Aaron Cullen : Folsom & El Dorado Hills Real Estate

Bank Owned Home Activity Report for El Dorado Hills, CA - Week ending 4/19/09

Single Family Homes (excluding condos / townhouses / multi-family)

Number currently for sale: 12
Number that sold last week (4/5-4/12/09): 2
Number that are currently pending: 22

Condos and Townhouses

Number currently for sale: 0
Number that sold last week (4/5-4/12/09): 0
Number that are currently pending: 0

UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in El Dorado Hills, California: Click Here . Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home.

Bank Owned Home Activity Report for Folsom, CA - Week ending 4/19/09

Single Family Homes (excluding condos / townhouses / multi-family)

Number currently for sale: 12
Number that sold last week (4/5-4/12/09): 2
Number that are currently pending: 29

Condos and Townhouses

Number currently for sale: 3
Number that sold last week (4/5-4/12/09): 0
Number that are currently pending: 6

UPDATED DAILY --- To see a current list of bank owned homes that are listed for sale in Folsom, California: Click Here . Buying a bank owned home, also called REO's (real estate owned - by banks) and foreclosure property, can be an excellent way to get a great deal on your next home.

Latest News and Topics of Interest: The biggest news to develop in March was the long awaited arrival of lower interest rates. For months I have referenced rumors and mortgage insider speculation regarding falling mortgage rates, and in March it finally came true. March began with average 30 yr. fixed mortgage rates in the Western U.S. at 5.06% and by month's end they had dropped to 4.71% (both with about 1 point). Since the keys to the housing recovery are low interest rates, fewer foreclosures and lower unemployment rates, and the last two are difficult to control, you can expect government intervention in the treasury markets to continue and mortgages to remain cheap for the foreseeable future.

Housing bottom looming?: Time will tell, but one of the interesting stories I have been following is the drop in available bank owned homes in Folsom. Over the course of the past year, during any given month, there has been between 26-35 bank owned homes for sale in Folsom. At the end of March, the number of bank owned homes had dropped to under 20. If this trend continues, more and more home buyers will have to turn to "non-distressed" houses to buy their next home. This would put upward pressure on prices.

Regional Snapshot: 1,734 homes sold in Sacramento County last month, a 160% increase in home sales when compared to March of 2008. Of the 1,734 sales, 1,220 were bank owned (70%), 215 were short sales (12%) and the average home sales price was $187,686.

El Dorado Hills: EDH home sales perked up a bit in March with 40 closed escrows. 19 of the sales were bank repo's and 6 were short sales, making distressed home sales 63% of the volume. The average sales price rose to $580k with an avg. of $168 per sq. foot.

Latest News and Topics of Interest: The biggest news to develop in March was the long awaited arrival of lower interest rates. For months I have referenced rumors and mortgage insider speculation regarding falling mortgage rates, and in March it finally came true. March began with average 30 yr. fixed mortgage rates in the Western U.S. at 5.06% and by month's end they had dropped to 4.71% (both with about 1 point). Since the keys to the housing recovery are low interest rates, fewer foreclosures and lower unemployment rates, and the last two are difficult to control, you can expect government intervention in the treasury markets to continue and mortgages to remain cheap for the foreseeable future.

Housing bottom looming?: Time will tell, but one of the interesting stories I have been following is the drop in available bank owned homes in Folsom. Over the course of the past year, during any given month, there has been between 26-35 bank owned homes for sale in Folsom. At the end of March, the number of bank owned homes had dropped to under 20. If this trend continues, more and more home buyers will have to turn to "non-distressed" houses to buy their next home. This would put upward pressure on prices.

Regional Snapshot: 1,734 homes sold in Sacramento County last month, a 160% increase in home sales when compared to March of 2008. Of the 1,734 sales, 1,220 were bank owned (70%), 215 were short sales (12%) and the average home sales price was $187,686.

Folsom: Folsom closed out March with 51 home sales. 10 were bank owned sales and 14 were short sales, making distressed home sales 47% of the total volume. The average home sales price was $391k with an average of $186 per square foot. Folsom is down to a five month supply of inventory.

Latest News and Topics of Interest: The rapid decline in long-term interest rates continued in December. Due to continuing actions by the Federal Reserve board, according to FreddieMac.com, the average cost of a 30 yr. fixed mortgage in the Western U.S. has dropped from 6.47% on 11/1/08 to 5.60% on 12/1/08 to 5.01% on 1/1/09. "Word on the street" is still suggesting 30 yr. mortgages at 4.50%, or less, soon. On the horizon: Expect Obama's stimulus package to include a provision, empowering bankruptcy judges with the ability to alter home loans in an effort to prevent foreclosures. The purpose of this is to get lenders to further engage in loan modifications and short sales, or the courts will do it for them.

National & Regional Snap-shot: What a difference a year makes: 1,872 homes sold in Sacramento County last month, a 219% increase in home sales when compared to December 2007. Of the 1,872 sales, 1,371 were bank owned (73%), 197 were short sales (10%) and the median home price rose 10% from $181k in November to $199k in December. 83% of the county's home sales were "distressed," making stiff competition and low odds of success for the average home seller.

El Dorado Hills: December was the weakest month in EDH in years with 35 sales, including 11 foreclosures and 7 short sales. The inventory of homes for sale dropped to a low for 2008 at 330. The average home sales priced rose 8% to $537k. The average dollars per square foot was $174, a 17% decline from December 2007.

Aaron's take on the markets: Reflecting on 2008, we saw a big drop in the stock market, employment, investor morale, consumer confidence and home prices. All of these factors helped the bottom fall out of the housing market in 2008, to the tune of a 20%+ decline in home values. Time is needed for all the government stimulus and falling interest rates to do their job, but when they do, the credit markets will loosen and home buyer confidence will rise. Although I do not see runaway appreciation returning, I do think we'll see prices stabilize in 2009. Considering falling interest rates, the tax benefits and possible appreciation, if you can find a home you love, and plan to stay 3+ years, early 2009 could be a great time to buy.

Personal note: I had the opportunity to see many of you over the holidays and I enjoyed the time. With the new year upon us, opportunity is abound and my nose is back to the grind-stone. If you ever want to chat, please give me a call.