About Sacramento County, CA

The "New and Improved" Home Buyer Tax Credit has arrived: This time around, the gift from the government is broader, easier to qualify for and is extended to current/repeat home owners. If you are thinking of buying a home, and would like some free money, here is what you need to know: Current Home Owners - $6,500 Tax Credit: If you have owned and lived in a home for at least five consecutive years during any of the last eight years, you could qualify. Even if you sold your home 2 ½ years ago, as long as you were living in that home for five straight years, prior to the sale, you could qualify. You could have sold the home or rented it out, does not matter, as the use of the home after you moved out does not matter. First Time Home Buyers - $8,000 Tax Credit: If you have not owned a home during the past three years, by definition, you are a First Time Home Buyer. Buy a home and you may be eligible for the cash! Fine-print: You must buy a home, or have a binding contract in place by 4/30/2010, you must be over 18 years old, you cannot purchase from a relative and you must stay in the home for three years, or pay the money back. There are other details and income limits, so contact me if you would like to learn more. Speculation is, the breadth of this program will put a bottom in housing.

Home of the Month: I am selling 120 Winterstein Drive in Folsom. 1,472 square feet, 3 beds, 2 full baths, 3-car garage on almost .18 acre lot. This home is a short-sale and will be an amazing deal for the right buyer. Asking $264,000. Call me for details or an appt!

Regional Snapshot: The attempt at a housing recovery in the Sacramento Region continues to bounce along what my well be the bottom. The average home price rose for the 7th consecutive month, with that number having risen 10% since bottoming in March of 2009. Year-over-year (10/08-10/09), the total number of home sales dropped 18%, bank owned home sales dropped 53% and short sales rose by 66%. One of the biggest keys to our region's recovery is happening... More and more short sales are closing escrow!

Folsom: The impact of the original First Time Home Buyer Program's expiration was felt in October. Buyers rushed to get into homes, while sellers fretted about getting their homes sold before the November 30th expiration date of the original program. The good news: Folsom's 70 homes sales were the most we have seen since July of 2008, and year-over-year, home sales rose 10%. The bad news: Folsom's average sales price dropped to $378,000, its lowest level since 2004. Market Direction: Homes sales are up and inventories are tight, but the average dollar per square foot ($180) and the average sales price ($378k) have yet to stabilize.

Folsom, CA REO (BANK OWNED) SALES DATA FOR OCTOBER 2009

This is a continuation two year study of Bank Owned home sales data for Folsom, CA. This report covers REO homes sold in October of 2009.

There were 19 REO homes sold in October, up from 11 in September. That is a 72.8% increase. The days-on-market increased from 20 in October to 27 in September. The primary reason for the increase is that one home that had been on the market for 156 days sold last month, skewing the average days-on-market figure. The fact that 52.7% of the REO homes sold in two weeks or less shows that REO homes are still selling quickly.

The 19 homes sold represent 27.6% of all homes sold in Folsom, within the normal range for this study.

The overall home inventory in Folsom is presently 250, a 3.6 month inventory, down from 4.7 in August, indicating a continuing strong seller's market. At this rate there will be a shortage of available homes very soon. A neutral market is considered a 6 month inventory.

The cost per square foot of REO homes in October decreased to $ 163, down from $ 170 in August. The cost per square foot of all homes sold in October decreased to $ 180, down two dollars from September. Prices are still trending downward but more slowly than in the past few years.

The difference between the cost per square foot of REO properties and the cost per square foot of all properties sold indicates that REO sales represented a 9.4% savings for REO buyers.

The overall sales price for REO homes was 99.5% of the final asking price. In October only 31.6% of the REO homes that sold did so for less than the asking price!

However, the banks are still pricing these homes well and in September there was a seventeen dollar per square foot savings, compared to the cost of all homes sold. That is still a $ 42,500 savings on a 2500 square foot home, something worth considering when selecting a home.

The data follows:

Hello Neighbors,

My apologies for the drop in blog activity.

We are just coming back up to speed after Strep Throat and Scarlet Fever ran through the household. Not much fun!

Blog activity will probably be slow until early December too, as we will be with family for Thanksgiving.

HAPPY THANKSGIVING to all of you!

Here's one bit of market data to keep you going...

In Sacramento County for the last month - 25.2% of home sales were funded with all cash. Roughly 27.6% of home sales were with FHA first time buyer type loan products.

39% of homes were bought with conventional loan products (likely using standards driven by FHA).

What does it mean?

A bit over half of the activity last month was a continuing battle between investors and first time Buyers.

I'm pulling for the first time Buyers!

Again, Happy Thanksgiving,

Jim

www.NeighborlyGroup.com

www.NeighborlyRealt.com

www.NeighborlyFinancial.com

Most of us always think of the major home overhaul as "Spring Cleaning," and don't get me wrong, I'm a big spring cleaner. However, something over takes me this time of year and I've come to call it, "Fall Feng Shui," or simply put, the pre-holiday de-clutter ritual.

