Archive for the ‘The Open Sac’ Category

Google+ Comes to Sacramento Real Estate Site (Watch for my Mug on Google)

If you haven’t played around on GooglePlus and want to, let me know as I have plenty of invites left.

Meantime, I understand that if I link to Google+ a certain way, if you search for “GooglePlus Comes to Sacramento Real Estate”, you should find this article with my GooglePlus account avatar in the Google search results.

Facebook, eat your heart out!

Sacramento Real Estate Market Update – Doom, Gloom, and Housing Affordability

This is not a good blog post to get you to buy something. Salesmen are always positive, says top industry trainer Tommy Hopkins. Today I’m more of a social critic.

This has to be the latest in the month that I’ve written a market update for Sacramento since I started writing them. Perhaps a brief apology is in order:

I’m sorry.

I suppose I don’t want to just babble on about the statistics of just how much homes fell in price over the last year. I’ve been doing that since about 2005, and it’s getting old. What helps it get even older is this great specialization that the Sacramento Bee has in stories about how everything is a disaster. A day or two ago, my over fifty eyes caught sight of an article about how people over fifty are having a hard time in this economy.

Hello, Earth to the Sacramento Bee, if you’re having an easy time in this economy, you’re probably a hedge fund manager, or maybe a congressman threatening to light a fuze under our country’s AAA credit rating for the sake of not violating your pledge to Grover Norquist, yet another rich white dude who wants to be richer than he is.

It was these rich white dudes, wanting to be richer than they were, who invented derivative trading and all sorts of creative shenanigans to inflate the money supply, creating a sort of firestorm of buyer demand in the first five years of the last decade. When they made (I won’t say earned) money, they made money. When they lost money, we the taxpayers covered their losses.

If there’s a silver lining in this mess, it’s that the truth of the matter is, back when three bedroom homes in Sacramento were $400,000, most of you couldn’t really afford them. In June of this year the average sold price of a home in Sacramento County was $180,474, down 12.8% from June of 2010. The median sale price was at $158,400.

According to the US Census (2010), the median annual household income in Sacramento County was $52,502 in 2010, which works out to about $4,375.17 per month. Given an FHA loan with a 3.5% down payment, the payment on the median home works out to $1,223 (using my old standby rule of thumb estimate of eight dollars per thousand borrowed — which is an estimating tool only and not an offer to loan). What this works out to be is a payment of 28% of gross income — and 28% is usually considered a conservative “front end ratio”, which is monthly payment / gross pay. (The “back end ratio”, your total debt including other obligations as a percentage of your income, depends on how much debt you have overall).

In other words, we have reached the point where the “median household” can afford “the median home”. And it only took six years of falling prices to get there! (Do you get the sense that homes in 2004 were overpriced? You should).

Of course, if our Congressional bozos don’t get their acts together, that eight dollars per thousand rule of thumb will have to be adjusted upwards, because it’s based (in part) on interest rates.

If I were you I’d buy a home before our economy blows up completely.

Or rent, keeping gold bullion and rifle ammunition under your bed, depending on your mood.

And if that wasn’t wonkish enough for you, I’m posting the numbers below.

Market report for Sacramento County for June, 2011

Unit Volume Data

Units Sold June, 2010 June, 2011 Change
Foreclosures Sold 670 818 22.1%
(% of total units) 36.2% 42.8%  
Short Sales Sold 490 425 -13.3%
(% of total units) 26.4% 22.3%  
Non-distressed Sold 693 666 -3.9%
(% of total units) 37.4% 34.9%  
Total 1853 1909 3.0%

Price Data

Prices June, 2010 June, 2011 Change
Sold Price / Square Foot $123.96 $110.08 -11.2%
Square Feet 1680 1639 -2.5%
Average List Price $210,845 $183,786 -12.8%
Average Sale Price $208,360 $180,474 -13.4%
Median Sale Price $185000 $158400 -14.4%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1569 5684 3.6
Foreclosures 683 719 1.1
Short Sales 366 3320 9.1
Nondistressed 523 1652 3.2

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1643 5684 3.5
Foreclosures 750 719 1.0
Short Sales 374 3320 8.9
Nondistressed 522 1652 3.2

Setting a Tentative Date — Yet Another Off Topic Post for Romance Fans

I have great news from the Government. No, it’s not like one of those weird Facebook ads you see where they’ve got some creepy guy from over a headline that reads “Barack Obama Announces He Will Pay Your Mortgage” or whatever.

This is great news for me, on a personal note, and it’s the news that the the folks at US Citizenship and Immigration Services have approved our fiancee visa for Jenniffer (my lovely fiancee who really has two Fs in her name and I’m not kidding). They had quoted five months as a probably time frame and got it done in a little more than three, so we’re happy about that. Now we’re keeping our fingers crossed about the next phase, where the approved petition gets sent along to the State Department and / or the National Visa Center. At some point she has to pass a medical exam, to make sure she’s not going to come here with ebola or Colombian Tapir Flu.

OK, look, I confess. I’m just one of those people who, when they get all excited, starts making up diseases. There’s no such thing as Colombian Tapir Flu. Tapirs do come from there (more or less) but as a rule, having one live in Bogotá would be about as weird as having a Polar Bear in Sacramento.

And that reminds me, since Jenniffer’s from one of those delicious equatorial places where they have beaches like the one pictured (well, not in Bogotá, but at the beach they have beaches), I have already warned her of the grave dangers we face from the polar bears here, and how, when we go outside, we have to distract them by tossing them raw seal meat in a high arc while we run to our cars.

She just rolls her eyes.

That’s my gal.

Yesterday we sent a tentative date for the wedding of July 30th. It’s tentative because there’s still some government meddling that needs doing, and it’s tough to plan how fast that will happen. It’ll be a small ceremony, family only, so that’s why I didn’t invite you. (Well, that and the fact that you’re anonymous and your email address is IHaveNoIdea@msn.com).

Why I Left Facebook

Yesterday I put my Facebook account in a hole, and shoveled dirt over it. Don’t worry: I checked it. It was dead already. I wrote about the mechanics of it yesterday in my post about how to delete your Facebook account and leave it write-only. Today I thought I’d spend a little time writing about why I did it.

First of all, I’m not trying to convince anyone to join me here. It’s not like we’re going to go camping or something if you quit Facebook too. The chances are pretty good you have no reason to leave Facebook. For most people it’s either a harmless diversion or a vehicle they perceive as having some potential for growing their business.

For me it was neither. That’s why I left.

My Allergy to Facebook, and What that has to do with Arthur Miller

Some of you may recall the title of Arthur Miller’s play, “The Death of a Salesman”, which the well-known sales trainer Tom Hopkins calls “an abomination of a play”. I read it a long time ago, but to refresh my memory, I looked it up on Wikipedia:

Miller’s play represents a democratization of the ancient form of tragedy; the play’s protagonist [Willy Loman] is himself obsessed with the question of greatness, and his downfall arises directly from his continued misconception of himself—at age 63—as someone capable of greatness, as well as the unshakable conviction that greatness stems directly from personal charisma or popularity.

I left Facebook because of a certain allergic reaction that I have to it: I become Willy Loman.

Kool-Aid Salesmen: Social Media as Business Opportunity

I know some people who work in marketing, some online and some in real life. All generalizations are wrong, of course, but every single marketing person that I know believes religiously that social media is a wonderful vehicle for promoting a business. Why do I say they believe it religiously? Because religion is belief that survives evidence. Tell any marketing person that you’re not making money off of social media and you’ll be told this: “You’re doing it wrong.” That’s religion. You can’t argue with it, because evidence doesn’t matter. Of all the things I’ve done in my life, arguing with religious people is the single least satisfying activity I know.

Now let’s recall Willy Loman’s tragic flaw: “the unshakable conviction that greatness stems directly from personal charisma or popularity.” What is this but the “reputation economy” that we have supposedly entered, now that social media is going to make all of us fabulously well-to-do, provided we’re “doing it right”.

This is Facebook Kool-Aid 101. The reason I feel like Willy Loman on Facebook is first of all the personal flaw I have in my habit of comparing my accomplishments to others, but that’s not all of it. Like most dysfunctional relationships, there are two sides to this one, too. The idiotic notion that my numbers are down because I have mismanaged my reputation (whatever that means) didn’t pop into my head fully formed like some of the other idiotic ideas that occasionally flourish there.

This idiotic idea had more than it’s share of salesmen.

I know how hard sales can be sometimes, so I don’t have any particular malice towards these people, and wish them luck as they knock on the next door.

Now that church is over, let’s give each other the sign of peace, get the heck out of here, and go enjoy our Sundays.

How to Quit Facebook and Make Your Account Write-Only

I just logged in to Facebook for what I hope will be the last time ever, and was able to configure my account in such a way as to continue updating it without having to show up. Indeed, I configured it in such a way that I can’t show up without creating a new account. I may get into my reasons for that in another post, but for now I thought I’d share how I did it in case you, too, would like to free yourself from Facebook while still using it as a micro-blogging platform.

Fair warning: this post assumes you want to quit Facebook permanently, not that you just want to try leaving to see if you can stand it. There are plenty of posts about how to do that. Just Google “How to Quit Facebook” and you’ll bump into many of them. Also, if you’re quitting over privacy concerns, you won’t want to quit this way, since it won’t address that issue specifically.

However, if you’re quitting because you simply resent Facebook selling your data to advertisers, this is really the best of all worlds here, because if enough people do this, Facebook’s value proposition evaporates since advertisers won’t want to pay to reach people who aren’t even there. (This isn’t my reason, by the way). But again, they’ll still have access to your email address and whatever else Facebook sells and opens up in their developer API about you, so if you’re interested in protecting your privacy, this method is not for you.

I’m not sure if this violates Facebook’s terms of service, and I’ll leave it up to you whether you should worry about that. In my case, I believe that the worst they’ll do to me is to delete my account if they find out, and if that happens, oh well, at least I had a free microblogging platform for awhile.

Step 1)
Your first step is to set up your blog feed (RSS feed) to post automatically. If you don’t already have your blog posts sharing the benefit of your wonderfulness on Facebook automatically, you need to do that first. I use Twitterfeed.com to do that; it’s free. Basically the idea is that you’re going to point Twitterfeed at the RSS feed of your blog, and then link it to your Facebook account. Be sure to write a test post, because once you quit Facebook you won’t be able to go back and test it. Wait a few minutes and if your test post appears successfully, you’re on to Step 2.

Step 2)
Change your email address. The next step to Facebook freedom is to set up an email address that you can’t remember and have it forward to an email address you can remember. If you have a Unix hosting account, chances are you can do this by logging into your account and using the site configuration tools in the email section to add a forwarder to your account. You want to search for Add a forwarder. You’ll come up with a simple interface where you’ll choose the domain name and the name for the email address. What you’ll want to do is create a strong email address as though it were a password, using some long and random string of letters. Point it to a real email address so you’ll be able to confirm your new email address when you change it in Facebook.

