Frustrated. Your thoughts on the Sacramento Real Estate Market (short sale, foreclosures)

[jbmcd]

Originally Posted by NinaN

The difference in loan limits. FHA high balance $474,950. Conv is $417,000 anything higher is a jumbo loan at higher rate.

I think you may be confusing FHA with "Super Conforming" mortgages available in higher cost areas -- Sacramento County and nearby is indeed $474,950:

Super Conforming Mortgages - Freddie Mac

These are, as far as I can tell, basically conventional mortgages backed by Freddie Mac et al, available through normal mortgage lenders; the rates seem to be a quarter to half point higher, but quite a bit less than jumbo rates, which also have more onerous qualifications.

FHA loan rates, again from what I have seen (looking at the program that allows for deferred repairs/renovations that would brick a conventional loan after closing) are closer to or above jumbo rates, regardless of the amount, so I don't think many people/properties who qualify for a conventional loan would find an FHA loan advantageous.

[sanfrancis]

Originally Posted by wburg

$1m+? Whoa, too bad Sacramento State took the Goethe mansion off the market when they did--it was on the market for a while, a bit over $1 million, and one of only two buildings designed by famed architect Julia Morgan in Sacramento (the other being the Public Market building at 12th and J.) Gorgeous building, nice lot, nice neighborhood and just a couple blocks from UCDMC. It was being considered as a potential Governor's Mansion but Jerry wanted to be closer to work.

Here's another property in that price range if you're looking for something closer to Midtown:

Homes - MLS - sacbee.com

Or closer to downtown:

Homes - MLS - sacbee.com

Thanks. I'm aware of both of these houses. We had concerns about both of them. For N Street, the neighborhood and surrounding apartment buildings. For Capitol Ave, we liked it very much online, but having 've viewed the property in person, there are some renovation needs in our view that are not readily apparent online.

[sanfrancis]

Originally Posted by Mr. Ozo

East Sac is full of million dollars homes for sale right now. Are you not interested in East Sac? I just counted 10 over 800$.

I really the house on Capitol Wburg posted.

It's really not "full" of houses. We're obsessed with the MLS, so I know all of the houses on right now. The Capitol house looks fabulous online, but we viewed in person and had concerns about the amount of work we felt would be necessary. We haven't ruled that house out, actually, but think taking it on would be daunting. And I think we'd prefer the East Sac neighborhood with the kids. We'll see.

We are really wanting something in East Sac or Sierra Oaks, 3000+ square feet, family friendly neighborhood, without having to do a gut to studs renovation or large remediations of damage. The few listed in East Sac are either quite tiny houses that have had investors add square footage built on to them but still look like a small house with an add on, or need gut renovations (not doable for us). Of the few houses that are available, the majority have been on the market for a *LONG TIME*, and there is a *reason*, primarily one or more of the issues listed above.

There are a few that are nice that are over $1.5M, mainly pushing $2M. But that's not our budget.

[sanfrancis]

Originally Posted by NinaN

We're starting to see the $1MM houses move - but still slowly. It's not uncommon to see a house at that price sell for $200K less than list so don't be afraid to try.

In EDH, the average sale price is $465K but our average list price is $833K which shows that there are a lot of high priced homes in our area that aren't selling; the ones listed in the $400-500K range are flying off the shelf.

Thanks, NinaN. That's helpful. We're moving from a city where houses are selling in a day for at, over or close to asking price. So, it's good to know how things work in other markets.

[NinaN]

I should clarify. I live in El Dorado Hills and serve mostly the burbs near here. For us, $1MM is higher end and will get a lot more home than in East Sac. Our sweet spot is much lower - under $550K. The areas you are looking could be quite different. Just ask your agent. Your agent can also look at expired listings, and call the agents that do the most listings there to see if they have any pocket listings. Some homeowners in that price range don't want to publicly list their homes.

[wburg]

The house on Capitol is quite completely rehabbed inside. What sort of work do you see as necessary on the outside?

Have you looked at Poverty Ridge, south of R Street from 21st-24th? It's the 95818 ZIP code so it gets overlooked sometimes, but there are some things for sale in your range there:

Homes - MLS - sacbee.com

Tapestri Square is new construction but might meet your specs:

Homes - MLS - sacbee.com

[sanfrancis]

Originally Posted by wburg

The house on Capitol is quite completely rehabbed inside. What sort of work do you see as necessary on the outside?

Have you looked at Poverty Ridge, south of R Street from 21st-24th? It's the 95818 ZIP code so it gets overlooked sometimes, but there are some things for sale in your range there:

Homes - MLS - sacbee.com

Tapestri Square is new construction but might meet your specs:

Homes - MLS - sacbee.com

I'm not on here to speak poorly of someone else's house. Are you the owner or otherwise familiar with the house? In short, there are a lot of cats on the property and we were concerned about that. Two of the bathrooms need to be redone in our view, as they are outdated, and the master suite features stained glass windows of Minnie and Mickey Mouse. We felt the master suite (stained glass windows, bathroom, etc.) needed a remodel. I'm not opposed to doing work on a house, but again, I just feel there are few houses on the market.

[wburg]

I know the owners and have been inside for various social functions and fundraisers. They have cats but they aren't like a "crazy cat lady" or anything, the house is always spotless. I can see how stained glass of Minnie and Mickey Mouse might not be your cup of tea, and bathrooms are a personal thing--some prefer more archaic versions while others prefer something more modern. Didn't mean to be critical of your assessment, just curious as to your perspective. Old houses aren't for everyone--both the houses and their long-term occupants tend to have their quirks. And buying a house is a very personal choice that should match your own tastes and needs.

Things are getting really really tight right now--suddenly all the stuff for sale just kind of vanished, and where there were dozens of properties in the central city for sale this past fall, suddenly it's down to a handful. In the central city there are only about 2000 ownership housing units, including condos, so those are always in comparatively short supply and high demand. The current wave of central city infill adaptive-reuse/construction (just getting underway) will hopefully help that.

[caligirlz]

Originally Posted by NinaN

We're starting to see the $1MM houses move - but still slowly. It's not uncommon to see a house at that price sell for $200K less than list so don't be afraid to try.

In EDH, the average sale price is $465K but our average list price is $833K which shows that there are a lot of high priced homes in our area that aren't selling; the ones listed in the $400-500K range are flying off the shelf.

I've seen some beautiful houses on the hills of EDH with lake or valley views in the $1MM price range. Are those starting to move?

[NinaN]

Some of them are selling, more so now than last year for sure. The problem is that many of the $1MM houses are listed at $1.5MM and they are not selling. But the ones that are priced at market price (not distressed price or last year's price) are selling if they are really nice inside. Everyone wants move in ready right now.