Elk Grove Real Estate Blog

Useful Real Estate News

Coldwell Banker’s 12 Month Home Maintenance Guide

Written By: Jack - Jan• 11•12

Don’t let deferred maintenance take over your home. Do a little maintenance each month to help keep your new house like new.

January – Decluttering and Organizing
• Take down, clean and store holiday ornaments, decorations and
exterior lights.
• Put away all of those holiday gifts.
• While you are making room for your new gifts, take the opportunity
to go through your closet and get rid of things you haven’t used for
a year.
• Do end-of-the-year accounting and set-up a file folder for the current
year’s taxes.
February – Bathrooms
• Remove and replace any worn or crumbling caulk or grout in and
around bathtubs, sinks and toilets.
• Vacuum bathroom vent fan covers.
• Clean faucet aerators and shower heads.
• Make sure your toilets are not running and are in good working
order. If it’s within your budget, consider replacing your old toilets
with newer, more efficient models—and check with your local water
company to see if they offer rebates.
March – Kitchen
• Clean the range-hood filter in your kitchen.
• Remove all the items from your cupboards and pantry. Wipe shelves
clean, check expiration dates on all products and toss anything old.
• Clean your refrigerator and oven.
• Don’t forget to move your household clocks forward on March 11
during Daylight Saving Time and test your smoke detector and
carbon monoxide batteries.
April – Yards
• Check your sprinkler systems to make sure they are working properly.
• Cut back any trees or branches that are touching the siding or roof.
• Clear out debris from under decks or porches.
• Clear out gutters and downspouts.
May – Bedroom and Closets
• Thoroughly clean all bedding (bedspread, blankets, sheets, mattress
protector). If you have a duvet insert, have it professionally cleaned.
• Change bedding for summer months, if desired.
• Go through your drawers and closets and donate old items that you
haven’t worn for a while.
• Rotate and flip mattress, if needed.
June – Windows
• Wash the inside and outside of your windows (once the rainy season
has stopped).
• Inspect and wash window and door screens and repair any with holes.
• Make sure all doors and locks are working properly and are in good
condition.
• Clean tracks and lubricate hinges.
• Clean drapes, dust blinds and shutters.
July – Paint
• Inspect the exterior of your home. Scrape, caulk and paint any wood
surfaces that have peeled or weathered.
• Inspect interior walls and ceilings for cracks or bulges, and patch
and paint as necessary.
• Clean and seal decks.
August – Vents and Filters
• Check and clean dryer vent, air conditioner, stove hood and room
fans.
• Keep heating and cooling vents clean and free from furniture and
draperies.
September – Seals
• Check the weather stripping around your windows and doors and
make any necessary repairs in preparation for the winter months.
• Make sure your refrigerator door seal is tight.
• Caulk any drafts in your basement, such as around your dryer vent.
• Make sure your roof is good condition and not missing any shingles,
tiles or slates.
October – Fireplace and Chimney
• If you have a fireplace, make sure you have the chimney checked
out by a professional chimney cleaner before starting the first fire.
• Be sure your fireplace tools are in good working order.
• Pull out your nonflammable rug and place it in front of the
fireplace.
• Once you start building fires, clean ashes out regularly but ensure
ashes have completely cooled before discarding.
November – Upholstery and Carpeting
• Vacuum all sofas and pillows.
• Spot clean all upholstery and carpeting.
• For extra cleaning, consider hiring a professional service to clean
your upholstery and carpeting.
• Don’t forget to move your household clocks back on November 4
when Daylight Saving Time ends and test your smoke detector and
carbon monoxide batteries.
December – Miscellaneous
• Clean your garage and get rid of anything you don’t use.
• Neatly organize all of your tools, garden equipment and appliances.
• Wander the house with a screwdriver and tighten screws on
drawers, doors and furniture.
• Make a list of any small repairs that need to be made. If needed,
go to your local hardware store and purchase the necessary items
to make your repairs.

©2012 Coldwell Banker Real Estate LLC. All Rights Reserved. Coldwell Banker® is a registered trademark licensed to Coldwell Banker Real Estate LLC.
An Equal Opportunity Company. Equal Housing Opportunity.
Each Coldwell Banker Residential Brokerage Office Is Owned And Operated by NRT LLC.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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Have You Been Cheating On Your Taxes???

