What is the Housing Market going to do in 2019?

With my crystal ball in hand and better yet Ryan Lundquist’s (One of the top appraisers in the Sacramento area) latest blog on his Real Estate Trends.   I am hoping to provide some insight to what we are seeing in the housing market at the beginning of 2019.

Some of the latest trends:

1. Affordability:  We have seen prices rise in both home sales and rentals over the past several years.  This has been felt all over California and in many other states as well. This has several effects on buyers and sellers, how much house a person can buy or rent, if buying or renting is the best option, if it is buyers or sellers market, and the thought process of buyers and sellers.
2. Financial Stability:  State of the nation, state of the financial indexes, state of interest pricing, and of course job/employment stability.   Our nation has been in a state of uncertainty, stocks, etc. have been rising and falling at pretty big margins, interest rates have been increasing, and in some areas job/employment stability is slipping slightly.  Where does this leave the consumers? People feel they are living with uncertainty and more skeptical of making large purchases or making big changes. It also raises uncertainty about the future.
3. Time of Year:  As we moved into the last quarter of the year we began to see housing prices slowing, less buyers out there looking, and questions in the housing market, if this is the usual seasonal slowdown or is it something bigger that we may see continuing longer than just the season.  That is the crystal ball question and quite frankly in a position of no one really knowing where or when we are headed for a change. Will it be up/down or just stay the same? It will take the next several months of results and trends to really understand what we are currently experiencing

With all this being said we have seen the slowing of prices in the last couple of months, most people feel it may go up or down a little, but stay about where it is for 2019.  I believe that is not a bad position as it is giving buyers a better opportunity to buy the home of their dreams and not making a huge dent in the profits sellers have been enjoying.  If the market stays pretty even that keeps us in and natural market meaning it just stays where we are currently.

One big announcement for the New Year is as of today interest rates are lower right now than they have been in the last year.  4.0 to 4.5 depending on your loan situation.

Bottom line is I believe that buyers should continue to look, and sellers should continue to entertain the idea of selling as this year looks like it may be the best time to do so for both.  If both win then you can look back on this year as a good opportunity for both ends of a sale.  

Slumping volume & rising inventory

October 11, 2018 By Ryan Lundquist 12 Comments

Volume is down and inventory is up. Is that a problem? It sounds like a question for a high school Economics class, but here we are talking. Today I want to kick around two quick thoughts and then dive deeply into trends. I hope this helps – whether you’re local or not. Anything to add?

Here are the two big ideas to talk through right now.

This could be a problem: If sales volume continues to slump and inventory rises without buyers absorbing new listings, it could be a sign the market is changing in a big way. No matter how we look at it sales volume has been down lately in Sacramento. This was the weakest September since 2007 as volume was 14% lower than last year, and quarterly volume was down about 6% too. But keep in mind overall the year as a whole has actually seen strong volume, so it’s not like sales have fallen off the face of the earth (but it’s a concern we’re seeing the numbers change over the past few months). Housing inventory is also up and we haven’t seen it this high since 2014.

This could also be a dull fall: Despite the numbers seeming gloomy right now, they’re actually really consistent with what the market showed in 2014 when we had an extremely dull fall season. In fact, quarterly volume that year was down 6% and September volume was weak too. Does that sound familiar? Also, we have a nearly identical level of inventory right now compared to then too. I don’t say this to sugar coat any red flags in the market, but only to give pause and say what we’re seeing right now could simply be a very dull fall season.

We need more time: The truth is we need time to see how the market will pan out. For now we live in the tension of not knowing the future and interpreting trends for the present. My advice? Watch closely, be careful of hyped headlines, and be sure to take a wider view of the market too (let’s not forget 2014).

I hope that was helpful.

                   

2018 Tax Reform and You

I wanted to take a few minutes and address the concern and misinformation as it relates to Real Estate and the new Tax Bill. There has been a lot of speculation that the provisions of the bill will reduce the desirability of home ownership.

