The Sacramento Spoke

Cash Investors dominate Sacramento real estate market

Carmen Micsa — Sun, 29 Jan 2012 07:53:06 +0000

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.

Sacramento foreclosure homes- 40 percent below non-distressed sales!

Carmen Micsa — Wed, 25 Jan 2012 21:08:01 +0000

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.

Happy Fall – A quick Overview of home prices in Sacramento!

Carmen Micsa — Fri, 21 Oct 2011 06:37:49 +0000

Our California Association of Realtors published an interesting article on the pending home sales. Even though we were down this month, we were up in sales from the previous year. Buyers with good credit scores and incomes seize the opportunity to become home owners.

For release:

October 20, 2011

LOS ANGELES (Oct. 20) – Pending home sales in California fell in September, as is typical for this time of year, but were up from the previous year for the fifth consecutive month. Additionally, distressed home sales increased slightly in September from both the previous month and year, the CALIFORNIA ASSOCIATION OF REALTORS® (C.A.R.) reported today.

Pending home sales:

California pending home sales fell 5.2 percent in September, but were up from a year ago, according to C.A.R.’s Pending Home Sales Index (PHSI)*. The index was 118.5 in September, based on contracts signed in that month, down from August’s index of 125.0. The index was up 8.4 percent from September 2010. September marked the fifth consecutive month that pending sales rose from the previous year. Pending home sales are forward-looking indicators of future home sales activity, providing information on the future direction of the market.

“While recent pending home sales have increased from last year’s levels, housing inventory remains lean across all property types, particularly REOs (real estate-owned), which currently is at a 2.6-month supply,” said C.A.R. President Beth L. Peerce. “However, some major lenders recently announced they would accelerate the release of REOs onto the market, which should help alleviate the current shortage of housing inventory.”

Distressed housing market data:

The total share of all distressed property types sold statewide rose to 44.4 percent in September, up from August’s 43.7 percent and 43.6 percent in September 2010.

Of the distressed properties sold statewide in September, 20.2 percent were short sales, up from the previous month’s share of 18.9 percent and last September’s share of 19.5 percent.

At 24 percent, the share of REO sales was down slightly from August’s 24.4 percent, but up from the 23.8 percent reported in September 2010.

Equity sales made up the remaining share of home sales in September at 55.6 percent, down from 56.3 percent in August and 56.4 percent in September 2010.

Multimedia:

Share of Distressed Sales to Total Sales

(Single-family)

Type of Sale Sept. 2010 Aug. 2011 Sept. 2011

REOs 23.80% 24.40% 24.00%

Short Sales 19.50% 18.90% 20.20%

Other Distressed Sales

(Not Specified) 0.30% 0.40% 0.30%

Total Distressed Sales 43.60% 43.70% 44.40%

Single-family Distressed Home Sales by Select Counties

(Percent of total sales)

County Sept. 2010 Aug. 2011 Sept. 2011

Amador 59% 59% 54%

Butte 30% 42% 42%

Humboldt 22% 31% 19%

Kern 71% 60% 61%

Lake 69% 64% 61%

Los Angeles 43% 44% 46%

Madera 74% 73% 65%

Marin 25% 27% 35%

Mendocino 50% 48% 41%

Merced 50% 59% 61%

Monterey 64% 62% 59%

Napa 47% 48% 51%

Orange 32% 33% 36%

Riverside 68% 62% 60%

Sacramento 64% 62% 64%

San Benito 54% 67% 73%

San Bernardino 64% 64% 65%

San Diego 25% 27% 25%

San Luis Obispo 45% 45% 40%

San Mateo 20% 25% 26%

Santa Clara 34% 31% 35%

Santa Cruz 38% 35% 40%

Solano 67% 71% 73%

Sonoma 46% 43% 49%

Tehama 76% 56% 62%

CALIFORNIA (rounded) 44% 44% 44%

Move-up buyers – What this market means for you

Carmen Micsa — Sun, 18 Sep 2011 05:55:10 +0000

With Sacramento real estate market plummeting many people think that real estate is dead, but it is just the contrary. I have had many buyers buy homes, knowing that the prices are so low that in many cases it is cheaper than renting.

Today I was at the chicken festival in Fair Oaks, and met a couple who were astute about the market. They would like to downsize their home, and even though things are not as good for sellers, they realize that they are selling low, but that they are also buying low, which balances things out. My advice is to take advantage of this market, and make informed decisions.

