Current Listings from Sacramento Metrolist
Markets in Sacramento 2011
As the market evolves during 2011, REA noticed continuing slowing impacts of government intervention in the process. Oversight adds to the details required to close transactions, all in a time where the real estate market needs to reduce the supply of distressed properties. Two markets exist for residential real estate...one being the traditional retail market where sellers improve properties to move in, turn key condition. The other is the wholesale market, directed by banks who seek only to clear non performing loans off their books, and who do not entertain any repairs to distressed properties other than the occassional repair for health and safety issues. Prices may have stablized after the decline in later 2010.
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BUYER ALERT
The market is still controlled by buyers, and the affordability of housing still is an important aspect of the market condition. Buyers do report being priced out of transactions....this is largely the result of auction based pricing strategies, where sellers, typically banks, offer a property at a very low price, and then expect many offers which bid up the actual transaction price. Similar to a live auction.
And the transaction, in terms of close, has become more problematic given government directed risk aversion on the part of the lender. Lender underwriters, operating under the command of regulation, complicated the process with funding conditions that become onerous. Real estate transaction now take professionalism and a great deal of patience.
FINANCING CONSIDERATIONS
The Federal Reserve System will stop buying Mortgage Backed Securities as of March 31, 2010. The FED has supported favorable mortgage rates for the past six months, yet this support will wane soon. So the watch is out for increasing mortgage rates in the second quarter. The Federal home buyer credit will expire later 2010 in the third quarter so REA would suggest the time to purchase is earlier in 2010 and not later. The price of financing remains a critical condition in the housing market..
