REAL ESTATE ANALYTICS

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REAL ESTATE ANALYTICS & BROKERAGE

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Real estate transactions include major investment and risk, especially in a changing market, as is 2009.  For real estate market information or transaction assistance contact REA's Steven J. Krohn, affiliated with the REAL ESTATE ANALYTICS & BROKERAGE for excellent professional assistance.  Our firm expanded capabilities in 2008 and now offers full brokerage.

Consultants at RE Analytics and the REAL ESTATE ANALYTICS & BROKERAGE currently seek assignments in real estate market analysis, GIS analysis or financial modeling or property analysis.  In addition, we seek listings from sellers who must understand the shorter and longer term opportunities in real estate. For those with cash, the current market offers unseen opportunities in the rehabilitation of distressed properties. Home prices fell to the point where ownership is less expensive than rental. The true cost of a home is the monthly cost, after all. Please contact directly via phone (916) 456-6085, (916) 501-6085 (cell) or email at skrohn@reanalytics.com.

For a quick analysis/estimate of home values, try www.zillow.com ....a very sophisticated first step in the pricing of your property. To strategically priced properties, RE Analytics adds to the basics. Newly rehabbed property at 5401 Esmeralda Street is offered for sale..... VIEW LISTINGS

Zillow Property Estimates

 

 

BUYERS, MORTGAGES & PRICE MATTERS 2009

As the regional housing market struggles in 2009, some signs of normalization are beginning to emerge. First the number of listings in the market continues to hover around 10,700. Much has been made as to the shadow inventory that may exist in the market.....shadow inventory being defined as those properties held in inventory by banks who through foreclosure have taken properties back. The possiblity of over supply is certainly calculable. Typically 200 properties are offered on Sacramento County's courthouse steps, and very few are sold to 3rd party investors. Assuming 200 properties are taken back by banks, some 4, 000 propertie would be included per month to the shadow inventory. During the past three months, we have not seen the deluge of these properties.

On the other hand, as long as the market can absorb additional properties, distressed or not, the increase in supply will be averted. The monthly rate of sales in January hovered around 2,000 homes, after slowing from a mid 2008 rate of 3200 home. REA expects the current rate of sales will increase, as the spring and home buying season begins. LIstings published in November and December hovered around 5,000. In January listings hit 6,300 giving some merit to those oversupply fears mentioned. For the first days of February listings hit 5,056. So the challenge and dynamic between the forces of supply and demand will be at work during the first quarter.

Mortgage rates dipped in Mid January, and since have trended higher, admittedly only 30 basis points. Lower rates support housing prices, and higher rates will create pressure on a firming house price. Given expected increases in demand for mortgage money, REA expects that rates will trend up in 2009 as opposed to down. The influsion of trillions of capital by government also supports the longer term view that the country will experience inflationary trends, as these capital funds move through the systems. Banks, unfortunately, are holding their bailout funds which suggests the lending community of fearful of future financial fallout. Eventually, their fears will subside, and the credit markets will function again. In terms of oversupply of the components of the real estate market, REA suggests there is an oversupply of mortgage capital which once broken will flow into mortages, thus counteracting the rise in the mortage rate based upon inflationary fears.

So...what about the turn? Trends are easy, turns are not. REA moniters closed price per bedroom in the Sacramento Regional resale market. To date the trend continues downward. However, review of pending sales data (some 3700 transactions) so support in the price per bedroom. These data could support evidence for the turn, and combined with expected behaviors on the part of buyers, suggest the market may struggle toward price stabilization. Price stabilization and the expectation that prices are done falling will encourage even more buyers to enter the market., a positive outcome. All markets do turn, and REA believes some evidence of a house price turn exists.

Overall, the real estate market presents tremendous opportunity for those with cash or funding seeking to add to thier real estate holdings. Properties can be purchased at levels than can be supported by rental. Most of the markets uncertainty remains a function of the governments expected intervention in market function. As soon as markets can have confidence in their function, a more normal market will appear. So the time is now.... to overcome forecast concerns and invest in the asset least impacted, historically, by the inflation which is likely 2010 on towards 2011.

Currently REA offers three bedroom one bath rehabbed home in Sacramento located at 5401 Esmeralda St for a sales price of $129,500 or a monthly payment on the order of $850 per month. Contact us for details or showings of this property listed on the METROLIST MLS or appearing on www.realtor.com...search properties in zip code 95820 .

VIEW LISTINGS

STOCK QUOTES

 

HOME CLOSINGS BY MONTHHome sales, considered the day a purchase contract is accepted, before the close date as escrows are opened and processed over 30 to 60 days. The chart shows expected closed sales per month. More closings occur during the spring and summer months. The 2005 season has begun, so contact GBC Realtors to guarantee a worry free transaction.

SELLING TIPS Curb appeal represents the packaging of your home. The home purchase is an emotional choice subject to financial limits. Make the exterior of your home is inviting by following these guidelines

The lawn should be trimmed, the sidewalks edged, and the yard cleaned. If the season is suitable, the flowerbeds should be cultivated and flowers blooming.

Touch up anything that needs it.

Consider the value of a quick coat of exterior paint.

Make sure there are no toys or animals in the front yard during buyer showings.

Have porch furniture attractively placed.

Check your doorbell to make sure it rings.

The Top 10 Challenges Faced by For Sale by Owners

  1. Virtually every Buyer buys by comparison. Having only one house to show prevents you from helping the buyer do comparison-shopping.
  2. It is difficult to determine the tastes and requirements of a Buyer if you have not had the opportunity to fully qualify him/her beforehand.
  3. Do you have the legal expertise to personally prepare a valid and fully enforceable agreement? If not, be sure to have an attorney review all documents.
  4. Buyers are reluctant to discuss their finances with the other principal. Most sellers fail to ask for a credit report, source of down payment, as well as other information critical to determining the buyers’ credit worthiness.
  5. If you have to call the Buyer back yourself, you are weakening your bargaining position and may give the buyer the impression that you are desperate to sell. A seller who seems anxious usually receives less money for their house.
  6. Buyers normally will not discuss the disadvantages or shortcomings they feel are present in your property. Thus, because you do not know what their objections are, it is virtually impossible to overcome them.
  7. By showing your property to whoever calls on your ad or your signs, you will often waste valuable time doing showings for unqualified prospects.
  8. Buyers who know you are selling For Sale by Owner almost always deduct the six percent off your asking price.You are essentially viewed as a "wholesaler" and thus, Buyers expect to pay a wholesale price, rather than a retail price.
  9. Obtaining the name and phone numbers of everyone who calls is often difficult. Buyers are often reluctant to provide strangers with accurate information about who they are and what they can afford.
  10. For most sellers, their home is their most valuable possession. Are you willing to risk having your most valuable possession sold by someone other than a well-trained, seasoned professional?

 

 

 

 

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