The reality is that Real Estate faired quite well in the FINAL BILL with some positive changes literally occurring on the last night. The key points are as follows:

• Interest is still deductible on loans up to $750,000 on BOTH first AND second homes (not up to $500,000 and on primary residences only, as first proposed).
• We retained the Exclusion of Gain on the sale of a Principal Residence for owners who have lived in their homes for 2 out of the last 5 years (not 5 out of the 8, as initially proposed).
• The 1031 Exchange structure was retained as-is with no loss of benefits for Investor Clients.
• The Bill also retained Mortgage Credit Certificates in full.

There are a lot of provisions in the Tax Bill that will help lower-income and middle-class taxpayers as well as additional provisions that will benefit corporations. Some upper-income taxpayers will pay more, particularly in California, but none of these provisions will directly impact Real Estate.

In conclusion, people buy homes because they need a place to live or vacation. Tax benefits are not the primary reason for most buyers. With the provisions we retained in the Bill, I expect to see little-to-no negative impact for Real Estate investors & home buyers. In fact, if the Tax Bill does stimulate employment and higher-incomes, it could have a huge positive benefit for Real Estate! We are projecting another strong year in 2018 and look forward to the opportunity to serve you.

– Daniel Jacuzzi, President of the Select Group

Understanding credit a little better

Understanding your credit a little better!

Just some basic information:

1. Credit scores are built as follows:

35% is based on your payment history (How well you have done in paying your bills on time, etc.)

2. 30% Amount of Debt

3. 15% Length of credit

4. 10% New inquiries (Usually done within several days of each other.)

5. 10% Mix of credit (Between Revolving/Installment) More weight is put on your revolving because based on your credit line it can go up very quickly. Keeping your revolving balance at or below 30% of your credit line strongly effects your credit score in a positive way..

Besides your credit score here are some of the things that can effect your credit negatively when buying a home:

1. Paying off accounts and/or closing accounts. This may cause you to have a 0 credit score and can take up to 6-12 months to repair it.

2. Paying off old credit that is not currently being shown as a collection/charge off. Once you agree and pay it off it could end up showing up again on your credit report and lower your score.

3. Being late on payments (Many people think that if they don't receive a bill they don't need to make that payment until they do receive one. Not true, most companies will consider you late if not payed by the the delinquent dated stated in their terms of lending. (They may report that as a late payment or slow payment based on the length of it being late.)

Things that hurt your credit, ability to purchase a new home, etc:

1. Judgments and Liens (Usually stay on your credit report until they are paid off. You usually can't sell a home or get a mortgage for a new home until those are paid off.)

2. On government liens (taxes, student loans, etc.) you usually can't get a government loan to purchase/refinance a home until they are paid off

3. Auto collections can hurt you you harder than some.

4. If you are cleaning up your credit anytime you make agreement to pay something off or settle a debit get that agreement in writing from the company first and then ask for a letter in writing saying it has been paid off. This is very important so you have something to back you up if they delay in reporting it.

This is just general information and may differ from state to state, lender to lender, etc. Anytime your credit is in question you should call a lender or credit repair person to get the correct answers based on your individual situation. I am not a lender or a credit repair person, so please verify this information before assuming it applies to you. If you are purchasing a home always check with your lender before making any changes to your credit.

3 Best Reasons to Hurry and Buy a Home in 2018

I am always being asked what I think the housing market is going to do in the next year or two.  I wish I had the answers, but the housing market is much like the stock market, some of it will be determined by the political environment and how it is effecting peoples feeling of security, some will be determined by interest rates, mostly it will be determined by you the buyers and sellers.  So as much as I would love to give you the answers I just don't have a crystal into the market.  However, I did find this article that I thought had some good this to think about. 

Hope it gives ou some ideas to consider:   Sandy Borchelt

Yes, home prices have been going up and in some areas they are sky-high and choices limited. But market conditions are changing, and this could be your year to buy—as long as you do it soon.

Figuring out when to plunge into the real estate market can be quite intimidating—especially when prices are high, choices are limited, and history urges restraint.

"We’ve seen two or three years of what could be considered unsustainable levels of price appreciation, as well as an inventory shortage that resulted in a record-low number of homes for sale across the country," says Javier Vivas, director of economic research for realtor.com®. "When you factor those together, you have a market that has to either explode or see some relief."

