Elizabeth Weintraub, Sacramento Short Sale Agent, Land Park, East Sac, Lyon RE

I can't believe this. Look at that upward spiral for February. The pending sales in Sacramento are moving up. Inventory is reducing.

Investors are coming back into the market, but they are always the first to recognize market conditions and act on them, way before home buyers figure it out.

I was hoping this trend from January would continue, and this is proof that it's not just a fluke. The market is rebounding.

The question is whether it will continue. Generally speaking, April, May and June are the hottest months for real estate sales in Sacramento, and I'm not just yakking about the weather. It doesn't get really hot in Sacramento, weather-wise, until July anyway.

If this trend continues, and sales continue to go up with inventory dropping, we should return to a normal market by the end of the summer.

I'm telling all my clients now to consider buying a home for an investment. Heck, I'm trying to tear my husband away from his newspaper business for a few moments to talk about putting our own money into investments.

This is an extremely fabulous market. Every day I hear people ask, "So, the market is tanking?" Well, it might seem that way for sellers. But for buyers, this is the best market in years!

Great news, Sacramento home buyers. The FHA loan limits for Sacramento County have increased. The maximum limit was $362,790, and it was increased yesterday to $580,000. FHA loans are excellent tools for first-time home buyers, especially since the down payments are 2.85% of the sales price. Years ago, sellers used to balk at a buyer obtaining an FHA loan because sellers were worried that an FHA appraiser would require tons of repairs. That is no longer the case. Restrictions have relaxed, and FHA loans are easy to process.

FHA loans are also popular with home buyers because FICO scores do not apply.

Here are the new mortgage limits for FHA loans in our five-county area:

Sacramento County: $580,000

Yolo County: $580,000

Placer County: $580,000

Sutter County: $425,000

Yuba County: $425,000

Photo: © Elizabeth Weintraub

Read more about FHA loans.

Professional real estate investors are now competing with first-time home buyers, meaning if you're planning to buy a home priced under $300,000 in Sacramento, you could very well find yourself in a multiple-offer situation, going head-to-head with an investor.

My past experience says that investors are typically the first to enter the marketplace and the first to leave. The fact that they are out making offers right now should inspire savvy prospective home buyers to buy. This is welcomed news and confirms what real estate experts have been saying for the past few months.

Foreclosures are increasing, of course. As you can see by this chart of REOS (bank-owned properties):

Although the REO inventory is rising, so are the pending sales and sold sales.

The January statistics from Trendgraphix for Sacramento County show sales have declined from December by 8% while inventory has increased a modest 4%. However, the really big news is the pending sales. Pending sales are up 49%, which should show a dramatic increase in closed sales for January.

Here are the stats for Sacramento County:

25% of the homes sold for less than $200,000.

62% of the homes sold between $200,000 and $400,000.

13% of the homes sold over $400,000.

The average per square foot cost is $162.

Now, look at the chart of active vs. pending vs. sold homes in Sacramento for January of 2008:

When inventory shows a decline and pending sales are increasing, it means the market is beginning to shift away from a buyer's market. Now is the time to buy in Sacramento.

Graphs courtesy of Trendgraphix.

Yesterday, I received a pile of emails and numerous phone calls from potential Internet fraud victims. I'd like to alert you to this scam, because it is unlikely that I am the only real estate agent whose identity has been compromised in this manner.

Here is how it works. A woman in Africa goes to Yahoo.com and sets up an email using your name. She used my middle initial, which I use solely for the Department of Real Estate and MLS, which is how I know she did not pick up my name from the various web sites where I post my listings. I am guessing she got it from Realtor.com.

She downloaded my listing photographs and posted my Land Park listing as a home for rent on Craigslist at an incredibly low rental amount. For example, this home would easily rent for $2,000 a month, and she advertised $600 a month, including utilities. She asks would-be renters to send first month's rent and a $200 deposit to her in exchange for the keys, which she promises to send upon receipt of the cash.

You might want to check on yahoo to find out if an impersonator has set up an email account with your name.

I have reported this person to Yahoo, Craigslist, the FBI's Internet Crime Complaint Division and the Sacramento Police Department.

I get more spirited letters from readers when I write about selling a home where pets live than almost any other topic. You would think I had threatened to tell every kid under the age of five that there's no such thing as Santa Claus. If you still believe in Santa Claus and you're reading this, go talk to your parents, now. Just go.

The fact is even pet lovers don't necessarily want to buy a home where other pets are living. And if you'd rather poke your eyes out with a stick than live with a pet, you're probably not going to pay top dollar for a home where pets are in residence. Whether you like it or not, sellers with pets tend to sabotage themselves and sell for less money than those without pets in the home.

I'm not suggesting that sellers abandon Snagglepuss or Spike. But for heaven's sake, don't flaunt them in the faces of buyers.

Read more about Selling a House Where Pets Live.

© Elizabeth Weintraub