Tuesday, September 16, 2014

New Listing - 3716 Lankershim Way, North Highlands, CA 95660

Adorable 3 bedroom, 1 bathroom, 972sf remodeled North Highlands home on .16ac lot has been lovingly maintained by owner! You will love the high ceilings, granite kitchen counters, newer appliances, freshly painted interior and exterior, remodeled bathroom with tile flooring and tub/shower, newer composition roof, central heating and air, dual pane windows, huge backyard with new fencing, shed, patio and fire pit! Section 1 & 2 pest clearance. Close to public transportation, easy freeway access, shopping, parks and schools. Don't wait! Offered at $149,900. For more photos and detail please visit 3716 Lankershim Way, North Highlands, CA 95660.

Tuesday, September 9, 2014

Sacramento Real Estate Statistics - August 2014

As the summer home buying season in our area continues and gets ready for fall, it's nice to see that the median home price is holding firm. Again last month, we saw the Sacramento County median home price increase ever so slightly to $272,000 - an increase of 0.7%. As I have said this year, It's nice to continue to see a healthy leveling-off of home prices with modest value appreciation. If you look at this graph, during the same time period as last year the market dynamic looked much the same -- bumping along with a couple percent increase. You'll notice as winter approaches, the prices decrease a little but bounce back in the spring...I anticipate some similar activity as we go through fall and winter. These would be seasonal norms -- based on many buyers suspending their home searches, going into hybernation mode during the holidays and then reinvigorating their home searches again in the spring. All good stuff...no crazy spikes, just nice, normal, and mellow. Doesn't that feel nice? Ahhhh....

While we have more inventory (homes on the market) right now than we saw in Sacramento this time last year, this level of available homes for sale is still really LOW. We have about 2.6 months of inventory in Sacramento County in August. This is not a lot. A market with buyer/seller equilibrium is 5-6 months of inventory. Homes are taking an average of 39 days to sell as of August. I'm seeing more price reductions in the market...it seems that some sellers want to test the market and they are trying to get a lot more for their home than the last comparable sale. BUT, as you can see, statistically that's just not happening in our Sacramento home market right now. With prices holding steady, sellers need to price homes realistically.

Friday, September 5, 2014

Zillow...a fun tool for "entertainment purposes" - but has it become more accurate in predicting Sacramento home values?

If you have been reading my blog for a while, then you probably already know that I usually get a chill down my spine when one of my clients mentions "the Z word." What's the Z word? Zillow. What is Zillow? Zillow.com is a website that, among other things, provides information about neighborhoods and properties.

Zillow is a neat website. I have an agent profile on Zillow. I have clients who have found me using Zillow. However, my general thought about Zillow is that while it's a fun consumer tool that provides property information to people looking to buy or sell (or even rent property now), the vast majority of the time, the "Zestimate" (aka, the value that the website dreams up for a certain property), is usually not close to the market value of a Sacramento area property, and the homes listed for sale on the website are not current.

I posted a few times last year about how the sales prices of my transactions compare to Zillow data. I've closed 8 transactions in the last couple months so let's take a look to see how close Zillow is to the actual selling prices of these properties. This information is CURRENT as of today, September 5th, 2014.

15 Waterfront Court, Sacramento, CA 95831; this was a nice remodeled home I sold (represented the buyer) in the Pocket/Greenhaven area. The original listing price was $270,000, and after multiple offers this sold on 6/4/14 for $281,000. Zillow's Zestimate: $263,576 -- approximately 6.61% below it's selling price. 
 
2509 Butano Drive, Sacramento, CA 95821; this was a fixer home I sold (represented the buyer) in the Arden area. The original listing price was $239,000, and this sold on 6/18/14 for $225,000. Zillow's Zestimate: $242,722 -- approximately 7.87% above it's selling price.

7244-7246 Canelo Hills Drive, Citrus Heights, CA 95610; this was a duplex I sold (represented the buyer) near in Citrus Heights. The original listing price was $255,000, and this sold on 6/20/14 for $215,000. Zillow's Zestimate: $220,478 -- approximately 2.56% above it's selling price.

6134 Van Alstine Avenue, Carmichael, CA 95608; this was a home I sold (represented the buyer) near in the American River in Carmichael. The original listing price was $1,595,000, and this sold on 7/17/14 for $1,495,000 (and it appraised significantly higher than the purchase price). Zillow's Zestimate: $1,336,127 -- approximately 11.89% below it's selling price.

