OwnPlacer Blog - Patrick Hake

Inspection Day

While completing the inspection day for a home I just put in contract here in Shelborne in Granite Bay, I was reminded that market shifts are not always bad. In fact, they often provide positive changes for one side of the transaction or the other,  and sometimes for both sides.

During the past few years, it had become common for it to be necessary for home buyers to agree to risky terms in order to be competitive against large numbers of offers from other buyers.

One of those common concessions was that buyers would be required to accept a seller’s inspections or have no inspection period at all. Often the buyers deposit would have to be put on the line from the moment when a contract was accepted.

While we would still in many cases inspect these…

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3 Stats to Be Grateful For

1) The median price for Placer County homes has remained stable over the past 3 months starting at $649,000 in August and then staying at $645,000 for both September and October, which is actually the same median price as October of last year.

2) The number of new listings added to the market and the number of homes sold over the past 3 months have been offsetting each other by both falling, which has had the effect of keeping the inventory level stable at around 2.5 months. Had either of those stats risen or fallen without the other, we would have seen a change in that number and a change in market conditions.

3) Interest rates dropped last week due to better than expected inflation numbers after rising consistently for months. The Federal Reserve…

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The Placer County Real Estate Market Has Turned Upside Down in June

We have known anecdotally for a while that the market has been slowing, but now the data reflects that change.

We are at 1.9 months of inventory, which is triple the .6 months in March.

Pending sales are down 23.6% compared to last June.

The median sales price was down 2% compared to May after climbing every month since last October.

These changes mean that buyers with little to nothing down can now compete a little easier, that there will be fewer multiple offer situations, and that the potential for people to make an offer with a home sale contingency may return soon too.

It also means that sellers have to price to the market and that they need a strong agent with great marketing skills. Pricing higher than the last sale may actually lose you money if…

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This is Placer

We love living here and truly feel blessed to be able to help so many people make Placer County their home too. It is truly a wonderful place to call home.       THIS IS PLACER

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Placer County Real Estate Sales March 9th - 15th, 2015

There were 102 homes, 4 condos, 6 parcels of land and 1 duplex that sold in Placer County during the week between March 9th and March 15th, 2015 in Metrolist MLS.

The least expensive property that sold in Placer County during the period was an 840 square-foot condo on Sapphire Drive in Auburn, which sold for $57,000 after being listed for $60,000. The most expensive property sold in Placer County during the period was a 4,569 square-foot home on Camino Del Avion in Los Lagos in Granite Bay, which sold for $1,140,000 after being listed for $1,169,000.

The following map and list show the location and details for the properties that sold during the period.

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Placer County Median Home Price Up 18.6% in 2012

2012 was an incredible year for home prices in Placer County. After seeing prices drop month after month, quarter after quarter and year after year over the past 7 years, things finally turned around and started an upward trend in 2012.

Between December 2011 and December 2012, in Metrolist MLS, the median sales price of single family homes in Placer County increased 18.6%, while the average price increased 18.7% and the average price per square-foot rose 13.3%.

Over the past 7 years we have still seen a 38.8% decline in the median price, 36.7% decline in the average price and 41.7% decline in the average price per square-foot, but the bottom had to be reached at some point, and at least for now it appears that it was reached at the end of 2011.

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Where Did Buyers Purchase New Homes in Placer County During 2012?

A side effect of the tight inventory of resale homes in Placer County in 2012 was a marked increase in the number of new homes be constructed and sold.

As home buyers found it ever harder to find an elusive resale home to buy, many turned to the new home builders.

They found the process of purchasing a new home preferable to the often tedious task of battling it out for existing resale inventory with multiple offers, drawn out short sale processing periods and other unknowns.

Purchasing a new home allowed them to walk into a model, find what they like, sign a contract, pick their upgrades, set a move in date and then move in after a few short months.

While buying a new home may not always get you the steep discount that may be available on some…

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$85k Home in the 1980s or a $200k in 2012 - You Pay the Same in the Long Run Either Way

The California Associtaion of Realtors recently released the following infographic to help put into perspective how great the interest rates are right now.

If you bought an $85,000 home in 1980 with 20% down payment and an average interest rate for that decade of 12.7%, your payment would be the approximately the same as it would be for a $200,000 home at today's rates hovering around 3.5%.

Your principal and interest payment for the $85,000 home at 12.5% in the 1980s would be $900. The total cost over 30 years would be $326,000 with $241,000 in total interest paid.

Your principal and interest payment for a $200,000 home at 3.5% today would also be $900. The total cost over 30 years would be $323,000 with $123,000 in total interest paid.

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