Here’s the “Tale of the Tape” for home sales, Sonoma County, California, November 2016.
Median home price is up 9% over last year at this time but this is due to the tight inventory market, buyer demand and rates on the rise. As of this writing, December 7, 2016, rates are hovering just at 4 to 4.25%. So the threat of rising rates is bringing those looking to the table. It should be noted we have only 575 “Active” listings for every town in Sonoma County–all price points. Slim pickens
While the median SOLD price is $575,000, the “On the Market” median home price is $749,00. This means of those 575 homes half are below and above that number. Sales are actualy up +2%, or pretty darn close to “Flat” year over year. The “Solds” for 2016 never broke 500 sales in any month. Last year we had two months of 500+ sales.
An indicator of things to come is the “Under Contract” numbers which are down -8% over last year. But this is also seasonal as the slowest months of the year are upon us. Inventory is as you’d expect–down. New properties entering the market -6% and total inventory down -15% year over year.
Positives? DOM or Days on the Market is down -33%! 50 days is the time and our MSI or Month’s Supply of Inventory is only 1.8 months. Put this in context: a “normal” market is 4-6 months supply, under that its a Seller’s market. We have a BIG TIME Seller’s Market!
Still, if you are a buyer keep at it! Especially if you are below the median home price of $575,000. Less competition and motivated Sellers are a good combination for you! Let us know if we can help! 707-322-8503! Mike Kelly.
Realtor.com came out with their 20 Hottest real estate markets in the nation. 11 of these are in California and we’ve added two NEW spots–Eureka and Fresno. Eureka is way up north on the coast of California. Isolated, older fishing community but it is very affordable as is Fresno which is in the “Valley”. “Valley” properties in the greatest state of California are fairly depressed and still have higher percentages of distressed homes. They have yet to get even close to their pre-bust highs. If you look at the top lists you’ll see 4 of these hottest market are in the California interior valleys—Sacramento, Stockton (at one time ground zero for the distressed market in California), Modesto and Fresno. What they all have in common is affordability. Median priced homes in these areas range from $270,000 to $317,000. Compare these prices with Santa Rosa (#13 on the list with a median price of $597,500).
Special show October 23rd for all investors and IRA or SEP IRA holders. Below is our guest speaker Bill Neville. Do you know you can buy investments THROUGH your IRA? Gain is NOT taxed? But there are procedures that absolutely MUST be adhered to. We’ll discuss this great program with our IRA specialist.
Bill Neville, Business Development Manager
About Bill Neville, Business Development Manager
Bill Neville joined The Entrust Group over five years ago through his initial role as Manager of Operations for the company’s franchise program. When the program was discontinued, Bill stepped up to the task of managing the Compliance and Internal Audit departments. With a keen eye for detail and gaining valuable insights into the IRA industry, Mr. Neville kept Entrust’s educational programs and internal processes in line with industry regulations. Bill actively takes pride in the company’s growth and success, and is currently the Business Development Manager for Entrust’s San Francisco Bay Area office.
Certified IRA Services Professional (CISP)
t 800.392.9653 x237 | d 510.587.0950 x237 | f 510.587.0960
The Entrust Group | 555 12th Street, Suite 1250 | Oakland, CA 94607
From our friends at CalculatedRisk.com. The number of “Serious” defaults or those 90 days in arrears is dropping steadily. At this rate 8 months from now we’ll be “back” to normal!
Bill McBride on 9/29/2016 05:09:00 PM
Fannie Mae reported today that the Single-Family Serious Delinquency rate declined in August to 1.24%, down from 1.30% in July. The serious delinquency rate is down from 1.62% in August 2015.
These are mortgage loans that are “three monthly payments or more past due or in foreclosure”.
This is the lowest rate since April 2008.
The Fannie Mae serious delinquency rate peaked in February 2010 at 5.59%.
Although the rate is generally declining, the “normal” serious delinquency rate is under 1%.
The Fannie Mae serious delinquency rate has fallen 0.38 percentage points over the last year, and at that rate of improvement, the serious delinquency rate will not be below 1% for about 8 more months.
Read more at http://www.calculatedriskblog.com/2016/09/fannie-mae-mortgage-serious-delinquency.html#yAbZZRls8lYSAVGG.99
7 tips on gaining an edge when presenting your offer to a seller.
Know What the Seller wants—You can’t be the answer to their prayers—unless you KNOW what they’re praying for!
Have an agreed to game plan for your purchase—what is the big WHY of your purchase?
Bringing Seller or Seller’s agent to reality–Pricing—sometimes we get hung up on small amounts relative to the overall value of the home. A seller and buyer got hung up on $2500 on a $550,000 purchase price. Seems trivial right? I mean its less than a ½%. But the infamous phrase: “It’s the principle!” I won’t let $2500 stand in my way of having a client either get their price when a seller or a buyer. In this case, the buyer was looking at another home in an HOA where the dues $450.00 vs. this HOA at $200.00. That’s $250/month for a savings of $3,000 a year. So the first year he recouped the price increase in 10 months. Plus if he was going to live in the unit for 10 years its gets to the point of being trivial.
Negotiate—some folks just can’t do full price. We have plenty of buyers who have lost a home because they didn’t step up to the plate. If you insist on going in low then you better have a big offset—no contingencies? Shorter inspection periods, quicker close big deposit in excess of 3%. Or go in at full price and ask for stuff—lawn mower, tractor, furniture—hey, some folks are moving down. This you can learn from the listing agent.
Leave Contingencies to a minimum. Inspection contingency should be the absolute one you wish to keep. Shorten up the time frames for this. CAR defaults to 17 days.
Make Multiple Offers? Be careful with this one. The essence of negotiations is “good faith” in a contract. If you are buying 3 houses that’s find. But if you are only going to buy ONE of the three you have offers on then disclose what you are up to and WHY! I had a client, in for the weekend on a job transfer and needing to buy a home, made three offers with instructions to me to inform the seller as to WHY he was doing this. He had me present to the #1 house first and wanted me to tell the seller, “Folks, my client wants your home badly but he needs to know when he goes back east that he has a home to move to. He wants your answer immediately. If you can’t do this I’m instructed to present offer #2. This repeats with #2 as I moved to #3. I didn’t get to #2. You may think this was pressure on the Seller but the house had been on the market for some time and we assumed the seller KNEW what they wanted.
Follow up with listing agent in case you did not get your offer accepted. Ask to be in back-up position. I had presented an offer on a large estate and was representing a very high powered attorney. He got beat out by an “in-house”, Seller was an agent, deal. I wasn’t happy how it went down so insisted we be given “back-up” offer status. It took me some convincing to get my attorney client on board. He grudgingly acquiesced. 2 days later I get a call from the listing agent, buyers realize it is too far out for them from the city. Boom! We’re in first place. I got to make a very nice call to my client who also got to tell his wife they “got the house”!
CAL FIRE Battalion Chief, Kirk Van Wormer will be calling in with an update on the Lake County “Clayton Fire”, and we’ll discuss Defensible Space; What is it? Why is it important?
More on the show, including KW Open House Extravaganza, Interest Rate update, a look at the August market, and more. Join the fun at 9:00-10:00 AM pst, 1350AM, 103.5 FM and streaming live at www.KSRO.com
Here are a few great tips from the CAL-FIRE website