of spring.

Spring arrives on Thursday and the moon will be full on Friday, the earliest Paschal moon since 1913. And that means Easter, the Christian holiday marking the resurrection of Jesus Christ, is this Sunday. It won't come this early again for another 220 or so years.

By the way, it turns out my “Irish Luck” story I posted on St. Patrick’s Day is not true, at least according to snopes.com. Oh well, it was a great story and we can now attribute it to some Irish blarney.

Sacramento Real Estate

The wonderful weather we have been enjoying the past few weeks appears to have coaxed some buyers out of the darkness. There has clearly been an increase in activity. We have seen our listing getting more showings in a week than we were seeing in January and February. One of our MagnumOne agents recently submitted an offer on a house for her clients and received a counter offer stating the home was in a multiple offer situation and to submit their “highest and best” offer. According to the seller’s agent the offer that was accepted was $13,000 above asking price.

While this may be wonderful news for sellers and does indicate the market is not dead, it will not be the norm even if we have more good weather. The number of homes on the market remains too high for the current level of demand. According to HousingTracker we have 11.5 percent more homes on the market in the Sacramento area than we had a year ago and although inventory appears to be growing at a slower rate than a year ago it will increase as we move into spring and summer. It is going to continue to be a difficult market for sellers even if a few homes hit the jackpot with multiple over asking price offers.

Happy St. Patrick's Day

Irish Luck. His name was Fleming, and he was a poor Scottish farmer. One day, while trying to make a living for his family, he heard a cry for help coming from a nearby bog. He dropped his tools and ran to the bog. There mired to his waist in muck, was a terrified boy, screaming and struggling to free himself. Farmer Fleming saved the lad from what could have been a slow and terrifying death.

The next day, a fancy carriage pulled up to the Scotsman’s sparse surroundings. An elegantly dressed nobleman stepped out and introduced himself as the father of the boy Farmer Fleming had saved. “I want to repay you,” said the nobleman. “You saved my son’s life.”

“No, I cannot accept payment for what I did,” the Scottish farmer replied waving off the offer. At that moment, the farmer’s son came to the door of the family hovel.

“Is that your son?” the nobleman asked.

“Yes,” the farmer replied proudly.

“I’ll make you a deal. Let me provide him with the level of education my own son will enjoy. If the lad is anything like his father, he’ll no doubt grow up to be a man we both will be proud of.” And that he did.

Farmer Fleming’s son attended the very best schools and in time, graduated from St. Mary’s Hospital Medical School in London, and went on to become known throughout the world as the noted Sir Alexander Fleming, the discoverer of Penicillin.

Years afterward, the same nobleman’s son who was saved from the bog was stricken with pneumonia.

What saved his life this time? Penicillin. The name of the nobleman? Lord Randolph Churchill. His Son’s name? Sir Winston Churchill. Someone said: What goes around comes around.

Speaking of luck, check out today’s Rocklin & Roseville column is “What’s up with higher rates?” It is an answer to an question one of my clients recently asked me about last week’s increase in mortgage rates.

Positive Sacramento Real Estate Story

From the Sacramento Bee – March 14, 2008

The Sacramento-area housing market is still declining, but a surge of buying by investors in February helped spark the first major slowdown in Sacramento County's long slide since 2005, DataQuick Information Systems reported Thursday.

Some highlights:

• Sacramento County showed a February median sales price of $257,000. That was down 27.7 percent from a year ago. But it was up from $253,000 in January. The median price is the point at which half sell for more and half sell for less.

• Placer County reported a 30.7 percent drop in sales of new and existing homes in February compared with the same time in 2007. Its $364,000 median sales price was down 15.3 percent from February 2007. But it was up from $360,500 in January.

• El Dorado County sales were down 25.3 percent from the same month in 2007. Its $405,000 median sales price for new and existing homes was 15.6 percent below a year earlier. Sales prices were down slightly from $407,500 in January.

• Yolo County's February sales were down 27.2 percent from the same time a year ago. Its $318,000 median sales price was down 19.5 percent from a year earlier, but up from $307,500 in January.