Written By: Jack - Jan• 02•12

Before I get too far into this article, I want to remind you that I am a real estate professional, not a tax professional. When we work our way through the home buying process, buyers almost always ask about property taxes and Mello-Roos fees, and tax impounds. Those are all a part of the real estate transaction. I am doing this blog post to provide you some important information so that you will remember to hold on to your tax bill and to be ready next tax season to talk to your tax professional to make sure that you don’t find yourself in trouble for accidentally cheating on your taxes. If you need tax advise, please talk to your tax professional or your accountant.

——————————————————————————

I would venture a guess that most homeowners have been accidentally cheating on their taxes, and getting away with it for years, but that will come to an end next year.

Yes, starting with 2012, taxpayers will no longer be able to illegally deduct their complete property tax bill from their taxes. It has not been legal to do so, but more often than not, taxpayers usually take the number from the 1098 form they receive from their lender and put that on their Schedule A when reporting the amount that they paid in property taxes.

Unfortunately, that number usually includes amounts for various miscellaneous fees, that are not property taxes, and they are not tax deductible expenses.

I think this is another unintended consequence of Prop 13. Adding non deductible fees to the tax bill because they could not increase the taxes. So, what kind of fees are we talking about? Generally anything that is not based on the property value, generally called ad valorem taxes.

Things like Mello-Roos fees, or lighting and landscape fees, or water and drainage studies, or college district fees, are not taxes, therefore they are not deductible even though they show up on your property tax bill.

These fees are also called Direct Levies. On my tax bill, the total each year is about $4,508 of which only $3,096 is property taxes and $1,412 are direct levy fees. That is not as bad as it will be for some taxpayers. Those who bought new homes in the past few years often have Direct Levies that are higher than their ad valorem taxes. If your house was built in the 1970s, then it may not be much of a big deal to you, but if it was built in 2010, you will be paying a little more in income taxes next year.

According to Franchise Tax Board, beginning with the 2012 tax bill (the one due in April 2013), they will require property owners to break down their property taxes into deductible and non-deductible portions. In fact, here is the link to the info so that you can read it yourself if you don’t believe me.

For some people, this will be a real challenge since they are not in the habit of putting the copy of their tax bill with their tax records. All too often, since the mortgage company is taking care of the taxes, they don’t even know where their copy of the tax bill is located when they sit down to do their taxes. For those of you in Sacramento or Placer Counties, you can go online and get your property tax info, if you know your assessors parcel number. In Sacramento, go online to www.eproptax.saccounty.net and in Placer County, go to www.placer.ca.gov/Departments/Tax/Taxes/TaxBillSearch.aspx.
In either case, taxpayers will need their parcel number in addition to the deductible/non-deductible breakdown for their 2012 state income tax filing. If you need help in finding the information, don’t hesitate to contact your real estate professionals at www.ElkGroveRealEstate.com
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Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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Coldwell Banker’s Reality Check

Written By: Jack - Dec• 09•11

Economic and Political Headwinds Impact Housing Market in 2011

Written by Kris Vogt, President, Sacramento-Tahoe, Coldwell Banker

With the hustle and bustle of the holiday season at full swing, we can assume that the real estate market may not be at the forefront of everyone’s minds. That’s okay for some, but it is definitely one of the most important topics on our minds. Each year around this time I like to take a moment to reflect back on the past 12 months and, more importantly, to look ahead at what may happen in 2012.

 We can learn so much by examining market trends over the past year – the ups and downs of housing prices and sales volume, the impact of world events, and conflicting headlines. We can also assess which (if any) predictions from 2010 came true.

In this edition of Reality Check, we travel back through the year 2011 to concisely sum up what transpired this year and to look at what experts are saying may be in store for our local markets in 2012.

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Leslie Appleton Young, the chief economist for the California Association of Realtors, recently noted that all that California’s real estate market really needs to right itself is six straight months with no surprises. All the ingredients for a turnaround are there — record low interest rates, outstanding affordability, and very attractive home prices. But economic and political headwinds at home and abroad kept the market from really gaining much momentum this year.

To be sure, 2011 was anything but predictable. On top of the tepid economic recovery here in the U.S., there was one crisis after another around the world — the Japanese Earthquake and Tsunami, the “Arab Spring” uprising, a spike in oil prices, political standoffs on Capital Hill, the debt limit ceiling and downgrade of U.S. debt, and most recently the sovereign debt crisis in the eurozone and the subsequent stock market volatility here at home.

While California’s real estate market did show some encouraging signs of improvement in certain price segments and communities, skittish consumer confidence, the sluggish economy, stubbornly high unemployment and volatile financial markets all combined to keep home prices and sales flat in most areas.