If you don’t have a Unix hosting account, you can accomplish the same thing by setting up a public gmail or hotmail or yahoo mail account, for example. If you do this, you can simply use the account you set up and won’t have to forward it.

Step 3)
We need to change our email address in Facebook to match the email address we just created. The reason we needed to set up a real email address is that Facebook will want to verify your address with a link. So change your email address to your new cryptographically strong email address, then go into whatever real email account that’s pointing to and click on the confirmation link.

Step 4)
Prepare your final words to your adoring fans, or your parting shots to your nemeses, as the case may be. A good way to do this is to create a jpeg file with a brief message using Windows paint or a similar tool, then post it as your profile picture. The reason for this is that if you post your goodbye on your Wall as a status update, that message will scroll down and disappear as your blog posts get published. All set? Good.

Step 5)
Create a strong password. You can use a bunch of letters and numbers for this if you want. Be sure it’s something you won’t remember. Obviously, if you have Lastpass or another password manager installed, make sure you don’t save it.

Step 6)
OK, before you take this step and the following ones, I’m going to warn you again that once you do, you won’t have access to your account. If that’s not what you want, stop now. If it is, you now want to change your password in Facebook to the password you created in Step 5.

Step 7)
Now, with a cryptographically strong password and email address, log out of Facebook.

Step 8
Make sure to delete your email forwarder or your TEMPORARY email account, so you won’t be able to log back in to Facebook in a moment of weakness.

Now, pour yourself a cup of coffee and think about the things you can do with your newfound life. If you’re lucky enough to get a call from the best friend you had since your moms used to get together for coffee with their infant sons like I did, enjoy the call. I recommend something fun like a movie or going out on a date or having sex with your partner of choice. Make sure you call some folks during the week to make lunch dates or get together somehow to tell them you care about them or just to goof around (which is another way to tell them you care about them).

You young people may not remember this, but we did it back in my day, when stamps cost a nickle and sandwiches were called “flat breadies”.

It’s called socializing.

For those of you who do remember it but are a little rusty, don’t worry, it’ll probably come back to you. Like riding a bicycle.

Ground Control To Major Tom, Can You Hear Me Major Tom?

I don’t usually come right out and ask for feedback, since everybody knows that when I ask for feedback I’m really just trying to engage you in conversation so I can hypnotize you using my sinister salesman super-powers.

“You are getting very sleepy. You want six bedrooms.”

OK, that doesn’t work, so you can relax.

But today we installed a new comment system on the blog — hosted by a site called disqus. It’s pretty cool. In addition to leaving a comment with your avatar and everything (assuming you have an avatar and everything — but if you don’t, please comment anyway), you can share my paragraphs of outstandingly excellent awesomeness with your thousands of adoring Facebook followers.

Or not.

This Is the Serious Part

Hi. Welcome to the serious part. No really, it’s serious, it’s just the tone is friendly:

I’d really love to know what you think of the new web site. The reason I’d really love to know is that it seems like I used to get more people responding to the old, ugly web site than the new one, even though most everyone agrees the new one is much cleaner and simpler to use. Well, the guy who I paid to design it agrees. And my fabulously beautiful fiancee, Jenniffer, who really has two Fs in her name, agrees. Google Analytics reports that you’re here clicking away and doing searches for homes, clickety clickety click, so let’s take this as a sign that Google agrees and will soon have me back in the number one spot I like so much.

Is It Something I Said?

So what’s going on? Is it something I said?

Is it the fact that we’ve changed our name from “Elite Properties” to “Lockwood Real Estate”, and the first one sounds like a big company, while the second sounds like it’s run by a guy with a broker’s license and a blog?

Is it the yellow? I personally can’t see the yellow very well especially when it’s a normal-sized link, because I’m five thousand years old, and even if I wasn’t, well, jeesh, yellow on white? Hello, contrast? It does look good on the larger titles, though.

Are you just not buying because home prices are falling like a round rock in a vacuum, and you’re thinking — “wait for it…wait for it…” No, I know people are buying. We had something like 8% more people buying in April than last April. So now the number is up to at least six or eight people. When all the short sale offers currently on the books close, it will be sixteen million.

Is it that I didn’t offer you a discount, and you were looking for a cheap agent?

Is it because I failed to convince you of how good Mike Keleshian is, and you’re looking for a good agent? (He’s more awesomer than me, and I’m so cool I’m grammatically incorrect).

You do understand, don’t you, that even though we’re a small company, when the deed records with the county you own the house same as you would if you bought it from Rewell Banker Lyon MegaZip Prudential and Berkowitz, right?

Is it that I’m sounding too desperate?

No, really, John, why don’t you shut the hell up and let the people comment?

[OK, I'm taking over for John, who is too verbose for his own good. The comment box is below. Thanks for chiming in with your feedback on the website.]

Sacramento County Real Estate Market Update

Sacramento County’s real estate market in April continued the price declines that have become an unwanted staple in our diet. Rounding up the usual suspects, of course we look to the high number of distressed homes which this year made a larger percentage of sold homes than last year.

Fleshing out the details, this year prices fell 11.5% on a sold price per square foot basis, one of the larger drops we’ve seen in some time. Last year the average home in Sacramento County measured in at 1593 square feet and sold for $123.14 per square foot, for an average sale price of $196,232. This year the average price fell by 8.8% to $179,022, while the average home is slightly bigger at 1643 square feet. The median price fell 9.1% during this period, from $175,000 in April of 2010 to $159,000 in April of 2011.

Meanwhile, as other market-watchers have noticed, Sacramento County displays a weird mix of high demand and low inventory on the one hand, with falling prices on the other. This year 8.2% more homes sold than last year, driven largely by a huge jump, 21.8%, in the number of foreclosures sold. The absolute number of short sales closing was almost unchanged at 2.7% more than last year, while the number of non-distressed sales fell 2.9% during this time. Taken together, the effect has been to push non-distressed sales down to one third of the total sales, with foreclosures making up the largest share of what sold at 44.6%, and short sales in dead last place at 22.2%

As you might expect from the demand, foreclosure inventory is extremely low at 1.4 months, while the number of non-distressed homes is a bit higher at 3.4 months. For short sales, as usual, inconvenience to buyers and long approval times have pushed the inventory numbers up, and we currently have 11 months of short sale inventory to get through.

The average discount from list price was slightly higher this year than last, probably reflecting cash buyers who have somewhat more leverage with the banks. With an average list price of $182,774 and an average sale price of $179,022, the average discount that buyers enjoyed was only 2%. This is because with foreclosures, the discounting is already done up front — hence the huge demand.

The raw numbers are below. Remember that real estate is extremely local, so prices in your neighborhood may have changed more or less than what is shown below. As always, short of a full (and expensive) appraisal, a comparative market analysis based on recent sold, pending, and active comparable sales is your best “free” guide to the value of your home.

Unit Volume Data

Units Sold April, 2010 April, 2011 Change
Foreclosures Sold 618 753 21.8%
(% of total units) 39.6% 44.6%  
Short Sales Sold 365 375 2.7%
(% of total units) 23.4% 22.2%  
Non-distressed Sold 579 562 -2.9%
(% of total units) 37.1% 33.3%  
Total 1562 1690 8.2%

Price Data

Prices April, 2010 April, 2011 Change
Sold Price / Square Foot $123.14 $108.94 -11.5%
Square Feet 1593 1643 3.1%
Average List Price $197,774 $182,774 -7.6%
Average Sale Price $196,232 $179,022 -8.8%
Median Sale Price $175000 $159000 -9.1%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1565 6853 4.4
Foreclosures 662 945 1.4
Short Sales 372 4086 11.0
Nondistressed 533 1831 3.4

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1543 6853 4.4
Foreclosures 718 945 1.3
Short Sales 350 4086 11.7
Nondistressed 477 1831 3.8

The 50 / 50 Commission Split Is Broken

(Please note that the following remarks apply to those of you who bought your home before the gold rush of 2003-2005, have been making payments and have equity. These comments do not apply to short sales).

There’s a fundamental inefficiency in real estate.

Because of this inefficiency:

  1. You pay more for real estate service than you have to.
  2. A lot of what you pay for is designed to make you feel good about how much you paid.

What’s even worse, because of this inefficiency, when you negotiate with your agent on the cost of her services, you can actually be helping to ensure that your house doesn’t get the attention it deserves from buyers.

What is this fundamental inefficiency? It’s this:

The 50 / 50 Commission Split is broken.

A lot of consumers already know that commissions are split 50 / 50 between the agent representing the seller and the agent representing the buyer. Sounds like a fair deal, right? Half the money goes to represent you, and half goes to represent the buyer.

But hold on a minute. There are two facts that most consumers don’t know, and it’s these two facts that explain what we mean when we say that real estate is inefficient, and the 50 / 50 split is broken.

  1. According to figures published some time ago by the National Association of Realtors(r), the average agent working with buyers spends four times as much time working with a buyer (32 hours on average) as your listing agent will spend on listing your home and representing you (8 hours on average).
     
  2. Agents representing buyers are more than ten times more likely to find a buyer for your home than your listing agent.

The Big Money’s Not In Selling Homes, The Big Money Is in Selling Sellers

So what this all boils down to is this. On the one hand, we have hundreds of eager and hard working real estate agents doing the incredibly time-consuming work of working with buyers who may not even turn out to be buyers, so that one of those hundreds of agents can sell your home. On the other hand, we have, we have an absolutely outstanding salesperson who is working primarily as a listing agent.

But make no mistake. This is an outstanding salesperson, but this salesperson — this accomplished persuader of humans that you’ve allowed into your home — is not in the business of selling homes. The real business of this selling superstar is selling you on the idea that somehow their experience and “sales numbers” justify being paid an equal amount of money to the hundreds of agents who each are going to work four times as hard as a listing agent and who collectively have more than a ten times greater chance of selling your home. (And of course, in “the listing agent’s” sales numbers, they include the credit they get for all the homes where they stuck a sign in the ground and the buyer’s agent did all the heavy lifting).

I’ve created a chart of where your sales dollars go. Is it approximate and does it represent my opinion? Well, it’s definitely approximate, and yes, it is an opinion, but it’s an opinion formed after almost nine years of experience in working with buyers and sellers both directly and with my agents. It may be a motivated opinion, but it’s definitely not naive.

(If you click on the image you can see a larger and easier-to-read version):

How do You Discount Price Without Discounting Value?

