If you are a buyer who is thinking about taking the plunge into home ownership, now is the time to educate yourself in the current
housing market trends. We know that the housing market is a cycle and that we are currently and definitely in a buyer's market. Prices are low, interest rates remain low and inventory - despite the recent increase in the number of sales - remains high. For buyers, it’s a great time to buy.
We are continuing to see home values decline, but at a much slower rate. The number of homes sold in Sacramento County in July 2008 actually DOUBLED from the number of homes sold in July 2007.
In North Highlands, the majority of homes currently on the market are either bank owned (REOs) or short sales. Of the 184
homes sold in the last three months, 167 were bank owned or short sales.
Asset managers that represent the banks are pricing their properties very aggressively. On average, the bank owned properties in North Highlands are selling for 98.9% of asking price. Short sale properties have sold for 101.6% of list price and traditional sales for the last six months have sold for 99.6% of listing price. This is important information for buyers that still believe that they can offer 10%-20% under asking price and still get the deal.
More properties are coming on the market, but there are also more properties going into "pending sale"; and for the first time in months, the average number of days on the market has decreased.
In the Antelope area, there were 240 homes sold in the last three months with 208 of these homes being either bank owned or short sales. Bank owned properties here have been selling for an average of 101% of list price with short sales properties selling for 99.7% of list price. Traditional listings are selling for 99.5% of list price for the last three months.
We will continue to see foreclosed homes coming on the market; but at the same time, the demand for these properties is high. Investors are actively looking for investment properties that are priced low enough to where their mortgage is less than what they can collect for rent. Short Sale approvals from banks are increasing. Buyers also need to be aware that the majority of short sale and bank owned properties are being sold “As Is” with the seller doing little or no repairs. All in all, the housing market has had a steady increase of activity over the last few months.
Buying a home in this market allows a buyer to buy more of a home at a lower price and at a better interest rate. Be sure to speak
with more than one lender and compare their rates and loan fees. Always use a realtor that is not only experienced in your area but is also knowledgeable about the current overall housing market.