Home prices fell more in May – Buyers take advantage of these prices

Carmen Micsa — Sun, 24 Jul 2011 07:40:13 +0000

Home prices nationwide fell 6.3 percent in May from a year earlier as foreclosures weighed down values and purchases slumped.

The decline was led by a 9.9 percent decrease in the region that includes California, the Federal Housing Finance Agency said Thursday. The second-largest drop was 9.2 percent in the area that includes Nevada and Arizona.

Foreclosures have boosted the supply of available homes and reduced prices because the properties sell at a discount. Low interest rates have done little to stimulate demand for homes as mortgage standards tighten, said Rod Dubitsky, an executive vice president at Pimco Advisory, a unit of Pacific Investment Management Co. in Newport Beach (Orange County).

“Limited mortgage availability and vulnerable consumer health across the income and age spectrum are restraining demand and may continue to do so,” Dubitsky wrote in commentary posted on Pimco’s website. “We believe the housing market, considered to be a key driver of the economic recovery, will generally remain weak for the foreseeable future.”

Prices rose 0.4 percent from April, the housing Finance Agency said. Economists surveyed by Bloomberg had projected a 0.1 percent increase from the previous month.

Thursday’s report is based on repeat-sales data that compares prices of the same properties over time. The regulatory agency, which measures sales of homes with mortgages backed by Fannie Mae or Freddie Mac, doesn’t provide a specific price.

The median price of a home sold in May, the period covered by the report, was $169,300, according to the National Association of Realtors.

In June, the median price was $184,300, the trade group said Wednesday. Sales of existing homes fell last month to an annual pace of 4.77 million, the lowest level since November, according to the report.

Market data provided by Bloomberg News

This article appeared on page D – 2 of the San Francisco Chronicle

Read more: http://www.sfgate.com/cgi-bin/article.cgi?f=/c/a/2011/07/21/BUO61KDC19.DTL#ixzz1T0Qk3FPY

Advantages of Buying in a Slow market- Home buyers looking for remodeled homes!

Carmen Micsa — Tue, 21 Jun 2011 06:50:27 +0000

Daily Real Estate News | June 20, 2011 |

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What Today’s Home Buyers Desire
Home buyers have high expectations for their purchases this
year, the most critical of which may be a really great deal. In addition to more
bang for the buck — and the bragging rights that go along with a superior
bargain — today’s house hunters also are looking for incentives, such as gift
cards that they can use to decorate their new home or financial assistance at
the settlement table.

Another important
desire of buyers is that the property be well-maintained. “I’m not working with
too many people who want a fixer-upper,” says Pat Vredevoogd Combs, vice
president of Coldwell Banker AJS Schmidt in Grand Rapids, Mich., and past
president of the National Association of REALTORS®.

Current NAR President Ron Phipps agrees. More often than not, he
explains, “buyers have limited amounts of cash. Even if they want to do a
fixer-upper, they don’t have the money to do it.”

That is true even for buyers of bank-owned properties, says real
estate broker Joan Pratt of RE/MAX Professionals in Castle Pines, Colo. “They
want the short sales and the foreclosures, and they want them to look like
they’re owner-occupied,” she says. “They don’t want to paint. They don’t want to
put carpet in. They don’t want to clean.”

Modern buyers also favor open kitchens; open floor plans; and outdoor
living components, such as screened porches, exterior kitchens, and two-way
fireplaces. Additionally, the environment is increasingly important, with
today’s prospects seeking out elements such as triple-glazed windows and
energy-efficient appliances.

Repurposed
materials matter, too. “We’re seeing lots of different materials and lots of
reusable materials, which is interesting,” Phipps notes. “Also a lot of unusual
uses of hardwood — like pine flooring (reclaimed and) reused for counters,” or
terra cotta slabs for countertops. Buyers in 2011 are indicating a preference
for smaller homes, but they like them nicely appointed. Luxurious elements such
as coffee bars in the master bedroom are gaining popularity, as are expensive
finishes in not-so-expensive homes.

Source: “Nine Items Homebuyers Desire in
2011,” Bankrate.com, Dana Dratch
(June 16, 2011)

Sacramento Real Estate and May Biking Month

Carmen Micsa — Wed, 04 May 2011 18:59:30 +0000

Every year I have the honor to participate in the Diabetes Tour de Cure. This year on April 30, I completed the 100-mile ride in memory of my beloved father who died of diabetes at the young age of 53. My father has always taught me to believe in myself and reach out for my dreams, for “life is a fight and we need to fight,” as George Cosbuc, the Romanian poet said in his poem Life’s Battle.

