REO SALES DATA FOR EL DORADO HILLS AND FOLSOM CA-AUG 2008

This post continues my year-long plus study of REO (Bank Owned Home) sales in El Dorado Hills and Folsom, CA.  This post covers August 2008 sales.

In August the number of REO properties sold in the selected area declined considerably from 72 in July to 25 in August.  This represents more than the normal seasonal end-of-summer activity decline.

The average Days-On-Market number increased considerably from 72 in July to 105 in August.  A full 40% for the homes sold in August were on the market for over 100 days.  Another significant statistic remains applicable.  A full 28% of the REO properties sold were on the market for less than fourteen days or less.  We seem to have heavy representation from both ends of the spectrum with respect to the length of time the sold homes were on the market.  However, the market has cleared six homes off the active lost that were on the market over 200 days, one for 411 days. 

Anohter interesting statistic is the drop in cost per square foot for both REO properties  and the cost per square foot of all homes in the area.  This is the first time this number for REO properties has dropped below $ 180 and the first time the cost for all homes has dropped below $ 200.  WHAT AN EXCELLENT OPPORTUNITY FOR BUYERS RIGHT NOW!

The trend that REO properties are consistently sell for about 10% less than the general population of homes continues.  However, in August REO properties represent only 21.7% of all homes sold.  This has been 25% or higher over the past year.

The specific data follows. 

 Folsom/El Dorado Hills Sold REO Properties   August 2008       
                        Original           Listing Price at                         SP as %             SP as %
         DOM       Listing Price     Time of Offer     Sold Price      Original Price    Final Price
1 Fol     87       $383,900.00    $336,900.00     $310,300.00      80.83%           92.10%
2 Fol     37       $338,000.00    $327,900.00     $315,500.00      93.34%           96.22%
3 Fol     33       $324,900.00    $324,900.00     $335,000.00    103.11%         103.11%
5 Fol     10       $339,000.00    $339,000.00     $344,150.00    101.52%         101.52%
6 EDH  202      $315,000.00    $315,000.00     $345,000.00    109.52%         109.52%
7 EDH  183      $363,000.00    $363,000.00     $348,000.00      95.87%           95.87%
8 EDH  205      $483,000.00    $369,900.00     $404,000.00      83.64%         109.22%
9 EDH      6      $391,900.00    $391,900.00     $404,260.00     103.15%        103.15%
10 EDH  18      $399,900.00    $399,900.00     $420,000.00     105.03%        105.03%
11 EDH    1      $391,875.00    $391,875.00    $425,000.00      108.45%        108.45%
12 EDH    5      $394,900.00    $430,900.00    $430,000.00      108.89%          99.79%
13 EDH 177     $579,000.00    $449,900.00    $449,900.00        77.70%        100.00%
14 EDH     6     $429,000.00    $429,000.00    $450,000.00      104.90%        104.90%
15 EDH 205     $464,900.00    $464,900.00    $470,000.00      101.10%        101.10%
16 EDH   99     $514,900.00    $489,900.00    $478,000.00        92.83%          97.57%
17 Fol       6     $475,000.00    $475,000.00    $488,000.00      102.74%        102.74%
18 Fol     23     $529,500.00    $529,500.00    $490,000.00        92.54%          92.54%
19 EDH     1     $499,900.00    $499,900.00    $510,000.00      102.02%        102.02%
20 EDH   51     $640,000.00    $599,000.00    $551,000.00       86.09%           91.99%
21 EDH   15     $585,900.00    $585,900.00    $595,000.00      101.55%        101.55%
22 Fol   411     $608,000.00    $608,000.00    $615,000.00      101.15%        101.15%
23 EDH 180     $679,900.00    $659,900.00    $635,000.00        93.40%         96.23%
24 Fol   143     $949,900.00    $774,900.00    $681,000.00        71.69%         87.88%
25 EDH 215     $899,900.00    $812,159.00    $780,000.00        86.68%         96.04%
AVE.      105                                                                                 96.0%           99.9%
       
REO Sold Cost Per Square Foot:        $177.00  90.8%  
Total Sold Cost Per Square Foot:      $195.00    
       
Total Number of REO Homes Sold in November for area:      45     25 21.7% 
Total Number of Homes Sold:                                             115

A weekend On the Monterey Peninsula

My wife and I recently spent a long weekend on the Monterey Peninsula to celibrate our 35th.  We had a great time.  I will try and insert some photos that I took during this trip.

Point Lobos at High Tide

 

Big Sur

HIghway 101

Point Lobos 2

Big Sur 2

A very beautiful part of our State and Country.  We enjoyed ourselves and recommend a visit.

Take Over of Freddie Mac & Fannie Mae–What’s In It For Me?

Treasury Department Takes Over Freddie Mac and Fannie Mae!  What does that mean for me?

                                   

Treasury Secretary Henry Paulson announced the takeover of Freddie Mac and Fannie Mae on Sunday, September 7, 2008.  The two mortgage giants were the primary purchasers of mortgages on the secondary market and the major influencers of loan guidelines and interest rates across the country. 

 

Pressure from foreign and domestic investors helped prompt the government’s move.  The Federal Housing Finance Agency, or FHFA, will have management control of these organizations.  They had been operating under that agencies regulation.   

 

This is a clear indication that the housing crisis in this country has had a major impact on an international scale.  Buyers, sellers and borrowers are not the only ones impacted. 

 

A recent Wall Street Journal article indicated that analysts expect that the average 30-year mortgage rate could come down a quarter to a half of a percentage point in the coming weeks.

 

Pundits tell us to expect a tightening of loan guidelines in the near future.  Qualified borrowers will be able to enjoy a lower cost of funds.  However, the pool of qualified borrowers is likely to be smaller.

 

100% financing is almost a thing of the past and second loans are very difficult to obtain.  However, the market is nothing if not resilient.  Investors will find a way.  The only question is how long it will take them.  

 

This sudden drop in interest rates coupled with the significant drop in housing prices makes this an excellent time to buy.  Those who wait for better market conditions are likely to miss out on the opportunities extant.

 

If you, a friend or family member have been thinking of purchasing a home or other property, now is the time.  Let’s start the search