The Real Folsom Blog

Folsom Real Estate by the Number April 30 '08

Here's what the real estate market looks like in Folsom this somewhat nippy April 30th morn:

• Number of homes, condos, halfplexes for sale: 323
• Median price: $425,000
• Average Days on the Market: 73
• Number of Bank-Owned homes for sale: 25
• Median price of these Bank-Owned properties: $365,000
• Average Days on the Market for Bank-Owned homes: 58
• Number of Short Sale homes: 75
• Median price of Short Sale homes: $365,000
• Average Days on the Market for Short Sale homes: 86

Looking at the median price of Bank-Owned homes as compared with that of the total homes for sale in Folsom, I can see why this segment of the market is hot: $365,000 versus $425,000. The average days on the market for bank-owned (58) versus the average for all homes (73) shows this segment of the market is moving.

That's is for today. Make it a great day!

Don't Forget: It's Got To Appraise!

You've got to be on your toes these days to be in real estate. It feels like it changes on a daily basis. The interest rates have been making like a yo-yo for several months now and lending requirements are getting so tight you can hear them squeak. And, now, it seems appraisers' feet are being held to the fire by nervous loan underwriters who want to make sure they're not funding an overpriced property. The days of the drive-by appraisals seem to be gone as appraisers take a magnifying glass to homes they are tasked to appraise. Now, don't get me wrong, it's good that this valuation business is taken seriously by all. The problem is in a declining market, it's tough to hit that "fair market value" nail on the head, seeing as the nail keeps shifting. I've just had two deals that could easily have fallen apart because the properties didn't appraise to the purchase offer price. All this to say that when you, as a seller, sit down with your agent to decide on your listing price, keep in mind that, if you overprice your home even if you get a buyer to pay you that price, the home still has to appraise for the buyer's loan. Pricing it right is more important than ever, not just to get a buyer but to close the deal also!

Enjoy the day!

Improved Interest Rates on Conforming Jumbo Loans

This week, guest blogger Barbara Van Duyn, a mortgage planning specialist with First Priority Financial, gives us some good news about conforming jumbo loans. If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com. 

One of the most significant steps the federal government has taken in its attempt to bring liquidity and stability back to the mortgage and credit markets was its March decision to expand the capacities of Fannie Mae and Freddie Mac (the GSEs), allowing them to significantly increase the amount of mortgage securities that they can purchase or guarantee and, importantly, raising the limit on “conforming” loans from $417,000 to as high as $729,750, depending upon the geographic region. Raising the jumbo limit was a key move because it will enable lenders to increase their lending in markets with high property values where many consumers were finding it difficult to get a loan due to the inability of lenders to subsequently sell that loan to an investor. Once these limits were raised, it took time for lenders to build the new loan limits into its systems, update their pricing for consumers and go live with loan programs under the new rules.

Over the past month, however, investor demand for these conforming jumbo loans has remained slow to develop, and interest rates remained high for borrowers. But in the past week, Fannie Mae and Freddie Mac signed agreements with lenders to purchase their jumbo loans under the new $729,750 limit at competitive terms, improving rates for borrowers by roughly .125% - .250% and making it easier for banks to make more loans, particularly in higher-priced areas.

As previously announced in this blog, the new limit for conforming jumbo loans in Sacramento County is $580,000.  Take advantage of these higher loan limits as they are set to expire on December 31, 2008. All the Best!  Barbara

Recent Folsom Home Sales April 24 '08

Nine Folsom Home sales were recorded during the past week. Interesting to note that four of those nine were bank-owned properties, which reflects what's going on in the greater Sacramento real estate market where half the homes sold these days are REOs. The following Folsom home sales were recorded by MetroList, our local multiple listing service. The properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

240 Natoma Station Dr #41 (1 bedrooms/1 bath, 703 sq feet) sold for $130,000 at 96.37% of list price, $185 per sq foot. 

603 Blossom Rock Ln (2 bedrooms/2 baths, 1234 sq feet) sold for $247,990 at 96.12% of list price, $201 per sq foot. 

136 Bayline Cir (5 bedrooms/3 baths, 2536 sq feet) sold for $435,000 at 96.88% of list price, $172 per sq foot. 

775 Halidon Way (4-5 bedrooms/3 baths, 2693 sq feet) sold for $494,500 at 101.98% of list price, $184 per sq foot. Bank-owned

1485 Freswick Dr (4 bedrooms/3 baths, 2756 sq feet) sold for $503,000 at 96.92% of list price, $183 per sq foot. 

1687 Bowen Dr (4-5 bedrooms/4 baths, 3449 sq feet) sold for $535,000 at 104.92% of list price, $155 per sq foot. Bank-owned