Locally, The Sacramento Bee reported on November 17 that home sales in the Sacramento region in October — the most recent figures available — jumped 19.6 percent from a year ago, according to research by DataQuick, the La Jolla real estate information firm. But the median price edged lower as distressed home sales continued to be the lion’s share of the market.

The median sale price in Sacramento County was down 8.2 percent to $157,000, according to The Bee. Placer County saw the median drop 12 percent to $252,000. In El Dorado County, the median was down 12.2 percent to $230,000. And in Yolo County it was off 14.6 percent to $194,750.

The California Association of Realtors, in its annual forecast predicts that home sales in California will rise just 1 percent in the coming year. But as we know, real estate is really all about location. And in this challenging housing market, it’s also a matter of price segments.

Locally, entry level homes and distressed properties continue to see robust sales in many areas as bargain hunters rush to take advantage of attractive prices and, of course, low interest rates. As a result, we actually have seen inventory drop sharply this year to the lowest level in about two years.

Market wide, we are down to 4.2 months supply of homes on the market, according to MLS figures — a 31 percent decline year over year. At the same time, sales year over year market wide were up 16 percent. That trend, if it continues, could be very positive for the market and help it move back towards normalcy.

Distressed vs. Luxury Markets
One trend we’ve noticed of late is a drop in the number of bank-owned properties that are listed for sale and an increase in short sales. The reason may be that government regulations and controversies over “robo-signing” have kept more foreclosures from coming on the market. As banks put the robo-signing debacle behind them, we may see more REO properties released in 2012.

While the release of additional distressed properties could keep prices of all homes down in 2012, we suspect that strong demand by investors for these homes will probably keep prices from falling much further. We’ve seen multiple offers for many bank-owned properties, sometimes all cash offers, as investors snap up what they believe to be great bargains.

On the other end of the spectrum, the high-end market saw solid buying throughout much of 2011. But in recent weeks we have seen that interest decline, with sales dropping 8 percent in September and inventory levels rising 2 percent from the previous month.

Non-distressed mid-market
Homes that are somewhere between distressed and luxury properties – the bulk of the market here in Northern California – probably were the most challenged in 2011. One big reason for the softness is that we didn’t see very many move-up buyers trading their entry-level homes for larger, more expensive properties as they have traditionally done in the past.

Equity homeowners stayed on the sidelines, perhaps due to a lack of confidence in the housing market and the economy in general. They may have been frightened away by doom and gloom news headlines about the housing market, or maybe fear over whether they might lose their job should the economy stumble again.

This uncertainty and lack of confidence, I suspect, will continue to some degree into 2012 until there is more positive improvement in the economy.

But as we approach the new year there are glimmers of hope that the housing recovery could finally gain some traction.

Gradually we’re seeing fewer distressed sales and more “normal” transactions. Despite the recent downturn, the high-end market had a solid year in 2011, which is a good sign for the entire market.

In the past, luxury homebuyers – the so-called “smart money” – are often the first to declare a market bottom and jump back in because they have the means to do so once they are convinced the time is right. The other segments eventually follow.

Buyers are far more active right now and that, coupled with tight inventories, is helping to firm up pricing while getting serious buyers to be a little more realistic when making offers–especially in the entry-level arena. Properties priced correctly and that show well are getting a tremendous amount of traffic as well as multiple offers in some cases.

Additionally, we are finally seeing many banks starting to process short sales in a more streamlined fashion, allowing us quicker short sale approvals.

Finally, the news media are starting to join the chorus suggesting a turnaround is near and that now is the time to get back into the housing market. A recent Fortune magazine article declared, “Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.” And The Wall Street Journal followed with a headline declaring, “It’s Time to buy that House.”

So, will 2012 usher in a steady, predictable economic recovery at long last or another wild rollercoaster ride of economic and political surprises? Only time will tell how it all plays out. Fasten your seat belts!

Start building your memories,
as you turn your house into a home.

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office. I hope it has been of value to you. Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at www.Facebook.com/ElkGroveRealEstate. For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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Coldwell Banker Reality Check for November 2011

Written By: Jack - Nov• 14•11

Fortune Magazine and the Wall Street Journal: Time To Get Back Into Real Estate

Okay, I know many of us have been saying this for some time now, but when the news media starts saying it – well, I guess that makes people stand up and take notice. A number of recent articles in the national press are now saying that it might be the right time for consumers, who have largely been on the sidelines, to jump back into the housing market.

