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Thursday, April 17, 2014

Sacramento Real Estate Video Market Update April - May 2014



Doug Reynolds, a Sacramento Area Realtor, discusses the latest statistics and what's going on with the market as the spring markets gets going.

The market experienced a small increase in the market value.  Doug explains why the market is currently "healthy" heading into the Spring market.  There is a good mix of move up buyers, first time home buyers and investors. Demand is still strong and the inventory is still a little low.

Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.



clear skies,

Doug Reynolds

Realtor

916-494-8441



         

Tuesday, April 15, 2014

Sacramento Real Estate Market update - April 2014

Sacramento
Real Estate Update


April 2013


ó In March 2014, the median price increased from $260,000 to $262,450.  The median is 20% higher than one year ago.
ó The spring selling market is showing signs of good strength with inventory still low and buyer demand staying strong.
ó The available housing inventory is 1.5 months.  I expect to see that number slowly increase as we go through the year.  A “normal” or “balanced market” is between 4 to 5 months. 
ó The homes that are priced right, show well and have a high quality marketing plan are still getting sold but the buying frenzy has stopped.  Price reductions are now happening and the listings that are over priced are sitting with no showings/offers.
ó High Demand and Low Supply/Inventory has driven the market prices up in 2013.  The market is finally beginning to find a balance and seller’s power of the past 2 years is slowly shifting to be more equal this year. Slowly.



Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.



clear skies,

Doug Reynolds

Realtor

916-494-8441



         

Tuesday, April 8, 2014

Does it make sense to pay off your mortgage early???

Buying a home is one of the biggest investments of a lifetime, but does you want to be paying for it for the rest of their life?

Of course not!

Which begs the question: If a homeowner has the means, is prepaying your mortgage a good idea?


Most of the time, it is.

Homeowners who have the means to pre-pay, can save a substantial amount of money in interest, shorten the length of the loan, increase the equity in the home and own it outright sooner.

But before you start writing checks to the mortgage company, there are a few things to compare to ensure the money wouldn’t be better used elsewhere.

 First:  Do you have any other debt?

It makes a lot more sense to pay off first any debt higher than their current mortgage rate and (of course) and is non tax deductible.

Second: Is your retirement plan on track?

For most Americans their home is the large part of their retirement program.

But if the homeowner isn’t maxing out their retirement account contributions prepaying your mortgage isn’t something to consider just yet.

Third: Do you have an emergency savings account?

Most families need between six months to a year’s salary in an emergency fund before they should consider prepaying their mortgage.


For those homeowners in
good shape financially, consider this:
 
By making just one extra mortgage payment per year, homeowners can substantially reduce the total cost of your loan.

For example: A homeowner who borrowed $100,000 on a 30-year loan at 4 percent, the monthly payment would be $477.

By making 13 payments a year instead of 12, homeowners save over $10,000 in interest over the life of the loan and reduce the total loan term by four years.

Doubling a mortgage payment, you could  pay off that same 30-year loan in only 11 years.

Editor’s note: When writing a check to the bank for the extra payment, it’s important to mark on it that you want it to be applied to the principal.

Otherwise the lender may apply the extra payment to interest, and paying interest in advance does not earn you any more equity in your home. But do your homework.

The Cons

Remember that prepaying a mortgage isn’t the best option for everyone.

 And in addition to making sure that your other higher-interest, non-deductible debts are paid first and your retirement and emergency savings accounts are in order, there are a few other reasons why you might not choose to prepare your mortgage.


If the mortgage rate is extremely low, it might be better to use the liquid cash for other investments with a higher rate of return. (stock market) or a property investment that has a higher rate of return over time.


Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.
clear skies,

Doug Reynolds

Realtor

916-494-8441

 

Thursday, April 3, 2014

Less cash buyers is good news for the little guys...

Good news for buyers!

Among the 20 investment firms buying the most California real estate since January 2012, purchases are down more than 70% compared with last year in each of the last four months.  That means less competing with all cash buyers...



By Tim Logan LA Times   March 29, 2014,

This time last year, investment firms raced to buy dozens of single-family homes to lease them out, transforming the mom-and-pop rental business into a Wall Street juggernaut.

The flood of cash helped spark a steep rise in prices, drawing criticism for pushing families out of the market.

But now the firms themselves have all but stopped buying in California.


The real estate arm of Blackstone Group , the largest buyer, has cut its California purchases 90% over the last year, a spokesman said. 

The shift is giving regular buyers more homes to choose from.

Experts say an expanding supply should help usher in a healthier housing market, with a better balance between buyers and sellers.


That's a stark change from last year, when buyers faced bidding wars. 


Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.
clear skies,

Doug Reynolds

Realtor

916-494-8441

 

Wednesday, April 2, 2014

What's going on with Cash buyers in the Sacramento Real Estate market?

cash sales in sacramento county 2013 and 2014 - by sacramento appraisal blog

Above is a great image/graph created by Ryan Lundquist, an excellent Sacramento Appraiser .

This shows the difference in cash buyers for the beginning of 2014 compared to the beginning of 2013 (In the Sacramento Area of course).  You can see that amount of cash sales is only half of what it was last year.  Financed sales are roughly the same.  So the biggest difference in the market right now is less cash buyers compared to last year. The biggest reason is that prices have increased to the point of many cash investment properties not making a lot of financial sense (and huge investment companies like Blackstone pulling out of our market).

Although that means less overall sales, I expect we are going to see a very strong spring and summer market for a few reasons:

1. Many, many people wanted to sell their home and buy a new one last year but did not because finding the replacement home was extremely difficult due to the speed of the market, extremely low inventory and buyer competition.  Well the market has gone from lightening speed to just a quick jog, the inventory has slightly picked up a bit and the buyer competition is still there but not as feirce.  So this is making for an excellent move up seasons for those needing to sell and buy at the same time and not move twice.  The market is prime for that right now so expect all of those people to be driving the market this spring/summer.

2. The inventory is still fairly low.  Right now the Sacramento Area has around 2 months of inventory.  A "balanced/normal" market is 4 to 5 months of inventory.  This will keep prices solid and provide a solid base for the market to stand on this year.

3. Interest rates are still low.  For the buyers that have not purchased the last few years, this is going to be a major driving force for them to finally purchase.  The Fed has started to taper off their buying program that is keeping interest rates low.  Everyone now knows that rates will definitely be going up in the months and years to come.

4. Boomerang buyers.  Those that went through short sales and foreclosures in 2008 through 2011 are now becoming eligible to purchase again.  Check out this video for more info.  
This is a huge pool of people that are now coming back into the market at lower prices and lower interest rates than they bought at the peak of the market.


Lastly, here's my predictions video for the 2014 Sacramento Real Estate Market that somewhat mirrors this topic.


What are your thoughts on what the spring/summer market will bring?  Check back for updated data.  It's going to be an interest selling season that will be unlike any that we've had in the past 5 or 6 years.



Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.
clear skies,

Doug Reynolds

Realtor

916-494-8441

 





Thursday, March 27, 2014

What's going on with the First Time Home Buyer market??

Here's a recent article from CNBC talking about the current status of the national trend of FTHB's.  What i'm seeing in the Sacramento Market is that we have a balance of FTHB's, move up buyers and investor buyers across the spectrum of the market.

Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.
clear skies,

Doug Reynolds

Realtor

916-494-8441

 




4 million renters want to buy. Can they?

Thursday, 13 Mar 2014 | 9:03 AM ET

As the housing market moves slowly into recovery, more and more Americans are gaining confidence and hoping to jump into home ownership.
The home ownership rate has been dropping steadily since its high of 69.2 percent in 2004 to now just 65 percent. Millions lost their homes to foreclosure and millions more never entered the market, fearing falling home prices.
Now, 10 percent of U.S. renters say they would like to buy a home in the next year, according to a new report from Zillow, which surveyed renters in the nation's 20 largest housing markets.
If all the renters who said they wanted to buy a home in the next year actually did, that would represent more than 4.2 million first-time home buyer sales, about twice the number of first-timers in 2013.
First-time home buying has actually fallen to the lowest level ever recorded by the National Association of Realtors, at just 26 percent of sales in January. These buyers usually make up roughly 40 percent of the market. Interestingly, the majority of the renters who said they wanted to buy felt they could afford home ownership, despite rising home prices and rising mortgage rates.
The trouble is there is just not that much out there to buy. Home construction is still recovering at a slow pace, and prices for newly built homes are far higher on average than for existing homes.The number of homes for sale is rising slightly but is still well below historical norms across most markets. 
Continue reading: http://www.cnbc.com/id/101491010 

Tuesday, March 25, 2014

How long to wait to get a mortgage & buy a house again after a short sale/foreclosure/Bankruptcy??


Doug Reynolds, a Sacramento Area Realtor, sits down with Loan Officer Erick Perpich.  In this segment, Erick explains how long you need to wait before you can get a mortgage to buy a house after a short sale / foreclosure / bankruptcy.

To get preapproved so you can start home shopping in the Sacramento area right away, call or email Erick directly and he'll take great care of you.
Erick Perpich
916.549.3577
eperpich@repmtg.com
www.ThePerpichTeam.com

Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.
clear skies,

Doug Reynolds

Realtor

916-494-8441