Ask any successful listing agent and they’ll warn you about the dangers of working with a discounter, as though somehow if you saved money on what, after all, are a rather limited (but very important) set of core services that the listing agent provides, you’d somehow be losing out.

And the way most listing agents work, there’s a case to be made for what they’re saying, because the listing agents know that you as a seller have been trained by every real estate agent and broker you ever met that the split between a listing agent and the seller’s agent is 50 / 50, is now and always shall be, world without end, amen.

Says Who?

So where does this 50/50 rule come from? Well, it comes from the thousands of transactions that have been done that way. There isn’t a rule about it. It’s not in the Magna Carta (you can check Wikipedia — I did, just to be safe), nor is it in the Ten Commandments. It’s just “the way we always do things”.

So what’s going to happen if you negotiate with a listing agent on price — are they going to discount only their own side, or are they also going to reduce the advertised commission to the buyer’s agent in the Multiple Listing Service, thereby making your home less attractive to these hard working agents?

Well, I don’t want to speak for them, but I know in my case I’d be inclined to discount my side, because that’s where there’s fat that I know I can cut — all that superfluous activity that are the non-green portions of the chart. If anything I think you should be paying your buyer’s agent more than 3% to make your home stand out, because buyer’s agents work their tails off. On the other hand, as a listing broker, I can afford to take a a deep cut on my side, because a lot of arm-waving and magazine ads aren’t going to sell your home. The right price in the right condition and hundreds of eager buying agents are going to sell your home. The fee on my side covers free a price analysis up front, photos, listing the home in the MLS, price review as needed, full representation (by the broker of record), and the best transaction coordinator in the business.

How much does that cost?

Call me and I’ll tell you. (530) 672-9160. I’m not trying to be coy, and if you don’t like the quote, I won’t twist your arm. But a lot of agents read this blog, and those who are working the listing side pretty heavily are probably already mad at me for talking about this stuff.

Woops.

If you don’t call, I’ll try something else. Like telling you I’m the next best thing to Nordstroms, or giving away free train whistles, or running a Memorial Day Sale.

As you can see, my business model is in flux a bit.

Was I not supposed to tell you that?

Woops again.

How To Make Sure Other Agents Won’t Show Your Listing

I was going to write a little post about a local subdivision in East Sacramento, but I got distracted while I was checking out the active listings in that subdivision by some “Agent Only Remarks”. For those of you who haven’t seen agent only remarks, they’re about three lines of information that are just like what sound they sound like — meant for the agent only. Usually there’s nothing sinister about them. They simply contain information about how to show the home or what terms the seller’s looking for, or sometimes disclosures that you need to provide to your buyer.

Sometimes, as was the case today when I got distracted, agent only remarks can be used to make sure an otherwise fairly decent home get ignored as much as possible. Here are what the agent remarks said in one listing I saw:

Restricted hours to show. MUST HAVE AN APPOINTMENT – NO DROP-Bys.NO showings between 12pm – 3pm DAILY. No showings prior to 4pm on Monday, Tuesday, Thursday.Short sale: all terms and conditions, including commission, subject to current lenders acceptance. Andy [sic] reduction in commission split 50/50.

Wow, I didn’t know you could fit that much discouragement into such a small space. Let’s see. It’s a pain in the butt to show because the available showing times read like a drunken English professor’s office hours. It’s unlikely to sell because it’s a short sale. And finally — like a stale cherry on this diet dessert — once we do sell, as in most short sales, we’re already talking about how we’re going to divide up what we don’t get paid.

Fortunately, the listing agent didn’t just rely on the discouragement of real estate agents to get the home to expire. He was also thoughtful enough to include several underexposed interior photos to make the home look dark and uninviting.

Next!

By the way, who’s Andy?

Market Updates, Hiring, and Other Goodies

A lot’s been happening lately.  First, I’ve noticed that there have been a lot of folks stopping by the blog and leaving comments on different posts — comments are always appreciated.  Thanks again to everyone.

Second, in the “I wants my real estate market data” department, this month we published our Sacramento County Real Estate Market Update on our El Dorado Hills site.

And speaking of that site, some other news is that I have been working on re-branding it to Mike Keleshian to give him more opportunities to work in El Dorado Hills. The DRE finally got their heads together and did the 10 minutes of computer work to do the license change I’ve been asking them to do since December.  Thanks guys — better late than never.  When that happened, I was able to quickly get a new IDX (real estate listings) account set up.  That happened a couple of days ago, but it’s not yet integrated into the El Dorado Hills site (stay tuned).  Yet even now, I think the site is looking much better.

Here’s how it used to look:

And again, here’s how it’s looking now.

Mike is doing a great job for us as always with an escrow closing this week and two more a couple of weeks out.

Meantime, there’s more work than even a tremendous hard worker like Mike can do, so I need to hire more agents.  The recruiting effort continues, and I’ve posted a new recruiting site about page to let folks know about opportunities in the company.  I need to do more along these lines, especially targeting newer agents.  Not only do I need many more agents to succeed, but it’s my responsibility as a business owner to do what I can to help younger people find their first jobs.

Happy Friday all around.

2011, The Year That Everything Changed

I have been haunted by this title and this idea, that 2011 is a year of change, for some time now.

Don’t get me wrong. This article is only accidentally about the real estate market. Warren Buffet says “the housing market” [there's only one?] will bounce back this year. That’s encouraging. Buffet is a guy who knows how markets perform. I’m not a market analyst like Warren Buffet.  With my nine years in the business, my best answer for how markets will behave is that they will surprise us. I do see some signs that he’s right in the numbers for Sacramento County for the past month. The total number of sales is up 11.7% from last year, and coupled with an inventory level of under six months, this tells us that demand is strong. With prices still falling, the demand side is sure to increase to the point where we reach equilibrium, but my crystal ball is too cloudy to tell me if Buffet is right that it will be this year.

As always my advice to our clients is this:  whether buying is right for you depends more on your circumstances than the market’s.  Do you have a steady job, where you expect to stay in one place for some time?  Can you afford it?  Are you willing to invest somewhat more than you would in rent each month for long term tax advantages and a higher net worth in the future?  If so, then it’s a good time to buy.  If not, it doesn’t matter what the market’s doing.

But this isn’t an article about the market.

“There’s a Change My Life, Since You’ve Come Along”

Caution:  assumption of government efficiency ahead:  If the government officials in charge of issuing fiancee visas aren’t horribly slow at what they do, I’ll be getting married again this year to the best girlfriend in the world, who currently lives in Bogotá, Colombia.  Naturally I’m excited and happy about that, and I’m pleased to announce that Jenniffer (that’s not a typo, there are two F’s in Jenniffer, no extra charge) will also be joining the company at some point, first as an assistant to me and later as an agent.

Talk about being serious about one’s recruiting efforts!

I am hoping she’ll try her hand at blogging from time to time, which realistically means that we have an opportunity to spin off a new blog or make this one bilingual.  We’re both more or less bilingual, but as you can imagine, she’s a lot more lingual in Spanish just as I’m a lot more lingual in English.  You can tell by my clever misuse of the word lingual, can’t you?

Sure.

Attitude Is Everything

As I said, the title “The Year That Everything Changed” has been haunting me, but what that’s really about is not so much the market (which is interesting), or my marriage (which of course is exciting), but about a new outlook on my life and my business.  On the one hand, my passion for the business has been re-ignited, partly by working with a great web designer who’s also a great online business consultant,  my friend Andrew Rhee.  He’s as crazy busy as I am, so the new web site design is still just on the drawing board, but I’m very happy with it and I hope you will be too once it arrives.  Meantime the real value he’s added to my business is getting me to give serious thought to what it is the brand is about.

I have a brand?  Who knew?  Actually, as you can probably tell by that question, I didn’t, but I’m working on one.

In addition to a sort of increased baseline excitement about the business, I’ve made a determined effort to eliminate whatever limiting beliefs about the business have held me back in the past.  This is the year I start to hire more good agents, train them on better systems, and put up better content than at any time in the last two or three years at least.  My agents are already great at what they do, but there’s not enough of them, and sometimes quite frankly their broker has been phoning it in.

That just ended.

The best is yet to come.

Save the Bulldog

Close-up of English Bulldog, 18 months old, in front of white background

Given that it’s Friday and we wanted to have a bit of fun, we’re throwing the awesome ineffectualness of our C list blogging status to lend our absence of influence behind the new movement we’re starting that has yet to be ignored by everyone in the community – Save Frances Flynn Thorsen, the Real Estate Bulldog.

Actually, truth to tell, nobody calls her that but me and a guy named ItsEric.  ItsEric, really?  Well, it’s good that we know what it is.  If I were it, I would have said ImEric, or maybe HesEric, to avoid being treated like a zebra object.  Then again I’m a native speaker.

Jay Thompson did call her a bully (for raining on his own bully parade), but it took an ItsEric to raise her role in this to the status of a brand.

Now OK, let me take a minute to get my facts moderately straight, even though I’m a C Lister and we’re not known for that.  (A Listers don’t get their facts straight either, but they’re known for it.  Being C Listers we’re not known for anything.)  When ItsEric calls Frances a Bulldog, he uses a small B and means it in a bad way like as in, “Oh, does this mean we have to put down our lanterns and pitchforks and go back to work?”

When I call Frances Flynn Thorsen the Real Estate Bulldog, I mean it in respectful recognition and admiration of her ability to get right in there and stand up to those A list bloggers.

I can’t do that with A List bloggers.  I can’t even be around them.  I feel the siren song of their meme-generating awesomeness pulling on my sensibilities like so much rub and tug.  It always leaves me feeling whistful and non-plussed when I was hoping to spend my day more whistless and plussed.  That’s why I don’t even know who Daniel Rothmiel is.  I hope I got his name right.  Nor the lady who’s suing him either.  Nobody going after the lady who’s suing him knows enough about her or the issue to be able to pour water out of a boot if the instructions were written on the heel, but when A Listers yell “Jump!”, admiring throngs of idiots yell “How high?”

When C Listers yell “Jump!”, does it make a noise?

I have changed my photo in Facebook and Twitter in solidarity!  I have raised my voice in a loud rallying cry and my troops are…  hello…. troops????…. Hey fellas?

Fortunately for all concerned except me, I’m here being ineffectual.  I own the C list.  No one will boycott the shoe store where ItsEric buys ItsShoes, so ItsAll good.  No one will threaten him or send him hate mail on my account.

I’m no Jay Thompson, after all.

I couldn’t whip a mob into a frenzy if my life depended on it.

East Sacramento Real Estate Market Update, December 2010

Looks like we’ll have to redo these numbers.  Thanks to the reader who drew it to our attention.

So much for outsourcing as a blogging tool… :)

The Department of Real Estate – Your Consumer Watchdog?

