Memorial Day is Over…Soon-to-be-Summer Selling Season Off to a Good Start

With Memorial Day behind us and the busy summer selling season about to begin, some interesting trends are landing in our laps.

First, NAR this week announced that existing home sales rose in April with strong buyer activity, in, as expected, the lower price ranges. Nationally, existing home sales increased 2.9% to a seasonally adjusted annual rate of 4.68 million units in April from a downwardly revised pace of 4.55 million units in March, but were 3.5 percent below that 4.85 million-unit level in April 2008.

Most of the sales are taking place in lower price ranges but in a positive trend, we are seeing increased activity in the mid-price ranges. This is all a domino effect. A turnaround begins with the lower price range homes and once that sector of the market is stabilized, we begin to see changes in the mid and upper price ranges. The upper end, though we have seen increased activity, still is slow but we fully anticipate that this will change over time, too.

Many of you are asking me questions about the moratorium on foreclosures. In many markets we’ve had a foreclosure moratorium set forth by Fannie Mae and Freddie Mac as they wanted servicers to reduce interest rates, delay back payments and penalties, stretch the length of the loan or defer payments on part of the principal. The moratorium is likely going to be lifted soon and foreclosed properties are going to be released into the market starting (in many markets) in June and moving through the remainder of the year. In order for a recovery to be sustainable, we really need to clear through those distressed homes so we can begin to sustain a price recovery.

Here in California, this moratorium has really hindered sales. The demand for housing is outrageous—especially here in the Sacramento Tahoe region as buyers anxiously await the inventory to increase so they snatch up the listings. In some cases they are seeing 15, 20 offers on properties as they hit the market. The June release of the moratorium is expected to alleviate some of that demand.

A few local articles of interest this week that I wanted to be sure you saw:

http://www.sacbee.com/business/story/1889277.html
http://www.sacbee.com/business/story/1883546.html
http://www.dqnews.com/Charts/Monthly-Charts/Sac-Bee-Charts/ZIPSACB.aspx
http://sacramento.bizjournals.com/sacramento/stories/2009/05/25/daily28.html
http://sacramento.bizjournals.com/sacramento/stories/2009/05/25/daily30.html

Definitely worth the read and a great reminder of why we call this special place home.

Now, let’s take a look at this week in real estate:

