Archive for January, 2012
Cash Investors dominate Sacramento real estate market
January 29th, 2012 categories: Real Estate news
After reading the article below written by Lisa Gibbs for The Money Magazine, I was not surprised at the statistics, since I come across this situation all the time and try to educate my first time buyers about some of the hurdles they experience when making offers and using FHA financing. I tell them one thing: “Cash is king.” Banks and regular sellers know how difficult and picky appraisers are, so they would rather accept a little lower cash offer, instead of worrying about falling out of escrow and wasting time with a new buyer.
Enjoying nature on a beautiful sunny day!
Here’s what Gibbs pointed out: “As the National Association of Realtors noted last week, all-cash sales accounted for 31% of December existing-home purchases. All that bargain hunting drove sales of existing homes up 5% for the month, NAR says.
A steady pace of sales is critical to the housing market’s recovery, of course, because we need to clear all those foreclosures and short sales off the books so that prices can stabilize and even start rising.
But there is a downside to those all-cash purchases. The cash buyers — the bulk of which are investors, says the NAR — put downward pressure on home prices even beyond what the natural forces of supply and demand would do, according to Campbell/Inside Mortgage Finance’s latest HousingPulse Tracking Survey. “Cash buyers are able to bid significantly lower on many properties because they offer a shorter and more reliable closing timeline,” the report says. That’s music to the ears of mortgage servicers, who are anxious to get their distressed real estate off their books.
This gives investors a bigger impact on the overall market than their numbers might suggest. Real estate agents told HousingPulse that investors generally offer 10%-20% below listing price on properties up to $250,000. First-time buyers as well as current homeowners are more likely to offer closer to list price. Investors want to close in 30 days or less. Other buyers, generally because of financing issues, take more like six to eight weeks.
This market needs investors, who often end up doing deals that other homebuyers can’t. Good investors take on homes in poorer shape than typical homeowners could stomach and make them livable again. They deserve their discounts, in my opinion. But for all the rest of us, this is just one more factor keeping the price of our own home from bouncing back quickly.”
For more information on Sacramento real estate, please contact Carmen at 916-342-2446, or e-mail at carmen@carmenmicsa.com. Also to receive free listings, go to www.Dynamicsacramentohomes.com. And last, but not least be sure to ask for your 7-night cruise when buying with Carmen and her team of experienced agents. Also ask us how you can get $500 credit or more towards your closing costs when you mention this blog for all homes priced $100,000 and above. Some restrictions apply.
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Sacramento foreclosure homes- 40 percent below non-distressed sales!
January 25th, 2012 categories: Community Events, Real Estate news
With rain pit-patter on the windows of our lives and then sunshine again, we cannot stop to think about our future real estate market. Although the steadiness of the rain – so measured, so controlled, streaming down in tears of joy finally puts nature in place, default notices have increased, making California among the states with the biggest quarter increases, 21 percent, according to the U.S. Census Bureau.
Moreover, homeownership rate declined, but that’s mainly because of California 37.3 million residents, 22.2 million live in the Los Angeles, San Diego, and San Francisco metropolitan regions. In Sacramento, however, where our prices are so affordable, still many good buys around $100,000 and even lower, such as my latest short sale listing
To see a complete analysis of our market, view the C.A.R. video.
For more information on Sacramento real estate, please contact Carmen at 916-342-2446, or e-mail at carmen@carmenmicsa.com. Also to receive free listings, go to www.Dynamicsacramentohomes.com. And last, but not least be sure to ask for your 7-night cruise when buying with Carmen and her team of experienced agents. Also ask us how you can get $500 credit or more towards your closing costs when you mention this blog for all homes priced $100,000 and above. Some restrictions apply.
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