The Real Folsom Blog

A Nasty Rumor Aimed at First-Time Home Buyers

Once again guest blogger Barbara Van Duyn keeps it real. See below. Barbara is a certified mortgage planner with First Priority Financial. If you have any mortgage questions, you can reach Barbara through her Web site, www.BarbaraVanDuyn.com.

The rumor is home buyers who qualify for the $8,000 tax credit can use it as a down payment on the purchase of a home. Sounds Fantastic!! So who is stepping up and loaning this future tax credit to the borrower? NOBODY! At least not in California. Being a mortgage broker associated with more than 100 banks around the country and part of a vast group of fellow mortgage professionals (over 1,000) none of us has found anyone who is willing to monetize the tax credit. Nor have we found a mortgage bank allowing the tax credit to be used as a down payment. This all began in May when HUD announced the $8,000 tax credit could be used for the down payment. The problem is HUD brought this option to the table but didn’t follow through with the lending industry to see it through implementation. Another example of our federal government in-action! So if you hear a mortgage person or Realtor tell you it can be done, be very very suspicious. Find out who is offering the loan, how much it will cost you, and get it in writing. Then get a second opinion. Until the next time … take care, Barbara

Recent Folsom Home Sales June 21-27 '09

Sales continued at a steady pace in June with 17 sales recorded (up three from the previous week). These home sales were recorded by MetroList, our local multiple listing service. The properties were listed and sold by various multiple listing service brokers. DOM stands for days on the market and cumulative DOM reflects how many days the property has been on the market, whether with the current agent or previous listing agent. Only a sale or the property being off the market for 30 days will reset the DOM number.

* 210 Wales Drive, 2 bed/1 bath, 1243 sq ft, sold 6/22/09 for $129,000 (87 percent of list price) after 43 days on the market for $104 per sq ft.
* 503 Wool Street, 2 bed/1 bath, 1132 sq ft, sold 6/23/09 for $235,000 (100 percent of list) after 130 DOM for $208 per sq ft.
* 310 Brightstone Circle, 3 bed/2.5 bath, 1439 sq ft, sold 6/22/09 for $265,000 (106 percent of list) after 14 DOM for $184 per sq ft.
* 2327 Clapton Way, 3 bed/2 bath, 1313 sq ft, sold 6/25/09 for $315,000 (99 percent of list) after 59 DOM for $240 per sq ft.
* 405 Ellis Circle, 3 bed/2 bath, 1763 sq ft, sold 6/26/09 for $320,000 (97 percent of list) after 136 DOM for $182 per sq ft.
* 1205 Newmark Way, 3 bed/2.5 bath, 1782 sq ft, sold 6/24/09 for $325,000 (103 percent of list) after 144 DOM for $182 per sq ft.
* 136 Rambling Drive, 3 bed/2 bath, 1661 sq ft, sold 6/26/09 for $338,000 (97 percent of list) after 132 cumulative DOM for $203 per sq ft.
* 176 Stoney Hill Drive, 4 bed/2 bath, 1964 sq ft, sold 6/23/09 for $350,200 (102 percent of list) after 21 DOM for $178 per sq ft.
* 1056 Galston Drive, 3 bed/2 bath, 1640 sq ft, sold 6/25/09 for $353,000 (105 percent of list) after 7 DOM for $215 per sq ft.
* 2245 Zittle Drive, 3-4 bed/2 bath, 1613 sq ft, sold 6/26/09 for $362,925 (100 percent of list) after 54 DOM for $225 per sq ft.
* 716 Morningside Court, 3 bed/2 bath, 1753 sq ft, sold 6/24/09 for $385,000 (102 percent of list) after 7 DOM for $220 per sq ft.
* 1184 Fergusen Way, 3 bed/2.5 bath, 2033 sq ft, sold 6/26/09 for $392,000 (101 percent of list) after 13 DOM for $193 per sq ft.
* 108 Llewellyn Court, 3-4 bed/2.5 bath, 2542 sq ft, sold 6/24/09 for $405,000 (95 percent of list) after 219 DOM for $159 per sq ft.
* 684 Hildebrand Circle, 4 bed/2 bath, 2024 sq ft, sold 6/24/09 for $446,000 (98 percent of list) after 36 DOM for $220 per sq ft.
* 1717 Dornie Court, 3 bed/3 bath, 2956 sq ft, sold 6/26/09 for $486,000 (111 percent of list) after 78 DOM for $164 per sq ft.
* 102 Gisler Court, 4 bed/2.5 bath, 3251 sq ft, sold 6/26/09 for $502,000 (91 percent of list) after 59 DOM for $154 per sq ft.
* 111 Hollyann Drive, 4 bed/3.5 bath, 3207 sq ft, sold 6/26/09 for $560,000 (107 percent of list) after 116 DOM for $175 per sq ft.

The median price of these homes was $353,000 and the average days on the market was 69. Two of the 17 homes sold were bank-owned (average DOM: 11) and four were short sales (average DOM: 121). It's another gorgeous July day in Folsom. Make sure you take a few minutes to enjoy it!