I understand why potential buyers, whether first-timers or move-up buyers, remain cautious given all the economic headwinds and bad news out there. Economic growth has been slow, the jobless rate too high, and don’t even get me started about the politics in Washington, the euro-zone debt problems and the challenges facing Greece.

But I often urge buyers to examine what I like to call your “personal economy.” That is, if you have a steady job, reasonable credit, and enough savings for a solid down payment, you might want to take a deep breath and think about taking the leap into the housing market while prices and interest rates are so low.

Read what two of the nation’s top business publications, Fortune magazine and The Wall Street Journal, are telling their readers:

“Forget stocks. Don’t bet on gold. After four years of plunging home prices, the most attractive asset class in America is housing.”

- “Real estate: It’s time to buy again,” Fortune Magazine article by Shawn Tully.

“Two key measures now suggest it’s an excellent time to buy a house, either to live in for the long-term or for investment income.”

- “It’s Time to Buy that House,” The Wall Street Journal article by Jack Hough.

Tully in the Fortune piece interviewed Mike Castleman, founder and CEO of Metrostudy, who has spent more than 30 years tracking data on the inventory of new homes in the United States. Each quarter, inspectors go through 45,000 subdivisions from California to Maryland. According to Fortune, inspectors examine 5 million lots and record whether they contain a house under construction or completed.

What has Castleman observed? The glut of new homes that the U.S. had a few years ago at the peak of the market has rapidly disappeared. Instead, he told Tully that he has seen a rapidly declining inventory that could force prices higher. In the 41 cities Metrostudy looked at, there are just 78,000 houses vacant and for sale, or under construction – less than a quarter of the 343,000 units at the height of the market in 2006 and less than the total a decade ago.

“The talking heads who are down on real estate will hate to hear this, but America needs to build a lot more houses,” Fortune quoted Castleman as saying. “And in most markets the price of new homes is fixin’ to rise, not fall.”

Metrostudy collects figures on the number of homes that are vacant and for sale in each city, and the number of months it takes to sell all them to determine whether individual markets have a surplus or a shortage of homes. “If we had anything like normal levels of buying, those houses would sell in 2½ months,” Castleman told Fortune. “We’d see an incredible shortage. And that’s where we’re heading.”

Fortune says that consumers may be confused by conflicting news reports on the housing market, and that could be impacting their confidence in buying a home. On one hand, housing affordability has never been better. But on the other hand, they continue to see housing starts falling and home prices still heading down in some markets.

Tully said economists Robert Shiller and Karl Case, authors of the S&P/Case-Shiller Home Price indices, have different views about where we are in the cycle. While Shiller remains pessimistic, Case is more optimistic that things are starting to turn around, telling Fortune that “the lack of new home building is a huge help that a lot of people are ignoring.”

In its analysis of the housing market, Fortune noted that it’s important to look at the economic fundamentals of home ownership to see where the market is headed. As home prices rose sharply over the past decade, Tully said the magazine warned that a bubble was forming due to the level of new construction and the cost of owning a home compared to renting one.

“Eventually reality set in, and prices plummeted,” Tully said. “Our current view focuses on those same fundamentals — only now they’re pointing in the opposite direction,” Fortune noted. “So let’s state it simply and forcibly: Housing is back.”

The Fortune article said what will drive the recovery of the housing market is a sharp drop in new home construction, as noted in the Metrostudy research, as well as a big drop in home prices. Home prices have fallen about 30% nationwide since 2006, Fortune said, and more than 50 percent in hardest hit markets. With unusually high affordability levels, the article noted, Americans will start returning to the market.

While no one can predict with certainty the future of home prices and sales volume, it is safe to say that a turnaround will eventually happen. Timing the market is very difficult because you will never know the absolute bottom until prices have started going back up again. My advice is to look closely at your own “personal economy” and talk with a professional Realtor to see if now might be a good time for you to take advantage of low prices and rates, and join others in taking the plunge into buying a home.

Thanks for Reading,

Kris Vogt, Coldwell Banker

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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October Market Update from Kris Vogt, Coldwell Banker

Written By: Jack - Nov• 11•11

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REAL ESTATE MARKET UPDATE A monthly

Hello,  

First let me apologize for being a bit late on our Real Estate Market Update this month. The good news is, I have very good reason to be late. There has been a lot of attention paid to the numbers released in mid-October and rather than just give you an information dump of the stats, I wanted to take the time to analyze the numbers with my team and make sure I gave you the appropriate details and opinion of what we’re seeing.