Whether or not you believe in Feng Shui, the ancient art of placement that our Asian friends have been applying for a couple thousand years, is not the point. In fact, you don't need to know a thing about Feng Shui in order to understand and recognize that the "feeling' of a place can affect your mood. When you walk into your living room, do you feel light and happy and energetic, or are you trying to make your way through the boxes and bunches of stuff that has been accumulating all summer?

This weekend, the pre-turkey day weekend, is the one I typically choose to perform my semi-annual cleaning and clearing ritual in order to prepare-pare for the holidays. It's so funny how we forget or overlook our own messes and clutter because we look at them each day. I just realized I still have my frog-feet for swimming sitting on top of the washer, and books from reading all summer on the patio, still outside...starting to get their covers curled.

So, below I've made a list of some of the things you can do to help prepare your home for the holidays, while creating a better space for you to live and work in:

1) Take an unbiased look at each room. Pretend you've never been in your house before...or else actually ask someone else to take a look...and make note of what things seem to be in the way. Are their boxes, piles of old magazines that you've saved but probably won't read again, broken items that you've meant to get fixed....since May? It's best to tackle one room at a time, as it might otherwise get overwhelming. Just collect all the "stuff" that seems to be out of place and in the way and find a new home for it. Feng Shui practice tells us that the pathways in and around our home should be clear and clutter-free and flowing.

2) Move stuff around. Even if you're only moving it around to clean underneath it. Seriously, the only time I move my couches and chairs to vacuum underneath them and inside the cushions is these few times per year. I like to make sure everything is spic and span before the tree goes up and my mother-in-law comes through with her white glove test. Seriously (my mother in law doesn't own white gloves), you might find lost items, loose change, and hair balls that you would die if a friend saw. Move it and clean it. Also, I often find that between de-cluttering and moving, I discover a new way I want to arrange things that I like better, giving a whole new look and feel to a room.

3) Open windows. Yes, I know, for some of us that can mean freezing air, however, one of the golden rules of Feng Shui tells us that fresh air is good energy. And let's face it, fresh air is good for us. In the fall and winter months, with colds and flus going around, doors and windows shut, wood buring stoves and heaters on, the air can get just plain stuffy. I'm not advocating you live in an ice box, but I am suggesting you pick the warmest time of the day and just open up a few windows or doors, even if just for a few minutes. Turn the heat off if you are concened about your bill, turn on a ceiling fan to circulate the air, and enjoy the freshness. You can find me with a sweatshirt, mittens and scarf as I prance around to stay warm, cleaning the house and letting all that fresh air come in and refresh my house.

4) Clean deep. Since this semi-annual cleaning thing only happens, well, semi-annually, this is no time to take short cuts. Trust me, I have more collectibles than anyone I know...lots and lots of knick knacks and shelves that are full of "stuff." I take everything off, down and out and clean it methodically. I get out the stepping stool and clean fans and ceilings and crevices that get overlooked during normal cleaning events. Pull out the wood oil and notice how new you can make that coffee table or bookshelf look. Steam clean the carpets, clean the inside and outside of all the windows. If you can, wash or dry clean window coverings, clean blinds, and vacuum couches and chairs. I actually hire someone to help me since this cleaning is an all-day event for at least two people.

5) Seal the deal with a moment of appreciation. I find that finazling the ritual makes it all the more special. I light some candles, pour a glass of good red wine, and just sit to admire my work. I think about where I'll put the Christmas tree and decorations this year, what I'll serve for dinner and who I'll invite to parties. But more than anything, I remember what I am thankful for. It IS that time of the year after all. I let myself feel deep appreciation for the home I have to clean, the people who will be in it that I am honored to love and all the wonderful things I have in my life.

So as the holidays approach, consider a de-cluttering of your own home. Make a pile of all that stuff and give it to someone less fortunate than you who will appreciate it so much.

When our environments are clean and clear, os are our hearts and minds.

Thanks for reading,

Tamara

I like to think of Fridays as the last day to make a difference in someone's life for the work week...

This morning around 7:45am I got a phone call from a homeowner who was responding to a flyer that my partner and I had sent to his home...he was inquiring about a short sale and if he could do one. I started asking him some questions and quickly learned the unfortunate truth, which was he was too late. We would've been able to help him stay in his home, at least until he found somewhere else to go for a couple of months, and we could have begun negotiations with the bank to accept less for his home than what he owed. In this case however, the bank had already foreclosed on his home, and I informed him that the 'cash for keys' that the bank appointed agent was offering him, was actually real money, intended to help him move.

Moral of the story--DONT WAIT! As soon as you start falling behind on your payments call us! When you learn of a TRUSTEE SALE DATE set on your property--CALL US! We can usually help up until it's actually sold at the trustee sale...and remember; it doesn't cost you anything to inquire. We can't help everyone, but you can be sure that we will give you an honest answer.