You read every other month that the West Sacramento Real Estate market is getting
better and you begin to think – “should I hang on to my house?” And for sure
the answer is – it depends. So what is going on in the West Sacramento Real-Estate market? Are prices
really going up? You read prices are up but sale are down. Then sales are up
and prices are down. How is anyone supposed to make heads or tails of the
situation?
I do not have a crystal ball and
know that the conflicting reports can be very confusing. Being a pretty
straightforward guy, what I can tell you is this: There is limited supply and
pent up demand. The banks are still foreclosing but not as fast a rate as last
year. What we also know is there are more buyers than sellers and it is not
uncommon to get 3, 4 or even 10 offers on a single property within days of
putting it on the market.
Well with supply low and demand high
prices should go up right? Yes they should but where we run into problems is
getting the property to appraise. Far too many times we have accepted and offer
for a West Sacramento Short Sale
or REO / Bank Owned property only to have it not appraise. When the appraisal
does not come in at offered price we have to do one of several things.
The step that makes the most sense
is to lower the accepted price to the appraised price. While this seems simple
enough it is not always the case. Asset Managers for the bank owned properties
want to minimize the loss as do the negotiators on West Sacramento Short Sales. In a West Sacramento Short Sale we have to actually go
back and re-negotiate the price which is not always guaranteed. If the
foreclosure sale date is close we could actually lose the property to
foreclosure during this process.
What we also know is that as a rule
only one third of the homes foreclosed on ever get released to the general
public. The other two thirds are sold in bulk sales or to non-profits. This
year being an election year there certainly seems to be even less homes than
normal
What is going on in the market? Our
best estimate is the market will remain flat for the next 3-5 years. Prices
will be flat and rate will be low – maybe not a s low as right now but low by
historical standards. What the politicians do know is that until unemployment
gets to 8% housing will not recover and until housing recovers this country
will remain in an uncertain economic state.
If you are upside down in your home
more that 10%, don’t expect the economy to pull you out. With the favorable tax
laws in place short sale makes the most economic sense.
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