The Sacramento Real Estate market got off to a slow start in 2014. Sales/Acitivity was down but as the weather started to heat up, so did the market. By the start of spring, the market was turning over properties at a strong rate. The Selling season is now hear and those homes that show well, priced right and have professional marketing are getting sold.
Here's a look back at the data for the First Quarter of 2014 Sacramento Real Estate Market:
Doug Reynolds, a Sacramento Area Realtor, discusses the latest statistics and what's going on with the market as the spring market is in full swing.
This month Doug discusses the increase in value and more homes being sold this spring compared to winter. He also talks about the current health of the market and how things are shaping up for Spring/Summer in Sacramento.
after years of debate, concern and worry a solution is finally coming. On Tuesday, the US House of Representatives voted to approve the Water Resources Reform and Development Act. Included in that is $1 Billion to fix Natomas' levees once and for all. This will provide relief to homeowners that have been paying higher FEMA flood insurance rates and also stressed about them going up even more each year AND it will also allow for building to start again in the Natomas area, something that has been at a stand still since December 2008.
Below is the rest of the article from the Sac Bee.
After more than a year of delay, critical work to strengthen levees in Sacramento’s Natomas Basin is authorized to resume following a crucial vote Tuesday in Congress.
The House of Representatives voted overwhelmingly to approve the Water Resources Reform and Development Act. Along with many other projects across the nation, the bill authorizes a $1 billion effort to bolster Natomas area levees responsible for protecting nearly 100,000 people and $7 billion in property. The project, to be completed by the U.S. Army Corps of Engineers, has been stalled for more than a year while Congress fought over the bill.
The Senate is expected to approve a similar version of the legislation later this week, and President Barack Obama is expected to sign the measure soon after. Approval by the House was considered the major roadblock, as lawmakers battled for years over spending ideology.
Congress historically has sought to approve a comprehensive water infrastructure bill every two years to pay for levees, navigational systems and water projects across the nation. The last such bill, however, was approved seven years ago, and many flood-control projects, including the Natomas levee upgrades, have been delayed as a result.
The House approved the bill with only four members in opposition. Among the key supporters was Rep. Doris Matsui, D-Sacramento, who pressed hard for the bill over the last several years.
“I think everybody in the House understands what Natomas is now,” Matsui said of that effort. “The people of Natomas have waited too long for this day, but because of a lot of hard work, we are finally here.”
The drama over Natomas levees began in 2006. That’s when the Corps ruled that the 42 miles of levees ringing the bowl-shaped region were vulnerable to seepage and no longer met federal standards to withstand a 100-year flood.
The Federal Emergency Management Agency later imposed a flood-insurance requirement and rigid building standards, which require new construction to be elevated above the flood plain. The high cost of such construction amounts to a de facto building ban that has been in place in Natomas since December 2008. Property owners with federally backed mortgages also have been required to pay for flood insurance since that time.
The Sacramento Area Flood Control Agency, overseen by a board of elected city and county officials, was determined to expedite repairs rather than wait for the Corps to take the lead, which is the traditional path. SAFCA proposed two property tax increases to fund work on the most critical levees, both of which were approved by local residents. SAFCA began construction on those critical 18 miles of levees in 2008 – those on the north and east flanks of Natomas. Flood control bonds approved by voters statewide funded 70 percent of the work.
The Corps agreed to reinforce the remaining 24 miles of Natomas levees once Congress authorized the project. That work is estimated to cost at least another $600 million. The Corps finished preliminary plans for that work on Dec. 30, 2010.
The next step was legislation to approve the project, which finally began moving with Tuesday’s vote in the House.
“It’s just really exciting, because we’ve waited so long to get over this particular hurdle today,” said Sacramento City Councilwoman Angelique Ashby, who represents part of Natomas and also chairs the SAFCA board of directors. “It’s a huge relief.”
Barbara Hayes, president and CEO of the Sacramento Area Commerce and Trade Organization, called Tuesday’s vote crucial for the economic fortunes of Natomas and the broader capital region. A number of development projects in Natomas, once Sacramento’s fastest-growing area, have been stalled by the building moratorium. The House vote opens a path to eliminate the moratorium, perhaps within one year.
Just one example of the projects affected is the planned reuse of the site that serves as current home to the Sacramento Kings basketball team, Sleep Train Arena, where a number of major development proposals are being considered.
