The housing market decline has literally hit almost every area in our country. Every homeowner has seen the value of their home decline, whether they purchased the home thirty years ago or within the past few months.
Some areas have suffered more of a decline in home value than others. Interest rates have dropped and continue to remain low. That added to the drop in home prices have actually contributed to the increase in the number of homes sold over the past three years. Thirty one single family homes sold between January 1 to March 18 in 2007 in North Highlands. One hundred twenty six homes during the same time period in 2009. This is an increase of 86% (See Graph) Home values have continued to decline but at a much slower rate. Values in North Highlands decreased by 47% from 2007 to 2008 and decreased by 30% from 2008 to 2009. The number of days on market has gone 60 to 49 and inventory has decreased.
In Antelope, we are seeing more homes going into pending sale than are coming on the market. The number of single family homes sold in Antelope between this same period in 2007 was 79 and there were 139 homes sold during the same time in 2009. This is an increase of 44%. (See Graph)
Again, we are still seeing home values decline but at a much slower rate.
Home values in Antelope decreased 29% from 2007 to 2008 and decreased only 17% from 2008-2009. The average number of days on the market has gone from 61 to 49.
Does this mean that our local housing market is showing some signs of recovery? It may be a little too soon to tell. Activity in our local areas has definitely increased. Buyers are seeing the opportunity to buy homes that they may not have been able to afford before. They are getting better interest rates and more of a home for their money. On the other hand, sellers continue to see the value of their home decline but at a slower rate. Many banks are now coming up with various options to help homeowners stay in their homes. Banks may be able to modify loans that lower interest rates, which will lower the monthly mortgage. Some banks may be willing to lower the borrowers’ principal balance, but this is rare. Homeowners should first talk with their lenders to see what options they may have.
We are seeing so many companies advertising that they can successfully negotiate a loan modification on your behalf for a fee. Some even say that they can guarantee they can get your monthly mortgage cut in half. Be very careful, no one can guarantee this and if it “sounds too good to be true” it probably is.