102 Baldwin Lake Cir (4 bedrooms/2.5 baths, 2773 sq feet) sold for $536,500 at 95.97% of list price, $193 per sq foot. 

130 Carmody Cir (4 bedrooms/3.5 baths, 3618 sq feet) sold for $609,000 at 99.85% of list price, $168 per sq foot. Bank-owned

664 Westchester Dr (5 bedrooms/3 baths, 3909 sq feet) sold for $725,000 at 102.13% of list price, $185 per sq foot. Bank-owned

For those of you shopping for bank-owned properties, make sure you take note of the fact that of the four REOs that sold during this past week, three of them sold for more than the list price and that fourth sold for 99.85% of list price. I'm still meeting buyers who are convinced that low-balling is the way to go with an offer on a bank-owned property. The stats for the past four months in our area show dramatically that banks are getting asking price for their properties (and with multiple offers at that). So, if you are serious about buying, make an offer that reflects the current market: REOs are hot, hot, hot!

Make it a great day!

The Folsom Real Estate Numbers April 23 '08

Here is a quick look at where we are in the Folsom Real Estate market today:

• Homes for sale: 292
• Median price: $459,500
• Median days on the market: 47
• Lowest priced home for sale: $165,000 for a 2/1 with 714 sq ft
• Highest priced home for sale: $1,399,000 which will get you a 6/6 and 5,982 sq ft

And the stats for bank-owned properties in Folsom:

• Bank-owned for sale: 23
• Median price: $389,900
• Median days on the market: 46
• Lowest priced home: $199,900 for a 2/2 and 829 sq ft
• Highest priced home: $874,900 for a 6/5 and $4,583 sq ft

That's it for today. Looks like the sun is shining again in Folsom. Enjoy the day!

Mortgage Lenders Impose New Restrictions

This week, guest blogger Barbara Van Duyn, a mortgage planning specialist with First Priority Financial, makes a strong case for buying a home now rather than waiting a few months. See why below." If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com.

Getting approved for a conforming home loan is now tougher than ever. Again. And it’s not just home loans. This week many lenders who fund college loans announced they were discontinuing the service.  A colleague in the automobile industry is finding lenders not only have raised the bar on minimum credit scores but are also scrutinizing the borrower’s mortgage performance. As home loan defaults mount, government-sponsored enterprise (GSE) Fannie Mae has improved new guidelines on what it will lend and to whom, highlighting the need for a strong credit profile and a down payment. In other words, Fannie Mae is outright declining mortgage applicants whose credit is weak and whose payment history show signs of trouble. But, it’s not just the “credit challenged” that are finding it harder to get a mortgage.

Buyers with strong credit profiles are being hit by new changes too. One such change says that owners of second homes must now have a 10 percent equity position in their homes; 15 percent if the property is in a “declining market.” This is up from 5 and 10 percent, respectively and represents a growing trend to make homeowners have a “stake” in their own homes. Down payment requirements are higher for all mortgage products in general.

Fannie Mae’s changes are the third set of restrictions imposed since December 2007 and more tightening is expected over the next few months.  That makes NOW a compelling time to buy a home as borrowing money will likely be more restrictive in the future. If you are actively shopping for homes and have not been pre-qualified in the last few weeks, contact your loan officer and get checked against the latest set of mortgage guidelines. It’s better to know today than after you make an offer.  All the Best!  Barbara

Recent Folsom Home Sales April 10 '08

Here are the weekly details of the recent Folsom home sales as recorded by MetroList, our local multiple listing service. I'll post them in two posts as my blog platform seems to get mighty unhappy when I post long. The properties were listed and sold by various multiple listing service brokers. If you don't see a sale you've been wondering about, drop me a line at annerhea@kw.com and I'll look it up for you.