“It will be an enormous economic boost for the region, there’s no question,” Hayes said.
It still could be years before construction resumes on the levees themselves. That’s because the legislation approved Tuesday authorized – but does not actually fund – the project. Separate appropriations legislation, or a specific allocation in the president’s budget, will be required to pay for Corps work on the project.
The project also involves a lot of difficult pre-construction activity, such as moving utilities and possibly buying out a number of homeowners to make way for larger levees.
But final approval of the legislation means the wheels will start turning almost immediately to lift the building moratorium. This can proceed because SAFCA has already completed half the investment to reinforce the levees, a federal requirement before building restrictions can be lifted on a project that is still under construction.
“We will be able to enter into the conversation with FEMA to get out of that designation, and we won’t have that scenario in Natomas anymore,” Ashby said.
Ashby estimated the moratorium could be lifted in about one year, which would allow a backlog of construction projects to resume. This includes housing subdivisions that could not proceed, even though buyers put down deposits; a new baseball field complex at Natomas Regional Park that had to be built without bathrooms; schools that need new classrooms; and a handful of homeowners who could not rebuild after fires caused major damage.
“These are people’s homes here, and they couldn’t get on with their lives,” Matsui said. “That was really what kept me worried about this. What it means for them is they can start looking ahead to the future.”
Among other California projects, the bill authorizes strengthening 41 miles of levees in the Sutter River Basin, including those protecting Yuba City. It includes language that assures local communities will receive financial credit from the Corps for flood-control work they complete on their own in advance of federal participation. This step, which SAFCA employed in proceeding with the Natomas work, helps ensure faster completion of projects when local agencies are able to start flood-safety work on their own.
A number of environmental groups opposed language in the bill allowing the Corps to bypass some environmental review of water and flood-control projects. The goal is to speed up approval of projects, but critics say the changes restrict public input. Among other changes, the legislation shortens public comment periods and cuts the time limit for filing legal challenges to a project from six years to three.
Call The Bee’s Matt Weiser at (916) 321-1264. Follow him on Twitter @matt_weiser. McClatchy Washington Bureau reporter Curtis Tate contributed to this report.
Read more here: http://www.sacbee.com/2014/05/20/6419143/house-oks-bill-allowing-natomas.html#storylink=cpy
Amid a festive atmosphere at City Hall, the Sacramento City Council voted Tuesday night to approve the construction of a new downtown arena for the Kings, ending years of effort and angst.
The 7-2 vote came after more than four hours of impassioned public testimony and deliberation by the City Council. An overflow crowd inside the Council chambers erupted into cheers of “Sacramento” when the vote was tallied.
Mayor Kevin Johnson said the vote marked “the end of one era and the dawn of a new one.”
“I’ve never been prouder of this community,” he said. “We had our backs against the wall and we defied the odds. We made a comeback for the ages and in doing so, I feel like we unleashed the very best that Sacramento has to offer. And for this I consider this Sacramento’s finest hour.”
Johnson was joined by Council members Angelique Ashby, Allen Warren, Steve Cohn, Steve Hansen, Jay Schenirer and Bonnie Pannell in voting to approve the deal. Council members Kevin McCarty and Darrell Fong voted against the plan.
“After 16 years on this council, we finally have a project that will bring 4,000 jobs and change downtown Sacramento forever,” Pannell said.
Kings chairman Vivek Ranadive addressed the crowd after the vote, saying “you have our promise that we’re going to be unrelenting in our pursuit of excellence in creating the world’s greatest arena.”
“This is your team, and it’s here to stay,” he said to thundering applause.
The council gave the green light to what City Manager John Shirey called “one of the largest, if not the largest, economic development projects ever brought before a City Council in Sacramento.”
“We’ve not done anything like this in the city’s history,” said Councilman Allen Warren, a supporter of the plan. A stream of business and political leaders also stepped to the lectern Tuesday evening to express their support.
The $477 million arena will replace a mostly vacant Downtown Plaza that has languished for years. City officials say they’re hopeful the facility will spark development throughout the central city. The Kings are planning to build a hotel, office space, restaurants and apartments adjacent to the arena, although no time frame has been provided for that work.
The arena’s financing plan includes a city contribution of $255 million and $222 million from the Kings. The city will issue revenue bonds that it will repay over 36 years, backed mostly by annual lease payments from the Kings and money from city-owned parking facilities.