1419 Hopkins Street, Sacramento, CA 95822; this was a home I listed and sold (represented the seller) near South Land Park in Sacramento. The original listing price was $129,900, and this sold on 7/20/14 for $129,900. Zillow's Zestimate: $125,415 -- approximately 3.58% below it's selling price.

3201 T Street, Sacramento, CA 95816; this was a home I listed and sold (represented the seller) near the UC Davis Med Center in East Sacramento. The original listing price was $299,900, and this had multiple offers and sold on 7/24/14 for $308,000. Zillow's Zestimate: $264,769 -- approximately 16.33% below it's selling price. WOW.

5364-5366 Elsinore Way, Fair Oaks, CA 95628; this was a home I sold (represented the buyer) in Fair Oaks. The original listing price was $259,900, and this sold on 8/26/14 for $259,900. Zillow's Zestimate: $304,522 -- approximately 17.17% above it's selling price. WOW.

4336 52nd Street, Sacramento, CA 95820; this was a home I listed and sold (represented the seller) in Colonial Heights. The original listing price was $189,900, and this sold on 8/28/14 for $183,000. Zillow's Zestimate: $175,871 -- approximately 4.1% below it's selling price.

I have said it before and I will say it again...I think a couple conclusions can be drawn from the information above. First, Zestimates are generally not accurate. They don't take into consideration property features that can not be quantified. Is it on a main street, is it near a park, was the kitchen remodeled, does it have unique architectural features...? Second, our dynamic Sacramento area real estate market has changed significantly in the last couple of year, and Zillow has a long way to go to catch up to pricing these trends and factoring them into their mathematical equations that determine these values. But it is still a fun website for entertainment purposes. 

If I can assist you determine an accurate price range for your Sacramento home, I welcome your call or email.

Tuesday, September 2, 2014

New Listing - 2480 Sandpiper Way, Cameron Park, CA 95682

Stunning Cameron Park 3 bedroom, 2 bathroom, 1,478sf home on .39ac with an amazing VIEW!! You will love remodeling and attention to detail; kitchen is open to the living room and has granite counters, center island with sink and breakfast bar, laminate and tile flooring throughout, formal dining room, freshly painted interior, master bathroom has dual sinks, huge stall shower and jetted tub! Front and rear deck and huge yard are great for entertaining and playing. On a clear day you can see Folsom Lake and the Sutter Buttes in the distance! Large sunny raised planter beds are all ready for your veggies! Large open sub-area for LOTS of storage or maybe more living space? RV access too. Don't wait! Offered at $359,900! For more photos and information visit 2480 Sandpiper Way, Cameron Park, CA 95682.

Thursday, August 21, 2014

New Listing - 5000 Priscilla Lane, Sacramento, CA 95820

Adorable and well-loved 3 bedroom, 1 bathroom, 925sf Colonial Village home on large .15ac lot is ready for a new owner! You will enjoy the light bright kitchen w/dishwasher, gas stove and tile counters/backsplash. Remodeled bathroom has new vanity, tub/shower combo with tiled surround. Also has dual pane windows, high end carpet, newer roof, central heating & air, recently painted interior & exterior & large attached garage. Large yard has a shed, covered patio, new fencing,  and wisteria-covered arbor. Don't forget the rare RV access. Located a short distance the new Joseph Bonnheim K-6 Charter School. Offered at $169,900. For more photos and information, please visit 5000 Priscilla Lane, Sacramento, CA 95820.

Friday, August 8, 2014

Sacramento Real Estate Statistics - July 2014

As the spring home buying season in our area turns into summer, it's nice to see that pending sales are at a high for 2014, and that the median home price is holding firm. Again last month, we saw the Sacramento County median home price holding firm at $270,000. As I have said this year, It's nice to continue to see a healthy leveling-off of home prices with modest value appreciation. Large spikes are nice and all, but just not sustainable for the long term. While we have more inventory (homes on the market) right now than we saw in Sacramento this time last year, this level of available homes for sale is still really LOW. We have about 2.3 months of inventory in Sacramento County in July. This is not a lot. A market with buyer/seller equilibrium is 5-6 months of inventory. Homes are taking an average of 37 days to sell. I'm seeing more price reductions in the market...it seems that some sellers want to test the market and they are trying to get a lot more for their home than the last comparable sale. BUT, as you can see, statistically that's just not happening in our Sacramento home market right now. With prices holding steady, sellers need to price homes realistically.

