Maybe be moving to Sac
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Originally Posted by RussB
:rotfl:
and folsom.
i see a lot of cheap houses for sale in say 3 to 5 years in those areas.
and folsom.
i see a lot of cheap houses for sale in say 3 to 5 years in those areas.
only if a levee breaks, existing home prices are already on the rise again here
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Originally Posted by irrational x
only if a levee breaks, existing home prices are already on the rise again here
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Originally Posted by Mr. Xevious
I guess natomas is the exception as everywhere else is in a steady decline
when a house is overpriced and sells anyway it only encourages prices to get even higher which is what happened. properties were being appraised based on demand not on their real value which is why there was such a sharp drop. in the first 9 months after i bought my house my neighbor (a real estate agent) said our values had gone up almost 60g. now he says its basically what we paid for them after the market correction.
this was more of a hickup in the market not even a trough in the cycle. we are going to see more rise before we see another housing recession like we did in the early 90s. as long as interest rates dont spike up sharply and inflation isnt going nuts people are freaking out over nothing.
as long as i dont lose more money on a house than it would have cost me to rent it then it was benifical for me to buy it. people just arent seeing the returns they got used to and now they are buthurt.
btw nerd, i called and left a message for you
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Originally Posted by pbchief2
Is this actual sales or just sale prices?
the ammount of houses for sale is high because people want to try to get out before some kind of a crash but there isnt enough buyers because now people can be picky. it was a sellers market before and now its a buyers market.
Originally Posted by irrational x
theres a drop in the number of sales because people arent willing to come down in price. houses that are priced correctly sell in a normal amount of time (under 3 months) but my neighbors accross the street have had their house on the market for almost a year because they are asking way to much.
the ammount of houses for sale is high because people want to try to get out before some kind of a crash but there isnt enough buyers because now people can be picky. it was a sellers market before and now its a buyers market.
the ammount of houses for sale is high because people want to try to get out before some kind of a crash but there isnt enough buyers because now people can be picky. it was a sellers market before and now its a buyers market.
Yup, houses priced right move fast right now. So far natomas stats are something like this. 2006 May-September median prices under $400K=371k 400k-650k=486K
September-January under $400k=362k 400k-650k=475k
January-current under $400k=362k
400k-650k=459kHopefully prices steady out a little more. long term investors are back in buying mode right now, especially with the amount short sales and foreclosures being so high.
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Originally Posted by Salty
Fixed. I know that's what you were saying.
Unfortunately a lot of homeowners abuse their neg am options, especially with pick-a-payment loans. Over a quarter of Ca homes are currently in foreclosure. Sickening.
Neg am loans can be a double edged sword if your financial situation hasn't changed.
If your property value increases and you want to get out of the neg am loan with a similar income than before, you'll still have to qualify under a regular or interest only rate. You're stuck.
Likewise if your property value decreases you most likely owe over 100% of what the property originally appraised for. You're stuck again.
Seems like the only way out at this point is if you're getting paid enough to take the hit and start over.
Seems the best option these days aside from just being able to qualify off income is to claim self-employment and go for stated income. This will only work if you have good credit. Your rate will be slightly higher but it could be stable. The only thing you have to worry about then is being sure you can make ends meet somehow.
Unfortunately a lot of homeowners abuse their neg am options, especially with pick-a-payment loans. Over a quarter of Ca homes are currently in foreclosure. Sickening.
Neg am loans can be a double edged sword if your financial situation hasn't changed.
If your property value increases and you want to get out of the neg am loan with a similar income than before, you'll still have to qualify under a regular or interest only rate. You're stuck.
Likewise if your property value decreases you most likely owe over 100% of what the property originally appraised for. You're stuck again.
Seems like the only way out at this point is if you're getting paid enough to take the hit and start over.
Seems the best option these days aside from just being able to qualify off income is to claim self-employment and go for stated income. This will only work if you have good credit. Your rate will be slightly higher but it could be stable. The only thing you have to worry about then is being sure you can make ends meet somehow.
he better start investing in lube now before prices go up.
Originally Posted by RussB
i have a co-worker with 3 houses, 2 in elk grove, 1 in vallejo. all 3 are neg am loans, and the two elk grove houses are being rented at less than the neg am payment.
he better start investing in lube now before prices go up.
he better start investing in lube now before prices go up.
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Originally Posted by pbchief2
Hopefully prices steady out a little more. long term investors are back in buying mode right now, especially with the amount short sales and foreclosures being so high.