Meeting goers should arrive at 5 p.m. for 6 p.m. start time
The City of Sacramento is taking extraordinary steps to accommodate public participation for the May 20th City Council Meeting where a final vote is expected on the Entertainment and Sports Center (ESC) Project.
Members of the public interested in attending the Council Meeting at 6 p.m. on May 20 should arrive by 5 p.m. to receive a ticket into City Hall Council Chambers. Stakeholders opposing and supporting the ESC will have fair access to an equal number of tickets in accordance with required capacity limits.
Once the Council Chamber is full, overflow areas will be opened including Historic City Hall and the New City Hall, 2nd floor Mezzanine. In addition, the Council Meeting will be streamed and broadcast on large screens outside in the plaza. In total, the City is prepared to accommodate approximately, 400 attendees in doors and close to 500 in the plaza area.
Anyone interested in speaking will have an opportunity or will have their speaker slips included as part of the City’s official record. The Council Meeting can be viewed live on Channel 14 or online at: http://portal.cityofsacramento.org/ under Council Meetings.
óIn April 2014, the median price increased from $262,450 to $267,000. The median is 20.3% higher than one year ago.
óThe spring selling market is showing signs of good strength with inventory still low and buyer demand staying strong.
óThe available housing inventory is 1.4 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.
óThe homes that are priced right, show well and have a high quality marketing plan are still getting sold quickly. However, the properties that are over priced are beginning to sit with little activity until the list price is in line with the true market value.
óHigh Demand and Low Supply/Inventory had 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.
It seems counter-intuitive that negative economic news can actually be good for
home loan rates, but there's a pretty simple explanation. First,
remember that big money managers in search of higher returns avoid holding onto
cash by investing in both stocks and bonds. Second,
despite what the financial media often report, home loan rates are based on the
performance of mortgage backed securities—a type of bond. Third,
prices of stocks and bonds respond to a supply-and-demand dynamic, just like
anything else in the economy. Putting
these facts together, it begins to make sense that when the economy is “on
fire” and economic reports are on the uptrend, investors tend to put more money
into stocks. That’s because stocks offer higher returns, even though they are
generally more risky. However,
in order to put money into stocks, investors must remove money from less-risky
bonds. The result is a decreased demand in bonds causing bond prices to worsen,
and therefore home loan rates to go higher. On
the other hand, when the economy is sluggish, world news is unstable, or
economic reports are negative, money managers tend to take money out of higher-risk
stocks and move it into less-volatile bonds. As demand for bonds increases,
bond pricing improves and home loan rates go down. While it may seem odd that
home loan rates improve when economic news is sluggish, it actually makes sense
when you look at the bigger picture!
Just Sold 5/9/2014!!!! I represented the seller of this great property in a nice Elk Grove neighborhood. The property was in turn key condition as you can see from the photos. We had 6 offers in one week and sold it above the list price to an all cash investor. The final sales price was $265,000.
Outstanding Elk Grove home inside & out, features a bright & open floorplan. 3 beds, 2 baths, 1330 sq ft, energy efficient & beautifully landscaped. Large great-room is open for entertaining, plus a front family room. Master bedroom with walk-in closet, double sinks & access to back patio. Ceiling fans, fireplace, pantry closet & in-door laundry room make this a great place to call home. Garage includes cabinet shelving for extra storage. Great Neighborhood near schools, parks & shops.
the nightmare of having your home damaged or destroyed. To make matters worse,
imagine trying to remember the contents of your home for insurance reporting
and replacement. Would you even be able to remember?
this is the exact situation thousands of Americans find themselves in every
year. Now’s the time to make sure it never happens to you. Here’s how. Homeowners
can create a home inventory list with ease thanks to the Insurance Information
Institute’s "Know Your Stuff" software. The software is free, user
friendly, and takes just four easy-to-follow steps. Plus, it provides free
secure storage online so you can be certain your inventory is accessible in the
event your home is destroyed, and it’s also available as a smartphone app.
the quick setup, you create a name for each room in your home—for example,
kitchen, living room, family room, or master bedroom—and simply add the items
each room contains. A drop down list is available with the most common
household items, as well as the specific information required by insurance
companies in case a claim needs to be filed. Want
to add a picture or a receipt for a large ticket item? No problem, just upload
the image. Once
the home inventory is completed, it’s a good idea to have your insurance agent
review the list just to make sure your home has adequate coverage. Check it out at www.knowyourstuff.org.