New predictions for 2018 forecast more moderate gains in home prices and rising inventory levels, while low unemployment and record levels of consumer confidence mean more buyers are feeling good about their finances.

A lot depends on where you live (and how much you plan to finance), but these factors combined could mean 2018 will be your year to take the buying plunge.

1. Rates are going up

After years of record-low interest rates (hello, 3%!), the Fed is finally making some noticeable increases: The rate for a 30-year fixed mortgage broke the 4% mark last year. And with economic growth continuing to carry momentum, Vivas predicts we'll see at least two to four more rate increases throughout 2018. Rates are anticipated to hit 5% by the end of the year.

"The big story there is that those increases will further constrict affordability," Vivas says. "The more buyers wait, the more expensive it will get to buy—not just because of home prices, but because of inflationary pressure."

In other words, if you want in on the American dream, now might be the time.

2. Prices are climbing, but not crazily fast

Home prices have soared over the past few years, pricing otherwise well-positioned buyers out of high-cost areas and leading some experts to cry "bubble". But in 2018, price increases are expected to moderate.

Vivas forecasts a home price increase of 3.2% year over year, after finishing 2017 with a 5.5% year-over-year increase. Existing-home sale prices are predicted to increase 2.5% year over year.

Of course, it all depends on where you live. While red-hot markets such as San Francisco are predicted to finally lose some steam, sales numbers and home prices are poised to climb in Southern states such as Texas and Florida, where economic momentum continues chugging along and new construction is happening in the right price points.

So what does that mean? Basically, home prices will still increase, but not at the same pace as they have over the past few years.

3. Inventory levels will begin to increase

An inventory shortage has plagued the U.S. housing market since 2015, forcing some buyers to settle (a tiny house with linoleum floors for $1 million, anyone?) and keeping others out of the buying game entirely. But by fall 2018, the tides will begin to turn, with markets such as Boston; Detroit; and Nashville, TN, recovering first.

The majority of inventory growth will happen in the middle- to upper-tier price point, in the ranges of $350,000 and $750,000 and above $750,000, Vivas predicts.

New home construction is also expected to expand. But that will happen slowly, thanks to a constricted labor market, limitations on the amount of lots and land that's available, tight bank financing for building loans, and a run-up in building material prices, says National Association of Home Builders chief economist Robert Dietz.

"It's been a slow climb back from the recession, and now we're confronting all of these limiting factors and supply-side constraints," Dietz says.

It's particularly tough, he says, for builders to break ground at the entry level for first-time buyers, particularity in high-cost coastal markets such as California. That means it will take longer for those inventory levels to recover.

But there's a bright spot: Builder confidence is at its highest level since 1999, according to the NAHB. And that means hope is on the horizon.

"As we head into 2019 and beyond, we expect to see the inventory increases take hold and provide relief for first-timers and drive sales growth," Vivas says.

The wildcard: Taxes and politics

When the Republican tax plan was introduced, the proposed elimination of the mortgage interest deduction was all anyone could talk about: While the new limitations on the deduction will affect only 2.5% of all existing mortgages in the U.S., it will have a disproportionate effect on Western markets, where 20% to 30% of mortgages are above the new threshold, according to Vivas.

Across the board, experts agree that the new tax plan decreases incentives for homeownership and reduces the tax benefits of owning a home—particularly in highly taxed, expensive markets such as California, Illinois, New York, and New Jersey. But on the flip side, that means that if fewer folks are motivated to buy, then there’s less competition for those who want in the game. Plus, some taxpayers—including renters—will see a tax cut. That increase in buyers' disposable income could spur demand from folks who are looking to build equity as a homeowner, rather than flushing away their savings in rent.

"Buying remains the more attractive option in the long term—that remains the American dream, and it’s true in many markets where renting has become really the shortsighted option," Vivas says. "As people get more savings in their pocket, buying becomes the better option."

By Holly Amaya | Jan 4, 2018

Dine Downtown Restaurant Week 2018 Participating Restaurants

Experience the best of Downtown Sacramento’s flourishing culinary scene during the 13th Annual Dine Downtown Restaurant Week. From January 12–21, 2018, enjoy a gourmet three-course prix fixe meal for $35 from some of the finest eateries in the city. One dollar from every Dine Downtown meal is donated to social services and food literacy programs, and $4.11 provides a week’s worth of food literacy education for one child. So a party of four participating in Dine Downtown can make a significant impact in a child’s life!