Every so often a newspaper article appears that’s critical of the California Department of Real Estate’s record on enforcement against agents who are breaking the law or otherwise misbehaving.  Fortunately I don’t have any experience with that side of things, because I generally obey the law and don’t misbehave — at least not in a real estate sense.  (I’m fairly fond of sugary foods, if that counts).

I do however have experience dealing with the Department of Real Estate when I need something done that has to do with my license. I thought by way of setting expectations for those who might have something to complain to them about, I’d share one recent experience I had with them.

Several months ago I sent them a form to change the broker of record for my company, since the broker who was working for me left to go be a full time mom.  After about a month or so, they sent me a form asking for a corporate resolution saying basically what I said in the form, I wanted them to change the broker of record.  OK, fair enough, you like redundancy, do you?   Let’s be redundant.  So I sent them the corporate resolution, and a few weeks later I got the same form, saying they want the corporate resolution.  Apparently being only a little redundant wasn’t good enough, so they asked me for the resolution again, by way of being redundantly redundant.

Several weeks go by…

Now meantime, lots of the things I need to do as a broker are on hold because I’m not officially listed as broker of record.  For example, I can’t go in to our MLS and make changes to our listings, because the MLS takes the DRE’s word for it as to who the broker is.  In general that’s a good idea, because you need to know who’s who, but of course the effectiveness of that check relies on the assumption that the DRE keeps up-to-date records.  So I’m getting anxious to get this change done so I can get on with my work, so I call the DRE.

Wednesday morning.  Ring ring.  I talk to the computer and tell it I’m a licensee and my license number, and after a few minutes of mucking around with the computer I’m told my wait time will be one minute.  Then I get on the phone with a human being.

“Hello, I want my license changed.”  (This is the short form of the conversation, of course).

“Well, did you get the form asking you for a corporate resolution?”

“Yes, I got it, but I ignored the second one because I sent it to you the first time.”

“Well, we don’t have it.”

“You lost the corporate resolution?  OK, I’ll fax you a new one.  You should have a form asking for a change of address, too”.

“No we don’t have that, either.” (Now mind you, I KNOW they have that because the original broker of record form is the same form as the change of address form — the very same form that triggered them asking me for the  corporate resolution — which they also lost).

“OK, I’ll fax that, too.  Who do I speak to about it?”

“You ask for Mary in Business Licensing.”

So I go back to my desk and fax in the same stuff I sent them months ago, and a couple of hours later I call back and the computer tells me my wait time will now be 20 minutes, so I spend about 20 minutes on hold waiting to ask Mary if she got my fax or if somehow that managed to get lost, too.  Well, Mary’s not available, so meantime I’m trying to get someone in the department to help me with my month-old request to have someone do five minutes of work.  The person I get says the department manager can help me, and proceeds to transfer me.

Do I get the department manager?  No, of course not.  I get his voice mail, so I leave him a voice mail asking him to please get back to me, etc.

By now you probably guessed that he doesn’t get back to me, so I call Mary again, and after a sufficiently long hold time I learn  “Oh, Mary’s gone home for the day, can you call tomorrow?”

So the next day I call the guy who says he’s going to work with Mary on it for me and ask for him by name.  So I get the guy I get to go find Mary and hunt up an answer for me.

This is going to be good, I think.  She has the fax.  All’s well.  I’m going to get my five minutes of work done.  Hooray.

The Mary-finder returns to the phone, and tells me what Mary told him, which was that it takes two days to distribute the faxes and then about a week to do the work.

Yes, you heard right.  It takes two days for the Department of Real Estate to get a fax with the paperwork you sent them that they lost the first time, which was a restatement of the paperwork you already sent them, after which, if you’re lucky, a week later they can do five minutes of work for you.

Now, I’m not saying that if someone’s misbehaving you shouldn’t complain to the Department of Real Estate — that’s part of what they’re there for.  I’m just saying that if you go down that road, you should bring a lunch and a warm sweater, since you likely won’t return before dark.

Roseville Real Estate Market Update, January, 2011

All cheers in the Roseville real estate market in January 2011. Volume of sales is up by a quarter compared to figures a year ago. Though decline in per-square-foot price resulted in availability of bigger homes within the budget of home buyers, large number of sales led to moderate increase in sales price buckling trends in other parts of the Placer County.  . The positive growth in Roseville real estate market also attracted investors looking for gains both in the short and long term. Real estate in Roseville offers a good alternative to shoppers unable to find an ideal home in Sacramento.

Big Surge in Sales Volume

It seems that the real estate boom seen in 2004 is likely to return to Roseville in the near future. The month of January ended with a big hike in total number of units sold in the Roseville real estate market. The sales volume stood at 149 units compared to 118 units sold in January 2010. The increase registered in sales is 26.3 percent, the highest in the area. The push was mostly due to the 55 percent increase in foreclosure sales, which contributed 37.6 percent of total sales, around 7 percent rise compared to last January. In all, there were 56 foreclosure sales this January compared to 36 exactly a year ago.

Nondistressed sales also rose by 20 percent contrary to trends throughout the Placer County. Forty-eight Roseville homes were sold in January 2011, eight more than last January. Availability of home buyers and big investors drove nondistressed sales by 20 percent. This segment had around 32 percent share in total sales, just 1.7 percent decline compared to late January.

The rising prices also impact short sales, which had 30 percent of the market share in January sales. The total short sales rose to 45 compared 42 last January, a modest hike of 7 percent.

Sale of Bigger Homes Led Price Rise

Roseville real estate market in January 2011 saw a surge in over all prices after a disappointing year end. The median sales price that slumped by 12 percent in December bounced back in the new year to register 5.2 percent growth. This January median sales price ended at $251,000, around $9,750 more than December figures. It was $238,500 last January.

The average list price went up 5.4 percent, from $263,274 last January to $277,468 this January. Similarly, the average sale price hovered around $272,264 registering 4.8 percent growth compared to January 2010.

The preference for bigger houses and large number of foreclosure sales affected the per-square-foot price that took 6.6 percent beating. It came down from $139.00 last January to $129.89 this January. However, the decline created a more favorable atmosphere for sales. It attracted large number of buyers and sale of bigger homes. The average size of homes was up by 12.2 percent in January 2011, one of the biggest in recent months.

Inventory Status

The average inventory status for all sales is around 3 months in the past 12 months. While foreclosure sales had around half-month average, the nondistressed sales stayed in the inventory for less than two months.

Market report for Roseville for January, 2011

The following are the statistics of Roseville real estate market in January 2011.

Unit Volume Data

Units Sold January, 2010 January, 2011 Change
Foreclosures Sold 36 56 55.6%
(% of total units) 30.5% 37.6%
Short Sales Sold 42 45 7.1%
(% of total units) 35.6% 30.2%
Non-distressed Sold 40 48 20.0%
(% of total units) 33.9% 32.2%
Total 118 149 26.3%

Price Data

Prices January, 2010 January, 2011 Change
Sold Price / Square Foot $139.00 $129.89 -6.6%
Square Feet 1868 2096 12.2%
Average List Price $263,274 $277,468 5.4%
Average Sale Price $259,780 $272,264 4.8%
Median Sale Price $238,500 $251,000 5.2%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 155 457 2.9
Foreclosures 45 28 0.6
Short Sales 42 315 7.4
Nondistressed 67 114 1.7

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 150 457 3.0
Foreclosures 44 28 0.6
Short Sales 41 315 7.5
Nondistressed 64 114 1.8

Placer County Real Estate Market Updates, January 2011

Not much enthusiasm was visible in Placer County real estate market this January. The volume of sales increased marginally over the last January figures, but the prices witnessed a double digit slump. While foreclosure sales were up, short and nondistressed sales went down due to lower prices. The Placer County real estate trends are almost similar to its bigger neighbor, the Sacramento County.

Moderate Rise in Volume

Sales volume continues to exhibit an upward trend in the Placer County. It touched 336 units this January, 16 units more compared to last January. The five-percent hike was on the table due to a huge increase in foreclosure sales. In January 2011, foreclosure sales were recorded at 139 units. It was just 104 units a year ago. This immense rise of 33.7 percent was enough to cover the slide in other segments.

The nondistressed sales, the second highest category, were down this January. The segment recorded sales of 102 units in January 2011, a fall from 111 units last January. Lack of big buyers may be reason for this 8.1 percent fall in this category. In tandem with nondistressed sales, short sales also went down by 9.5 percent, when this January sales are compared with figures exactly a year ago. There were 105 short sales last January, 10 units more than this January.

The share of foreclosure sales are up from 32.5 percent last January to 41.4 percent in January 2011. The nondistressed sales are second with 30.4 percent share in sales, down by 4.3 percent compared to last January. The market share of short sales slumped by 2.5 percent, from 32.8 percent in January 2010.

Slump in Prices Noticeable

The drop in prices of real estate in Placer County in January is not surprising seeing the economic conditions, growing foreclosure sales, and last month’s trends. However, the price drop this January is noticeable. The average price of a square foot sold was $144.56 in January 2010. This came down to $132.33 in January 2011. The overall change is 8.5 percent negative this year. Despite the less price of per square foot, there was about 1.4 percent decline in the average size of homes, from 2,214 sq ft last January to 2,184 sq ft this time. This may be due to preponderance of small home buyers in Placer County real estate market.

The average list price also came down to $295,333, registering a loss of 11.4 percent. You can also notice around 10-percent slide in average sale price, from $320,127 in January 2010 to $289,066 this January. The median sales price took a hit of 7.6 percent and remained around $244,950, dropping $20,050 compared to last January.

Inventory Status

As expected foreclosure sales have lowest inventory status at 0.9 months while a short sale stays in the inventory for 7.6 months, as seen in the past 12 months.

Market report for Placer County for January, 2011

The following data indicate position of Placer County real estate market in January 2011.

Unit Volume Data

Units Sold January, 2010 January, 2011 Change
Foreclosures Sold 104 139 33.7%
(% of total units) 32.5% 41.4%  
Short Sales Sold 105 95 -9.5%
(% of total units) 32.8% 28.3%  
Non-distressed Sold 111 102 -8.1%
(% of total units) 34.7% 30.4%  
Total 320 336 5.0%

Price Data

Prices January, 2010 January, 2011 Change
Sold Price / Square Foot $144.56 $132.33 -8.5%
Square Feet 2214 2184 -1.4%
Average List Price $333,496 $295,333 -11.4%
Average Sale Price $320,127 $289,066 -9.7%
Median Sale Price $265000 $244950 -7.6%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 409 1,478 3.6
Foreclosures 121 113 0.9
Short Sales 110 838 7.6
Nondistressed 177 529 3.0

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 400 1,478 3.7
Foreclosures 120 113 0.9
Short Sales 109 838 7.7
Nondistressed 171 529 3.1

A Sacramento Agent Owned Real Estate Company

I admit it — I need professional help.

