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.

The Bottom of the Market

Industry experts are starting to speculate whether we are at the bottom of the housing market. These same experts also say that we won't know for sure when the bottom of the market is until 6 months after it bottoms out. However, I'm sensing we are getting close. And by close I'm guessing next spring. For the first week in well over a year I have noticed that the "Notice of Defaults" for Sacramento County has dropped from the 500-600 range to the 200-300 range, and that's good news.

We still have issues with people qualifying for loans, but word is getting out that to get a house, you need to save money and fix your credit. Those buyers who are serious and have been saving money, will soon be poised to get a great deal on a home. Call me :0)!

It's a Seller's Market?

The media is still calling this a Buyer's market, and in some cases it is. However, if you're trying to buy a bank owned property, it's a seller's market. Banks are pricing their listings at rock bottom, which is bringing in multiple offers. A client called and wanted to look at a home that was just listed for an incredible price in Elk Grove, I checked with the agent and it had 17 offers. SEVENTEEN! Sellers of "normal sales" of homes are begging for just one offer, but those homes are overpriced.

So if you're a buyer and making offers on bank owned homes, don't lowball...the bank won't even acknowledge you. Also, be patient, your home is out there and when it's supposed to be yours, that's the house you'll get.