Monthly cost to rent a home vs monthly cost to buy a home in Sacramento...

Last year around this time I wrote a post detailing the monthly mortgage payments vs. average rent payments in certain neighborhoods in Sacramento, and I thought I would start 2012 with a similar post, updated with today's interest rates, average Sacramento home prices, and average rents.

Today was the first business day of 2012, and my phone rang off the hook. Who was calling me? Prospective home buyers who finally have decided that now is the time to buy a home in Sacramento. It seems that the overall sentiment among them is that it has become more affordable to buy a home in Sacramento than rent a home. In many areas and under many circumstances, I believe this to be true. Prices are slightly down from last year, while rents seem to have increased. If you don't believe me -- just compare this data to a similar post from around this time last year.

When you take into consideration the average home price and probable monthly mortgage payment in particular Sacramento neighborhoods vs. the average rent, often times the mortgage payment is less. Let's take a look at a few different areas...just for the sake of citing my information sources, for average home price (used to calculate mortgage payment scenarios) I am using most recent November 2011 Trendgraphix data (December's data is not available yet, and I don't expect a huge variance) which is taken directly from MLS, and for average rent I am using the most recent Q4 2011 Homepointe Quarterly Residential Rental Survey. For my mortgage payment calculations, I am basing it on a 4.25% interest rate (which is actually slightly above today's average market interest rates), and including the full PITI - loan principle, interest, monthly property taxes, and monthly homeowner's insurance (and mortgage insurance where applicable).

Natomas - 95833, 95834, 95835
Average single family home sale price: $194,000
Average rent for a 3 bedroom home: $1,422
30-Year Fixed VA Loan (Zero downpayment): $1,226
30-Year Fixed FHA Loan (3.5% downpayment): $1,368
30-Year Fixed Conventional Loan (10% downpayment): $1,208
30-Year Fixed Conventional Loan (20% downpayment): $1,022

Elk Grove / Laguna - 95757, 95758
Average single family home sale price: $213,000
Average rent for a 3 bedroom home: $1,384
30-Year Fixed VA Loan (Zero downpayment): $1,346
30-Year Fixed FHA Loan (3.5% downpayment): $1,502
30-Year Fixed Conventional Loan (10% downpayment): $1,326
30-Year Fixed Conventional Loan (20% downpayment): $1,122

Rosemont / College Greens - 95826, 95827
Average single family home sale price: $154,000
Average rent for a 3 bedroom home: $1,194
30-Year Fixed VA Loan (Zero downpayment): $974
30-Year Fixed FHA Loan (3.5% downpayment): $1,086
30-Year Fixed Conventional Loan (10% downpayment): $959
30-Year Fixed Conventional Loan (20% downpayment): $811

Arden - 95821, 95825, 95864
Average single family home sale price: $250,000
Average rent for a 3 bedroom home: $1,466
30-Year Fixed VA Loan (Zero downpayment): $1,580
30-Year Fixed FHA Loan (3.5% downpayment): $1,763
30-Year Fixed Conventional Loan (10% downpayment): $1,556
30-Year Fixed Conventional Loan (20% downpayment): $1,317

Carmichael, Fair Oaks - 95608, 95628
Average single family home sale price: $236,000
Average rent for a 3 bedroom home: $1,370
30-Year Fixed VA Loan (Zero downpayment): $1,492
30-Year Fixed FHA Loan (3.5% downpayment): $1,664
30-Year Fixed Conventional Loan (10% downpayment): $1,469
30-Year Fixed Conventional Loan (20% downpayment): $1,243

Citrus Heights, Orangevale - 95610, 95621, 95662
Average single family home sale price: $164,000
Average rent for a 3 bedroom home: $1,300
30-Year Fixed VA Loan (Zero downpayment): $1,036
30-Year Fixed FHA Loan (3.5% downpayment): $1,157
30-Year Fixed Conventional Loan (10% downpayment): $1,021
30-Year Fixed Conventional Loan (20% downpayment): $864

South Land Park, Pocket / Greenhaven - 95822, 95831
Average single family home sale price: $177,000
Average rent for a 3 bedroom home: $1,244
30-Year Fixed VA Loan (Zero downpayment): $1,119
30-Year Fixed FHA Loan (3.5% downpayment): $1,248
30-Year Fixed Conventional Loan (10% downpayment): $1,102
30-Year Fixed Conventional Loan (20% downpayment): $933

Obviously there are other tangible and intangible benefits to home ownership as well...for example, a tangible benefit is the fact you can write-off your mortgage interest on your income taxes, and also deduct some other related expenses each year. An intangible benefit might be that as a homeowner, you have the freedom to paint the walls, decorate, plant a garden, remodel, etc.

