Sacramento Foreclosure Discounts: Gone!
The foreclosure discounts here in the Sacramento real estate market are virtually gone, according to a recent housing report. In the past buyers have come to expect if they bought a foreclosure or short sale property they would get a better deal than if they purchased a non-distressed house. The disappearance of any significant discount for foreclosures (lender owned properties) and short sales is being caused by the low level of inventory of homes available for sale and the increasing demand from potential buyers.
According to a report issued by the National Association of Realtors (NAR) the nationwide discount for foreclosures has fallen to 7.7 percent. Sacramento, by comparison, came in with the third lowest discount, 0.7 percent. The two communities with no discount are Las Vegas and Phoenix.
Meanwhile, the places with the largest foreclosure discounts are:
- Pittsburgh, Pa. (27.8%)
- Cleveland (25.8%)
- Cincinnati (20.2%)
- Baltimore (20%)
- New York City (15.5%)
The current supply and demand curve has made the Sacramento area a seller's market with many listing getting multiple over asking price offers within days of going on the market. We recently submitted an offer for a client in under $200,000 price range in Roseville and received a multiple counter offer which went out to 18 different agents. Of those, 14 responded with their highest and best offer. From what I was told, it was a significant over asking price offer of cash which secured the contract on this bank owned property. There was no discount on this foreclosed property, the lender received a premium.
Not only are buyers having to compete for properties with price, the terms of the offer are becoming increasingly more important. This makes it very difficult to get a house for first time home buyers who are using low down payment loans such as FHA.
December has traditionally been a slow time for the housing market as buyers and sellers are engaged in the holidays. With the new year we should start to see more homes come on the market, especially if we get some good news about the Debt Forgiveness Act being extended which will allow underwater homeowners to short sale their house without worrying about taxes on the forgiven debt.
If you or someone you know is considering buying or selling a house and have questions about if this is a good time, let me know. You can reach me at the MagnumOne Realty office in Roseville (916-899-6571) or by email to email@example.com.
Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.
Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento
Placer County News Headlines$7 Billion Water Bond Supported by Sacramento SupervisorsDrought Watch: AB 1471, the legislation placing the water bond on the ballot, asks voters to approve $7.12 billion for projects which will build new water storage facilities, invests in safe drinking water
Gas Prices Under $3 Gallon Coming Soon?Average retail gasoline prices in Sacramento have fallen 3.4 cents per gallon in the past week, averaging $3.79/g yesterday, according to GasBuddy's daily survey
Carbon Pollution Limits Can Help Save Lives and Improve HealthFew things are more frightening for a parent than racing to the hospital with a child who can't breathe.
Sierra College Football Hosts 2014 Meet The Wolverines Rocklin, CA -Amid high expectations, the 2014 Sierra College football season kicks off with the annual "Meet the Wolverines" controlled scrimmage and fan-fest Saturday, Aug. 23
Roseville California Crime Brief (8.19.14)Roseville, CA-- The Roseville Police Department Crime Brief Report for August 19, 2014.
Could Be Easier For Renters To BuyRealtor, Julie Jalone of MagnumOne Realty in Roseville, writes about a recent article which advocates adding rental payments to credit scores to help renters qualify for a mortgage.
Faith Plays Big Role with MomEvery now and then, a person featured here attributes faith as pivotal in their being able to cope with disability-one in themselves or family members.
Feed My Starving Children MobilePack Returning to RocklinROCKLIN-For the fifth year, hundreds of volunteers from the community will gather to pack meals for malnourished children around the world.
35 Year Old Woman Captured by Roseville Police After PursuitDetectives are actively looking for the male suspect, Shane Schmidt, 39, who is on probation out of Turlock.
Sammy Hagar Concert in Roseville September 13thRock and Roll Hall of Famer Sammy Hagar will celebrate the reopening of Sammy's Island Bar & Grill in Roseville, Calif., with a special concert event on Saturday, September 13th.
Hyundai Equus: An Affordable Luxury SedanAlthough not on the Hyundai payroll, sometimes it feels like I should be because I'm often defending the South Korean auto manufacturer for its past transgressions
23 Year Old Roseville Man Killed in Motorcycle CollisionA 23 year old Roseville man and 29 year old Rio Linda man were killed after their motorcycles crashed into a Jeep Cherokee at high rate of speed.