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Originally Posted by RussB
i have a co-worker with 3 houses, 2 in elk grove, 1 in vallejo. all 3 are neg am loans, and the two elk grove houses are being rented at less than the neg am payment.
he better start investing in lube now before prices go up.
he better start investing in lube now before prices go up.
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excellent blog on the condition of the Sacramento area housing market
http://sacramentolanding.blogspot.com/
http://sacramentolanding.blogspot.com/
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in case you do not want to click 
Monday, February 26, 2007
'A Market Way Worse Than Anyone Expects'
From the Sacramento Business Journal:
Residential mortgage lenders are tightening underwriting criteria for people with blemished credit as thousands of homeowners are defaulting on their mortgages. And homeowners who will soon have unmanageable monthly mortgage payments might not find a lender willing to handle their refinancing.
The problems surfaced in the fall with a sharp rise in foreclosures after years of almost none. Lenders in the four-county area took possession of 814 homes in fourth-quarter 2006, a 1,300 percent increase from the same three-month period in 2005.
...
Now, the easy lenders have disappeared from the market in some sudden and spectacular bankruptcies as borrowers face the end of their teaser rate period...Several large national lenders to people with blemished credit were forced to seek bankruptcy protection in the past month, including ResMAE of Irvine and Mortgage Lenders Network USA of Connecticut. Some of the big players, such as HSBC Holdings PLC and New Century Financial Inc., recently have warned of major problems.
...
"It is not unusual for someone who makes $4,500 a month to have a mortgage payment now of $1,700, and when that loan adjusts, it will go to $3,200 a month," said Scott Thompson, owner of Short Sale Resolution Services in Carmichael. Thompson for 15 years was co-owner of Thompson & Brown, a real estate brokerage company.
"A year ago, I was uncomfortable with the market, so I started my own business for short sales. I think we are about to see a market way worse than anyone expects. This is going to be bad," he said. "In past declines, borrowers were $200 or $300 a month away from making ends meet. Now, when these option ARM loans adjust, people are not even close to making ends meet."
...
"It doesn't matter if the fault is with the people who sold these loans or if it was with the borrowers who exaggerated their income to get the loan," Thompson said. "Everyone was caught up in the real estate hype. And that is now coming home to roost."
...
Faced with a new, higher mortgage payment, people are looking for new loans. Many are not finding them. "In some markets, over 90 percent of the people who come to us for help are in properties they shouldn't be in," said Ed Shanks, executive vice president of national retail lending for U.S. Bank in Minneapolis. "That, combined with the decreasing appraisal value of their home, is turning into a perfect storm."
Wells Fargo Bank this month tightened its underwriting standards. It reduced by 5 percent the maximum loan-to-value ratio it will lend to subprime borrowers in declining markets. A declining market is one in which house values are either going down or staying flat, said Wells Fargo spokeswoman Julie Campbell. All four counties in Greater Sacramento are included under that definition.
"Clearly, across the board, we are seeing tightening in underwriting," [Jeff] Tarbell, [owner of ATM Mortgage in Sacramento] said.
The loose underwriting tended to be done by mortgage companies, but the heat is being put on all financial providers. Banks are being told by regulators to underwrite even their nontraditional loans -- such as option adjustable rate mortgages (ARMs) -- as if they were traditional, fully amortizing loans. The criteria will take many lenders out of the subprime loan market and could even remove some of the investment money from the secondary market that funds such loans.
"We are just beginning to see the tip of the iceberg on this," CoreLogic's [Anthony] Romano said.
From the Sacramento Bee:
The economy is bearing up well, in Sacramento and across the country, despite the weakened housing market, a Federal Reserve economist said Friday.
...
Sacramento, even though it's faced some of the worst of the nation's housing slump, continues to generate decent job growth, she [Janet Yellen] said.
The "overall health of the local economy," including renewed hiring by state government, should help Sacramento avoid a repeat of the significant recession that engulfed the area in the early 1990s, Yellen said during a speech at California State University, Sacramento.
"While the pace of employment growth slowed last year in the Sacramento area, as it did in the rest of the state, the state government's fiscal situation has improved over the past few years, and that's helped create new jobs locally and keep the area economy on a stable expansion path," Yellen said.
She added that "there are signs of stabilization" in the Sacramento housing market. DataQuick Information Systems, which tracks the housing industry, reported recently that while sales activity in Sacramento is still in a slump, the decline in prices has slowed.
From the Sacramento Business Journal:
Less than one in 10 families, or 9.2 percent, earning the annual median income of $65,400 could afford a home in the Sacramento region during the past quarter, but that was better than the 7.9 percent rate in third-quarter 2006, according to a California Building Industry Association report released Thursday. Despite the increase, the affordability rate, which also includes the area's median-price of $370,000 for the just-completed quarter, makes the region the 18th-toughest market for home shoppers.