In my case, I had to fight with the strong winds, but I finished, and I even wrote a poem about the mighty wind, which I’m sharing with you here.

Wind
By Carmen Micsa

Wind blowing from the front
with the expanding and contracting nostrils
of an untamed horse.
Fiery hooves of swirling air
Turning my bike still – as if stationary.
Meanwhile, I pedal to beat death at its game.
To ride in my father’s honor every year
during my 100-mile Diabetes Tour de Cure
unable to tame the wind that knocks down
kumquats from Auburn’s neighboring farm trees.
Sometimes round, other times oval.
Sour inside, sweet outside.
Howling wind smacks lips of revenge, slowing me down.
Legs hurting. Spirit soaring. Winded.
Hunched over the handlebars of time,
I finished last, changing the low gears of life.

Thank you for all those who donated, and for those who haven’t, there is still time to do so.

See info attached:

To make an online donation, please go directly to: http://main.diabetes.org/site/TR?pg=personal&fr_id=7616&px=3273262
To send a donation:
Make all checks payable to: American Diabetes Association
Mail to: Carmen Micsa
6100 Fair Oaks Blvd. # A3, Carmichael, CA, 95608-3809.

And if not contributing to the cause, then buy or sell a house with me, and receive a 7-night cruise! 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. Also ask us how you can get $500 credit or more towards your closing costs for all homes priced $100,000 and above. Some restrictions apply.

Special Loan Incentives for Buyers this month!

Carmen Micsa — Thu, 14 Apr 2011 22:12:05 +0000

There are so many incentives for first-time buyers, and the home prices are so low!

Hawk perched in the tree on the American River Bike trail

According to the Daily Real Estate News Fannie Offers Closing Cost Help for REOs

Fannie Mae is trying to lure more buyers to its foreclosure properties by offering to cover 3.5 percent in closing costs for home owners who close by June 30 on its HomePath properties.

Fannie’s HomePath program provides low down payment financing on REO property sales and has no requirements for mortgage insurance or appraisals.

During the fourth quarter of last year, Fannie offered closing cost assistance and was able to recoup 55 percent of unpaid principal balance on defaulted mortgages through the sales.

Source: “To Move REO, Fannie Offers Deals to Consumers,” National Mortgage News (April 12, 2011)

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 for all homes priced $100,000 and above. Some restrictions apply.

Busy Buying Season with deep Discounts for Buyers!

Carmen Micsa — Tue, 22 Mar 2011 21:32:49 +0000

According to “Discounts Expected in Spring Housing Market,” The Wall Street Journal (March 22, 2011), “bargain prices on housing combined with low interest rates below 5 percent may bring the real estate market its busiest spring season in years, economists say. Distressed sales continue to put downward pressure on home prices, which may lure more buyers off the fence and ready to snag a deal during the typical prime-time buying season. Some builders are ramping up discounts on new homes as well as boosting commissions to brokers to try to spark more transactions. Sellers of existing-homes also are getting more competitive in pricing their homes.
“After three years of the housing downturn, people are becoming much more realistic in terms of valuing their homes,” says Lawrence Yun, chief economist at the National Association of REALTORS®.

An improved job market with better income potential may also motivate more people to buy, says David Berson of the PMI Group.
“Household formations are also very important,” Berson says. “Kids may have moved back in with their parents, or two people may have moved in together, because of job concerns. Now they can move into their own place.”

While interest rates are sitting comfortably below 5 percent for now (30-year fixed rates averaged 4.76 percent last week), economists warn the attractive low rates won’t last long.

“Few think mortgage rates are going lower,” says Mark Zandi, Moody’s Analytics chief economist. “It’s more likely they will be 6 percent than 4 percent next spring. This lights a fire under buyers.”

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, as well as a $500 credit to your closing costs if you mention this blog article.

What should you know as a first-time buyer?

Carmen Micsa — Thu, 10 Mar 2011 08:21:29 +0000

I think this article will enlighten many buyers, so feel free to call me or e-mail me with any questions as usual.

http://www.smartmoney.com/personal-finance/real-estate/new-rules-for-firsttime-home-buyers-1299539050817/

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, as well as a $500 credit to your closing costs if you mention this blog article.