No, not that kind, though there’s a case to be made for that too.

What I need are several highly professional agents.  I have an immediate need for agents and brokers in this area who want to help me service existing customers, some of whom we’re having to turn away for lack of agents.   I also have a longer term need to grow the company outside of greater Sacramento.

With this in mind, I have taken the first steps in transforming the company into a fully agent owned real estate company.  I’m still working out the details, but for those of you who want to see my evolving thinking on the subject, I invite you to visit our new, recruiting-focused company website and blog, LockwoodRealEstate.net.

In broad outlines, some of what I envision are:

  • A capped and published salary for the officers (actually so far that’s “officer” — me, but I envision two at year’s end), with a very small profit residual beyond that and the rest of the after-expenses company dollar devoted to Internet marketing on behalf of my agents and the profit share pool.
  • A capped commission structure enabling agents to earn 100% of their commission once they reach a certain level of company dollars paid each year.
  • The most generous profit-sharing program in the industry, one that is based not only on recruiting new agents into the company, but also on individual achievement.
  • Having a portion of the company dollar earned by agents you recruit apply to your own commission cap — i.e., you’ll get to the 100% commission level sooner in the year if you help us attract talented agents.

Please contact me (John Lockwood) directly would like to learn more.

Sacramento County Real Estate Market Update, January, 2011

Opportunity for Home Buyers

Sacramento County real estate market in January 2011 registered growth in sales primarily caused by foreclosures. This growth in sales indicates investor buyers and home owners continue to prefer the Sacramento County real estate. The drop in price also offered a good opportunity to home buyers to go for shopping. Low price of units helped many to found bigger houses within their budget, and this led to an increase in average size of units sold.

Foreclosure Sales Push Up Volume

Sacramento real estate market statistics show 1,343 units were sold in January 2011. This is a big increase compared to conditions a year ago. There were 1,176 units changed hands in January 2010. This 14.2 percent rise is attributed to huge increase in foreclosure sales this January. There were 643 foreclosure sales last month, 130 units more than the last January figures. This 25.3 percent hike in foreclosure sales gives this segment 47.9 percent of total sales volume this January. A year before, foreclosure sales were 43.6 percent of total sales.

Short sales also witnessed growth this January and around a quarter of total sales are from this segment. They went up by 17.8 percent compared to the figures of January last year. There were 337 short sales this January compared to 286 units in January 2010.

Nondistressed sales this January stands at 363 units. This was 14 units less than January 2010 figures. As the price of real estate in Sacramento County continue to remain less than the last year, the decrease in nondistressed sales is understandable. Despite registering 3.2 percent drop in sales, this segment with 27 percent share in total sales in January 2011 stands at second position after foreclosure sales. Nondistressed sales had 32.1 percent share in total sales a year ago.

Moderate Decrease in Price

The increase in foreclosure sales and absence of large number of buyers caused decline of prices in Sacramento real estate market compared to last January. In January 2011, the average price of one square foot was $110.92. This is about 6.8 percent less compared to the $118.99 average per square foot price in January 2010. The drop in average square foot price was big attraction for home buyers. It gave them an opportunity to save money on their purchases. Some home buyer went for bigger homes within their budget. The average size of homes, as a result, went up 2 percent, from 1,612 sq ft in January 2010 to 1,644 sq ft this January.

The average sale price crashed down by $9,447 in a year, from $191,806 last January to $186,353 in January this year. This 4.9 percent deep this year has its impact on the average list price, which shaded $7,002 compared to last January. In January 2011, the average list price was $186,353 compared to $191,806 a year ago. The median sales price took a 3.9 percent beating. It dropped down to $160,000 in January 2011 from $166,500 exactly a year ago. This sharp fall in Sacramento real estate market is due to decrease in prices and simultaneous rise in number of sales.

Inventory Status

The average inventory status for short sales in the past one year was 10.7 months. The inventory status for foreclosures sales was the lowest at 2.1 months. In the past six months, there was slight fall in monthly average sales all segments.

Market Statistics for Sacramento County for January, 2011

The following figures show changes in Sacramento county real estate market in January 2011.

Unit Volume Data

Units Sold January, 2010 January, 2011 Change
Foreclosures Sold 513 643 25.3%
(% of total units) 43.6% 47.9%  
Short Sales Sold 286 337 17.8%
(% of total units) 24.3% 25.1%  
Nondistressed Sold 377 363 -3.7%
(% of total units) 32.1% 27.0%  
Total 1,176 1,343 14.2%

Price Data

Prices January, 2010 January, 2011 Change
Sold Price / Square Foot $118.99 $110.92 -6.8%
Square Feet 1,612 1,644 2.0%
Average List Price $193,355 $186,353 -3.6%
Average Sale Price $191,806 $182,359 -4.9%
Median Sale Price $166,500 $160,000 -3.9%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1,544 7,232 4.7
Foreclosures 631 1,320 2.1
Short Sales 371 3,960 10.7
Nondistressed 544 1,958 3.6

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1476 7,232 4.9
Foreclosures 626 1,320 2.1
Short Sales 356 3,960 11.1
Nondistressed 496 1,958 3.9

What’s Important?

I’ve been challenged quite a bit lately by my marketing consultant to think about what it is that my business is all about.

(I have a marketing consultant?  Holy cow.)

The simple answer is that we buy and sell houses, but there are a lot of people doing that.  And of course, it’s a marketing consultant’s job to try to figure out how you’re different from other people who are doing the same thing you’re doing.  So, wanting to get the most out of this experience of being marketing consulted, I started to make a list of some of the ways I think I’m faster than a speeding bullet and more powerful than a locomotive.  In other words, I started thinking about what’s important to my customers, and to me.  What kind of person am I?  Where do I want the business to go?  That sort of heady stuff.

The profitable (sometimes painful) lesson I am getting from this exercise is this:

  • Every success I’ve had in the real estate business came from doing something that was important to the customer, and / or communicating that that’s what I’d do.
  • Many of the failures I’ve had in the real estate business came from talking about something that I thought would be important to a customer and either:  A) not presenting it well or B) not being correct that it’s important to the customer.

Now once you get to that point, it naturally follows that you should:

  • Start figuring out what you’ve done right and what you’ve done wrong in terms of meeting customer needs.
  • Start asking your customers what they liked about what you did, and what you could do better.

The second point requires a bit more work on my part, though if you’re a customer or potential customer and would like to add a comment letting us know what works or what needs improvement, that’s always welcome.

Regarding what’s turned out to be important and what’s turned out not to be, read on.

OK Then, So What’s Important?

Looking back on the last 8 1/2 years in this business (holy cow, 8 1/2 years, time flies when you’re having fun), my customers have generally praised a few key things about me and my agents:

  • The web site is easy to use, especially to search for homes.  (I suspect a part of this praise is that we don’t require you to sign up for search – it’s just free for the taking).
  • We either answered the phone when they called or returned their call or email promptly.
  • When we were showing them houses:
  • We showed them whatever they wanted to see, and were patient with them.
  • We gave them good information and opinions about what they were seeing, without pushing them in one direction or the other.

My goal of course as a businessman is to make sure we do more of what’s important going forward and continue to play to our strengths of:

  • Openly sharing what we know and the data we have access to online.
  • Being genuinely of service to the many people who do honor us with their business once they’ve met us here.

This means doing a better job with the people we have, and getting more outstanding agents to help.

Placerville Real Estate Market Update, December, 2010

One of the finest places to purchase a home in California, Placerville is the seat of El Dorado County. The amenities and peaceful ambience is an attraction to many seeking a perfect postretirement life. Placerville real estate market in December registered a huge increase in sales thanks to its equally appealing family-friendly environment. However, there is marginal decline on the price front.

Unit Sales Surge

The growth in volume of sales makes Placerville real estate market to stand at equal footing with Orangevale in the neighboring Sacramento County. It registered a hike of 58.8 percent, the highest in the area. There were 27 recorded sales in December 2010 compared to 17 a year ago. About 40 percent of sales are from the nondistressed category, which went up by 83.3 percent. There were only six nondistressed sales last December. It zoomed to 11 units this December. Foreclosure sales, the second highest category went up by 50 percent this time. Short sales also increased by 40 percent, from 5 units last December to 7 units this December.

Moderate Drop in Prices                                             

Like most parts of El Dorado County and the neighborhood, prices of real estate in Placerville also dropped marginally. The average square foot price was down by 5.4 percent, to $132.92 this December from $140.49 a year ago. This facilitated people to buy bigger homes. There is 4.3 percent rise in average size of houses sold in December 2010.

The changes in average listing and sale prices of Placerville real estate market are insignificant. The average list price is down by only 0.5 percent. The change in the average sale price is 1.3 percent in the favor of last December. However, the median sales price took a 12.2 percent beating, from $222,000 in December 2009 to $195,000 in December 2010, caused by decrease in the price of per square foot area.

Inventory Status

The inventory has 249 active homes, and more than half of these are under the nondistressed category. Nondistressed sales in Placerville real estate market had 11 months average inventory stay in the past one year. But it comes down to 9.7 months when the figures of the past six months are considered.

Market Report for Placerville for December, 2010

The following tables show overall statistics of Placerville real estate market in December months of 2009 and 2010.

Unit Volume Data                                   

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 6 9 50.0%
(% of total units) 35.3% 33.3%  
Short Sales Sold 5 7 40.0%
(% of total units) 29.4% 25.9%  
Nondistressed Sold 6 11 83.3%
(% of total units) 35.3% 40.7%  
Total 17 27 58.8%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $140.49 $132.92 -5.4%
Square Feet 1,669 1,742 4.3%
Average List Price $242,282 $241,184 -0.5%
Average Sale Price $234,553 $231,546 -1.3%
Median Sale Price $222,000 $195,000 -12.2%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 32 249 7.7
Foreclosures 13 33 2.4
Short Sales 5 69 13.1
Nondistressed 13 147 11.0

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 30 249 8.1
Foreclosures 10 33 3.2
Short Sales 5 69 12.9
Nondistressed 15 147 9.7

 

Orangevale Real Estate Market Update, December, 2010

Large-scale increase in sales dominated Orangevale real estate market in December 2010. Like most of its neighborhood, the price of real estate has also gone down in Orangevale compared to figures a year ago. However, the changes are among the most noticeable in the area and indicate predominance of small time investors in home shopping.

Robust Growth in Volume

Orangevale real estate sales touched new heights in December 2010. The number of units sold went up considerably. There is 58.3 percent growth in the sales volume, which is the highest in the Sacramento area. In December 2010, there were 38 sales of houses recorded in Orangevale compared to 24 during the same time last year. About 47 percent of total sales were from the foreclosure segment alone, whereas short sales and nondistressed sales constituted the rest.

