The Real Folsom Blog

An Easy Solution to Catalog Overload

Tomorrow is recyclables pick-up day in my neck of the woods. And once again I'm finding my blue can filled with more catalogs than I'd like. Some people opt to go the "no mail" route through the post office which helps cut down on all that junk mail, but I've never been able to bring myself to go there. Always that fear that I won't get that one fun catalog I didn't know existed but will be happy to receive. But I am close to my fed-up limit especially when it comes to shoe catalogs. Really, how many of those can there be out there. Well, today I found a web site that will help cut down on all those catalogs.  It's called CatalogChoice. Simply: it lets you select the catalogs you don't want to receive and sends your requests directly to the merchants (easy and it's free). And the site won't sell, rent or otherwise share your contact details with anyone, according to their site. Catalog Choice is a sponsored project of the Ecology Center and is endorsed by the National Wildlife Federation and the Natural Resources Defense Council, and funded by the Overbrook Foundation, the Merck Family Fund, the Kendeda Fund, the Weeden Foundation and the Mead Foundation. So check out Catalog Choice and save a few trees!

The Truth About Interest Rates

Week after week, I can count on guest blogger Barbara Van Duyn to explain the mortgage world in terms I can understand and use! This week she gives some insights on how interest rates work. 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.

If you have hit the snooze button waiting for interest rates to drop in the low 4's or even into the 3's before you buy a home or refinance a mortgage, you're going to be late to the party. To understand why, you need to understand how mortgages are created and sold. So here's the simplified version: Let's say you are offered a mortgage at 5.0%. There are a lot of people involved in getting that money to you at that rate. There is a mortgage servicer, an investor, Fannie Mae (FNMA) and Wall Street, all getting a piece of the pie. That money may have begun as a Bond with a coupon rate around 4.0% before it gets to you. To get a mortgage rate below 4.0%, it would have to begin with a Bond in the 3's. There has never been such a Bond.

To create money available to fund home loans, the Fed has been buying Mortgage Bonds, but if you look at what they’re purchasing you will see it’s a lot of Fannie Mae 30-year 5.5% and 6.0% Bonds... which won't have much of an impact on present interest rates. I’ll get to that in a minute. First, check out the Fed's purchases for yourself by hitting this link: Direct Link to View Fed Mortgage Bond Buying. So why is the Fed buying these Bonds? They are very smart and maybe even a little sneaky... because 5.5% Bonds actually represent outstanding mortgages with rates of 6 - 6.50% and those are the loans being refinanced at today's great interest rates.

With rates at present low levels, many of the mortgages in these Fannie Mae 5.5% pools being bought up by the Fed will be refinanced and paid giving the Fed a quick return on some of their investment. And this is likely a big reason why the Fed said they could continue their purchasing program beyond June. Bottom line, the Fed buying these higher rate coupons will not necessarily help rates to move lower since their actions don’t impact the loans being originated at today's lower rates. The media doesn’t get it but hopefully now… you do. Until next time … take care, Barbara

Recent Folsom Home Sales March 8-14 '09

Folsom home sales picked up the second week of March as 13 sales were recorded by MetroList, our local multiple listing service. The properties were listed and sold by various multiple listing service brokers. If you'd like to know about a recent sale in your neighborhood, just drop me a line at annerhea@kw.com and I'll look it up for you.