 

The Elephant in the Room Is Still There

Every once in a while, the elephant is mentioned but mostly these days I don't hear much talk of it. The elephant--the ever-ballooning inventory of foreclosed properties the banks are sitting on. Just as the housing market has been showing signs of stabilizing, looming over it is another wave of foreclosures poised to crash over it. Following the enactment of President Obama's home-stability plan, banks had delayed foreclosure proceedings on many properties as they worked on alternatives with homeowners. But the government-imposed moratorium on foreclosures is expiring and it's reasonable to expect lenders to start clearing that backlog. With an estimated one in five homeowner owing more on their home than it's worth (according to Moody's Economy.com), the prospect of increased foreclosure proceedings and the dump of those properties on a fragile market is scary. The silver lining: first-time home buyers and investors are finding good deals and buying. And the unknown: how will the government react to the threat of a flooding of the real estate market with foreclosures.

Snapshot of today's Folsom Real Estate Market

Here's what I found when I logged on today to MetroList, our local multiple listing service. There are 300 properties for sale, according to the MLS, ranging in price from $96,900 for a 2/1 800-plus square foot condo to a 6/6 6,000 square foot "palace". Of those 300 properties, 117 are short sales (median list price: $334,900, average days on the market: 125); 11 are bank-owned (median list price: $359,900, average DOM: 44), and the rest are "regular" sales (median list price: $439,313, average DOM: 76). Looks like the best deals are the short sales, if you can afford (or just stand) to wait around for the deal to close. That's it for today. Make it a great day!

Recent Folsom Home Sales June 14-20 '09

The pace of home sales is continuing steady in the third week of June with 14 sales recorded. Of those 4 were bank-owned properties and no short sales closed that week. These home sales were recorded by MetroList, our local multiple listing service. The properties were listed and sold by various multiple listing service brokers. DOM stands for days on the market and cumulative DOM reflects how many days the property has been on the market, whether with the current agent or previous listing agent. Only a sale or the property being off the market for 30 days will reset the DOM number.

* 240 Natoma Station Drive #D4, 2 bed/2 bath, 886 sq ft, sold 6/15/09 for $90,500 (113 percent of list price) after 7 days on the market for $102 per sq ft.
* 940 Duchow Street, 3 bed/2 bath, 988 sq ft, sold 6/18/09 for $170,000 (101 percent of list) after 2 DOM for 172 per sq ft.
* 143 Pierpoint Circle, 3 bed/2.5 bath, 1207 sq ft, sold 6/19/09 for $204,000 (100 percent of list) after 266 DOM for $169 per sq ft.
* 717 Vessona Circle, 2 bed/2 bath, 1314 sq ft, sold 6/19/09 for $217,000 (99 percent of list) after 6 DOM for $165 per sq ft.
* 1198 Hascombe Drive, 3 bed/2 bath, 1130 sq ft, sold 6/15/09 for $297,000 (96 percent of list) after 155 DOM for $263 per sq ft.
* 2250 Samwell Court, 4 bed/2 bath, 1574 sq ft, sold 6/19/09 for $317,000 (99 pecent of list) after 15 DOM for $201 per sq ft.
* 707 Larson Way, 3 bed/2 bath, 1655 sq ft, sold 6/16/09 for $341,000 (98 percent of list) after 2 DOM for $206 per sq ft.
* 725 King Way, 4 bed/2 bath, 1732 sq ft, sold 6/18/09 for $350,000 (92 percent of list) after 88 DOM for $202 per sq ft.
* 1376 Walden Drive, 4 bed/3 bath, 1834 sq ft, sold 6/15/09 for $365,000 (99 percent of list) after 3 DOM for $199 per sq ft.
* 1860 Ashwood Court, 3 bed/2 bath, 1858 sq ft, sold 6/18/09 for $375,000 (94 percent of list) after 29 DOM for $202 per sq ft.
* 822 Willow Creek Drive, 4 bed/3 bath, 2076 sq ft, sold 6/19/09 for $390,000 (102 percent of list) after 65 DOM for $188 per sq ft.
* 1084 Huntly Drive, 4 bed/2.5 bath, 2672 sq ft, sold 6/19/09 for $407,200 (98 percent of list) after 190 DOM for $152 per sq ft.
* 1086 Brock Circle, 4 bed/2.5 bath, 2680 sq ft, sold 6/15/09 for $416,000 (107 percent of list) after 8 DOM for $155 per sq ft.
* 600 Henry Street, 5 bed/2.5 bath, 4088 sq ft, sold 6/16/09 for $614,000 (100 percent of list) after 11 DOM for $150 per sq ft.

The median price of these homes was $345.500 and the average days on the market was 61. In all 9 of the 14 homes sold in under 30 days. And all 4 bank-owned properties sold in under 30 days (average DOM: 7) for 103 percent of list!