The Sacramento region was one of the first areas in the nation hit by the decline of the housing market. It stands to reason that our area may be one of the first areas to recover. There are obvious signs that our local housing may be in the early stages of recovery. This may be overly optimistic and we still have a ways to go.
Home sales have increased, inventory has decreased and prices are stabilizing. Buyers are feeling more confident. There are still large numbers of foreclosed homes that have not been released because banks have delayed putting these homes on the market. Recent foreclosure moratoriums and attempts at loan modifications have also slowed down the number of foreclosure listings. Short sales have had the reputation of being extremely slow and difficult to negotiate. Banks were unprepared for the high number of short sale files received and they did not have enough staff needed. Banks have now realized that negotiating a short sale is more cost effective than the cost of foreclosing on a home and have increased the number of negotiators needed. Currently, 25% of properties in pending sale are approved short sales. Approved short sales benefit the lender by lessening their losses. Sellers benefit by having a foreclosure on their credit and buyers benefit by purchasing a home at a good price.
Interest rates are creeping up and many buyers are feeling the pressure to find a home. As inventory decreases, many buyers are finding it harder to find a house. Many properties, including bank owned and short sales, receive multiple offers. It is still a buyers market, however buyers are not able to negotiate as aggressively as they would like. Generally, bank owned and short sale properties are sold “As Is.”
The good news is that there are great deals to be had. There are currently 133 homes for sale in North Highlands with over 257 homes selling since Jan. 1, 2009. In Antelope, there are currently 240 homes available with over 317 sold since Jan. 1, 2009. Homes are selling fairly close to asking price and home values are beginning to stabilize. These are all positive signs of recovery but we still have a long way to go.