Monday, May 18, 2009

Sacramento Regional Real Estate Trends for May 16, 2009

So much for inventory increases. In Sacramento, if you don't want to live in North Highlands, Del Paso, or Oak Park, you're facing a general lack of quality housing:


Anecdotally, I'm being told by several agents and brokers that the banks will release more foreclosed houses in the next few weeks, but that remains a rumor at this point. One agent I talked to said she typically sees "multiple bids" on desirable houses, but those bids fall in a tight price range and rarely get above fundamentals like rental cash flow potential. More often, other buyer characteristics like credit score, loan quality, and cash on hand, rather than price alone, determine whether an offer is accepted.












8 comments :

Husmanen said...

Interesting comment about the fundamentals, especially cash flow, this is probably why we are not seeing multiple offers in EDH and Folsom as it just doesn't pencil out yet.

When I talk to agents in EDH and Folsom I often here my potential bids are still too low and the houses are at fire sale prices. If this is true they would be flying off the shelf. This is more of a slow burn that is burning itself out.

patient renter said...

"More often, other buyer characteristics like credit score, loan quality, and cash on hand, rather than price alone, determine whether an offer is accepted."

Why would a seller care about credit score, loan quality, or cash on hand, unless they're financing the buyer's purchase?

"the houses are at fire sale prices. If this is true they would be flying off the shelf."

Exactly. If it's truly a fire sale price, it's sold the same day.

Max said...

Why would a seller care about credit score, loan quality, or cash on hand, unless they're financing the buyer's purchase?Apparently there are a ton of marginal "buyers" right now that have trouble on the approval side. Most of these REO sellers want a 30-day turnaround, so a cash offer is more favorable.

Deflationary Jane said...

Max,

Drove down the 99 yesterday (heading to Lodi) and finally saw the EG mall is all it's distressed grandeur. I hate to say it but your photos don't do it justice >; )

Max said...

I hate to say it but your photos don't do it justice >; )Yeah, that was a lousy data for photo taking. The mall is absolutely huge. Maybe I'll make another trip out there when the skis are clear...

Anonymous said...

"Anecdotally, I'm being told by several agents and brokers that the banks will release more foreclosed houses in the next few weeks"

Ugh - ive been hearing things like this for over a year now - every few weeks im told, "its coming"...it never does...

Deflationary Jane said...

Max, it wasn't that the pics were bad. My point was that the size of the structure is hard to grasp unless you physically see it.

The big irony for me is the style of the building the developers chose for the future wreck.

Deflationary Jane said...

Anon, In my area, the trustee notices were running about 35 to 40 at a time with most structures in the super distressed bryte/broderick areas. Yesterday when I checked, it was well over 80 and almost all in the newer developments. That is certainly a change coming.