1183 Reston Dr (2-3 bedrooms/2 baths, 1130 sq feet) sold for $309,000 at 99.71% of list price, $273 per sq foot.

115 John Henry Cir (4 bedrooms/2 baths, 1682 sq feet) sold for $349,000 at 100% of list price, $207 per sq foot.

1625 Caislean Way (3 bedrooms/2 baths, 1339 sq feet) sold for $358,000 at 98.11% of list price, $267 per sq foot.

69 Sluice Way (3 bedrooms/2.5 baths, 1856 sq feet) sold for $369,990 at 100% of list price, $199 per sq foot.

903 John Murray Way (4 bedrooms/2 baths, 1878 sq feet) sold for $405,000 at 97.59% of list price, $216 per sq foot.

312 Crow Canyon Dr (5 bedrooms/3 baths, 2876 sq feet) sold for $417,000 at 98.14% of list price, $145 per sq foot.

103 Cassin Ct (4 bedrooms/2 baths, 1827 sq feet) sold for $427,000 at 97.27% of list price, $234 per sq foot.

1289 Freswick Dr (4 bedrooms/3 baths, 2277 sq feet) sold for $437,500 at 97.22% of list price, $192 per sq foot.

101 Conductor Way (4 bedrooms/3 baths, 2479 sq feet) sold for $444,900 at 98.87% of list price, $179 per sq foot.

1904 Broadford Dr (5 bedrooms/3 baths, 2429 sq feet) sold for $445,000 at 95.70% of list price, $183 per sq foot.

104 Blue Canyon Way (4 bedrooms/3 baths, 2374 sq feet) sold for $493,000 at 98.60% of list price, $208 per sq foot.

1087 Elsworth Way (5 bedrooms/3 baths, 3098 sq feet) sold for $504,900 at 100% of list price, $163 per sq foot.

1420 Humbug Creek Dr (3-4 bedrooms/3 baths, 2295 sq feet) sold for $510,000 at 94.62% of list price, $222 per sq foot.

928 Sterling Cir (4 bedrooms/2.5 baths, 3014 sq feet) sold for $525,000 at 97.44% of list price, $174 per sq foot.

1687 Bowen Dr (4-5 bedrooms/4 baths, 3449 sq feet) sold for $535,000 at 104.92% of list price, $155 per sq foot.

That's it for today. Enjoy this great Folsom Spring day!

A Snapshot of the Folsom Real Estate Market

Quick and dirty! Here are the numbers for Folsom real estate as of April 16th: 304 single family residences are on the market, ranging in price from $199,900 (for a 2/1 with 714 square feet of space) to $1,399,000 (for a 6/6 and 5,982 square feet of space). Of that 304, short sales represent 62 listings (remember a short sale is where the seller owes more to the bank than they can get from the sale) and bank-owned properties represent 25 of the listings. Enjoy the gorgeous day out there!

A Simple Explanation of "Credit Crunch"

It's good periodically to look at terms we use or hear almost daily to make sure we understand what they mean and how they may impact us. This week, guest blogger Barbara Van Duyn, a mortgage planning specialist with First Priority Financial, tackles "credit crunch." If you have any mortgage questions, you can reach her directly at Barbara@VanDuynGroup.com.

Media sources like to use the term “credit crunch” in describing our overall economy, but they rarely define what a credit crunch is and what it means for Americans. A credit crunch is when the amount of available loans suddenly decreases over a very short period of time. Usually it follows a period of lending which, in hindsight, becomes known for its “easy money.” Sound familiar. The start of a credit crunch often coincides with consumer loans starting to go bad and lenders losses starting to mount.  The realization that more losses are ahead forces financial institutions to tighten their lending guidelines. 

Since the current credit crunch began in mid-2007, Americans looking for credit now face:

• Higher credit score requirements on auto loan applications
• Higher fees and interest rates on credit cards
• Larger down payment requirements on home loans

And now, the newest symptom of the credit crunch; the largest buyer of mortgage loans – Fannie Mae – has instituted a new minimum credit score of 580 for all mortgage applicants. As consumer delinquencies continue to mount and the economy continues to slow, getting access to credit will likely get tougher for everyone, good credit or bad. However, as history has shown us, the tightening of the reigns will eventually ease when confidence returns to the credit markets. All the Best! Barbara

When Shopping for a Home, Consider House's Orientation

Home buyers get dual pane windows, they get ceiling fans, they get Energy Star appliances. Those are the energy efficient features in a home they're checking out that buyers are most likely to notice, understand, and see as valuable. But there is one very important factor in the energy efficiency equation that can get overlooked--the home's orientation. Good building orientation can really maximize opportunities for passive solar heating (when it's needed) and solar-heat-gain avoidance (during cooling time). For example, did you know that East and West glazing (glass or windows) is the hardest to control because of the low sun angles and is the greatest contributor to unwanted heat gain? And that well-designed overhangs on a properly oriented building can use the seasonal angles of the sun to reduce heat gain in summer and allow heat gain in winter? Next time you go house hunting, consider the building's orientation. For more info, check out the U.S. Department of Energy's Web site for an article on "Sunspace Orientation and Glazing Angles." I promise it's not at dry reading as the title sounds.

Make it a great day and aim to live a bit greener today than you did yesterday!