The housing market in the North Highlands and Antelope areas is showing signs of a slow but steady recovery. We have seen an increase of activity in the market over the past few months. The decline in property values seems to be leveling off as homes are priced more aggressively. The number of properties in pending sale has dramatically increased.
The majority of homes on the market are considered “distressed.” These properties are either bank-owned (also known as REO’s) or “short sales” (when a seller negotiates with their lender to accept a lower payoff than what is still owed on the loan). Distressed properties make up approximately 80% of all properties currently available for sale.
North Highlands has 91 active homes that are traditional or bank-owned and 97 homes that are short sales. There are 121 homes in pending sale with more than 270 homes sold over the past six months. When we look at the number of homes sold in June 2007 and compare with the number of homes sold in June 2008, we see an increase of 378%.
Antelope currently has 103 active homes that are traditional or bank-owned and another 201 homes that are short sales. Antelope has 155 homes in pending sale with more than 410 homes that have sold in the last six months. When we compare the total number of homes sold in June 2007 with the number of homes sold in June 2008, we have an increase of 232%.
Lenders have become stricter in their lending practices. Many loan programs have changed while other loan programs are simply no longer available. Loans with 100% financing are harder to get. Lenders are requiring a minimum of 3% down. Investors are now expected to increase their down payments and also face tighter lender requirements.
The housing market is an ever moving cycle. We have seen home values decrease but we are now seeing the number of homes sold increase. Investors are coming out of the woodwork looking for deals on rental properties. Buying a property at a low enough price can give investors a positive cash flow. This means that the amount they receive for rent is more than their mortgage payment. Buyers’ confidence is high and there are some great deals to be found.
The key to buying or selling a home in any market is to be informed. Sellers should compare their property with similar homes that have recently sold in their area and price their home accordingly. The best house at the best price will sell. Buyers should consult with a mortgage lender to find out what amount they can qualify for and at what terms. Having all of the information will help in making the best decision for you. Contact a realtor that specializes in your area, is knowledgeable of the current market and is available to answer all of your questions.