CentralCityDigsBlog

Sacramento's Foreclosures

The Sacramento Business Journal's Opinion referenced the following interesting stat:

"Sacramento had the natin's fifth-highest foreclsoure rate at 3.2 percent in 2007, while Stockton topped the list, according to RealtyTrac report released Wednesday.. . . . almost 50percent of the home sales in December were bank-owned properties in the Sacramento region"

The Railyards: Downtown Sacramento's new homes

The Sacramento Business Journal referenced the City of Sacramento's continued work on the new homes planned for the area by the American River, north of the Railyard and Richards Boulevard. 

View Larger Map

There are two planned developers: Thomas Enterprises is planning The Railyards (considered the largest infill project in the nation) and Township 9.

The article references that they're vying for State transit-oriented and infill funds. Here's what else I learned:

• Township 9 calls itself "shovel ready"=
• Township 9 is planning to build 3000 (!) homes on 65 acres
• Township 9 doesn't have a planned lightrail station until 2010
• Township 9 wants to "widen 7th Street and create Riverfront Drive, a winding road along the river that would run alonside a park and ampitheater."

The Railyards is to build about 12,000 homes (holy guacamole!)

From the article:

The Railyards' mix is more likely to find success than Township 9's housing-centric approach. In addition to about 12,000 homes, Thomas Enterprises plans shops, office buildings and an entertainment district that would include the California State Railroad Museum. "We don't believe there is a market for housing in industrial or blighted areas right now," he said. "You have to create a 'place' first."

The roadways proposed within The Railyards would relieve highway congestion and allow alternate routes into downtown, and state funds would jump-start construction of the planned 5th Street extension and Railyards Boulevard, Totah said.

My biggest concern about both of these projects is, will it look like Natomas? Is it going to be ticky-tacky, cookie cutter homes in non-walkable communities??? Is it going to be the dreaded spray-on, every-California-suburb-has-it stucco, faux-Spanish-style home??? Are they going to be poorly built??

Are they going to preserve the river?? I HOPE SO!

NEWS FLASH! Will Sacramentans benefit?

From Coldwell Banker's NoCal president in an email to staff:

President Bush has signed the economic stimulus package, which, among other things, includes a temporary increase of the conforming loan from $417,000 to as high as $729,750* and a temporary increase of the FHA loan from $362,750 to $729,750* through December 31, 2008.

With the passage of the stimulus package, people may now obtain less expensive loans, thus reducing their monthly payment, improving homeownership affordability and increasing buyers’ purchasing power.

The National Assoc of Realtors is projecting that this package may result in as many as 500,000 refinanced loans and could help reduce foreclosures by as many as 210,000.

In addition, the national organization reported:

• That over 300,000 home sales could be generated thus reducing housing inventory and home prices could be strengthened by two to three percentage points.
• Nearly half a million people with higher priced jumbo loans may be able to refinance to conforming loans under the provisions of the bill, saving these people approximately $270 to $410 a month, according to NAR estimates.

How will this help Sacramentans? If you're looking for a move-up house in Sacramento, it's a great time to get a loan. You'll be able to get a larger loan for less. The big question is how much Sacramento's loan levels will be. Stay tuned!

Homes as Investments?

Today's Wall Street Journal Sunday article, Why Your Nest Is Not Your Nest Egg,  by Jonathan Clements has some interesting thoughts. While I don't agree on all parts. I agree with the first point, titled "You don't know the price until you sell."

In it I think he explains well how sellers can have "mental mischief" (a fantasy sales price they desire). AND that an overpriced house is difficult to sell. And his conclusion is great:

You may be getting real value from your home -- but you aren't getting your dividend in cash.

The implication: You want to own a home that's the right size for you and your family, but no bigger. What if you purchase a house that's much larger than you really need? It's like renting a mansion -- and living in just two rooms.

This is a philosophy that I live and I've always encouraged my clients to undertake. Article is at wsj.com/sunday

Sacramento House Swapping

What if your perfect buyer has a house to sell? AND that house is something you desire.

I read this article in yesterday's Wall Street Journal.

The concept of trading homes temporarily for vacations has long existed, but now it's being adapted to the slumping real-estate market as people, particularly in the Sunbelt and other slow spots, scout for ways to unshackle themselves from their property. Anecdotal evidence suggests the number of people doing this is still relatively small, but it has popped up from virtually nothing in recent years....

Not everyone is a potential swap candidate, however. Swapping typically requires one party, or both, willing to settle for a new dwelling that is less than their ideal, either in amenities or exact locale. And searching for a swap is much like using a dating service: The odds can be good but the goods can be odd....

The article mentions that closer swap proximities are likely to work better than across-the-country swaps. For example, a downsizing family in El Dorado Hills may want to swap with a growing family from Midtown.