Most specifically, when the numbers were reported late last month, much of the media chose to take a top down view, focusing on the decline in sales and home prices. But, in most cases, what wasn’t factored into the equation was the over decline in inventory we are seeing market wide.

The fact is, inventory remains a major troubling spot for our market. Market wide, we are down to 4.2 months supply of inventory (that’s a 31% decline in inventory year over year) and yet sales, year over year market wide, saw a 16% increase. So while an initial look at the numbers may cause some concern, as you delve further into them, you really see some very positive trends coming from our market.

Market Commentary:

Again, this month, we saw some relatively big declines in sales month over month. The reasons for this are twofold:

  1. Seasonality–We typically see a rather large decline in home sales between August and September. This year we saw a 6% decline in sales between August and September versus last year’s 4% decline.
  2. Inventory–As I mentioned before, possibly the most important reason for this decline in sales is a decline in good, solid inventory. For the fifth straight month, we have seen a decline in inventory market wide. In fact, since April of this year, we have seen inventory levels drop by 12%. Year over year, the inventory levels have declined 21%.

Where are we seeing the biggest shifts in sales?

Overall, the big shift in sales have just been in the last month. In fact, year over year, across the board, we are seeing increases in sales across all markets with the entry-level market seeing the biggest rise at 23% year over year. The entry-level market seems to be receiving the biggest boost, thanks largely due to investors.

  • Market Wide: 2,535 (Sept. 11) vs. 2,700 (Aug. 11) = 6% decline
  • Market Wide: 2,535 (Sept. 11) vs. 2,186 (Sept. 10) = 16% increase
  • Entry Level*: 1,822 (Sept. 11) vs. 1,915 (Aug. 10) = 5% decline
  • Entry Level: 1,822 (Sept. 11) vs. 1,478 (Sept. 10) = 23% increase
  • Mid Level*: 642 (Sept. 11) vs. 703 (Aug. 11) = 9% decline
  • Mid Level: 642 (Sept. 11) vs.630 (Sept. 10) = 2% increase
  • Upper End*: 100 (Sept. 11) vs. 109 (Aug. 11) = 8% decline
  • Upper End: 100 (Sept. 11) vs. 99 (Sept. 10) = 1% increase

Let’s take a look at inventory numbers:

  • Market Wide: 10,554 (Sept. 11) vs. 11,118 (Aug. 11) = 5% decline
  • Market Wide: 10,554 (Sept. 11) vs. 13,440 (Sept. 10) = 21% decline
  • Entry Level: 6,965 (Sept. 11) vs. 7,481 (Aug. 11) = 11% decline
  • Entry Level: 6,965 (Sept. 11) vs. 8,705 (Sept. 10) = 23% decline
  • Mid Level: 2,743 (Sept. 11) vs. 2,809 (Aug. 11) = 2% decline
  • Mid Level: 2,743 (Sept. 11) vs.3,666 (Sept. 10) = 25% decline
  • Upper End: 922 (Sept. 11) vs. 903 (Aug. 11) = 2% increase
  • Upper End: 922 (Sept. 11) vs. 1,187 (Sept. 10) = 22% decline

Interestingly, inventory levels are the lowest they’ve been in more than two years.

As I visit our offices, one common thread I hear is, “I have so many great, qualified buyers, but it’s really hard finding them a good home.” Essentially what we have is a skewed view at supply and demand because the demand for a specific type of home is out there. It’s just unfortunate because the inventory for that particular type of home is dwindling. While the buyers are there, the good, solid inventory hasn’t been.

One major shift we have seen in the last month is a sudden decline in buyer interest in the luxury end. Whereas in my last two editions of Real Estate Market Update, we were seeing a solid luxury buying trend, suddenly, in September, we saw that interest decline, with sales dropping 8% and inventory levels rising 2% (month over month).

What is this doing to prices?

Buyers are far more active right now and that coupled with tight inventories is helping to firm up pricing while getting serious buyers to be a little more realistic when making offers–especially in the entry-level arena. Properties priced correctly and that show well are getting a tremendous amount of traffic as well as multiple offers.

Additionally, we are finally seeing many banks starting to process short sales in a more streamlined fashion, allowing us quicker short sale approvals.

Here is a look at sold median home prices.

