Folsom Homes - Real Estate Newsletter - February 2010

In The Great American Classic, Herman Melville penned the famous line "Thar she blows" when Captain Ahab and his crew finally sighted the beast of Ahab's obsession: Moby Dick.

During the past 18 years in the residential real estate business, assisting home buyers and sellers I have never seen a market like the one we are in today. Every day, I see something new. My past newsletters and blog postings have, in part, chronicled the rise and fall and unknown rebirth of the local housing market, while adding my insights and perspectives.

In my December 2009 Newsletter, after peering into my crystal-ball, I suggested that the enigma of the market had turned from bank owned homes to short sales, and how ultimately, the markets would rise or fall based on finding a standardized way to efficiently deal with the handling and closing of short sales.

It is with excitement, similar to the crew of the Pequod, I say to you today: "Thar she blows!" For the first time since the housing crisis began, the number of closed short sales in both Folsom and El Dorado Hills exceeded the number of bank owned homes sales. Compared to a year ago, the number of closed short sales in Folsom has risen by 200%. So far, in 2010, I have closed 3 of 3 short sales I was handling, and I have another 3 in under contract and in escrow that I expect to close by the end of March.

Perhaps the government programs and the banks perspective have evolved to a point where these short sale escrows will start closing with more regularity. In the mean-time "me hearties," the short sale beast has surfaced and we've seen its fluke. In the coming months, we'll see if this ends up being a regular sighting, or simply the tale of the one that got away...

Regional Market Watch

Hope emerging from Sacramento housing market hurt
Sacramento home prices lag behind California gains
Housing starts rise from dismal 2009 levels
Sacramento housing market dominated by cash-paying investors
"House Flipping" back in vogue in Sacramento Housing Market

Folsom Market Watch

The average sales price in January was $350,000 and the average dollars per square foot was $185. There were 52 sales, 10 were bank owned homes, 12 were short sales. In all, entering February, there are 237 homes for sale, 25 are bank owned homes, 110 are active short sale listings and there is a 4 ½ month's supply of home inventory. Compared to a year ago, the average sales price has dropped 4.50% and the average dollars per square foot has fallen by .50% and the number of closed short sales rose by 200%.

Short Sales & Bank Owned Homes

Considering a short sale with Indymac Bank? Look at this...
OneWest Bank, formerly IndyMac Bank, accused of pushing borrowers into foreclosure
Welcome to 2010 - "The Year of the Short Sale"

Mortgage Watch

February 2010 Mortgage Rate Watch - Western Region
Borrowers: FHA loan costs are rising in the spring

Home Sellers

Pay a commission as low as 1% of the sales price when selling your home
Motive for 65% of home sellers was unaffordable loan
Can't afford your mortgage and considering a short sale?

Home Buyers

I will give you up to $2,500 when you buy a home!
$8,000 Home Buyer Tax Credit Extended & Expanded

Aaron Cullen is a Realtor, Real Estate Broker, and Owner of Brokers Incorporated Residential Real Estate. Aaron lives in Folsom, CA and specializes in representing home buyers and sellers in Folsom, El Dorado Hills and the Greater Sacramento Region. Having relocated from the Bay Area in 2004, Aaron continues to work with home buyers in all cities lying between the Bay Area and Sacramento Area.