• Auburn—Agents are working with many qualified buyers but the buyers under $250,000 are losing out to investors with cash and quick closes. The sales we had this week were in the $300,000-$425,000 price range, so this is a good week. We had 2 appraisals come in over sales price, one was $7,000 more and the other $15,000 more and one came in $5,000 under sales price.
• El Dorado Hills—I wish I had something amazing to report but our market remains pretty much the same. Inventory is up slightly (360) with only 17 REO properties and 105 Short Sale listings. Buyers are wary and appraisals are tough. We’ve had some successful price reductions during escrow based on low appraisals. Persistent negotiations throughout the transaction are paying off for buyers and sellers.
• Elk Grove Laguna—The current level of extremely low inventory may be changing soon as some of the REOs being held back should be changing soon. In the meantime, it is still a battle for Agents and their buyers. Too many buyers and not enough properties. That is and continues to be the story.
• Folsom—Crazy market, lots of buyers but hard to get then into a home under $300,000. Lots of competition for every listing. Out of 21 sales this week only five sales over $350,000 which is unusual for the Folsom Office. Listings could be better for this time of year.
• Placerville—The number of homes on the market is stable and some of the homes coming on the market are reflecting price reductions from the prior six to twelve months. Very few REOs and all have multiple offers on them. We’re doing a lot of BPOs for potential short sales so should see some of those coming on shortly. Good walk in and phone traffic.
• Rocklin-Lincoln—We have several new “regular” listings and a couple of the sales are on regular listings. Agents are working hours and writing many contracts that are not being accepted due to many cash buyers and multiple offers on the properties often listed below market. Many of the short sale listings coming on the market are listed at prices way below what the lender will require, but these brokerages are placing them in MLS so that they can get the calls and then they are letting the agent know that the lender will not probably go this low on the price.
• Roseville-Granite Bay—Listing inventory is decreasing, as is sales inventory. One multiple offer; 9 ratified offers; 11 homes held open with a range of traffic, but on the lower end compared to weeks’ previous. Previews property activity on two listings. June inventory? We’re waiting for you! The buyers are eager, but mortgage rates are starting to rise.
• Sacramento Fair Oaks—Listing inventory is has very low; therefore sales are too. Opens were hit and miss due to the holiday weekend. REO/Short Sale activity is very high the REO agents are selling what they have left in inventory back the activity is very high. The buyers are out there on a daily basis it is keeping my agent very busy showing property but losing out because of multiple offers and getting out bid.
• Sacramento Metro—The office is extremely busy with good inventory in core areas.
• Sacramento Sierra Oaks—The inventory is very low. It seems that in the price range of under $100,000 there are a ton of multiple offers.
• Tahoe-Truckee—Inventory Summary: The listing inventory for the Tahoe-Truckee market currently stands at 2,167 active listings in the market - 1,523 residential properties and 644 lots/land listed for sale. Of the active listings, there are 131 properties listed as short sales which increased slightly, (6.0%) and 59 properties listed as REO sales, (2.7%). Based on the current inventory and sales year to date the market has roughly 8-months of inventory available. Sold Summary: On a year to date basis there have been 273 properties sold in the market as compared to 372 for the same period in 2008 which is (26.6%) reduction in sales. The median sales price for the properties sold YTD in 2009 is $450,000 while the average sale price is $577,829. For the same period in 2008, the median sales price was $515,000 and the average sales price was $721,927 which is a (12.6%) and (20.0%) reduction in price respectively. For the week of May 18th to 24th, there were 17 properties sold in the market with four above $750,000. Pending sales in the market remained constant at 139. Activity Summary: Memorial Day weekend was very active for open house activity as many second homeowners and vacationers were visiting the Tahoe-Truckee area. Coldwell Banker held over 25 open houses over the weekend with better than average visitor activity. Sales Associates are seeing increased buyer activity and more and more are writing offers than in the previous six-months. Coldwell Banker had nine (9) properties go into escrow last week with three above $750,000. It is apparent that buyer interest and activity is picking up as there are continued great values in the market. Lake Tahoe and Truckee properties are priced well and present great opportunities for interested buyers. As the summer season approached, we are anticipating more and more buyer activity.
• Vacaville-Fairfield—Buyers are excited about the low interest rates, federal and state tax credits, and they are in the mood to buy! Investors who see an opportunity to cash flow are clamoring to acquire property and in many cases offering cash. Our issue with our ready will and able buyers is inventory. Of the “active” listings on the MLS in Fairfield and Vacaville, only 21% are listed as REO, of these listings, all are receiving multiple offers. Active Short Sales represent 38% of our inventory and appear to be the perfect solution for our buyers. But, these are not without issue; we find that lenders are reluctant to negotiate and the second lien holder (if different from the first) is willing to “kill” the deal rather than except what is being offered by the first. On the short sales, we find our biggest challenge appears to be lack of lack of communication and cooperation from the asset managers represents the lenders. The good news in Vacaville and Fairfield is with our pent up demand, prices in Solano County are moving up creating a great window for “regular” sellers to sell.

Historically speaking the week of Memorial Day quiets things down in the housing sector but this year it was a bit different. Thanks to the $8,000 first time home buyer credit, low interest rates and increased affordability, buyers in the first time home buyer market are out in droves and really are snatching up properties. Now that Memorial Day is behind us, we’ll probably see a week or two of quiet yet brisk activity until school is out and then…let the floodgates open. The summer selling season will be in full force.

Until next week,
Make it a great one,

Bob Bronswick
Coldwell Banker Residential Brokerage Sacramento/Tahoe

NAR Announces Housing Affordability Highest in 18 Years

For months I’ve been sharing that this is one of the best times to purchase a home in decades. Well this week the National Association of Realtors underscored that fact with the release that nationwide housing affordability jumped 10 percentage points during the first quarter of 2009 to its highest level since the series began 18 years ago, according to the National Association of Home Builders/Wells Fargo Housing Opportunity Index (HOI). The HOI showed that 72.5% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the national median income of $64,000, up from 62.4% during the previous quarter and up from 53.8% during the first quarter of 2008.

Locally, the story is similar. In the Sacramento area, 76% of all new and existing homes sold in the first quarter of 2009 were affordable to families earning the area’s median income of $72,800. That’s up 1% from the previous quarter and up about the same from the same period a year ago.