Plus, the program provides a substantial boost for local restaurants during an otherwise slow period for the industry. Since its inception in 2005, Dine Downtown has generated an estimated $5 million in restaurant sales with nearly $400,000 generated last year.

This year, Dine Downtown is featuring 30 of Sacramento’s top restaurants, including four eateries new to downtown, including Sauced BBQ & Spirits, Punch Bowl Social, Bennigan’s and La Cosecha. As the dining scene continues to grow and thrive in Sacramento, the economic and philanthropic benefits of Dine Downtown are expected to continue an upward trajectory.

To see participating restaurants clike here: https://www.godowntownsac.com/events/signature-events/dine-downtown/ 

Fall Home Maintence

The days are getting noticeably shorter, and maybe there's a nip in the air - sure signs that fall is on its way. Now is the perfect time to get your home in shape before winter rolls in, while the weather is still pleasant enough for spending time outdoors.

Seal it up: Caulk and seal around exterior door and window frames. Look for gaps where pipes or wiring enter the home and caulk those as well. Not only does heat escape from these openings, but water can enter and may eventually cause mold problems and even structural damage.

Look up: Check the roof for missing or damaged shingles. Winter weather can cause serious damage to a vulnerable roof, leading to a greater chance of further damage inside the home. Although you should always have a qualified professional inspect and repair the roof, you can do a preliminary survey from the ground using binoculars.

Clear it out: Clear gutters and eaves troughs of leaves, sticks, and other debris. Consider installing leaf guards if your gutters can accommodate them - they are real time savers and can prevent damage from clogged gutters. Check the seams between sections of gutter, as well as between the gutter and downspouts, and make any necessary adjustments or repairs.

Warm up time: Have the furnace inspected to ensure it's safe and in good working order. Most utility companies will provide basic inspections at no charge, but there can often be a long waiting list come fall and winter. Replace disposable furnace air filters or clean the permanent type according to the manufacturer's instructions. Using a clean filter will help the furnace run more efficiently, saving you money and energy.

Light that fire: If you enjoy the crackle of a wood-burning fireplace on a chilly fall evening, have the firebox and chimney professionally cleaned before lighting a fire this season. Creosote, a byproduct of wood burning, can build up to dangerous levels and cause a serious chimney fire if not removed.


Pillers to Post    Happy Fall!

California Housing Crisis

More and more people are being priced out of the California Housing Market Place when it comes to buying homes (downsizing, up-sizing, first time and even renters)  Prices are increasing in all these areas and with the shortage of available homes on the market for sale or for rent it only promises to get worse.

There has been fewer and fewer new home starts based on several things, the down turn in the market in 2006-07 (builders often left sites unfinished, cities putting restrictions on new starts.  ( a lot of restrictions being put into place with land use, when, where, and how many homes, condo's, etc. can be built.  Housing of all types are being effected.

Over 230,000 homes needed to be built per year over a several year period and that was a drastic difference over what was built.  (About 120,000 per year) According to the current demand we need to build about 200,000 per year and that is a far cry from the figure currently being built of about 100,000 per year.

This housing shortage is hurting people at every economic level, but made it very difficult for lower income and first time buyers. There have been more cuts in affordable housing funding which has also contributed to the crisis.  Cost of building has risen drastically as well.  All in all it means less homes on the market, even as many people are leaving the state many more are moving in.  California needs to take action to protect it's housing market and provide more affordable housing for people  needing mid range housing to lower income families.

We can all help by encouraging our cities to take actions that will attract more builders, with more reasonable costs for building.

What is happening on the market front?

Signs that the economy is doing well are good, consumer spending went up higher than expected in July over June. June was at 0.3 and July was 0.6. Spending makes up about two-thirds of the economy so this is good news.

Housing starts fell by about 4.8% from June due to lack of land available for building and material prices rising. The state needs about 180,000 new housing starts per year to keep up with the population growth and it is building less than 80,000 on average annually.

