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A Second Wave of Foreclosures for Sacramento
Call Nate (916)332-1292
Over the last year we have seen a turbulent housing market and economy. The Sacramento marketplace has been slightly insulated due to the fact that the Capital city has such a large number of State and Federal workers with stable streams of income. As you recall I wrote about the state stepping in back in October and putting a 90 Day a moratorium on foreclosures. Shortly after that we had our general election of our new President Barack Obama. He has been putting his pen down on countless bailouts and economic stimulus plans and as a result the banking market has been in a holding pattern. Until Now!
Tracking the statistics (Yes, I am a closet Engineer) I am startled by the number of Notice of Default and Notices of Trustee Sale. It is climbing and fast. I am looking at the data as a sign that the Sacramento REO market will remain soft through the summer. The number of NOD’s is at 2,426 and the number of NTS’s is at 1,105. There is one statistic that leads me to believe that we will start seeing less REO properties moving forward. The ratio of NOD to NTS is down 46% today Vs 71% a year ago, that matches the fact that banks are working with some homeowners to keep them in their homes. If you are an investor or first time homebuyer that is on the fence id suggests that you look hard at buying. Each Sacramento region is different but overall prices have just taken another bump down, and interest rates are great. Combined these favorable terms with an $8,000 Tax rebate and you have a tremendous opportunity.
But Nate It is sure to go lower?
We simply do not know where this market will rebound or decline. I just put a property into contract this week in Bohemian Village for $75.00 Per SQ. FT. ! ! ! Call any Contractor and ask what it costs to build an average home. I think you will be surprised that the cost to build exceeds the cost of most REO properties.
If you would like to discuss the Sacramento foreclosure market and how it affects your real estate decisions feel free to give me a call at (916)332-1292.
