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Real Estate Market Going Nuts


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#1 Steve Heard

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Posted 28 April 2015 - 02:56 PM

Yes it is.

 

I don't know why, but there is a sudden frenzied interest.

 

Examples:

 

  • I recently put small home on the market in Folsom. It was in good condition, except for carpeting. The seller priced it at $379K. We had over 70 people come through the open house. We ended up with 4 offers, topping out at $390K. 3 other units, the same model, also went pending last week, one listed at $379K, two listed at $390K. - To put it in perspective, I sold the same model a couple of years ago for $249K, and back in 2005, it sold for $439K.  
  • I put a home on the market in Rosemont. 1500 sq ft, remodeled, priced at $269K. We received 3 offers in 3 days on market, topping out at $276K. 
  • I took some clients to see a house in Orangevale. The seller said they had non-stop showings Saturday and Sunday. My clients made an offer, over asking price, and we were told they had 10 offers so far and will get back to us. 

Other agents are reporting similar experiences.

 

I'm not sure what's driving it.

 

Maybe fear of a rise in rates? They've been creeping up, but still around 4%.

 

Shrinking inventory? We currently have 143 homes on the market in Folsom, compared to 174 at this time last year. Confidence in the economy? Unemployment is down, but we're in the middle of a drought. I don't know. 

 

I just know that some market segments, like the sub $400K market in Folsom is now pushing toward the prices we had right before the crash.

 

It is a bit different now, with interest rates about 1/3 below what they were back then, and we no longer have 'stated income' or 'liars loans', but the run up on prices is sudden and peculiar.

 

We'll see where this goes.

 

Thoughts?


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#2 TruthSeeker

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Posted 28 April 2015 - 03:27 PM

Ive got a buddy I thought would never ever buy a house. (Renter for life) but just this week he applied for a home loan and has started looking for a place. My guess is it's because the economy has stabilized and employment is good?


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#3 Steve Heard

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Posted 28 April 2015 - 04:00 PM

Ive got a buddy I thought would never ever buy a house. (Renter for life) but just this week he applied for a home loan and has started looking for a place. My guess is it's because the economy has stabilized and employment is good?

 

It does seem there are lots of first-timers coming into the market. I have several looking right now. 2 in their 30's, 2 in their 40's and one in her 50's. They are tired of renting, and their current rents are fairly close to what their mortgage payments will be.


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#4 2 Aces

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Posted 28 April 2015 - 07:42 PM

Wow, I'd hate to be entering the Folsom market now, just as *bidding wars* are going on. As they say, "timing is everything".

#5 Chris

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Posted 28 April 2015 - 08:22 PM

Sold my house of 15 years back in March.....   Took about 5 days.   Was a bit ahead of the curve.  Thought the house I wanted would not be available If I waited until now or summer time.  I was right, the day after my wife and I put money down on a new home somebody came in wanting to buy it.  Downsized as one kid is out and a few more on the way out in a couple of years.  Love the $16 a month electric bill (house came with solar), not taking care of a pool, not taking care of 1/4 acre and lawns.  I do see a lot of people looking at what is left of the new homes in my area.  Summer will be hot for real estate I am sure.  A 3.5 to 3.75 mortgage is almost like free money...!   I remember my first home back in the 90's was at 8.78% interest or something like that.  Chris


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#6 nomad

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Posted 28 April 2015 - 08:26 PM

In 2 years everyone will want to sell and move to Seattle when we run out of water, prices will adjust then for certain.



#7 cw68

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Posted 28 April 2015 - 09:19 PM

Sold my house of 15 years back in March.....   Took about 5 days.   Was a bit ahead of the curve.  Thought the house I wanted would not be available If I waited until now or summer time.  I was right, the day after my wife and I put money down on a new home somebody came in wanting to buy it.  Downsized as one kid is out and a few more on the way out in a couple of years.  Love the $16 a month electric bill (house came with solar), not taking care of a pool, not taking care of 1/4 acre and lawns.  I do see a lot of people looking at what is left of the new homes in my area.  Summer will be hot for real estate I am sure.  A 3.5 to 3.75 mortgage is almost like free money...!   I remember my first home back in the 90's was at 8.78% interest or something like that.  Chris

 

Back in the mid-80s, I remember my sister and bro-in-law waiting for interest rates to go under 13% before they could purchase a house. Such a crazy thought now!



#8 Sports Junkie

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Posted 28 April 2015 - 09:57 PM

Maybe this explains why I had a realtor call me and ask about putting my house on the market. I had attempted to sell it two years ago this month, but it didn't sell in time for me to keep the new house. I am now outpriced as that house (model) is about $40,000 more expensive! I'll keep the two story house with stairs for the "cheap" monthly mortgage payment.

Yes it is.

 

I don't know why, but there is a sudden frenzied interest.

 

Examples:

 

  • I recently put small home on the market in Folsom. It was in good condition, except for carpeting. The seller priced it at $379K. We had over 70 people come through the open house. We ended up with 4 offers, topping out at $390K. 3 other units, the same model, also went pending last week, one listed at $379K, two listed at $390K. - To put it in perspective, I sold the same model a couple of years ago for $249K, and back in 2005, it sold for $439K.  
  • I put a home on the market in Rosemont. 1500 sq ft, remodeled, priced at $269K. We received 3 offers in 3 days on market, topping out at $276K. 
  • I took some clients to see a house in Orangevale. The seller said they had non-stop showings Saturday and Sunday. My clients made an offer, over asking price, and we were told they had 10 offers so far and will get back to us. 

Other agents are reporting similar experiences.

 

I'm not sure what's driving it.