Feds are concerned about low inflation, no start date for the reduction in the Fed's $4.5 trillion balance sheet, and the housing starts falling which all added up to an increase in bond rates. The increase in bond prices helps the mortgage interest rates stay lower.

All of this adds up to it being a good time to sell as home prices have jumped considerately and interest rates are staying at all time lows. We are starting to see a few more homes coming on the market as people are beginning to sell.

All of the above information is from different reports I have been reading. I have not verified it personally.

Housing Inventory Begins Seasonal Climb

On July 31st, 4,405 residential properties were posted as active and available for sale throughout the 4-county Greater Sacramento region. That number marked a 10 percent increase in supply when compared to June, but remained 12 percent below July of last year. Currently, the region enjoys its highest inventory level since September of 2016. This market information is presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.

During the month of July, 2,481 properties were reported as sold and closed. This represented a 17 percent fall off versus a very robust June. “Due to protracted escrow periods and the number of business days in a month, it is best to look at longer periods to accurately assess trends,” says Pat Shea, president of Lyon Real Estate. “For instance, if we compare unit numbers from May, June and July combined, closed sales were up 1.4 percent versus last year.”

The rate of new open escrows or pending sales, support expectations that closed sales will remain strong in the coming months. New escrows opened in July were up 3 percent compared to June. They also stand 5 percent higher over the past three months compared to last year at this time.

The average closed sale price of $433,000 and median price of $392,000 posted in July were both more than 9 percent greater than last year. Sellers received 99 percent of their original list price and were on the market an average of 24 days prior to accepting a contract. Below the one million dollar price point across the entire region, there remains a meager 1.5 months of inventory based upon the current rate of sales. A seller’s market is typically viewed as anything less than 4 months.

“All of these key market metrics further reflect the stability and sustainability of the Greater Sacramento real estate market,” says Shea. “Expect inventory to climb slightly over the next few months but sales to remain very steady. All of the news surrounding our Northern California and local economy is good and consumer confidence is quite high. It’s still an excellent time to buy or move-up, all throughout our region.”

About TrendGraphix, Inc.

TrendGraphix, Inc. is a real estate reporting company based in Sacramento that uses local Multiple Listing Service (MLS) data to provide highly-visual market statistical graphs to real estate brokers, agents, and MLS/Realtor associations across the country. TrendGraphix’s programs are currently used by tens of thousands of agents in more than 250 brokerages in 48 states. For more information about TrendGraphix, visit www.trendgraphix.com.

Category Real Estate

7 IRISH PUBS TO CELEBRATE ST. PATRICK’S DAY IN THE SACRAMENTO AREA

St. Patrick’s Day is just around the corner! There is no better place to celebrate this holiday than an Irish pub or Irish-themed bar with an abundance of Guinness, Irish fare, lively crowds, and a sea of green. Make plans to visit one of these Irish pubs in and around Sacramento on St. Patrick’s Day or the days leading up to March 17!

1. THE BOXING DONKEY IRISH PUB & RESTAURANT

300 Lincoln Street, Roseville, CA 95678

The Boxing Donkey Irish Pub is located in historic Old Town Roseville, serving incredible Irish food, beer and whiskey. Their inviting and hospitable service in a comfortable setting makes your experience extra enjoyable, furthered by live music and a daily happy hour. The Boxing Donkey has quite the day planned on St. Patrick’s Day. In fact, they open at 6 a.m. on March 17 to start the festivities early! (Photo above represents the Boxing Donkey’s German festivities.)

2. MALT & MASH IRISH PUB

715 K Street, Sacramento, CA 95814

Malt & Mash Irish Pub in the heart of downtown puts a modern twist on the classic Irish pub, evident in their gorgeous interior and exterior designs and their delicious food and drink menus. The name Malt & Mash refers to the usual grain mixture used in the brewing and distillation of beer and whiskey, both of which they specialize in. This authentic pub celebrates the history of Irish-American culture in an effortless and captivating way.