* 1610 Esplanade Cir, #1610, 2 bed/2 bath, 1059 sq ft, sold 3/10/09 for $175,000 (97 percent of list price) after 113 days on the market for $165 per sq ft.
*  3803 Esplanade Cir, #3803, 2 bed/2.5 bath, 1681 sq ft, sold 3/11/09 for $239,900 (100 percent of list) after 8 DOM for $143 per sq ft.
* 111 Austin Drive, 3 bed/2 bath, 1258 sq ft, sold 3/11/09 for $260,000 (100.39 percent of list) after 105 DOM for $207 per sq ft.
* 264 Hornsby Court, 3 bed/2 bath, 1434 sq ft, sold 3/13/09 for $275,000 (89 percent of list) after 118 DOM for $192 per sq ft.
* 859 Holley Court, 3 bed/2.5 bath, 1604 sq ft, sold 3/12/09 for $280,000 (97 percent of list) after 132 DOM for $175 per sq ft.
* 528 Given Street, 3 bed/2.5 bath, 1573 sq ft, sold 3/13/09 for $305,000 (100 percent of list) after 29 DOM for $194 per sq ft.
* 916 Mann Court, 4 bed/3 bath, 2287 sq ft, sold 3/13/09 for $340,000 (87 percent  of list) after 195 DOM for $149 per sq ft.
* 108 Kerswell Court, 4 bed/2.5 bath, 2129 sq ft, sold 3/13/09 for $375,000 (102 percent of list) after 118 DOM for $176 per sq ft.
* 1113 River Bend Court, 3-4 bed/3 bath, 2236 sq ft, sold 3/13/09 for $380,000 (101 percent of list) after 39 DOM for $170 per sq ft.
* 201 Jobsen Court, 3-4 bed/2 bath, 1884 sq ft, sold 3/09/09 for $382,900 (100 percent of list) after 11 DOM for $203 per sq ft.
* 1920 Broadford Drive, 4-5 bed/2.5 bath, 2425 sq ft, sold 3/09/09 for $447,250 (97 percent of list) after 30 DOM for $184 per sq ft.
* 1121 Boxelder Circle, 4-5 bed/3 bath, 3264 sq ft, sold 3/10/09 for $550,000 (95 percent of list) after 196 cumulative DOM for $168 per sq ft.
* 1604 Manasco Circle, 5 bed/4.5 bath, 3927 sq ft, sold 3/12/09 for $655,000 (98 percent of list) after 14 DOM for $167 per sq ft.

Of the 13 sales recorded that week here in Folsom, 5 were foreclosures, 3 were short sales, 4 were regular sales, and one was a work relocation sale. And, remember you can always drop me a line if you want to know what a home sold for and don't see it in my Thursday sales update or if you simply want more info about the sale.

Landscaping Tricks To Wow Buyers

In today's market, sellers have to work harder than ever to get buyers' attention and get them to check out their home. The lure of the often lower-priced foreclosures and short sales make it challenging for regular sellers to get their homes noticed. Here are a few easy and inexpensive ways to improve your home's curb appeal.

1. Add splashes of color. For example, put in a few purple salvia or lavender among your other front yard planting.

2. Size trees and shrubs to scale. The goal is to not have your plants blocking windows, doors, or any architectural features that you want prospective buyers to see. Also, if you have too many trees or shrubs, buyers may be concerned about yard maintenance.

3. Keep your lawn in perfect shape. Now this one will be particularly challenging this year in Folsom as we head into summer with only two days of watering allowed a week.

4. Let buyers hear the soothing sounds of water. A small fountain or water feature in the backyard will provide a pleasant sound and block street noise. Once again, with our water restrictions in Folsom, it would need to be a small fountain.

5. Use some decorative architectural elements. These can be inexpensive but effective. Think window boxes or wrought iron decorations (you can find them at local nurseries or home improvement stores).

There you go, just a few quick, inexpensive landscaping tips to wow buyers.

An Earth Hour To Help Save the Planet

On March 28, when the clock strikes 8:30 p.m. local time, Earth Hour will begin. And people around the globe will switch off their lights to show their support for the reduction of greenhouse gas emissions and global warming. In Paris, the Eiffel Tower will go black. Now that's a statement of support! For more on the event, check out www.earthhour.org.

Here a Scam, There a Scam...

I've said it before, and it keeps proving true, bad economic times bring out the scammers like a locust plague. Two recent warnings from the California Association of Realtors confirm this. In the first, relayed from the Federal Trade Commission, consumers are warned about economic stimulus scams, perpetrated through the Web and e-mail. Basically the scammers entice consumers to provide personal information or a small payment in exchange for help in getting you money from the stimulus fund. Don't be conned. Their one goal is to ultimately get your bank account information to drain your funds. The other scam targets Californians. Scam artists are using forged letterhead of major lenders to con Californians into paying thousands of dollars for non-existent loan modification services. Bottom line on these two latest scams: be deeply skeptical of anyone who demands money up front and make promises they can save your home.

The Federal Reserve’s Plan To Keep Interest Rates Low

How low will the interest rates go? Guest blogger Barbara Van Duyn offers some insights on how the system works. 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.