Read the full story, “Sacramento County sees slowdown in housing slide”

Spring Fever

Well, if I didn’t have it before, the extra daylight at the end of the day has certainly brought on a bit of Spring Fever in me as well as the Sacramento real estate market. At MagnumOne Realty we have all been busy which reminds me we really need to find another agent who believes in building relationships with service and exceeding client expectations.

Based on our antidotal information the activity level in real estate market all over the Sacramento area has dramatically increased in the past few weeks. I have been working with a number of clients who are looking to buy, including an investor who believes the time is right to pick up a rental property. In addition we have had two new listings in the past week, both short sales in Sacramento and one is the lowest price property, by far, that I have ever worked with. At only $69,000 this condo/townhome is located on Savannah Lane in the Florin Road area and is in a nicely maintained gated community. It has over 1,300 square feet of living space and has 3 bedrooms and 2 bathrooms. You can’t find a home much more affordable than this one!

If I can get a short sale package sent to a lender today and get an offer signed and sent off for a buyer, I may try to get outside and enjoy some of this great spring weather before the next storm rolls in.

Spring forward, Fall back

Don’t forget, Daylight Saving Time officially begins this year on Sunday, March 9th at 2:00 AM but for most of us it means we set the clocks forward when we go to bed on Saturday night. This year DST will run through November 2nd.

Some interesting notes about Daylight Saving Time:

We don’t actually save any daylight. Turning the clock forward an hour, effectively moves an hour of daylight from the morning to the evening. The official spelling is Daylight Saving Time, not Daylight Savings Time although it is the more common term and is found in dictionaries.

Can bars serve alcohol for an extra hour in November? The official answer is that bars that the bars do not stop serving liquor at 2:00 a.m., but actually at 1:59 a.m. So, they have already stopped serving when the time changes from Daylight Saving Time into Standard Time. In practice, however, many establishments stay open an extra hour in the fall.

In the U.S., 2:00 a.m. was originally chosen as the changeover time because it was practical and minimized disruption. Most people were at home and this was the time when the fewest trains were running.

For the U.S. and its territories, Daylight Saving Time is NOT observed in Hawaii, American Samoa, Guam, Puerto Rico, the Virgin Islands, the Commonwealth of Northern Mariana Islands, and Arizona. The Navajo Nation participates in the Daylight Saving Time policy, even in Arizona, due to its large size and location in three states.

Safety Reminder: Many fire departments encourage people to change the batteries in their smoke detectors when they change their clocks because Daylight Saving Time provides a convenient reminder. More than 90 percent of homes in the United States have smoke detectors, but one-third is estimated to have dead or missing batteries.

Buyers

I have spent the better part of a month showing homes to a nice young couple with a baby. It has been difficult because he wants to stay on a strict budget and she doesn’t want to live where the homes with the features they MUST have are located. During our last trip out, just as conversation, I mentioned this cute little house I have listed as a short sale and said it was too bad it didn’t meet any of their requirements. They were looking at newer homes; my listing was built in 1948. They had to have three bedrooms; my listing has two and a room that is a large closet. They had to have at least a two car garage, my listing has a carport.

I could end the post now because you know exactly where I am going. Yes, she went to my website and looked at a few of the photos, had to see it and have now decided they can sell all their large furniture, the cars can be parked outside, and charm of yesterday is more appealing than new. They loved it, she cried because it was so perfect for them.

I cried too! I thought I was good at understanding what my buyers want in a home. Seriously, all the showings and struggles we had magically disappeared when I saw how happy they were to find this little home. Knowing them I know it will make the perfect home.
Now we have work to do with the seller and lender!

Sacramento Short Sale

Check this one out! Located in Fruitridge area on 53rd Street, this property has two homes on a large lot! Although both structures are small they are very cute and have a tremendous amount of potential. The main house is a 2 bedroom, one bathroom, 683 square feet with lots of hidden charm while the studio cottage is 240 square feet. Yes, as with many short sales in Sacramento, this one needs some work to bring it up to the neighborhood which is in the process of a very positive revitalization. Many of the homes, including the ones on both sides of the subject house have been renovated.