3. DE VERE’S IRISH PUB

1521 L Street, Sacramento, CA 95814

217 E Street, Davis, CA 95616

de Vere’s Irish Pub is owned and operated by an Irish family originally from Dublin who moved to Sacramento in 1984. The atmosphere is so authentically Irish at both of de Vere’s locations in Sacramento and Davis. In fact, they even had the pub fixtures and furnitures designed and built in Ireland. de Vere’s provides innovative Irish food, friendly service, and of course, 20-ounce pints of Guinness!

4. PITCH AND FIDDLE

8704 La Riviera Drive, Sacramento, CA 95826

Pitch & Fiddle is an authentic Irish pub in Sacramento serving the finest selection of Irish whiskeys and beers. Their Irish fare is to die for — especially the fish and chips and their famous Irish corned beef tacos. Celebrate St. Patrick’s Day at Pitch and Fiddle, or treat every day like an Irish holiday with their daily happy hour from 4 to 8 p.m.!

5. 36 HANDLES PUB & EATERY

1010 White Rock Road, El Dorado Hills, CA 95762

This easy-going Irish pub in El Dorado Hills serves classic Irish fare and drinks, with a strong emphasis on beers. In fact, they have 36 handles (hence the name!), including 28 commonly found beers and 8 alternating taps, offering variety and interest for beer connoisseurs. Join their membership club by drinking a handle of every beer on tap, and you will receive perks and discounted refills at each visit!

6. O’MALLY’S IRISH PUB

1109 2nd Street, Sacramento, CA 95814

Located in the heart of Old Sacramento, O’Mally’s Irish Pub offers one of the most authentic Irish experiences around. With wooden furniture, traditional Irish fare at reasonable prices, a wide selection of drinks, and a welcoming atmosphere, this no-frills pub is the real deal. This year, O’Mally’s is celebrating their 20th anniversary, so they’re throwing an especially big party on St. Patrick’s Day!

7. THE BLARNEY STONE IRISH PUB

8906 Greenback Lane, Orangevale, CA 95662

This Orangevale pub is popular amongst residents and those in neighboring towns. The Blarney Stone serves 22 beers on tap, including all of your Irish favorites, and a full bar with a great selection of Irish whiskeys. Relax with friends and family on the covered patio with some Guinness-battered fish and chips, or belly up to the bar with a pint of Guinness!

LÁ FHÉILE PÁDRAIG SONA DUIT, SACRAMENTO!

Translation: Happy St. Patrick’s Day, Sacramento!

5 Things Every Loving Homeowner Should Know About Their Own Home
Your relationship with your home is one that will hopefully last a long time, so it pays to learn its most intimate details. And not to be weird, but we really do mean intimate: what turns it on (or off), what makes it hot (or cold), and its delicate inner workings.

Because, after all, your home takes care of you—it keeps you warm, safe, well-fed—so it has every right to act a little high-maintenance and demand some TLC in return. Neglect your house, and there could be hell to pay later in the form of floods, electrical outages, and worse.

So as a sort of how-deep-is-your-love kind of test, ask yourself if you know these five things about your home—and if not, maybe you should go find out.

Q: Where is the main water shut-off valve?

Imagine you’re anywhere in your house where water is a feature: bathroom, kitchen, laundry room. They’re all connected by a network of pipes that come from your main water source. If any of those tangential pipes springs a leak, you’ll need to shut off the water until it can be fixed.

Every home is different, but you can likely find your main valve near the perimeter of your house, at ground level, nearest your water meter. If your water pipes are visible (in the basement, for example), follow them until you reach the main inlet and valve.

It’s possible your shut-off valve could be in a crawl space, closet, or somewhere out of the way, but it should definitely be in plain sight, rather than covered over with drywall. But rather than sit there and wonder, be sure to ask the previous home seller before you move in or check your home’s blueprints for a clue.

Q: Where is your circuit box, and is it properly labeled?

A circuit box is your house’s bodyguard against sudden spikes in electricity that run through the wires. Know your circuit box! It may enable you to avoid hiring a technician for simple electrical issues.

Most circuit boxes are located in a house’s basement, but some are also found in garages or utility closets. The switches inside correspond to rooms and sets of outlets in your home. Hopefully, they’re labeled properly—and if not, you should get on that pronto to avoid a tortuous guessing game every time you need to turn your power on and off.

