Do you feel the housing market change? (Sacramento, Folsom: real estate, mortgage)

[CityGirl72]

Where 6 months ago I was finding a bunch of homes in our price range $350K to $450K, I'm now finding the comparable same homes in the 500's

Anyone else feel this? Do you think it's a permananet change or just a summer fluxuation?

[imphe]

I'm seeing them go lower, not higher.

Doesn't matter anyway as getting a second piggyback is impossible right now and rates are going higher. Once those pressures hit the market over about 6 mo time, prices will go down more due to more buyers having to wait to build bigger cash reserves.

[CityGirl72]

Just seems in the stabler (is that a word?) areas that the prices are going up...Folsom being one place

[imphe]

Nahh just anything decent went pending. Doesn't mean what's left is worth buying.

You want to know what they went pending at and if they even close. Lots of escrows are not closing as the lender's clamp down harder daily. Wait and see if they come back on the MLS. You will be surprised how many do, especially anything over the old confirming limit of 417k.

[CityGirl72]

See and that scares me - what if I can't buy a house because of this big clamp down? Right now we sit pretty with a 30 year fixed at 5.7%, and we will want another 30 year fixed (we have good credit and hardly any debt, and probably 35% down)

[NewToCA]

I think we are in a "churn" situation, where the prices in a few areas are starting to rebound just a little while other areas are still struggling. Frankly, I think the bottom is hard to predict, but based on comparable house pricing with the midwest I would be surprised to see prices fall much from here.

[B to the T]

Look at the economy as a whole... both nationally and locally... no good news... Sacramento Metro is not getting healthier or bringing a lot more new jobs, just the opposite.

Sac Metro prices went up because of all the people being driven out of other more expensive areas... that is not the case now... watch the Sac Metro area continue to fall as a whole... there might be some isolated pockets that don't drop as fast, just like some areas tanking faster then others... but overall we have at least another year of declines, if not more... then it will bump bottom for a while...

[imphe]

Lending is already tight. If you are worried about borrowing capacity that window may already be closed.

A dear friend of mine is a broker who is leaving the industry. We talked about what the market looks like now and even he can't believe what he's seeing. Apparently there is no secondary mortgage market now and I've heard horror stories about people who pre-qualified at 250k in the spring now only being qualified for just over 100k. I've seen people with high 600s scores, zero debt, and 3 yrs in a state job being tossed out as unfundable. If you don't have at least 10% to throw down, it's almost impossible to close.

Now think about what that means to the market. If you have to be that squeeky clean to get through and the pool of buyers becomes that tight, it can only drive prices down further. The unemployment pressure from early spring is just beginning to cycle the next wave of REOs. Nothing is going up for a long while so relax and shop for what would a perfect home and the perfect price. Don't close on just anything because seriously, time is on your side.

[B to the T]

Here's a very detailed link about the market...

Sacramento Real Estate Statistics

[imphe]

Originally Posted by B to the T

Here's a very detailed link about the market...

Sacramento Real Estate Statistics

These guys are great, been reading for years. Max and Agent Bubble have been spot on the whole time.