The seller purchased this property at the height of the real estate market with plans to complete the renovation and bring the house up to its full potential. With the market depreciation it just didn’t make sense for them to move forward with their plans. But now, with this opportunity to acquire this home at short sale prices the potential can be unlocked.

I am working with a wonderful client on this one and we hope to have it sold quickly so we can avoid another foreclosure. If you are not familiar with short sales feel free to contact me by phone at 916 276-6883 or by email to juliej@jalone.com. I have also written two articles on short sales. They are:

Short Sale Questions (Published February 10, 2008)
Short Sales: Road to Riches? (Published January 13, 2007)

Real Estate Statistics

If you have been a long time reader of my blog you may well remember I used to spend a fair amount of print writing about the monthly statistical reports. I can’t remember when was the last time I posted something to my blog or wrote an article on the monthly results. I suspect there are several reasons, including the media spotlight on real estate and the “downturn,” “crisis” or “meltdown” stories in the Sac Bee and other outlets almost daily. Other blogs, especially the bubble blogs like Sacramento Land(ing) focus almost every post on the market and do a good job keeping readers informed of the latest reports about the Sacramento area real estate market.

But today I would like to call your attention to the continued decline in the median prices in our area. As reported on various sites the median price of a home in Sacramento is down almost 28 percent in the past year. More importantly, in the past few months the decline has shown no signs of slowing down. According to HousingTracker, the change in the median asking price has dropped over 35 percent since our market high in August 2005.

Overall, prices and sales are significantly lower than they were a year ago and inventory is higher. Word on the street right now is strongly indicating an increase in activity but at this time, “good feelings” have not had any impact on stopping or slowing down the slide.
There is no single solution to our real estate problems. We need more Government and lender programs to help borrowers avoid foreclosure. The big lenders must come up with an innovative loan program to help borrowers buy homes with payments they can afford and budget for. Homeowners who do not “need” to sell should stay off the market for the time being and, and and….

Karmyn Tyler sings and acts!

I got an email over the weekend asking what was new with my actress/singer friend Karmyn Tyler. If you have been following me or get our monthly newsletter you will know that we have a friend who lives in Beverly Hills and is working hard to make it in entertainment industry. She is a wonderful singer, actress and podcaster. It has been fun for us to follow her career and hear about the things she is doing. Karmyn had some wonderful insights about the recently ended writers strike and is now keeping us updated with information about the actor’s contract. I just learned that she filmed another episode for Boston Legal. You can count on us watching the show carefully to see her; I think she plays an assistant DA in a scene with Candice Bergen.

During the writers’ strike she spent her time working and releasing two new songs. I think they are both great and Michael downloaded them for my iPod. If you want to meet or catch-up with Karmyn you can watch her “KarmKast 32” at www.karmynkast.net or listen to her two new songs here.

If you like what you hear, make sure you let Karmyn know and let her know I sent you. I am anxious for her to get into a series or do a National commercial because I want to go help her buy a house.

BTW, we have a new listing that should be coming on the market tomorrow. It is another short sale and should be a fun one so check our home page at www.jalone.com tomorrow.

Wine Adventure

We just got back from an overnight trip up to Amador County where we helped our good friends and clients bottle the barrel of wine they made. It was all done at Amador Cellars where the owner winemaker, Larry, makes wonderful wine and went out of his way to make all of us feel like we were part of the winery family.

Although it was work, we had a blast bottling, corking, capping and labeling the wine. Best of all the wine, a 2006 Zinfandel, is excellent and has the potential to get even better. Joe and Erin joined what is called Amador Cellar’s Crush Club and this was their weekend to bottle the wine they made.

I am thinking about doing the same thing for some of my clients and referral sources. Think of the fun we could have over the 18 months from selecting the grapes to bottling.

We got 24 cases of “Old Gold Hill” and would have had 25 had we not liberally tasted during the day….we had 16 people on the bottling crew!

Thanks Joe and Erin, we had a great time and see a future for us in wine making, err or maybe wine drinking.