For complete details on the report, click here: http://www.nahb.org/page.aspx/category/sectionID=135

I’d also like to share a couple of other stories of interest from the week:

• http://rismedia.com/2009-05-20/buyer-interest-in-foreclosures-spikes-says-survey/
• http://www.nytimes.com/aponline/2009/05/19/us/politics/AP-US-Economy.html?_r=2&scp=17&sq=housing&st=nyt
• http://rismedia.com/2009-05-18/distressed-properties-and-first-time-home-buyers-the-recipe-for-real-estate-recovery/

Finally, many of you have asked me questions about the potential changes in the $8,000 tax credit (http://www.realtor.org/RMODaily.nsf/pages/News2009051202?OpenDocument). Essentially the U.S. Department of Housing and Urban development announced that the Federal Housing Administration is going to permit its lenders to allow home buyers to use the $8,000 first-time homebuyer tax credit as a down payment. FHA's approved lenders will be permitted to "monetize" the tax credit through short-term bridge loans. This will allow eligible buyers to access the funds immediately at the closing table. Here is a CNN Money article which explains some of the details: http://money.cnn.com/2009/05/18/real_estate/tax_credit_as_downpayment/index.htm?postversion=2009051912

While it is an exciting turn of events I would caution you that the execution of this is quite complicated and it may take some time before it becomes a reality. HUD will authorize lenders, non-profits and certain agencies to provide a bridge loan which will then be reimbursed at the time of tax refund. These players are not yet identified. Again, an exciting turn of events but the execution and timing of it have yet to be fully outlined. Watch for more to come.

You’ll note that this week’s edition of Weekly Market Watch does not include the office data and anecdotes. We’ll return next week with a robust edition.

As we head into this long, three day weekend I’d like to wish everyone a very happy Memorial Day weekend. Enjoy your time with BBQs, sunshine, maybe a little swimming and (hopefully) a home sale or two.

Until next week,
Make it a great one,

Bob Bronswick
President
Coldwell Banker Residential Brokerage Sacramento/Tahoe

Recent Housing Stats Are Showing Encouraging Signs for Market

This week I thought I’d share some positive stories that continue to permeate not only our local news but on a national level as well.

The National Association of Realtors® said its Pending Home Sales Index, based on contracts signed in March, rose 3.2% as first-time buyers waded into the market to take advantage of favorable prices and mortgage rates.

A report from the U.S. Commerce Department showed construction spending rose 0.3% in March, the first increase in six months.

The pending home sales report added evidence that sales have reached a bottom. “That's critical because once sales bottom, it's only a matter of time before you work off excess inventories. That's the key to stabilization in the financial system and the economy at large. We're closer to that than people thought just a few months ago.”

-- Michael Darda, chief economist at MKM Partners in Greenwich, Conn., “Sales and Construction Data Lift Hopes for Housing,” by Lucia Mutikani, Reuters, May 4, 2009.

On a national basis, the forces driving real estate right now are increasingly turning positive and encouraging.

• Home sales in major markets around the country have shown dramatic gains in the past month.
• In Florida, statewide sales jumped by 30% in March over year-earlier levels, and were up 33% over the previous month. Even condo sales were up by 25%.
• In California, statewide sales rose 64% in March compared with March 2008. Unsold inventory is now just five months -- that's down from 12 months the previous March.
• Median house prices may be bottoming out. The California Association of Realtors® reports the median price of homes sold was up by 2.2% for the past month.”
  
  -- “Real Estate Outlook: Sales Rising in Some Areas,” by Kenneth R. Harney, Realty Times, May 5, 2009.
  
  Also interesting to note:
  
• The current price level of homes seems to be drawing more buyers into the market, according to Jim Gillespie, president and CEO of Coldwell Banker Real Estate. “We are seeing a lot of activity across the nation. Of course we're in the spring market, but we've seen more buyers in the market now than at this same time last year.”
• “Home prices are where they should be. Sellers are accepting the current reality and are pricing more realistically," said Robert Abbott, co-owner and VP of a northern New Jersey brokerage. “More people are not only 'kicking the tires' but actually buying right now. We are showing significant activity when it comes to sales. The number of days for a house on the market is going down.”
  
  -- “More Homes Get Multiple Offers; Downturn May be Nearing End,” by Julie Schmit, USA Today, May 6, 2009.
  
  Multiple bids have picked up in recent months in California and other states hit hard by foreclosures and steep price drops, real estate executives say. “If a house is in a good neighborhood, is maintained and is a good value, it'll get multiple offers. One in 10 homes now draw multiple offers, up from one in 30 last fall.”

-- Julie Holt, owner of a title services company in Florida, “Is Now the Time for Some Home Buyers to Make a Deal?,” by Mark Koba, CNBC, April 28, 2009.

So what does all of this mean for our local market?