I get it … you’re numb when you hear another Billion, Trillion or Gazillion (just kidding) will be spent to turn our housing market around. The Federal Reserve announced on Wednesday they will be buying an additional $750 billion in Mortgage Backed Securities (MBS) in an effort to keep mortgage rates low and make home buying and refinancing affordable for more consumers.
Here’s a quick mortgage 101 lesson. After a home mortgage is created, it’s packaged into a pool with other mortgages and sold to investors in the form of MBS. With so many mortgages defaulting over the past couple years the appetite of investors to purchase new mortgages has been weak resulting in higher interest rates and less money available. And that’s what the “credit crunch” is all about. Less demand to buy mortgages means fewer home loans for consumers.
Coming to the rescue in January, the Fed began buying MBS every day creating a market and causing interest rates to drop. At the current pace, their original plan to purchase $500 Billion will carry them through June. With Wednesday’s announcement of another $750 Billion commitment, we can expect mortgage rates to continue near current levels well into 2009. But there’s more. The media is reporting interest rates could get below 4 percent. That’s not likely to happen and there are good reasons why. So stay tuned. In my next posted, I’ll   explain the reasons. Until next time, take care. Barbara

 

Recent Folsom Home Sales March 1-7 '09

The first week of March started off with nine Folsom home sales as recorded by MetroList, our local multiple listing service. The properties were listed and sold by various multiple listing service brokers. If you'd like to know about a recent sale in your neighborhood, just drop me a line at annerhea@kw.comand I'll look it up for you.

* 1150 School Street, 3 bed/2 bath, 1176 sq ft, sold 3/3/09 for $197,000 (90 percent of list price) after 176 days on the market for $168 per sq ft.
* 102 Larkin Circle, 2 bed/2 bath, 1245 sq ft, sold 3/6/09 for $267,000 (95 percent of list) after 75 DOM for $214 per sq ft.
* 118 Witmer Drive, 3 bed/2 bath, 1272 sq ft, sold 3/4/09 for $291,000 (97 percent of list) after 228 DOM for $229 per sq ft.
* 983 Rathbone Circle, 3 bed/2 bath, 1457 sq ft, sold 3/6/09 for $320,000 (102 percent of list) after 7 DOM for $220 per sq ft.
* 267 Thorndike Way, 3 bed/2.5 bath, 1973 sq ft, sold 3/6/09 for $335,000 (96 percent of list) after 15 DOM for $170 per sq ft.
* 110 Orange Blossom Circle, 4 bed/2.5 bath, 2123 sq ft, sold 3/2/09 for $432,500 (102 percent of list) after 2 DOM for $204 per sq ft.
* 103 Coners Court, 4 bed/2.5 bath, 2436 sq ft, sold 3/6/09 for $433,000 (102 percent of list) after 44 DOM for $178 per sq ft.
* 111 Woodard Lane, 4 bed/3 bath, 2020 sq ft, sold 3/2/09 for $435,000 (99 percent of list) after 2 DOM for 215 per sq ft.
* 612 Plum Creek Court, 4-5 bed/2.5 bath, 2634 sq ft, sold 3/5/09 for $475,000 (97 percent of list after 96 DOM for $180 per sq ft.

That's it for today. Enjoy the gorgeous weather!

Folsom Median Home Price Rebounds in February

Once again in the category of better late than never, here are the February market statistics for Folsom real estate. First the good news, after a low median price of $319,000 in January, the median price of homes sold in Folsom in February (42 sales recorded by our local multiple listing service) rebounded nicely to $408,000--right where it was in September of '08. One interesting data point: usually the median price of sold homes is lower than that of homes for sale in that month, yet in February, the median price of the 380 homes for sale that month was at $387,000 (good news for buyers). Overall, the median price of homes sold is 11.1 percent down from February '07.

The inventory of homes continues to shrink--with 3.6 months of inventory on the market, which is the lowest mark in at least two years. Nationally the months supply of inventory stands at 6.3 months. The smaller inventory should help stabilize prices.

Overall over the past two years, the number of homes for sale in February was down 23.8 percent from February '07; the number of homes that were under contract was down 16.9 percent, and the number of homes sold was down 49.4 percent.

Get a Water Wise House Call From the City

It's official: we're now in a Stage 3 Water Warning in Folsom. What does it mean: a requested 20 percent reduction in our water use and landscape watering only 2 days a week. The effects aren't obvious so far, thanks to the rain we've been getting but it won't be too much longer before area lawns show the effect of the reduced water usage. The city is doing what it can to help with information on its Web site on rebates on appliances (http://iconserve.folsom.ca.us), and a free conservation kit with faucet aerators, toilet tank leak dye, low-flow showerhead, and/or a garden hose nozzle. And, you can call 355-7252 to schedule an appointment with one of the city's water conservation specialists. The specialist will analyze your water use and provide customized water conservation solutions. Not a bad deal overall.