So clearly these numbers are just a baseline to give you an idea of housing affordability in certain areas. You definitely need to consult a loan officer to see what type of financing is the best fit for you, and ultimately just how much you can afford - and there are several variables that will affect your interest rate and terms. You should also speak with a CPA or qualified tax professional regarding the mortgage interest and other tax deductions to see how it will affect your particular situation. If you need a good referral to either one, feel free to contact me and I can put you in touch.

I was featured on the KCRA 3 News -- Is the Sacramento Housing Market Making a Turnaround?

So if you follow me on Twitter or Facebook, you will already know that yesterday one of my clients and I were interviewed by KCRA 3 reporter Danielle Leigh. DataQuick reported that the median home price in Sacramento County increased 4% from October - November. Did Sacramento's real estate market hit the bottom? Is now the right time to buy or sell your Sacramento home? Here is a link to the video of the story on KCRA.com.

Holiday Gift Ideas -- for your most beloved Sacramento resident...

For the last few years in December, I have written a blog post about gift ideas from local business to give to your favorite Sacramento resident for Christmas, Channukah, or whatever else this holiday season. If your holiday festivities involve gift giving, there are many local Sacramento gifts you can give! Here are my top 12 gifts that will make any Sacramentan's holiday, at any age or budget:

• A cruiser bicycle from East Sac Bike; this super cool bike shop in East Sacramento specializes in cruisers but sells all kinds of cycling gear, parts, cruisers, tandem bikes, unicycles, etc. Estimated cost: $300+
  
• A membership to the Crocker Art Museum; If you weren't aware, it was recently renovated and greatly expanded, and is the premier art museum in the Sacramento Valley. As a member, you will receive a monthly magazine, and receive discounts at the store and cafe. Estimated cost: $65/individual annual membership.
• A Hornblower Cruise of the Sacramento and American Rivers; the cruise leaves out of Old Sacramento. Check out the confluence of the American and Sacramento rivers, and experience the wildlife and breathtaking natural beauty that this historic and important waterway has to offer. Estimated cost: $69-99.
• A subscription to Comstocks Magazine; Read up on local goings on, the Sacramento economy, real estate, business, and more! Estimated cost for 12 month subscription: $12 (online special).
• A California State University, Sacramento sweatshirt; My alma mater! Stay warm this winter while supporting our local CSUS Hornets! My CSUS sweatshirt was a Christmas gift from my mother during my freshman year...I still wear that thing even though it is totally faded and worn out...Estimated cost: $36 - $75.
• Car washing at Quick Quack Car Wash; This express car wash will get you in-and-out in just minutes and there are 6 locations in the Sacramento area! Estimated cost: $14.95/month of unlimited car washes.
• Tickets to go visit the Sacramento Zoo and Fairytale Town; Heck if you are going to visit one, why not visit both! Located at William Land Park, this is a great diversion for adults and children alike! Estimated cost per person/ticket: $13.
• Bottle of wine from Revolution Wines; Revolution Wines is Sacramento's only urban winery. Tucked away at 21st & P Streets in midtown, they make their wine...their facilities also host tastings. Estimated cost per bottle: $10 - $25.
• Massage from Elite Massage Therapy; Katie at Elite Massage Therapy in East Sacramento whips me back into shape after a long run, and she gives one heck of a theraputic massage too. Estimated cost/treatment: $75/ one hour.
• Dance lessons at The Sacramento Ballroom; Want to learn the Texas Two-Step, the Tango, or how to Swing Dance? They have classes for both singles and couples, from beginning to advanced levels! Estimated cost/lesson: $5 - $10.
• Tickets to a Sacramento Rivercats game; See the Oakland A's affiliate play at Raley Field. I'm a SF Giants fan, but I do really enjoy these games (especially when they play the SF Giant's affiliate team, the Fresno Grizzlies)...many of these players are a phone call away from the major leagues! Estimated cost/ticket: $6 - $30.
• A new home; Sure, I saved the best for last. Nothing says happy holidays like closing escrow on a Sacramento home...sorry if that was a little cheesy! Estimated cost: Priceless. =)

