“Yes, the housing market has rarely looked better.”

That was the headline in a September 2 Wall Street Journal article. Click here to access it: http://online.wsj.com/article/SB10001424052970204047504574386802310702622.html. This was a really interesting piece which looked at numbers from Standard & Poor’s and NAR. Following is an excerpt from the article:

“Last week, Standard & Poor's reported that its S&P/Case-Shiller U.S. National Home Price index of real-estate values increased this past quarter over the first quarter of 2009, the first quarter-on-quarter increase in three years. Its index of 20 major cities also rose for the three months ended June 30 over the three months ended May 31, with only hard-hit Detroit and Las Vegas experiencing declines. The week before that, the National Association of Realtors reported that sales volume of existing homes was up 7.2% in July from June.

In short, the data suggest that real-estate prices hit a bottom some time during the second quarter, and have now begun to rise. There's no way to be certain that this marks the end of the long, painful correction that followed the real-estate bubble, but clearly prices are no longer in free-fall. That means if you've been sitting on the fence, it's time to act.

Ordinarily I'd never try to time the real-estate market, but I can understand why buyers have been cautious. Few want to buy in down markets, just as stock buyers avoid bear markets. And for most people, of course, buying a house is a much bigger decision than buying a stock. But with real-estate prices nationally now down about 30% from their 2006 peak and showing signs of turning up, the prices aren't likely to go much lower. Every real-estate market is local, and so there may be a few exceptions. Overall, though, I can't imagine a better time to buy than now.”
This of course is what I’ve been saying for some time and it is nice to see it in black and white in a reputable publication like The Wall Street Journal. The fact is, while we may have a long road ahead, we probably have hit bottom and if you were considering buying you probably should consider acting now before it is too late.

And with that said, let’s take a look at this week in real estate:

• Auburn—The Auburn area was impacted greatly over the past week with the 49er fire. We have spent many hours receiving and delivering donations to the various drop off locations. The Agents are educating their clients on the importance of making sure the contractors they hire are properly licensed and have done a background check for any issues they might have had in the past or complaints from past clients.
• Dixon/Davis— Not much change from prior weeks. Need inventory, we have lots of buyers and no houses to sell. We have 20 active homes in Dixon! New listings sell in one day, multiple offers.
• El Dorado Hills— Very stable inventory at about 355 active listing. One third of these are short sales and only 20 are REOs. Our sales the last week range from $114,000 to $1,200,000 and closings range from $40,00 to $1,000,000. All over the place.
• Elk Grove—Prices have bottomed…it appears. Inventory continues to be extremely low.
• Folsom— The Folsom market is really heating up again! If a property is priced right, expect multiple offers. Attitude in the office is very good and for the Agents that are working this is a great time to be in real estate!
• Placerville— We’re having a busy month so far with many walk ins and floor calls. Our inventory is still stable, 177 active listings with 38 short sales and 17 REOs. Business has been brisk.
• Rocklin/Lincoln—Agents held open houses on Sat., Sun., and Monday and had a good turnout at most. The most open house had 12 people on one day but the Agents are now working with several leads from these and one person was looking to list their home and the Agent will meet them tonight. The general consensus is that there are qualified buyers, many with cash, but not enough inventory.
• Roseville/Granite Bay—Lots of short sale inventory.
• Sacramento Sierra Oaks—The inventory is very low. A LOT of “frustration” from the Agents in getting appraisals and loans. The whole process is getting bogged down and taking a lot longer.
• Tahoe/Truckee— Active Listings: The listing inventory for the Tahoe-Truckee market went up slightly for the week to 2,315 active listings - 1,625 residential properties and 690 lots and land listed for sale. REOs and Short Sales Active Listings: Of the active listings, there are 152 properties listed as short sales, (6.6%) and 63 properties listed as REO sales, (2.7%). Overall, the Tahoe-Truckee market has less than 10% of its active inventory listed as a short sale or REO. Months of Inventory: Based on the current inventory and sales for the previous 30-day period, the market has roughly 18-months of inventory available. Lot’s to choose from if you are a buyer! Last Week’s Sales: For the week of August 31st to September 6th there were 40 properties which closed in the market which is double the closes in any one week this year. Of the properties sold last week, eleven (11) of those sold at a price above $750,000. It was a great week for sales. Pending Sales: Pending sales remained constant at 215 properties from the previous week. This is yet another indication of buyer interest in Tahoe-Truckee real estate and the increased affordability of our homes. Market Activity Summary: Labor Day weekend was a busy weekend in town with visitors to the area enjoying the last long weekend of the summer in Tahoe. Coldwell Banker conducted 18 open houses with decent activity at the homes. The one constant remark we are hearing from our Sales Associates is that buyer activity is as brisk as it has been in the last 18-24 months and that many are thinking this is the time to buy. Coldwell Banker currently has over 55 homes in escrow scheduled to close in the next 30-60 days.

This week I’ll leave you all with the reminder that the $8,000 federal tax credit for first-time homebuyers is scheduled to expire on December 1. However, in order to qualify, the transaction must be closed on or before November 30, essentially leaving first-time buyers with less than three months to complete the process.

While the urgency of trying to find and close on a home before the deadline may seem stressful, it doesn't have to be. Just contact your Realtor today and they can walk you through the process or visit us online at CaliforniaMoves.com.

Until next week,
Bob Bronswick
Coldwell Banker Residential Brokerage Sacramento/Tahoe