  • Market Wide: $180,000 (Sept. 11) vs. $185,000 (Aug. 11) = 3% decline
  • Market Wide: $180,000 (Sept. 11) vs. $204,000 (Sept. 10) = 12% decline
  • Entry Level: $146,000 (Sept. 11) vs. $150,000 (Aug. 11) = 3% decline
  • Entry Level: $146,000 (Sept. 11) vs. $158,000 (Sept. 10) = 8% decline
  • Mid Level: $312,000 (Sept. 11) vs. $323,000 (Aug. 11) = 3% decline
  • Mid Level: $312,000 (Sept. 11) vs. $315,000 (Sept. 10) = 1% decline
  • Upper End: $615,000 (Sept. 11) vs. $600,000 (Aug. 11) = 3% increase
  • Upper End: $615,000 (Sept. 11) vs. $619,000 (Sept. 10) = 1% decline

The final piece I’d like to point out this month is that of accepted offers, which I think showcases several interesting trends (take particular note of what we have seen year over year both in the entry-level as well as in the upper end):

  • Market Wide: 2,673 (Sept. 11) vs. 2,822 (Aug. 11) = 5% decline
  • Market Wide: 2,673 (Sept. 11) vs. 2,124 (Sept. 10) = 26% increase
  • Entry Level: 1,986 (Sept. 11) vs. 2,068 (Aug. 11) = 4% decline
  • Entry Level: 1,986 (Sept. 11) vs. 1,430 (Sept. 10) = 39% increase
  • Mid Level: 608 (Sept. 11) vs. 685 (Aug. 11) = 11% decline
  • Mid Level: 608 (Sept. 11) vs. 588 (Sept. 10) = 3% increase
  • Upper End: 95 (Sept. 11) vs. 102 (Aug. 11) = 7% decline
  • Upper End: 95 (Sept. 11) vs. 136 (Sept. 10) = 30% decline

My final food for thought this month is that the market is making some interesting headway. While at first glance, it seems the numbers may be disappointing, when you further analyze them, they share a very different story.

We are seeing significant bright spots (and potentially trends) in the entry-level market while the interest in the upper end has had its fair share of challenges over the last several weeks.

We’ll continue to monitor these numbers over the next few weeks and look forward to sharing with you the October numbers in just a few weeks. I say this often times in my office meeting visits, but I think it’s a good way to end this month’s report:

When the market has changed, no one is going to run out in the middle of the street and yell, “The market has changed!” It’s only upon reflection that we can see that a real trend has been established. Until then, we’ll continue to regularly monitor these stats until we begin to see that strong, solid recovery.

That’s it for now. Make it a great month.

Sincerely, Kris

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

Posted in Real Estate , , | No Comments »

Relief For Condo Owners

Written By: Tracey - Nov• 06•11

Over the past several years, I have talked with many condo owners who were being denied the opportunity to rent their condo because their HOA had instituted rules, after they had purchased their condo, prohibiting the owners from renting or leasing their condo.  Maybe they were moving for their job and wanted to rent until they could return to the area.  Some were move-up buyers who wanted to keep the condo for the rental income and become investors. No matter what the reason for their desire to rent or lease their condo, the HOA was prohibiting it in many cases.

I am happy to report, that through the efforts of the California Association of REALTORS, we were successful in the passage of legislation, Senate Bill 150, protecting the owners’ right to rent out their units in these common interest developments.  Starting on January 1, 2012, a condo owner is exempt from any prohibition in the association’s governing documents against renting or leasing their unit unless that prohibition was in effect before the owner acquired title to his or her unit.

So, if you are thinking about buying a condo, make sure that you review the HOA disclosures and look for any prohibition already in place that prohibits renting or leasing.

Additionally, an owner’s right to rent under this law does not terminate for certain transfers of title, including, but not limited to, probate, spousal, parent-to-child, adding a joint tenant, and other transfers exempt from property tax reassessment.

This law does not apply to rental prohibitions in effect before 2012.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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Tenants Displaying Political Signs

Written By: Jack - Nov• 02•11

More Legislation Info From The California Association Of Realtors That May Effect You!!!

Tenants Displaying Political Signs:

Effective January 1, 2012, a residential tenant can generally display political signs related to elections, legislative votes, initiatives, and other political matters as specified, but the landlord can make reasonable restrictions as to location, size, and duration of display. 

In a single-family dwelling, a tenant’s political signs can be displayed from the yard, window, door, balcony, or outside wall of the leased premises. 

In a multifamily dwelling, a tenant’s political signs can be posted in the window or door of the leased premises.  A landlord can restrict the size of a political sign to six square feet.  A landlord can also prohibit a tenant from displaying political signs that violate local, state or federal law, or a lawful provision in an HOA’s governing documents. 

