Where's the "wave" of Foreclosures

The "experts" have been predicting for some time now that there is a huge wave of foreclosed homes yet to hit the market. Each month, there is still no wave. It looks as if the banks are trickling in their properties slowly, which is keeping this a seller's market and buyers scrambling for homes.

Despite this trickle, I do know there are a lot foreclosed homes out there still needing to be sold. Two of my own short sale listings have crashed and burned and are now both owned by Bank of America. I Love B of A, the best real estate brokerage in the country. I'm really looking forward to the day when all banks do is take our money and lend it. Let's get them out of the business of real estate.

Finally Got an REO account

We have joined the ranks of REO listing agents. I guess now we have to stop bashing them...well maybe not all of them. The best part about this is that we do NOT have to evict anyone. They are former apartments converted to condos and the people who are currently renting the foreclosed units will continue renting through their leases.

These condos are more proof that this whole foreclosure thing is not over. Our listing includes 39 units, which are being phased in 12 units at a time. We may be bouncing at the bottom of the market, but I think we'll be here until 2012. It will coincide with the Mayans "end of the world" prediction. Though hopefully, it will instead be the end of this crazy market.

Wanna buy a condo?

Top Ten REO Agents in Sac Region

Today's front page of the Bee lists the Top Ten REO Agents in the Sacramento Region. With the exception of a couple of these agents, I HATE, I repeat HATE showing these agents' listings. It is near impossible to get someone on their "Team" to call you back. It's hard to even find out if your offer was ever received, until 5 days later when you get an email that says, "multiple offers, highest and best requested." At which point you give your highest and best, only to be beat out by the other 42 cash offers. Poor first-time buyers with FHA loans are delegated to short sales.

Okay, now I'm being a bit sarcastic and melodramatic, but all you non-REO agents representing buyers know exactly what I'm talking about. And all buyers, have heard all this repeatedly with each offer you put in by your Realtor.

Someday, the banks will no longer control every aspect of our market except to make loans. That will be a sweet day.

New Homes are Flying Off the Shelf

Yesterday I went new home shopping with clients. The atmosphere at the new homes has changed 100% since this time last year. A year ago, agents in the offices were just happy to see a human. Now, thanks to the new home buyer credit of $10K and the potential $8K for first time buyers, all standing inventory in Elk Grove is sold and the agents are getting their high self-esteem attitudes back -- good for them, it's about time.

Some new home builder prices are still ridiculously high and they shall remain unnamed; however, many others are offering incredible deals with prices competitive to resale homes in the same neighborhood -- mainly foreclosed homes of those who bought in 2005 when lots were first sold.

Shoppers interested in the new home tax credit better hurry. It's expected to run out by mid-July. Nearly 75% of the money allocated for the credit has already been applied for in just 13 weeks of it being available. However, with very little standing inventory left and it taking approximately 5-6 months to build a home, buyers may have already missed the boat on the $10K tax credit.

Escrows are Taking Forever

The days of the 30-day escrow are disappearing in my world. I just had an escrow go 62 days, the following a VA loan, went 52 days, and a current escrow is no where near closing at 30 days, which is this Friday. Loan docs anyone?

I used to take the 30-day escrow for granted. Now the rules for loans are changing on a daily basis making it very hard for even the most qualified buyers to close a loan in a timely manner. To top all this off, the very companies that make these loan are the same ones who have no tolerance for an escrow that goes over 30 days. Foreclosed homes owned by the banks start charging $100+ per day for an escrow going over its closing date. Short sale approvals will dock the Realtors' total commission a point if it goes over escrow. Yet, try asking these same banks to hurry up an escrow. Surely, you jest!

You think there would be a little empathy here. But no, banks are ruthless entities that don't care about Joe Home Buyer. You're just a FICO score to them. I'm pretty sure there's a special little Karmic Hell for the mean* ones when this is over.

Banks as a whole are mean; however, many loan officers are very, very nice and are not included in any of my lashing.

Give Homes as Gifts

Seriously, the median home price in Sacramento County is now $165,000. That's back to 2001 levels, as it should be. Home prices at the peak and even a couple years prior started to outpace our incomes. Then to make up for that discrepancy in income, lenders started giving loans to anyone with a pulse, which is how we got in the mess we are in.

But now, our county's affordability is near 60% from a low of around 16%. Let's buy some homes and give them away as gifts. Of course, being a Realtor with a stated income, I don't qualify, but I bet a lot of you do.

After Christmas Real Estate Sale

I've only been in residential real estate for three years (I was in commercial for three years prior), but I've noticed each January it's like an after Christmas sale for real estate. There's this rush to buy homes and everyone is out shopping. I thought maybe I'd have a chance to get some buyers into contract who keep getting beat out by multiple offers over asking price on homes, but no.

We are still getting beat out. These same clients are now offering well over asking price. We'll see if that works. Fingers crossed.

Real Estate Predictors are no Nostradamus

While reading the Sacramento Bee's synopsis of real estate predictions over the past year, it was comical to see how positive everyone was. The Bee did an article showing each prediction and then what actually happened. Almost all of the predictors thought we would be out of this economic housing mess by early 2009 at the latest.

Well, we are no where near out of it. Let's see how this year's predictions go.

2008 was a Doozie in Real Estate

For some reason, I stopped writing in my blog back in July. I'm not sure why -- lazy, the crazy market revealing the same things, I don't know.

Anyway, I'm back with a recap of 2008. All year long, those in the real estate business, kept saying we had hit the bottom. I said it too. Now those in the know are saying mid-2009 will be the bottom. I don't buy that either. I think due to higher unemployment and mortgages that will continue to reset, we are looking closer to 2012 for this whole mess to be over and back to a stable market. It's not a bad market, but it's definitely a sad market for those going into foreclosure due to job loss, adjustable rate loans, relocation and other hardships.

Of the listing appointments I go on, the majority are for short sales. Homeowners who are upside down on their mortgage and unable to make their payment due to some hardship. The stress and anguish these sellers go through can be unbearable. Many of these sellers shed tears during the appointment. It's heartbreaking. No one wants to lose their home. It's a family's one safe place and when you lose that safe place, the bottom falls out of your world. I can only imagine how hard that must be.

I really want to see the end of the market, but not only because I'd like to make a better living, but because it's just so sad. This sadness trickles down just as our "boom market" trickled up.

Here's to a new beginning in 2009.