Foreclosure sales in Orangevale real estate market saw 63.6 percent hike in December 2010. It improved from the December 2009 tally of 11 units and recorded 18 such sales. The short sales segment also went up considerably registering 125 percent growth, from 4 units last December to 9 units this time. Nondistressed sales also went up by 22.2 percent compared to the figures exactly a year ago.

Sharp Fall in Prices

Price of real estate in Orangevale in December 2010 remained low compared to the market trends a year ago. The price of per square foot sold plummeted by 19 percent. This sharp fall was triggered by sudden rise in foreclosure and short sales. According to recent statistics, the average size of homes in Orangevale has dropped nominally, by 0.2 percent compared to December 2009 data.

The changes are also noticeable in the average price figures. In December 2009, the average list price was $263,190. But a year after, it stands at $217,380, and there is 17.4 percent decline. The average listing price also slipped to $208,872, registering 19.2 percent loss. The decline in the price and size of homes plunged median sales price to $190,000, which is 9.3 percent less than the median sales price in December 2009.

Inventory Status

Short sales have inventory period of 12.4 months when calculated on the basis sales in last one year. This drops to 11.9 months in the last six months. The all sales figures show inventory status of 5.3 months on yearly basis and 5.4 months based on sales of the past six months.

Market Report for Orangevale for December, 2010

The following data shows figures indicating changes in Orangevale real estate market.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 11 18 63.6%
(% of total units) 45.8% 47.4%  
Short Sales Sold 4 9 125.0%
(% of total units) 16.7% 23.7%  
Non-distressed Sold 9 11 22.2%
(% of total units) 37.5% 28.9%  
Total 24 38 58.3%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $148.06 $119.90 -19.0%
Square Feet 1,745 1,742 -0.2%
Average List Price $263,190 $217,380 -17.4%
Average Sale Price $258,453 $208,872 -19.2%
Median Sale Price $209,500 $190,000 -9.3%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 33 178 5.3
Foreclosures 12 21 1.7
Short Sales 7 97 12.4
Nondistressed 13 60 4.4

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 33 178 5.4
Foreclosures 11 21 1.8
Short Sales 8 97 11.9
Nondistressed 13 60 4.4

Franklin and Freeport Real Estate Market in December, 2010

Located in the Southwestern part of Sacramento County, Franklin and Freeport real estate market offers one of the cheapest options in the area. In contrast to the plush and glossy East Sacramento, real estate in Franklin and Freeport offers everyone a chance to own his home in the area. Not only the prices, but also the size of homes in the area suits the budget of every one. It is largely inhabited by migrants and working people. Franklin and Freeport real estate market update in December 2010 shows a noticeable slump both in volume and prices compared to the conditions a year ago.

Decline in Sales Volume

There is noticeable decline in number of sales in Franklin and Freeport real estate market. The sales have gone down by 12 percent, and there were only 146 units sold this December, compared to 166 units sold last December. Except foreclosure sales, there is remarkable decline in all segments. Foreclosure sales, 88 units this time, went up by 23.9 percent over the figures of last December. It also constitutes around 60 percent of total sales.

There is a huge fall in nondistressed sales this December. The figure stands at only 35 units, compared to 66 a year ago. This 47-percent slump is largely due to economic slowdown and reluctance of people to go for new homes. Short sales also went down by 20.7 percent compared to last December.

Fall in Prices

Franklin and Freeport real estate prices fall considerably in December 2010. Declining sales, lack of investment, and large number of foreclosures have their impact on average square foot price. It plummeted by 13.2 percent, from $99.13 a year ago to $86.07 this December. However, the loss in the price of per square foot enabled new buyers to shop bigger homes. The average size of homes witnessed a noticeable 6 percent increase this time.

The fall in prices led to declining average sale and list prices. There is 3.6 percent decline in the average list price of Franklin and Freeport real estate. The average sales price comes down from $131,595 in December 2009 to $121,151 in December 2010, registering an effective fall of 7.9 percent. Low price of homes and fall in the price of per square foot caused 8.2 percent slide in the median sale price. This slump is one of the highest in the Sacramento County.

Inventory Status

Declining volume and price have increased the inventory for all from 3.5 months based on the last year data to 3.8 months based on sales in the past six months. Inventory for short sales remains highest and is gone up by one percent in the past six months.

Market Report for Franklin and Freeport for December, 2010

The following figures show condition of Franklin and Freeport real estate market in December 2010 and its comparison with situation a year ago.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 71 88 23.9%
(% of total units) 42.8% 60.3%  
Short Sales Sold 29 23 -20.7%
(% of total units) 17.5% 15.8%  
Nondistressed Sold 66 35 -47.0%
(% of total units) 39.8% 24.0%  
Total 166 146 -12.0%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $99.13 $86.07 -13.2%
Square Feet 1,327 1,407 6.0%
Average List Price $130,297 $125,657 -3.6%
Average Sale Price $131,595 $121,151 -7.9%
Median Sale Price $124,750 $114,500 -8.2%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 142 496 3.5
Foreclosures 62 101 1.6
Short Sales 28 278 9.8
Nondistressed 51 118 2.3

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 130 496 3.8
Foreclosures 59 101 1.7
Short Sales 25 278 10.8
Nondistressed 44 118 2.6

East Sacramento Real Estate Market Update, December 2010

Are good days back? The analysis of East Sacramento real estate market in December, 2010 shows that the area defies the odds that pin down market trends in other parts of the Sacramento County and the neighboring places. Home buyers are more interested to invest in East Sacramento real estate, and this is visible in the overall growth of sales and prices. The area continues to attract investors for it location and other amenities. All areas of East Sacramento, including McKinley Park and the Fabulous Forties neighborhood, continue to attract home buyers and big investors. East Sacramento real estate market grew firmly in December 2010, and the price of units also registered highest growth rate in the area.

Highest Increase in Volume

East Sacramento real estate market registered highest growth rate in the area this December. As usual the home buyers continue to consider it their prime shopping destination. The affluent neighborhoods of the area saw a sharp hike of 34.6 percent in volume sales compared to December 2009. Total sales this December were 35 units, 9 more than last December. Around 75 percent of total volume came from nondistressed sales. There were 26 such sales this December, and this is 85.7 percent increase over figures of last December. Short sales remain at what they were a year before. A noticeable factor is 37.5 percent fall in foreclosures, which come to have only 14.3 percent share of total market sales from 30 percent a year ago. The arrest of economic slide and affluent condition of people owning real estate in East Sacramento have influenced decline in foreclosures.

Demand Shores Up Prices

Unlike other parts of the area, East Sacramento real estate market in December 2010 saw a positive trend on the price front. The average price of a square foot has move upward by 4.8 percent. In December 2009, it was at $201.62, and now it stands at $210.21. This hike makes East Sacramento real estate market different from other areas in the neighborhood. It also indicates the demand for real estate in East Sacramento and the area as the first preference of home buyers. This leads to increase in both average sales and list prices by over 30 percent, compared to last December.

The average size of East Sacramento real estate units went up by 25.5 percent. This shows buyers are leaving no option in the locality. The growth in size and volume has also impacted the median sale price, which went up by 6.5 percent. In December 2010, it was at $255,000 compared to $239,500 a year ago. The inventory data continue to remain static, except that the status of short sales has gone up in the past six months by 3.5 months.

East Sacramento Real Estate Market Statistics for December, 2010

The following is the statistical analysis of East Sacramento real estate market in December 2010.

Unit Volume Data            

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 8 5 -37.5%
(% of total units) 30.8% 14.3%  
Short Sales Sold 4 4 0.0%
(% of total units) 15.4% 11.4%  
Nondistressed Sold 14 26 85.7%
(% of total units) 53.8% 74.3%  
Total 26 35 34.6%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $201.62 $211.21 4.8%
Square Feet 1,087 1,365 25.5%
Average List Price $223,927 $295,615 32.0%
Average Sale Price $219,298 $288,361 31.5%
Median Sale Price $239,500 $255,000 6.5%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 31 184 5.9
Foreclosures 7 24 3.1
Short Sales 3 58 17.0
Nondistressed 20 103 5.2

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 30 184 6.0
Foreclosures 7 24 3.3
Short Sales 2 58 20.5
Nondistressed 20 103 5.0

Roseville Real Estate Market Update, December, 2010

The rising sales in December 2010 signal the return of investors and home buyers and an end to the slide in the real estate caused by economic downturn. Thriving economy, job options, shopping avenues, and the family friendly ambience make many to choose the Roseville City as their home. Besides, the location, communication facilities, civic amenities, and economic development in and around the area drive investment in Roseville real estate market. Proximity to Sacramento and Folsom also adds to it’s the rising profile of Roseville real estate.

Increase in Unit Sales

There has been double digit volume growth in Roseville real estate market in December 2010. Total sales stand at 160 units, 26-percent increase over December 2009 sales. This hike in volume can be seen in the light of rise in investments and the economic regeneration. Foreclosure sales in Roseville real estate market in December 2010 went up by 42.5 percent compared to the figures a year ago. This is around 35 percent of total sales. The share of nondistressed sales continues to be the highest, and there is 17 percent growth in this segment compared to last December. But the sharp rise in foreclosure sales has brought down market share of nondistressed sales from 46.5 percent last December to 43.1 percent this December. There were 34 short sales in December 2010. This is 21.4-percent hike compared to last December.

Decrease in Prices

Growing foreclosures and short sales had subdued the unit prices to some extent. Again the preference of buyers for small houses had pushed average prices down ward. The figures indicate 4.9 percent slump in the price of per square foot. The average size of houses has fallen by 1.9 percent. This is primarily caused by outsiders looking for smaller homes in the area.

The fall in average median price of Roseville City real estate market is one of the highest in the region. In December 2010, it stood at $241,250 compared to $275,500 a year ago. This 12.4 percent slump is caused by rising sales and drop in per square feet rates and size of units. The average list and sale prices were also down by 6.3 and 6.8 percents respectively.

Inventory Status Stable

There is no significant change in the inventory status. Short sales go through 10.7 months inventory stay. There are 756 units are waiting for buyers, and the inventory data indicates 152 units are sold on an average every month. Out of this, the average of nondistressed sales is the highest followed by foreclosure sales.

