West Sacramento Short Sale Information – Market Update II

Why this Might Not be the End to the Housing Crisis Part II. Looking for West Sacramento short sale information? You have come to the right place. Mike Rigley Certified Default Advocate, Distressed Property Expert and your short sale specialist here thank you for joining us.

West Sacramento Short Sale Market Update. Why this Might Not be the End to the Housing Crisis Part II. So last time we talked about the Fed propping up interest rates. This time let’s talk about supply and demand. Remember to have a market recovery we need to have buyers willing to buy and sellers willing to sell. Right now we have buyers willing to buy but relatively few sellers willing to sell. Why is that?

I think first we have to look at why prices are going up and who exactly is doing all the buying. In the greater Sacamento metroplex, historically 15% of the monthly home sales as cash, which usullay indicates investor purchases – not always but usually. Last month the number of cash sales we nearly 40%. 37.2% to be exact. That means that nearly 4 or of every 10 homes sold went to an investor. Who are these investors? They are everyone from the large Hedge Funds to mom and pops looking to get a better return on their money. Some are those looking to flip properties for a profit and later sell to another investor or end user but not always.

So why is this a bad thing? I am not saying it’s good or bad – it just is. What it has done is increased completion for the existing inventory and has caused prices to go up. With multiple offers on nearly every property sold the prices can’t help to go up. Potential homeowners are frustrated and giving up hope of getting a home of their own while they can afford it.

But what happens when prices get to the point that the investors stop buying? That’s right, less competition and prices flatten and or goe down. Carrington, one of the first to get into the rental market recent announced they were no longer buying single family residences. Hmmm who’s next?

So, why so few sellers willing to sell? With nearly 40% of all homeowners owing more than their home is worth and the hope of rapid appreciation, we believe many are holding out hope that they will be able to sell without a West Sacramento Short Sale. For some that will be the truth, but for most it won’t happen. Remember to get out from under your mortgage you not only need to pay off the existing loan but closing costs and commissions as well. That can add another 6-8% to what you need to break even. If you are 10% upside down, you would need prices to up 18% to walk away with zero at closing. Zero.

So next time let’s talk the remaining funamentals of this false market and what you can do to be prepared.

To get a better idea of when your West Sacramento home will be worth what you owe, log in to www.shortsaleandloanmod.info for a free estimate or call me today for a free no obligation consultation or for the latest West Sacramento short sale information. Call me today and sleep better tonight; you’ll be glad you did.