A tenant must remove political signs in compliance with time limits set by local ordinance, or absent such time limits, the landlord can reasonably restrict the posting of a sign to 90 days before an election or vote, and its removal within 15 days after the election or vote. 

Senate Bill 337. 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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Requests For Property Tax Reductions In Sacramento County

Written By: Jack - Nov• 01•11

You may have missed this post last month, so I am publishing it again. 

Its November now and you should have recently received your property tax bill.  Do you believe that your house has dropped in value and is worth less than what shows on the tax bill?  If so, it is time to request a reduction in your property taxes.  The Sacramento County Tax Assessor accepts  requests until November 30th 2011.

Proposition 8, which passed in 1978, amended Proposition 13 to recognize declines in value for property tax purposes. As a result, the Assessor is required to annually update the assessed value either a property’s Proposition 13 base year value factored for inflation, or its market value as of January 1st, whichever is less.  The Proposition 8 decline in market value assessments are temporary reductions that recognize the fact that the market value has fallen below its current Prop 13 factored value.

After the property value has been decreased and the assessment adjusted by the tax assessor, that property’s value must be reviewed each year as of the January 1st lien date, to determine whether its market value is less than its Prop 13 factored value. Prop 8 values can change from year to year as the market fluctuates. When the market value of the Prop 8 property increases above its Prop 13 factored value, the Assessor will once again update the assessment to the property’s Prop 13 factored value. In no case may a value higher than a property’s Prop 13 factored value be enrolled.

So, what to you need to do?  You need to contact us at www.ElkGroveRealEstate.com and request comps for your home so that you can complete the Assessor’s form.  Click here for a copy of the form.

Remember these important tips:

1.  You will need comps from the time period of January 1st 2011 to March 31st 2011.

2.  You should start the appeal process (information is on the application) if you have not heard back from the Assessor within a week to 10 days after sending in your application.  Don’t wait until the end of the month to send it in.  Do it now.

The process can be fairly simple and there are companies out there who can do it for you buy why would you want to spend a hundred dollars or so to have someone fill out a simple form for you.  You are trying to save money here.

Just email us at Jack.Edwards@cbnorcal.comwith your address and contact info and we’ll pull the comps for you for you to complete the process on your own. 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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No Fee Bundling for HOA Disclosures

Written By: Jack - Oct• 14•11

Great news from the California Association of Realtors!!!

No Fee Bundling for HOA Disclosures:

Beginning January 1, 2012, another C.A.R.-sponsored bill requires a homeowner’s association (HOA) to, upon written request, give an estimate of the fee for providing a prospective buyer with the governing documents of the common interest development and other required HOA disclosures.  The fee must be reasonable based upon the HOA’s actual cost for procuring, preparing, reproducing, and delivering the HOA documents. 

If the fee is paid, the HOA cannot withhold the required HOA disclosures for any reason.  Moreover, the HOA cannot bundle the fee for providing required HOA disclosures with any other fees, fines, or assessments.  This law will prevent an HOA’s third-party document preparation company from bundling together both mandatory and non-mandatory HOA documents, and charging a higher fee for providing all the documents. 

The HOA is also prohibited from charging any additional fees for electronic delivery of HOA documents, which must be available to a requesting party if the HOA maintains the documents electronically.  Additionally, at a buyer’s request, the HOA must provide 12 months of approved minutes of the association’s board of directors meetings (excluding executive sessions). 

Delivery of the required HOA documents must be accompanied by a cover sheet itemizing the documents required by law and those provided.  In November 2011, we intend to release a revised C.A.R. standard form Homeowner Association Information Request that complies with this requirement. 
Assembly Bill 771. 

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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Reality Check — Five Ways The Market Is Trying To Tell You Now May Be The Time To Buy!

Written By: Jack - Oct• 11•11

FiveWaysMarket
Taking a look at the real estate market over the past several decades, a cycle is emerging. Usually there is a steady increase in prices, the prices then peak; that is then followed by a relatively sharp decline which the results in a flattening of the market. The last time the market hit a peak was in 2006. Since then, prices in many areas have declined with a surplus of homes for sale. If we take a page from the history books, it is likely that the next step is for the market to hit bottom. At some point, the market will begin the steady climb we have seen so many times before; but the question is when will that happen? Is it happening now?

You may be surprised to know that some economists believe that the market actually gives us subtle signals as to what it may do and where it may be going. We just need to look a little more closely at the ways in which the market is communicating those trends.