Market Report for Roseville for December, 2010

The following data shows Roseville real estate market figures in December 2010 and December 2009.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 40 57 42.5%
(% of total units) 31.5% 35.6%  
Short Sales Sold 28 34 21.4%
(% of total units) 22.0% 21.2%  
Non-distressed Sold 59 69 16.9%
(% of total units) 46.5% 43.1%  
Total 127 160 26.0%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $139.11 $132.24 -4.9%
Square Feet 2,053 2,013 -1.9%
Average List Price $294,082 $275,492 -6.3%
Average Sale Price $285,705 $266,324 -6.8%
Median Sale Price $275,500 $241,250 -12.4%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 152 756 4.9
Foreclosures 44 92 2.1
Short Sales 42 454 10.7
Nondistressed 66 210 3.2

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 150 756 5.0
Foreclosures 40 92 2.3
Short Sales 42 454 10.6
Nondistressed 67 210 3.1

Folsom Real Estate Market Update, December, 2010

Owning real estate in Folsom is a dream for many. This affluent city of Sacramento County is considered one of the best places to live in California. One of the densely populated urban areas in the state, Folsom real estate market saw great heights in 2004, primarily driven by the surge in number of migrants and investment by big spenders. However, Folsom real estate market in December 2010 witnessed a sharp decline in the volume of sales compared to the figures of December 2009. The average price has also gone down. But a sharp fall in nondistressed sales has led to small hikes in both average list and sale prices in the Folsom City real estate market.

Sales Plunge

In December 2010, there were only 66 Folsom City real estate sales. This was 77 exactly a year ago. The decline is of 14.3 percent and largely attributed to fall in nondistressed sales. There were only 29 nondistressed sales this December, which is just one-third of the total such sales last December. This huge decrease of 23.7 percent is largely attributed to the unwillingness of people to sell their existing homes and go for new ones. The short sales had also hit a plateau. There were 18 short sales this time, and exactly the same numbers of such sales were recorded in December 2009. In tune with other segments, foreclosure sales this December also came down by 9.5 percent.

Price Changes Moderate

The price of units in Folsom real estate market did not see any major upheaval in December 2010. However, there was slight change in unit price compared to December 2009. The per-square foot price was down by 2.2 percent to $161.31. This stood at $164.91 exactly a year ago. The lesser per-square foot price had its positive effect on sales of bigger houses. The average size of units went up by 3.4 percent. This is one of the highest per-unit size increases in the Sacramento County.

Decrease in volume caused a positive move in the average list and sale prices. These were up by 1.3 and 1.1 percents compared to December 2009. This is a small but attractive sign for buyers looking to invest in Folsom real estate. The decrease in per-square foot price and increase in average unit size caused 8.8 percent crash in the median sale price. Also lesser volume sales had an impact on it.

Inventory Status for Six Months Up

The December figures indicate an upward movement in the inventory status. Both short and nondistressed sales had risen by 1 percents. Short sales had 13.9 months of inventory status in the past six months.

Market report for Folsom for December, 2010

The following figures indicate the latest Folsom City real estate market update.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 21 19 -9.5%
(% of total units) 27.3% 28.8%
Short Sales Sold 18 18 0.0%
(% of total units) 23.4% 27.3%
Nondistressed Sold 38 29 -23.7%
(% of total units) 49.4% 43.9%
Total 77 66 -14.3%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $164.91 $161.31 -2.2%
Square Feet 2,122 2,194 3.4%
Average List Price $356,424 $361,178 1.3%
Average Sale Price $350,048 $353,941 1.1%
Median Sale Price $348,000 $317,500 -8.8%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 61 368 6.0
Foreclosures 15 41 2.7
Short Sales 14 183 12.8
Nondistressed 32 144 4.5

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 55 368 6.6
Foreclosures 16 41 2.6
Short Sales 13 183 13.9
Nondistressed 26 144 5.4

Sacramento Real Estate Market Update, December, 2010

Sacramento real estate market update in December, 2010 shows an increase in the sales volume and a moderate fall in prices compared to the same period last year. This principal city of the Sacramento County has the highest number of real estate sales and purchases in the area. Job changes and migration are viewed as possible factors causing the increase in volume sales. However, the year-end trends do not show unexpected growth, and there is no boom in Sacramento real estate market to show compared to the market conditions exactly a year ago in this posh settlement. The sales of real estate in Sacramento City were mostly through the efforts of agents and participation of investor buyers, and foreclosure sales continued to hold the limelight in December, 2010.

Number of Units Up

Continuing the trends from neighboring Placer and El Dorado Counties, the Sacramento real estate market also witnessed considerable increase in the sale of total units. There were 2,257 units sold in December, 2010. This constitutes a healthy jump of over 10 percent compared to the situation a year ago. This growth is largely attributed to foreclosures sold, which constitute around 41.6 percent of total volume this time compared to 39 percent last December. The total sale in December 2009 was 2,035 units. Out of this, 796 were from foreclosure sales. However, a year after, foreclosure sales had gone up by 18.1 percent to 940 units.

The statistics of December, 2010 shows growth registered in all segments. There was moderate hike in both short sales and nondistressed sales, and their market shares in total volume continue to remain without any significant change. Short sales went up by 7.1 percent in December 2010 compared to the data of December 2009. This is 5.8 percent for nondistressed sales.

Price of Units Down

The price of real estate in Sacramento and its neighborhood is yet to regain the level achieved last December. The economic trends are encouraging across the nation, and this has stopped real estate prices from nose driving. But Sacramento real estate market prices in December 2010 were less than prices exactly a year ago. There was 5.9-percent fall in the per-square foot selling price due to double digit growth in foreclosure sales. It had come down to $122.07 in December 2010 from $129.69 in December 2009. This resulted in increase in average size of homes by 1.2 percent.

The hike in the average size of units sold has moderated the average listing and sales prices despite diving per-square foot prices. The average list price is down by 3.6 percent compared to last December. For average sale price, it is 4.8 percent in negative. Again foreclosure sales by institutions kept average sales price low compared to last December. This negative trend in Sacramento City real estate market in December had also its impact on the average median price, which came down to $192,000 in December 2010, about 4.5 percent fall in prices in December 2009.

The price decrease compared to December last also had its effect on the inventory status in all segments. While foreclosure sales have shortest inventory status, short sales remained for an average of 11.6 months before being sold.

Market Report for Sacramento for December, 2010

The following is the bare analysis of Sacramento City real estate market in December.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 796 940 18.1%
(% of total units) 39.1% 41.6%
Short Sales Sold 495 530 7.1%
(% of total units) 24.3% 23.5%
Nondistressed Sold 744 787 5.8%
(% of total units) 36.6% 34.9%
Total 2,035 2,257 10.9%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $129.69 $122.07 -5.9%
Square Feet 1,803 1,824 1.2%
Average List Price $237,025 $228,598 -3.6%
Average Sale Price $233,874 $222,763 -4.8%
Median Sale Price $201,000 $192,000 -4.5%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 2,105 11,305 5.4
Foreclosures 796 1,920 2.4
Short Sales 514 5,775 11.2
Nondistressed 798 3,624 4.5

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 2,045 11,305 5.5
Foreclosures 775 1,920 2.5
Short Sales 496 5,775 11.6
Nondistressed 776 3,624 4.7

El Dorado County Real Estate Market Update, December, 2010

El Dorado County real estate market update in December 2010 shows optimism among the home buyers. Contrary to the sluggish unit sales in the Sacramento County, El Dorado real estate sales continue to grow at a higher rate, and there is a decent rise in unit sales. Similarly, negating the less-expensive home buying trend in the Placer County, data of El Dorado real estate market in December shows an increase in the average sizes of homes sold. Though the short sales continue to drive the market, the nondistressed sales remain the highest in number. The trend is pointing toward growing number of investor buyers and people looking for bigger homes considering real estate in El Dorado County a good option.

Visible Rise in Unit Volumes Across All Segments

Compared to December 2009, there is visible increase in units sold in December 2010. The number of houses sold in El Dorado County has increased by 19.7 percent compared to the statistics a year ago. The total number of units sold this December stands at 164, a jump of 27 units than December last. The short sales have gone up by a whopping 40 percent and claimed 27.4 percent of total sales in December 2010, around 4 percent increase than last December. This time 44 units are sold under this category compared to 32 in December 2009. The foreclosure sales also increased by 15.9 percent, 51 units in December 2010 compared to 44 units a year ago. It occupies 31.1 percent of total units sold.

Nondistressed sales continue to be the single largest category, though its share in overall sales has come down by 3 percent, from 44.5 percent a year ago to 41.5 percent now. The total units sold under this category in December 2010 stands at 68, about 11.5 percent hike than the sales in previous December.

Average Median Price Up Despite Decline in Prices

The prices of units has declined in December 2010 compared the prices a year ago, as there is increase in the volume of short sales of real estate in El Dorado County. The decrease in the price of per square foot is 9.5 percent. Last December one square foot was sold at $151.95, which came down to $137.56 this December. The average list price has also shaded $5.7 percent. It was $350,363 in December 2009, which came down to $330,411 exactly a year after. Similarly, there is a decrease of 5.3 percent in the average sale price.

The 9.5-percent decrease in the price of per square foot has positive impact on the sale of bigger houses. You can see a moderate increase in the average size of units sold. The average home size in December 2009 was 2,216 sq ft. There is 4.6 percent increase in December 2010, and it now stands at 2,329 sq ft, an addition of 103 sq ft. The sale of bigger houses has also hiked the average sale price of units. The average unit price is up from $282,000 in December 2009 to $282, 500 in December 2010.

Inventory Status: Highest for Short Sales

In the past six months, short sales continue to have the highest inventory status of 11.5 months. The foreclosure sales are much more rapid, and their inventory status has marginally decreased. The inventory status of nondistressed sales also has declined slightly, as indicated by the data of past six months.

Market report for El Dorado County for December, 2010

The following table provides a quick review of statistical comparison of December 2010 with the same time a year ago.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 44 51 15.9%
(% of total units) 32.1% 31.1%  
Short Sales Sold 32 45 40.6%
(% of total units) 23.4% 27.4%  
Nondistressed Sold 61 68 11.5%
(% of total units) 44.5% 41.5%  
Total 137 164 19.7%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $151.95 $137.56 -9.5%
Square Feet 2216 2319 4.6%
Average List Price $350,363 $330,411 -5.7%
Average Sale Price $336,868 $319,060 -5.3%
Median Sale Price $282000 $282500 0.2%

 

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 167 1186 7.1
Foreclosures 57 180 3.1
Short Sales 35 392 10.9
Nondistressed 73 616 8.3

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 164 1186 7.2
Foreclosures 53 180 3.4
Short Sales 34 392 11.5
Nondistressed 77 616 8.0

Placer County Real Estate Market Update, December, 2010

Positive Trends for Investor Buyers

Continue to ride on the improved economic trends, the Placer County real estate market update in December 2010 indicates something in the offing for investor buyers. The sizeable increase in the volume compared to the situation a year ago, caused by increase in distressed sales, offers a good chance to those looking for less expensive homes. Though prices of units are moderately down compared to the trends of December 2009, the price slide witnessed in November 2010 has stopped and the unit prices are stabilized to some extent. The encouraging news is that Placer County real estate median prices in December 2010 saw only 5.1 percent slide compared to December 2009, whereas it was 14 percent when comparing November months of 2009 and 2010. Placer County real estate market developments also negate the pessimistic and slow growth inhibiting of the nearby Sacramento County.