Well for starters, there is no question, we’ve definitely seen a sudden surge in sales. What a difference a year makes. Having said that, the biggest challenge affecting our market right now is the foreclosure moratorium that has greatly impacted the inventory levels and therefore sales, in the market. Take a look at this article from the Sacramento Bee this week: http://www.sacbee.com/business/story/1856386.html

We anticipate that this moratorium will end sometime in June which will increase our inventory levels and get our sales path back on track. Right now homes that do go on the market, in most areas, are scooped up immediately as buyers are chomping at the bit to get homes. Once the foreclosure moratorium ends, we should see a huge jump in sales.

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

• Auburn—We are seeing more mobile homes on the market than we have in the past few months. Cash is still the king when you are in a purchase with multiple offers. We have had a few very good floor leads that have turned into sales or listings. Appraisals have come in under the purchase price on a few contracts
• Dixon/Davis—Not much change from prior weeks. Need inventory, we have lots of buyers and no houses to sell. We have 30 active homes in all of Dixon! New listings sell in one day often with multiple offers.
• El Dorado Hills—Inventory seems about the same (344) but over 100 of these are short sales so our normal active listings are less than 250 so inventory is tight. Agents are making multiple offers and really looking for good homes that can be sold and closed. Open house activity is steady.
• Elk Grove Laguna—No information reported.
• Folsom—No information reported.
• Placerville—We’ve had multiple offers on homes in Placerville and good listings are selling. Some homes that have been on the market for 100+ days have sold. We don’t have many REOs. Inventory is stable.
• Rocklin/Lincoln—Agents are busy. Inventory that sat for a while now have pending sales and we have a slight shortage in the homes under $300,000. We will be having a “Summer Surge” beginning June 15th with activities to increase production and have fun.
  Roseville/Granite Bay—Listing inventory is steady, while sales inventory is increasing. If only the REOs would do the same! The office saw two multiple offers and 16(!) ratified offers. There were only six open homes with very light traffic. Only one Previews-type listing. Same as before- we are playing the waiting game for more inventory.
• Sacramento Fair Oaks—REO/Short Sale activity is very high. The REO Agents are selling what they have left in inventory. Activity at the high-end is slow. The buyers are out there on a daily basis. It is keeping our Agents very busy showing property but losing out because of multiple offers and getting out bid.
• Sacramento Metro—The local marketplace is very good with inventory very low. The last four office tours have been great.
• Sacramento Sierra Oaks—Inventory is very low which is causing decreases in sales activity. There continue to be a ton of multiple offers on the $100,000 and below price range.
• Tahoe-Truckee—Inventory Summary: The listing inventory for the Tahoe-Truckee market increased slightly for the week. Currently, there are 2,045 active listings in the market - 1,423 residential properties and 622 lots/land listed for sale. Of the active listings, there are 124 properties listed as short sales which increased slightly, (6.1%) and 56 properties listed as REO sales, (2.7%). Based on the current inventory and sales year to date the market has roughly 9-months of inventory available. Sold Summary: On a year to date basis there have been 228 properties sold in the market as compared to 328 for the same period in 2008 which is (30.5%) reduction in sales. The median sales price for the properties sold YTD in 2009 was $428,850 while the average sale price was $573,071. For the same period in 2008, the median sales price was $509,000 and the average sales price was $731,217 which is a (15.7%) and (21.6%) reduction in price respectively. For the week of May 4th to 10th, there were 12 properties sold in the market with three above $750,000. Coldwell Banker was involved in five (5) of the sales. Pending sales for the week increased from 133 to 137. Activity Summary: Open house activity continues to be slow during this time of year in the Tahoe-Truckee area. Sales Associates are seeing increased buyer activity at all price points and especially on properties classified as short sales and REO’s. Coldwell Banker had four (4) properties go into escrow last week with one over $850,000. It is apparent that buyer interest and activity is picking up as there are continued great values in the market. Lake Tahoe and Truckee properties are priced well and present great opportunities for interested buyers. As the summer season approaches, we are anticipating more and more buyer activity.
• Vacaville/Fairfield—Have Buyers! Need Homes! We are experiencing a true seller’s market in Solano County for homes priced under $350,000. Our inventory is down and has a result, listings are receiving multiple offers within hours of hitting the market. Buyers and Agents are very frustrated because they are having a difficult time securing a home. One of the things that we are doing to improve is doing a better job at communicating with each other regarding new inventory. We have implemented a white board within the office where Agents can post “coming soon” properties. We are also focusing on aggressively going after short sales to create additional inventory for our buyers.