Thursday, July 17, 2014

Hoping to purchase a Sacramento home after completing a short sale? Fannie Mae is extending the waiting time period...

Hoping to purchase a home after completing a short sale of your prior home? -- this is important! Fannie Mae has announced some BIG changes for home buyers who want to purchase a home after a short sale. These changes take affect on August 16th, 2014 and will have a significant impact on the required wait time to purchase another home.

For the last several years, a home buyer with a past short sale could finance another property purchase using a 20%+ downpayment after just two years from the closing date of their short sale. This was great for many people, and I have worked with clients who fell into that segment...I sold their home as a short sale, and 2 years later, their financial circumstances had improved and they'd saved enough for the 20% downpayment.

After August 16th, 2014, Fannie Mae will no longer allow this, and the waiting period will be FOUR YEARS. Ouch! If you are a buyer and this applies to you -- either accelerate your home search asap, or figure out "Plan B" for your financing. You do not have to close your purchase by August 16th, however you DO have to be in contract for the home you are purchasing by that date, AND have your lender submit your loan file through the automated underwriting system. To be safe, you should probably be in contract on or before August 13th so your loan officer has time to get this done for you.

You are probably thinking, "What are the Plan B options if I'm not in contract to purchase a house in Sacramento before the cut-off?"

Well, if you have more than 20% down, then you may be able to find other lenders with "portfolio" loans (aka, loans that do not have to conform to Fannie Mae standards) that may be willing to do your loan. I know of one lender who work with buyers just months after a short sale with 30% down, however the interest rates are going to be a little higher than conventional rates, and you will probably not be able to do a 30-year fixed loan. It would be a 5 or 7 year ARM (fixed rate for the first 5 - 7 years and then adjustable after that).

Another option if you are 3 years past the anniversary of your short sale is an FHA loan. FHA loans require a minimum of 3.5% downpayment which is far less than 20% down, however these loans come with a string attached that a buyer would not have to deal with on a 20% down conventional loan: mortgage insurance. This can add costs to the transaction and to the monthly mortgage payment.

Neither one of the Plan B lending scenarios are the end of the world, however they'd either require a longer wait or more money down.

So buyers, if this describes your scenario -- do some strategic planning with your loan officer and Realtor! And do it today.

Friday, July 11, 2014

Rest in Peace, Mr. D...

Sad news this week. On Monday at our weekly office meeting we learned over the weekend that Richard Dunnigan, the founder of Dunnigan Realtors, had suffered a massive stroke and his days were limited. Of course we were all shocked to hear that because he had just been in the office last week as usual and seemed perfectly fine. We then learned on Wednesday morning that he had passed away over night. He was 101 years old.

If I haven't mentioned it before, "Mr. D" was amazing.

When I first joined Dunnigan Realtors in 2010, he was one of the first people to welcome me to the company. He was 97 then and was attending the weekly Monday morning office meeting. Even after he sold the company many years ago, he STILL kept an office there, and would come in 3-4 times per week. He was sharp as a tack, and always had a story about a property he sold way back when, or how he would handle a certain situation, or when he helped form the MLS in Sacramento, or something the Sacramento Association of Realtors did 50-something years ago when he was its President. He always said that doing things with honesty and integrity was first and foremost. "Do the right thing," he would say, "and the real estate sales will follow." This high ethical standard that started with Mr. D was one of the primary reasons I joined Dunnigan Realtors; because the ownership of the company firmly holds these ideals as well.

I have many sweet memories of Mr. D. The photo is from his 100th birthday gathering at our Land Park office last year. I gave him a kiss on the cheek and he said that was "the highlight of his 100 years!" Ha.

The last time I saw Mr. D was on Wednesday, July 2nd, when he came into the office as usual. He has to pass my desk on the way to his office. I looked up from my laptop, flashed a big smile and said, "Hey there Mr. D! How are you?" He smiled from ear-to-ear and replied, "My eyes are open so it's a great day!"

It seems surreal that the light is now out in his office. I kind of hope we leave things the way they are in there. I don't think the office needs that space for anything. Rest in peace, Mr. D. I miss you already.