Surge in Units Sold

Feeble growth in sales in Sacramento has no effect on the Placer County real estate market in December 2010. There has been a big surge in volumes sold. The total number of units sold in December 2010 stands at 449 compared to 350 units sold during the same month in 2009. The increase is a big boost to the market. This 28.3 percent hike in sales statistics is aided by the growth across all segments.

Foreclosure sales have jumped from 118 to 150. This amounts to 27.1 percent rise compared to December 2009. Short sales have witnesses a whopping 35 percent increase, from 84 in December 2009 to 114 during the same month in 2010. The nondistressed sales have also gone up by 25 percent. The shares of different segments almost remain unchanged. This increase also exhibits a healthy growth compared to the real estate market updates in November 2010, as there is a 14-percent growth in sales.

Prices Down Moderately

Placer County real estate prices in December 2010 have fallen back moderately compared to the unit prices a year ago. The sold price of one square foot has come down to $136.52 from $143.81 in December 2009. This $7.29 or 5.1 percent change has not much effect on the average size of homes. There is only 0.2 percent increase in the average unit size. The average list and sale prices are also down due to the decrease in price of per square foot. However, the changes are moderate and figures remain between 4.5 and 5 percent. The decrease in median price is also about 5.3 percent, from $266,500 in December 2009 to $252,500 in December 2010.

Despite the prices are down, there is some encouraging statistics to see. The November 2010 market update showed a considerable beating in prices compared to the same time in 2009. There was above 10 percent decline in average list, sale, and median prices. However, December 2010 statistics compared with the data a year ago shows that the decline this time is around 5 percent.

Market report for Placer County for December, 2010

The following data shows a statistical comparison between Placer County real estate market in December 2010 and around the same time in 2009.

Unit Volume Data

Units Sold December, 2009 December, 2010 Change
Foreclosures Sold 118 150 27.1%
(% of total units) 33.7% 33.4%  
Short Sales Sold 84 114 35.7%
(% of total units) 24.0% 25.4%  
Nondistressed Sold 148 185 25.0%
(% of total units) 42.3% 41.2%  
Total 350 449 28.3%

Price Data

Prices December, 2009 December, 2010 Change
Sold Price / Square Foot $143.81 $136.52 -5.1%
Square Feet 2183 2187 0.2%
Average List Price $323,333 $308,386 -4.6%
Average Sale Price $314,038 $298,632 -4.9%
Median Sale Price $266500 $252500 -5.3%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 408 2346 5.7
Foreclosures 118 279 2.4
Short Sales 111 1154 10.4
Nondistressed 178 915 5.1

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 407 2346 5.8
Foreclosures 113 279 2.5
Short Sales 111 1154 10.4
Nondistressed 183 915 5.0

2010 in Review, and Looking Forward to 2011

My Crazy Year in Retrospect

2010 was an interesting year for me.  By the time you read this I’ll be vacationing in Bogotá, Colombia and on the verge of flying to Santa Marta, marking the first time I’ve ever been out of North America and the first time I’ve used a passport.  In March, in contrast, I went to the hospital for chest pains, was given nitro (and nearly died of low blood pressure because I’m sensitive to it) and had three stents put in.  By the end of December I’d learned a foreign language (Spanish), lost about 75 pounds, got divorced, and took over again at the helm of my own real estate blog when my broker of record quit, while holding down another full time job. 

I try to stay busy.

One of my agents has done an excellent job for me and for all of our customers this year.  Two others have been struggling, as have any number of former colleagues who don’t work for me who have given up on the business rather than stare down the double barrels of fewer sales and lower commissions.  I got a proposal on Elance.com today from a licensee in Arizona who’s leaving the business.

On top of “the market problem”, we had a big technical problem with the email forwarding earlier in the year that hurt us quite a bit.  Fortunately that’s resolved, and I am committed to improving our offerings and services in the coming years.

2011 – Our Business Turnaround Year

2011 is the year we turn things around.  (It may well be the year the market turns around too, unless rising interest rates to control inflation make the market all soggy and hard to light).   Either way the market goes, I have a number of goals for my real estate business in the coming year, and I wanted to share them with you:

  • I’m going to improve this web site in a number of ways.  There’ll be an excellent new design from a talented designer and marketing professional I know, which will include a variety of usability improvements.  Search, especially, will be easier to find and use, and the whole thing will be cleaner, more modern, and better organized.
  • I’m going to rework the branding, including the name.  There’s another local business with “Elite” in the name who are not known for their integrity, so we keep getting confused with them, and that can’t be good for us.  Probably I’ll go with Lockwood Real Estate or Lockwood Realty.  What do you think sounds better?  Hopefully there’s not some other John Lockwood out there doing something crazy like killing Bambi’s mom with a joystick.  Doh!  (That’s not me, honest.  The only times that I go to Texas are when I’m flying somewhere that isn’t Texas).

    Update:  my daughter prefers the sound of Lockwood Real Estate, and no one uses Realty except in company names, so Lockwood Real Estate it is.  If it turns out to be a bad decision, at least I spent as more time on it than John McCain spent on selecting a running mate for President of the United States.

  • I’m going to do more to get the name out there than just be number one in the search engines, such as trying to reach out to more colleagues nationwide, and customers and vendors here in the Sacramento area.  It’d be really cool to hear from more people here.  That’s already started to happen.
  • I’m going to find some folks here locally (and a few colleagues nationwide) who want to guest blog once in awhile for Sacramento’s oldest real estate blog.  I’m especially interested in folks who can do lending related topics, but if you have other ideas, I’m certainly open to them.  Yes, you’ll get one or two self-serving links per article and yes, we’ll stay on the good side of RESPA, I promise.
  • I’m going to hire a few more top producers who want to be part of the company with the best Internet marketing in greater Sacramento.  Among other tasks, I’ll be revisiting agent recruitment and compensation when I get back from vacation and I’ll have more to say about that in the year ahead.
  • I’m going to start actively soliciting feedback from our customers and visitors –-especially the former.  Yes, we’re hoping some of this will be testimonials, but we also want to know if there are areas where we might have dropped the ball in some way.  I know we can improve on the speed and consistency of our follow-up, for example.  We can, and we will.
  • I’m thinking I’d like to run something called a 50/50 contest for awhile, maybe the whole year.  The idea will be to give away prizes each week for contests I’ll run on the blog / Facebook / Twitter.  The 50 / 50 thing is because every other week  (50% of the time) the prize will either be awarded to the contestant in the form of a gift card, and on alternate weeks the prize will be awarded to someone in need. Some weeks I may choose the charity, and some weeks we’ll let the contestant choose.

    Of course, like all contests of this kind, one of the goals of this one is to shamelessly self-promote the context sponsor in the hope of attracting more business.  But aside from that, we want to help some folks less fortunate than us who may be suffering, make some new friends in the community, and just generally enjoy the living heck out of life.

    Why not?

So check back in late January, February and March to see the changes beginning to happen, and, above all,

BEST WISHES FOR A HAPPY, SAFE,

AND PROSPEROUS NEW YEAR

 

Placer County Real Estate Market Update, November 2010

Placer County real estate market continues to be free from any major upheaval in November 2010. The overall unit volume has registered moderate increase with upward trends visible in foreclosures, short sales, and non-distressed sales compared to month of November in 2009. However, the average sales price has decreased marginally and the effect is in tune with the real estate trend in Sacramento and El Dorado Counties. The market trends indicate the inclination of real estate sale in Placer County toward investor buyers looking for less expensive homes.

Increase in Sales Volume in November 2010

In November this year, unit sales in Placer County show an upward trend compared to the same time last year. The total sales have gone up to 398 units from 351 units, a mere 13 percent increase. This development is in sync with the real estate market trends in El Dorado. Short sales have gone up 32.5 percent compared to November 2009. In November 2010, there were 110 short sales whereas the number stood at 83 this time last year. Foreclosures also went up by 12.9 percent, from 93 units in November 2009 to 105 units in November 2010. The rise in short sales and foreclosures has resulted in mere 4.6 percent slide in the non-distressed sales, which continue to play a major role in the real estate market in the Placer County. Non-distressed home sales constitute around 46 percent of the total unit sales. The figure for November 2010 stands at 183 units, a mere eight units more than the same month last year. The trend negates the plunge in non-distressed sales in Sacramento and El Dorado Counties.

Dip in Prices of Placer County Real Estate

There has been a moderate drop in the price of real estate in Placer, Sacramento, and El Dorado Counties. The fall in listed property prices in the Placer County is not in proportionate to the increase in unit sales and broadly seen as an extension of October trends. The price per square foot has slightly decreased effecting up to six percent lower value compared to November 2009. It remained around $142.68 in November 2010 compared to $150.82 during the same month last year. The average list price and average sale price have beaten back by 10.2 percent compared to November 2009. Now average list and sale prices are at $317,582 and $307,513 from $353,630 and $342,337 exactly a year ago. The foremost decrease is seen in the median sale price. It has shed 14.2 percent and now stands at $257,500 compared to $300,000 in November 2009.

Status of Inventory As of November, 2010

There has been marginal improvement in the inventory status of all segments. While average short and non-distressed sales have gone up in the past six months, the foreclosures remain at the same level. The overall inventory picture is similar to El Dorado County.

Statistics of Placer County Real Estate for November, 2010

The following tables show statistical comparison of November 2010 real estate volume and price of Placer County with that of November 2009 and inventory details.

Unit Volume Data

Units Sold November, 2009 November, 2010 Change
Foreclosures Sold 93 105 12.9%
(% of total units) 26.5% 26.4%
Short Sales Sold 83 110 32.5%
(% of total units) 23.6% 27.6%
Non-distressed Sold 175 183 4.6%
(% of total units) 49.9% 46.0%
Total 351 398 13.4%

Price Data

Prices November, 2009 November, 2010 Change
Sold Price / Square Foot $151.82 $142.68 -6.0%
Square Feet 2254 2155 -4.4%
Average List Price $353,630 $317,582 -10.2%
Average Sale Price $342,337 $307,513 -10.2%
Median Sale Price $300,000 $257,500 -14.2%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 400 2380 5.9
Foreclosures 115 286 2.5
Short Sales 108 1172 10.8
Non-distressed 175 924 5.3

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 421 2380 5.6
Foreclosures 110 286 2.6
Short Sales 118 1172 9.9
Non-distressed 192 924 4.8