 

Maybe fear of a rise in rates? They've been creeping up, but still around 4%.

 

Shrinking inventory? We currently have 143 homes on the market in Folsom, compared to 174 at this time last year. Confidence in the economy? Unemployment is down, but we're in the middle of a drought. I don't know. 

 

I just know that some market segments, like the sub $400K market in Folsom is now pushing toward the prices we had right before the crash.

 

It is a bit different now, with interest rates about 1/3 below what they were back then, and we no longer have 'stated income' or 'liars loans', but the run up on prices is sudden and peculiar.

 

We'll see where this goes.

 

Thoughts?



#9 Rich_T

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Posted 28 April 2015 - 10:51 PM

Isn't April/May always the big time of year for buyers?

 

This may be the best time to sell that we'll ever have, before the glut of new homes S50.  But if I sold my house now, I don't know where I would live instead.  I can't just move out of the area just like that, to an area with way cheaper housing, and I don't really want to.  Renting in Folsom is so expensive, and it's money you never see again.  Downsizing would make more sense if I actually had a big house, and if I actually wanted to live in a condo.

 

So I guess the news is good, but I can't do much with the information.



#10 Steve Heard

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Posted 29 April 2015 - 03:08 PM

Isn't April/May always the big time of year for buyers?

 

This may be the best time to sell that we'll ever have, before the glut of new homes S50.  But if I sold my house now, I don't know where I would live instead.  I can't just move out of the area just like that, to an area with way cheaper housing, and I don't really want to.  Renting in Folsom is so expensive, and it's money you never see again.  Downsizing would make more sense if I actually had a big house, and if I actually wanted to live in a condo.

 

So I guess the news is good, but I can't do much with the information.

 

Yes, spring usually is a big time for buyers. They start planning in anticipation of kids getting out of school, and some have been conditioned to 'wait until spring'. Spring is also usually a big time for sellers. Homes show better in spring, with sun shining, flowers blooming, trees full, and in some cases, lawns are green!

 

Here's what's unusual:

  • Inventory is down  - Last year at this time, there were 174 homes on the market, today 143. 
  • Homes are selling faster - Last year at this time, homes sold in an average of 36 days. The 100 homes that have gone pending so far this month average 19 day on market (I've excluded short-sales and new construction, as they can take months). 

As for the glut of homes, that's the same thing folks were fearing when developments such as Empire Ranch and Broadstone were being built; there'd be a glut of homes and prices would fall. Folsom home prices continued to rise until housing across the country went into a dive.

 

Today, the demand on housing is great, and though I can't predict the future, I don't think we're going to see home values slide once the new ones are being built. New ones are being built as we speak, and prices continue to rise.


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#11 fouroheight68

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Posted 30 April 2015 - 11:21 AM

I bought last year in Briggs Ranch, for 465k. We had been looking for a couple years (since 2012), but at the we needed the equity from our house in Elk Grove to be able to move up to Folsom. We struck right at the right time - our EG house went on the market, we found our BR house, and made a contingent offer (over asking) on the sale of our EG home. Luckily, our offer was accepted on a Saturday and EG went pending on a Sunday! Since we've moved in, the same house as ours on a small lot w/no pool sold for 500k, and we refi'd at 3.65%, with an appraised value of 515k :) We LOVE Folsom! Sure, we could have bought the same house in 2012 for 100k less, but then again our EG house was worth 100k less, so its half a dozen in one, 6 in the other. I'm just glad we got in when we did (Janurary 2014). We are both in our late 20's, and expecting our first child in June!



#12 Steve Heard

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Posted 30 April 2015 - 11:31 AM

I bought last year in Briggs Ranch, for 465k. We had been looking for a couple years (since 2012), but at the we needed the equity from our house in Elk Grove to be able to move up to Folsom. We struck right at the right time - our EG house went on the market, we found our BR house, and made a contingent offer (over asking) on the sale of our EG home. Luckily, our offer was accepted on a Saturday and EG went pending on a Sunday! Since we've moved in, the same house as ours on a small lot w/no pool sold for 500k, and we refi'd at 3.65%, with an appraised value of 515k :) We LOVE Folsom! Sure, we could have bought the same house in 2012 for 100k less, but then again our EG house was worth 100k less, so its half a dozen in one, 6 in the other. I'm just glad we got in when we did (Janurary 2014). We are both in our late 20's, and expecting our first child in June!

 

That is so awesome to hear! Congrats on your new addition. This is a great place to raise a family. 


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#13 4thgenFolsomite

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Posted 02 May 2015 - 07:47 AM

judging by zillow and trulia, it looks like the old homestead has gone up almost 15 percent since the first of the year.  That is a pretty big climb!


Knowing the past helps deciphering the future.

#14 Steve Heard

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Posted 03 May 2015 - 07:18 PM

As promised, I've let everyone see both sides and have their say in the argument about what's I deemed inappropriate for this thread and have now deleted all references there to.

 

If anyone disagrees with my actions, your choices are:

  • Speak to me privately via PM, email or phone
  • Deal with it
  • Leave the forum

 

Now, back to the subject of the booming Folsom Real Estate market...  


Steve Heard

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#15 Chris

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Posted 08 May 2015 - 05:43 PM

Thanks for putting the real estate universe back in order Steve....!    Anyway, I think this summer will see major price increases and multiple over asking offer prices.   Just the way it is.   Good to live here, out of the way, all good folks, great schools, that is why is costs a lot of money to live here.   And I am ok with that.  Want to live in Folsom, get educated, work hard, for a long time, be smarter than the other guy, pay the money....!   Sorry Legal Services of Northern CA, you suck....!   Chris


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