Originally Posted by Sacramento Business journal
Monday, February 26, 2007
'A Market Way Worse Than Anyone Expects'
From the Sacramento Business Journal:
Residential mortgage lenders are tightening underwriting criteria for people with blemished credit as thousands of homeowners are defaulting on their mortgages. And homeowners who will soon have unmanageable monthly mortgage payments might not find a lender willing to handle their refinancing.
The problems surfaced in the fall with a sharp rise in foreclosures after years of almost none. Lenders in the four-county area took possession of 814 homes in fourth-quarter 2006, a 1,300 percent increase from the same three-month period in 2005.
...
Now, the easy lenders have disappeared from the market in some sudden and spectacular bankruptcies as borrowers face the end of their teaser rate period...Several large national lenders to people with blemished credit were forced to seek bankruptcy protection in the past month, including ResMAE of Irvine and Mortgage Lenders Network USA of Connecticut. Some of the big players, such as HSBC Holdings PLC and New Century Financial Inc., recently have warned of major problems.
...
"It is not unusual for someone who makes $4,500 a month to have a mortgage payment now of $1,700, and when that loan adjusts, it will go to $3,200 a month," said Scott Thompson, owner of Short Sale Resolution Services in Carmichael. Thompson for 15 years was co-owner of Thompson & Brown, a real estate brokerage company.
"A year ago, I was uncomfortable with the market, so I started my own business for short sales. I think we are about to see a market way worse than anyone expects. This is going to be bad," he said. "In past declines, borrowers were $200 or $300 a month away from making ends meet. Now, when these option ARM loans adjust, people are not even close to making ends meet."
...
"It doesn't matter if the fault is with the people who sold these loans or if it was with the borrowers who exaggerated their income to get the loan," Thompson said. "Everyone was caught up in the real estate hype. And that is now coming home to roost."
...
Faced with a new, higher mortgage payment, people are looking for new loans. Many are not finding them. "In some markets, over 90 percent of the people who come to us for help are in properties they shouldn't be in," said Ed Shanks, executive vice president of national retail lending for U.S. Bank in Minneapolis. "That, combined with the decreasing appraisal value of their home, is turning into a perfect storm."
Wells Fargo Bank this month tightened its underwriting standards. It reduced by 5 percent the maximum loan-to-value ratio it will lend to subprime borrowers in declining markets. A declining market is one in which house values are either going down or staying flat, said Wells Fargo spokeswoman Julie Campbell. All four counties in Greater Sacramento are included under that definition.
"Clearly, across the board, we are seeing tightening in underwriting," [Jeff] Tarbell, [owner of ATM Mortgage in Sacramento] said.
The loose underwriting tended to be done by mortgage companies, but the heat is being put on all financial providers. Banks are being told by regulators to underwrite even their nontraditional loans -- such as option adjustable rate mortgages (ARMs) -- as if they were traditional, fully amortizing loans. The criteria will take many lenders out of the subprime loan market and could even remove some of the investment money from the secondary market that funds such loans.
"We are just beginning to see the tip of the iceberg on this," CoreLogic's [Anthony] Romano said.
From the Sacramento Bee:
The economy is bearing up well, in Sacramento and across the country, despite the weakened housing market, a Federal Reserve economist said Friday.
...
Sacramento, even though it's faced some of the worst of the nation's housing slump, continues to generate decent job growth, she [Janet Yellen] said.
The "overall health of the local economy," including renewed hiring by state government, should help Sacramento avoid a repeat of the significant recession that engulfed the area in the early 1990s, Yellen said during a speech at California State University, Sacramento.
"While the pace of employment growth slowed last year in the Sacramento area, as it did in the rest of the state, the state government's fiscal situation has improved over the past few years, and that's helped create new jobs locally and keep the area economy on a stable expansion path," Yellen said.
She added that "there are signs of stabilization" in the Sacramento housing market. DataQuick Information Systems, which tracks the housing industry, reported recently that while sales activity in Sacramento is still in a slump, the decline in prices has slowed.
From the Sacramento Business Journal:
Less than one in 10 families, or 9.2 percent, earning the annual median income of $65,400 could afford a home in the Sacramento region during the past quarter, but that was better than the 7.9 percent rate in third-quarter 2006, according to a California Building Industry Association report released Thursday. Despite the increase, the affordability rate, which also includes the area's median-price of $370,000 for the just-completed quarter, makes the region the 18th-toughest market for home shoppers.