In short, it seems buyers are finally starting to get the sense that now is a good time to buy and that if they wait, they may loose out on one of the best times in California history to purchase real estate. Now, if we could just get more listings. What a difference a year makes…I’m still scratching my head. It’s an exciting time so make use of it!

Until next week,
Make it great one,


Bob Bronswick
President
Coldwell Banker Residential Brokerage Sacramento/Tahoe

Stress Test Reveals There’s More Work to Be Done By the Banks But The Local Real Estate Market Continues to Thrive!

This week the results of the long-awaited Stress Test on the banks were released. What the government hoped to accomplish through this Stress Test was to determine how much more capital the banking sector would need to withstand the recession—much of which was caused by residential mortgages and other consumer loans such as credit cards. The result was that 10 of the nation’s 19 largest banks will need to raise a total of $74.6 billion in capital. The Stress Test revealed that banks like Goldman Sachs and J.P. Morgan seemed to be better positioned than Citigroup and Bank of America.

At this point, according to Kiplinger, “The stronger banks will actively do what they can to return any money borrowed from the government to get out from under restrictions on dividends and executive compensation. Their ability to sell common stock to the public is far better than their weaker counterparts, who may have to privately sell stock to investors or raise capital with so-called mandatory convertible preferred shares.”

According to industry analysts, it seems that until the banks get back on their feet, credit will continue to be tight. That leaves the Federal Reserve responsible for filling in the gaps with its own lending programs aimed at jump-starting lending.

On a brighter note, however, the real estate sector of our economy continues to show some positive signs—a good symbol that the programs that the government has put in place are helping. USA Today reported earlier this week that “More homes for sale are attracting multiple offers as buyers pursue lower-price homes and banks low-ball asking prices to attract competing bids on foreclosures.” It’s exactly what we’ve seen locally. Just as I revealed in an earlier blog posting, the first time, entry level home buyer market is fueling this recovery. It’s something we certainly forecasted and it’s finally coming to fruition. Now, we’re seeing, in many markets, multiple offers on starter homes and even some frustrated buyers who are scratching their heads and wondering what happened to the buyer’s market. We warned that the change could come before we knew it and in some price ranges, it might’ve already come and went.

Here are some links to some interesting, positive news stories from the week:

• USA Today: More homes get multiple offers; downturn may be nearing end (http://www.usatoday.com/money/economy/housing/2009-05-05-foreclosure-home-sales_N.htm?loc=interstitialskip)
• Business Week: Want to Sell Your Home? Lower Your Price (http://www.businessweek.com/lifestyle/content/may2009/bw2009055_075566.htm?chan=top+news_top+news+index+-+temp_news+%2B+analysis)
• RISMedia: Relocation.com Survey Shows Consumers Moving Further Due to Economy (http://rismedia.com/2009-05-05/relocationcom-survey-shows-consumers-moving-further-due-to-economy/) – This is a good reminder to consumers on why they should choose an Agent who is affiliated with a large, global real estate company that has the breadth and influence to reach the largest pool of buyers.
• NYTimes: Where Home Prices Crashed Early, Signs of a Recovery (http://www.nytimes.com/2009/05/05/business/economy/05turnaround.html?_r=2&hp)
• Realty Times: Real Estate Outlook: Sales Rising in Some Areas (http://realtytimes.com/rtpages/20090505_realestateoutlook.htm)

Now, let’s take a look at this week in real estate:

• Auburn—We are getting ready for the Auburn Home Show where we have great Agent participation.
• Dixon/Davis—We haven’t seen much change from prior weeks. We need inventory! We have lots of buyers and no houses to sell. We have 30 active homes in Dixon! New listings sell in one day, typically with multiple offers.
• El Dorado Hills—The market is picking up. Inventory remains at the same level but the pending sales have nearly doubled for the last 30 days. We haven’t had multiple offers on our listings but have been in many multiple offer situations with our buyers with as many as 10 offers on properties under $250,000. The upper end, over a million, remains stagnant but the 500 to 850 has picked up. Some of our high end sellers have temporarily removed their homes from the market but plan to go back on in around 30 days. Several short sales we’ve been waiting on for over three months have been approved. Appraisals continue to be a challenge.
• Elk Grove Laguna—Traffic counts for open houses remain high. Buyers are scooping up the deals. It is highly competitive with multiple offers being the rule. Inventory is painfully low. Waiting for the next waive of REOs to hit. Floor call volume and LeadRouter calls continue to gain momentum. We are very busy.
• Folsom—The market is crazy for the under $300,000 buyer. Most of our Agents write 5+ offers for a buyer before they get one into escrow! Listings are still hard for us to get, slow but steady. Our well priced homes are selling quickly and the over priced ones have no activity and no offers. Open houses are still good, but not the traffic we were getting a couple of weeks ago. We did sell a home that was held open this weekend to a buyer that came to the open house and fell in love with the property and had to have it! It’s a great time to be in real estate!
• Placerville—Sales in the Placerville office are ranging from as low as $50,000 to $850,000. Inventory has dropped some. The walk in traffic continues to be active. Our REO inventory is very low and we’re not seeing multiple offers on our listings.
• Rocklin/Lincoln—Sales are way up and listings are stable. We are getting about five new REOs a day in this area. Competition is fierce in the homes in the low $200,000. We had another short sale wit ha second accepted in just a couple of weeks. We had just a few open houses this week due to the bad, rainy weather but the few we did have received a few good leads.
• Roseville/Granite Bay—Listings are steady; as is sales inventory. No multiple offers this period, but we did have seven ratified offers. Open homes were five with light traffic (rain, perhaps?). Roseville is still light on the REO/Short Sale inventory. Agents are ready for a strong summer as fresh inventory comes onboard. It’s time to line up the qualified buyers.
• Sacramento Fair Oaks—Multiple offers are over abundant; it seems every accepted offer we have is a multiple. We had approximately eight homes held open and the Agents seem to have many interested buyers coming through. Overall the Agents are working extremely hard in my office are very positive. We have been working with them to prepare their buyers for the type of market we are in and the waiting periods that are involved.
• Sacramento Metro—Business continues to be busy in our core areas. We are seeing many short sales but our REO business is slow.
• Sacramento Sierra Oaks—The inventory is very low—thus activity is low. More inventory would be good for buyers!
• Tahoe/Truckee Region—Inventory Summary: The listing inventory for the Tahoe-Truckee market decreased slightly for the week for the second week in a row. Currently, there are 2,013 active listings in the market - 1,391 residential properties and 622 lots/land listed for sale. Of the active listings, there are 119 properties listed as short sales which increased slightly, (5.6%) and 59 properties listed as REO sales, (2.9%). Based on the current inventory and sales year to date the market has roughly 9-months of inventory available. Sold Summary: On a year to date basis there have been 216 properties sold in the market as compared to 318 for the same period in 2008 which is (32.1%) reduction in sales. The median sales price for the properties sold YTD in 2009 was $425,850 while the average sale price was $569,379. For the same period in 2008, the median sales price was $508,000 and the average sales price was $736,302 which is a (16.2%) and (22.7%) reduction in price respectively. For the week of April 27th to May 3rd, there were 13 properties sold with two above $750,000. Pending sales for the week increased from 126 to 133 for a 5.5% increase. Activity Summary: Open house activity continues to be slow during this in between winter and summer season in the Tahoe-Truckee area. Once the summer season hits we should see increased open house activity. Sales Associates are seeing increased buyer activity at all price points and especially on properties classified as short sales and REOs. Coldwell Banker had three (3) properties go into escrow last week with one over $1,000,000. It is apparent that buyer interest and activity is picking up as there are continued great values in the market. Lake Tahoe and Truckee properties are priced well and present great opportunities for interested buyers. As the summer season approaches, we are anticipating more and more buyer activity.
• Vacaville/Fairfield—It was a light open house weekend. Our area is ready to burst with REO inventory…when the banks release it! Activity is brisk in the offices. Agents are staying positive and are having honest conversations with their clients about the state of the market. Offers: Must write tens offers for clients to get a property into escrow. We are seeing appraisal problems coming up nowadays.

In a nutshell, this week there was a lot of rain which brought out the serious buyers and kept the lookieloos at bay. If the banks would release the inventory we’d be in great shape. We are having many appraisal problems in a lot of areas. It is supposed to be a great weekend which means that there will likely be lots of activity!

What do we do with this information? Spread the word! It’s one thing for me to talk about a recovering market but it’s another when even the most pessimistic analysts are doing the same. The stories above share the real story. All of our offices are reporting similar stories and as I visit our offices and talk with our Agents, I’m hearing the same scenario: the market is changing.

The window of opportunity has been open and it has been inviting buyers in for months. Now, the buyers are acting and if you were sitting, cooling your jets, it may be time to start your engine! Don’t wait until you’re kicking yourself and saying, “I should’ve bought a lot more real estate.”

Until next week,
Make it a great one,

Bob Bronswick
President
Coldwell Banker Residential Brokerage Sacramento/Tahoe