The following five factors may indicate that the market may be approaching its final descent. For sellers, that could mean that your patience may soon pay off. For buyers – this may be your best time to buy.

Fewer new homes are being built – In a September 15, 2011 white paper for the global investment management firm, GMO, titled “Between Errors of Optimism and Pessimism – Observations on the Real Estate Cycle in the United States and China,” financial commentator and consultant Edward Chancellor said that “at the bottom of the cycle, new construction comes to a virtual standstill”, which, according to federal statistics is now happening.

When fewer existing homes are selling, most home developers slow down or cease building new homes. To achieve a balance between supply and demand takes time before the market can turn around – which seems to be happening. In its September 20th report on new residential construction, the U.S. Census Bureau and Department of Housing and Urban Development reported privately-owned housing starts hit a three month low in August and were down 5% from the month before, down 5.8% from August 2010, and more than 25% from September 2006 when new housing construction may have hit its peak. At the same time, The National Association of REALTORS reported existing home sales hit a five-month high in August and rose 7.7% from July 2011 and 18.6% from August 2010. That may be a sign of demand catching up with supply.

A growing demand for housing – It’s a simple fact of life – people need somewhere to live. Buyers may be wary of the process right now, but there is an entire section of the population who will undoubtedly consider buying in the near future. In an Inman News article released October 4, 2011 entitled “5 Signs a Real Estate Recovery is Near,” David Stevens, President and CEO of the Mortgage Bankers Association, reminds us that Generation Y (people born between 1977 and 1994) is estimated to include approximately 80 million people, or 25 percent of the U.S. population and those consumers “are now entering their prime time for starting their careers, their families, and for buying a home.”

Keep in mind that the U.S. Census Bureau predicts the country’s population to reach 423 million by 2050. That’s an increase of 112 million people in just 40 years. Those people will need housing and there will be an inevitable demand for homes to purchase. It stands to reason that this population growth will lead to fewer homes available for sale and prices will rise.

Rents are rising – Because more people are choosing to rent instead of buy in the present market, the cost of renting is rising. An article in USA Today titled “Rising rents make housing less affordable,” Zillow economist Stan Humphries noted that rents are expected to rise about 4% this year and that increase will continue in 2012. He attributes the price increases to the strong demand created by homeowners who have lost their homes to foreclosure.

High rental prices can be a good thing for the health of the over-all real estate market. The closer the average cost of renting comes to the average cost of owning, the more attractive it is to buy. In his GMO paper, Chancellor said; “Whilst people remain cautious of homeownership, the first effect of rising demographic demand is felt in the rental markets as rents start to rise. In time, rising rents push up the prices of existing homes and spur new construction.”

Homes may be more affordable – Let’s face it, we’re seeing prices that we may never see again. The National Association of Realtors’ most recent Home Affordability Index finds the national median priced existing single-family home was $168,400 in August 2011, and the average interest rate was 4.69%. That’s compared to a median of $221,900 and a 6.58% average interest rate in 2006. Low housing prices are a key in sparking renewed interest in owning real estate and can be the launching pad for a recovery.

It can’t get much worse – Pessimism appears to be at an all-time high, and it seems just about the time experts believe things couldn’t get any worse – they start getting better.

In his GMO paper, Chancellor says “In the good times, a house is seen as a highly levered asset that only goes up. In the downturn, the same property is viewed as illiquid, expensive to maintain, and heavily taxed.” Maybe we should start thinking of bad news as good news – a sign that a turnaround may be right around the corner and that now may truly be the best time to buy.

So, as these signs point to the market approaching its trough, what does that mean for you? The prices you’re seeing now may be the lowest for many years to come. You may not want to make the mistake of waiting until we’re in another boom to make your move. If you’re thinking about buying or selling and would like to explore your options, please give me a call. I’d be happy to help.

Start building your memories,
as you turn your house into a home. 

As you might guess, this document is a compilation of information from our own efforts as REALTORS, as well as input from other REALTORS in our Coldwell Banker office.  I hope it has been of value to you.  Don’t hesitate to email us with any suggestions that will make this document better for you and your fellow home owners!
Be sure to follow us on Facebook at  www.Facebook.com/ElkGroveRealEstate.  For information about properties available for sale and for more information for buyers and sellers, please visit our website at www.ElkGroveRealEstate.com and don’t hesitate to give us a call or drop us an email with your questions.

Make sure to click the Comment box below and share this article with your friends as well.

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