Ken Patterson

Well, everyone has opinions about how many more bank owned properties are going to hit the market. I prefer to draw on the facts. It seems that a postal survey of mail not being picked up for over 90 days would be a good "factual" basis as to what MAY come on the market in the motnhs ahead. What do you think?

Ken

http://www.sacbee.com/topstories/story/1833742.html

My Perspective by Ken Patterson

This edition of the post is going to be the simplest yet. With so much white noise going on these days it is hard to know what is real and what is misinformation or a flat out con by someone looking to take advantage of the tough economic times.

Have you seen those flyers or gotten a letter in the mail from some company claiming they will get your property taxes adjusted for a fee? I have gotten several of them. My favorites are those that tell me it is my "Last Chance to Act" or some other message used to make me feel compelled to send a check before I miss out. Well, please do not send any money. Your property taxes will be reassessed automatically regardless. If you are in doubt, call the county assessor to find out. (Sacramento County (916) 875-0700; Placer County (530) 889-4300) Live in a different county? Just go to Google.com and type in your county name followed by assessor.

How about those signs talking about "Prevent Foreclosure" or "Call for a Loan Modification"? - seen those? Or maybe you are considering "walking away" because you've heard that banks are not interested in loan modifications and you heard foreclosure is better than a bankruptcy. How about Short Selling your home? Or maybe buying a home that is a Short Sale? Do you know the facts regarding 1st time buyer incentives from the federal and state government?

Whatever your situation, please ask a trustworthy professional if you are in doubt about a life decision. A tax accountant, an attorney, a Realtor, a mortgage lender, a credit counselor are all resources that usually have at least a free 1st consultation. All have a fiduciary responsibility to give accurate answers and direction that is in YOUR best interest.

If you would like more facts about any of the topics above, please contact me ASAP.

I'm pretty excited because inventory continues to get swallowed up (even though you may see a few stragglers out there) by investors and other buyers to the point it has driven inventory down farther than it has been in our area for 3 years! That demand has remained constant and even through all the drama of the economy and the government/ bank issues. The good inventory is being hit with multiple offers very quickly in many areas in Placer, Sac, El Dorado, Yolo and San Joaquin counties. I attend various investor groups throughout the month and many others feel we are at now or very near the bottom. Everyone has a different perspective as to why, but most feel we are there. I too feel we could very well be at the floor. I think we may see prices dip for a month here or there over the next 18 months and then recover back to that floor. Appreciation won't happen again for awhile unless inflation has an impact, but "value" is the important factor (a.k.a - How many loaves of bread will your house buy you when you sell it?). You probably won't get any extra "bread" for your property for some time.

On top of all that, rates are VERY low. The Fed will not let the rates on treasuries or on Fed Funds remain low once economic recovery begins because they will fear inflation. Do you disagree?

All that said, I think it is time to strike NOW if the deal is right. It is no longer a waiter's market. It is definitely a buyer's market in my mind. It could become a seller's market faster than anyone may think if I am reading the tea leaves correctly. For example - Banks are hold firm on prices and getting them. They are also tightening up their terms with requirements for lower and lower inspection periods with higher and higher Earnest Money requirements. They are also ‘trickling" new foreclosures into the market instead of "dumping" them and creating a glut of inventory. What is it called when the Seller's start setting those types of terms? Seller's market? If all property on the market was conventional versus bank owned or short sale, it would be a Seller's market today... Lastly, I have heard a few of our area builders have started to purchase land tracts. They generally do not do that unless they are thinking about building on them.

I am writing more offers than ever! It is exciting times right now!! Let's find that RIGHT DEAL and get you in while the getting is good!!

Your Real Estate Agent

Kenpatterson@kw.com

Is it just me or have any of you noticed that most Senators and Congressmen/ Women simply state their "Party Line" when asked about this $827+ Billion spending package. And, have you listened when a reporter asks about particular line items or section?

I have heard several interviews on the radio last night and this morning that have me alarmed. I have heard things like "I don't believe that is what it says" and "If it says that, we will fix it" or "I will take a look when I get back to my office"... What??? Take a look? Those same elected leaders say, "I am going to vote for this because we MUST do something" or "This package is WAY TOO big that I cannot vote for it".

Is it just me or does it seem like these officials STILL do not have a clue as to what they are doing or the potential impact their action/ inaction is going to have? I submit they would not admit to what REAL impact their past actions/ in-actions have had on the current state of things. Am I the only person that feels as though you, Joe the Plumber and I are the ones having to take accountability for the actions of those in power? In some cases, I will take that accountability as a voting citizen. It would be nice to have someone that doesn't blame the other side or the past President. It would be nice when someone is caught dead to rights in the wrong to for once have them admit - YES, I made a mistake or a bunch of mistakes. Or better yet - "since no one will fire me, I am stepping down. It is the right thing to do."

I love my Country! We will get through this and come out better than ever. Please hold our leaders accountable for the actions and leadership, not for what they will "give" away. JFK said, "Ask not what your Country can do for you, but what YOU can do for your Country." I dearly hope that our leaders and citizens hear that call to action as we step through the current economic valley.

Just my perspective... Thanks for reading!

Seems to me that part of the housing problems facing the market today originated from overzealous builders partnered with more than "aggressive" lender types. What do you think? A high percentage of the bank owned properties on the market today have been built in the recent past and purchased from Builders using their "preferred" lender. For my money, the government may want to be more careful than in the past when issueing building permits for new homes... Just my perspective.

New Home Starts in Sacramento - Business Wire 28 Jan 2009