They mention companies who provide this service include: Craigslist.org, OnlineHouseTrading.com, GoSwap.org, and others...

At Craigslist.org, the popular ad site, the number of "home swap" listings -- which includes people trading homes temporarily for vacation -- jumped 56%, to 7,392 in the 12 months ending in December, the company says, and much of the growth came from people trying to permanently sell each other their homes.

My thoughts: All transactions should require title transfer, inspections, disclosure and research on the part of both owners.

Been there. Seen it. 1600 H Street Lofts

Went for a tour Tuesday of the 1600 H Street Lofts... The builder says he designed them to be "New York style" with concrete floors, high ceilings and true, open spaces.  Pics to follow.

Central Heat & Air: The Rules & Costs

Every time you buy a house with a professional agent, you will be disclosed the rules, regulations and costs of air conditioning. That way, you're aware of replacement costs effected by the 2006 CA Dept of Energy ruling that requires local permitting of ductwork efficiency. (SEE ARTICLE LINK BELOW)

It costs more to replace units and ductwork than it once did, so "flippers" no longer put in CH&A, but fix it instead.

I think it provides buyers knowledge of potential future costs, reassurance that a newer unit has been put in professionally, and the overall community benefits of knowing units are more energy efficient.

http://www.bizjournals.com/sacramento/stories/2006/02/06/focus4.html

Sacramento Home Values: Zillow & Beyond

Zillow's an interesting breed. It's a great tool for a seller's agent to use because if people are referring to neighborhoods using Zillow, they'll see the "for sale" sign. However, can you accurately identify your home's value?

In older Sacramento neighborhoods, where houses are not the same, it's virtually impossible for algorithms to create formulas where a property's details are unknown. Sure, if you're living in a tract home, it's a lot closer. But for stable neighborhoods where homes haven't sold, it doesn't seem to work.

Why do I believe this? Because my neighborhood in South Land Park is entirely custom built. And our neighbor is an original owner. They have a double lot, pool, and a HUGE house that I have never seen, let alone Zillow. It's a highly desirable school area and an elegant property. Yet Zillow thinks $805K. They may be right, but what if they have unpermitted/unreferenced add-ons?  Or their pool is wrought with issues? Or the house itself is a wreck?

To get a home selling estimate in Sacramento, I need to view the house, compare the neighbors, learn the community details and look at MLS to see where competitive properties are listed and selling today.

Zillow Enters the Game For Real Now

Zillow Enters the Game For Real Now

From Futureofrealestatemarketing.com

By Joel Burslem on Thursday, January 10, 2008 Filed Under: Internet
Tags: Real-Estate, Real-Estate-2.0, Real-Estate-Marketing, Zillow

by Blink.Color

I’m a little late to the party on this one.

Zillow released an update to its database yesterday, increasing its coverage of US to over 80 million properties, as well as significantly revamping its Zestimates algorithms with new statistical models to hopefully increase the accuracy of the valuations.

Most of that won’t be immediately obvious to the end user. What’s probably more significant to some observers is that Zillow has dropped finally the Beta tag from its logo.

Part of the motivation behind this decision, perhaps, is in reaction to a whole new crop of real estate search sites that are going to be hitting the market (notably Frontdoor, with many more on the way). Zillow is now the old kid the block.

Dropping the Beta moniker is a nice positioning move for the company, which is now almost two years old, to firmly establish its street cred in the eyes of consumers.

Certainly, this transition probably also means that the company has to turn the corner in the eyes of investors and observers. FoREM readers certainly have opinions on what the future holds for the heavily-funded giant.

What does a real estate consultant do for buyers?

The long and winding road that leads to the door of your new home can be confusing, exhausting and oftentimes, stressful. As your real estate consultant I am available to provide you guidance, knowledge and resources that will make the process smoother.

As your real estate consultant, I will help you to do the following:

• Listen to your needs to understand your Sacramento real estate objectives
• Offer honest, experienced insight through the entire process  from finding a mortgage broker to finding a mover for your furniture 
• Negotiate on your behalf – I’m a bulldog when it comes to your money!
• Help you understand the extensive paperwork that comes with real estate sales in California
• Anticipate and  manage challenges that arise during the transaction
• Properly prepare forms, contracts and disclosures, which are required by law, and make sure that they are legally correct
• Provide comparable sales data to assure that you are paying the proper price for your home
• Help you find the right home that meets your needs, wants and desires.
• Screen homes before your inspection to make sure the property meets your needs
• Guide you in your selection of escrow/closing and title companies
• Oversee the closing process
• See that the completion of the transaction is smooth, including obtaining keys and taking possession of the property