New Listing - 4760 Haase Drive, Fair Oaks, CA 95628

Adorable 4 bedroom, 2.5 bathroom, 1,847sf home on nearly a half acre in Fair Oaks! You will love the country feel close to everything -- secluded private lane near St. Mel's. Great layout with three downstairs bedrooms, and 1 upstairs, large covered porch. Large outbuilding has great potential for a hobbyist or extra storage. Don't wait! Offered at $239,000 subject to lender approval of short sale. For more photos and info, visit 4760 Haase Drive, Fair Oaks, CA 95628.

Finished the California International Marathon...and I can barely walk today!

Welp, I can barely move today, and I may need someone to help me when I try to go down the stairs...but yesterday I was able to cross another goal off my 'Bucket List.' I finished the California International Marathon in 5 hours, 46 minutes. Nope, I did not qualify for the Olympic Trials (that's a joke, in case you are not a runner), but I finished all 26.2 miles. It was pretty much torture after about mile 21. I am not too proud to admit that I may have shed tears of absolute agony and joy crossing the finish line. I was immediately greeted by my family, my sweet significant other, and my friends -- who all cheered me on at various locations along the way. Here I am standing at the finish line with my pretty medal.
I have been running for a little over a year, and completed my first half marathon in March. Once my body stops hurting, I may consider signing up for the River City Marathon at the end of March.

Girls just wanna have fun?

Hmm. Someone likes to par-tay!! I couldn't help but notice this fine assortment of platform 6-inch heels in the closet of a condo I showed today in Citrus Heights. These aren't exactly my style. Not only are they not my style, but darn they look like they would be so uncomfortable. Since I am a runner, I really value comfy shoes.

Real Estate Statistics -- Sacramento Median Price October 2011

The median price in Sacramento County looks pretty darn flat over the majority of 2011...this year has been insane. I have closed some of my smallest transactions EVER. In fact I recently closed a transaction for a house in Oak Park for $30,000. No I am not missing a zero. I have another listing for $55,000 in South Sacramento that is closing next week. There are some great opportunities out there for investors. And first time buyers...and move-up buyers.

What I can tell you is that most of the transactions I have been representing for both buyers and sellers, (in all the price ranges, short sales, foreclosures, and "regular transactions with a traditional sellers") are still often times met with multiple offers if the home is priced correctly. Buyer demand is extremely high, and the market is pretty competitive. To top it all off, interest rates are insanely low right now - like in the low 4% range in you have a stellar credit score and documentable income.

If you would like me to email you the Facts and Trends graphs for specific zip codes in Sacramento County, just shoot me an email and I am happy to provide them.

Bank of America is conducting a "Borrower Outreach" event in Sacramento -- you MUST register in advance!

Bank of America will be holding a "borrower outreach" event this week at the Sacramento Convention Center starting Thursday, November 17th - and going through Saturday, November 19th. Hours of the event each day are from 8am - 8pm. They are encouraging their borrowers to register online and schedule an "appointment" time rather than just dropping in.

Their goal is to help Sacramento Bank of America mortgage customers who are experiencing hardships to find alternatives to foreclosure -- such as loan modification, short sales, etc.

There is a list of documents you must print from their website and bring with you:

• A "Request for Modification & Affidavit" --
• A Hardship Letter -- explains your hardship and why you are seeking assistance
  
• An IRS Form 4506-T -- this allows Bank of American to request your income tax information from the IRS.
  
• A Dodd-Frank Certification form -- this certifies that you have not been convicted of a financial crime in the last 10 years (among other things, be sure to read it before signing)

There are also other financial documents they want you to bring:

• Recent Utility Bill
• Copies of your 2009 and 2010 tax returns
• Copies of your most two recent bank statements for all accounts
• A summary of your monthly expenses
• Recent HOA bill (if applicable)
• Copies of your most recent two months of paystubs (or profit and loss if self-employed)
• Copies of your rental lease (if property is tenant occupied)

In order to register for your appointment time for the Sacramento Bank of America Outreach Event, visit the Bank of America Events Registration page on their website by clicking here. If they advise you to consider a short sale as an alternative to foreclosure, I am happy to provide you more information regarding the process and assist you as well.