Mortgage rates in 2010 were the lowest in six decades, but a recent and sustained increase may indicate that consumers can expect to pay more in the new year to buy or refinance a home.
One out of 4 foreclosers go to investors
In Sacramento County one in four foreclosure sales went to investors during the 2009 year.
Prices have come down enough so that rental properties purchased with cash can yield a 5 to 9 percent return, much better than the stock market. This return does not include home appreciation.
Price point homes go pending quickly, usually in 5 to 10 days.
Nine out of ten foreclosures priced under 200 thousand sell for over asking price with multiple offers.
Multiple offers are the norm with banks instructing buyers to bring their highest and best- no time for countering back and forth.
I have been up against 20 other cash offers on well priced foreclosures.
One HUD foreclosure priced at 53 thousand accepted an offer for 136 thousand. This is on 10th ave in Tahoe park! No joke, see this listing here……….. http://prospector.metrolist.net/scripts/mgrqispi.dll?APPNAME=Metrolist&PRGNAME=MLSLogin&ARGUMENT=Ok7KmNi58nbInAxeCH8GTewqhdlV8u%2BS18SoY4VDiZQ%3D&KeyRid=1&Include_Search_Criteria=
First time buyers that need financing for their purchase are forced to offer more than the cash buyers for their offer to be accepted.
Real Estate investors swoop up sweet deals
Real estate news for the Sacramento area
- Residential- single family homes priced under one hundred thousands dollars are the investor’s delight in the Sacramento area.
- Multiple, cash offers from real estate investors are the norm in Sacramento-especially with homes priced for less than one hundred thousand dollars.
- Most foreclosure properties under $100,000 get multiple offers within 2 days after being listed on the Sacramento MLS.
- Most properties asking $100,000 or less sell for over the asking price.
- Properties listed under $150,000 and less sell quickly, usually less than 34 days after being listed.
California Unsold Inventory Index declines to 3.8 months for December
The unsold inventory index indicates how many months it will take to deplete the supply of homes at the current sales rate. The current rate of 3.8 months is the lowest it has been since 2005. In December of 2008 the California Unsold Index, or UII was 5.8 months. Real estate investors acquiring foreclosures within three or four days of being listed can explain the low Unsold Inventory Index in California. Homes as low as forty or fifty thousand are selling in Sacramento to cash buyers. With so many real estate investors presenting cash offers banks are not willing to look at offers that require financing.