If power suddenly goes out in a room (usually because you have too much plugged into one outlet), you can identify the tripped circuit by the switch that’s flipped in the opposite direction to the others. That means you may need to plug in your lava lamp elsewhere.

Q: What is a thermocouple, and do you know how to change it?

When your furnace goes out, you’ll be left in the cold—but not if you know how to change its thermocouple.This is the part of the furnace that shuts off the gas if your pilot light goes out, preventing that gas from seeping into your home. (You know, the gas that can kill you if left to run amok.)

If the furnace won’t stay lit, there’s a good chance you have a faulty thermocouple. Learning how to replace or adjust yours can be the difference between a $10 trip to the hardware store, and a $90/hour visit from a technician. Most thermocouples are held in place by brackets, which can be gently unscrewed to insert the replacement thermocouple.

Keeping a spare thermocouple on hand during winter is especially smart, because furnace problems can be more inconvenient—and costly—during the peak times of the year.

Q: Where are all your filters, and when was the last time they were replaced?

Lots of appliances in your home have filters. In fact, any device that conducts air or water should have some sort of filter in place to remove impurities and particulates. Changing these filters routinely can save you money, and keep you safe, which is why it’s helpful to know when they’re due to be replaced. Furnace filters should be replaced every two to three months; HVAC, ice maker, and water dispenser filters must change at least once a year. But that varies based on the manufacturer, so be sure to check your maintenance manual and not let it slide.

Q: Does your home have a sump pump, and do you know how to maintain it?

A sump pump is a pump (duh) installed in certain basements and crawl spaces to keep these areas of your home dry, which it does by collecting water that tries to seep in and moving it far, far away (or at least as far as the drainage ditch in your yard). They’re especially common in regions where basement flooding is an issue. Without a sump pump, the invading water can result in thousands of dollars in damage.

The good news, though, is that sump pumps are relatively easy to maintain. Check both lines, in and out, to make sure they’re not clogged with debris, and make sure the float component (this is the little bob that floats upward when water begins to fill the sump pit, activating the pump) can move smoothly.

By Matt Christensen | Feb 8, 2017

New Article Highlights Tech and Development In Elk Grove February 3, 2017

Business Xpansion Journal, a digital and print magazine geared towards company executives and site selection consultants, recently published an article about the City of Elk Grove. The Article highlights the expansion of Apple, an emerging tech and startup sector, and several key projects like the Southeast Policy Area and the Civic Center. Click on the images below to read the full story. https://gallery.mailchimp.com/9a73a0fceeeb5423bd1512de5/images/a9b130be-cecb-477e-8931-dc705f46d50f.png

Letter to Buyers

By Ryan Lundquist on Feb 01, 2017 07:55 am

Dear Buyers,

Yesterday I talked with a few buyers who are in the trenches of the market. One is feeling frustrated at not get offers accepted, and the other is starting to feel like affordability is beginning to vanish. I was actually taken aback with a real sense of hopelessness for the latter individual, so I wanted to share some perspective as an appraiser when it comes to making offers in an aggressive-feeling market. Whether you are in Sacramento or elsewhere, I hope this helps. Any thoughts?
Advice for buyers in an aggressive market:

1. Shop below your price range: We are in a market where multiple offers are commonplace in many price ranges and neighborhoods. This means if you are qualified up to $300,000 and money is tight, you might want to consider homes that are priced $270,000 to $300,000 instead of just $299,000. This allows you some space in case there is a bidding war.

2. Expect to get beat: Sorry to be a downer, but you probably aren’t going to get into contract on the first home you offer on. Remember, real estate is a bit like dating. You often don’t marry the first person you go out with. So take heart and expect you’ll submit many offers until something sticks.

3. Know when listings usually hit the market: There is a season in real estate, just like there is a season for baseball, weather, or elections. It’s true inventory is sparse, but it’s also true listings don’t start to hit their stride until March through August. Sometimes February will be a stronger than usual month, but we still don’t see the bulk of what’s going to hit the market until May through July / August. If you don’t believe me, look at the light green listings below over the past few years. In short, don’t freak out in February if there isn’t much on the market.

4. Don’t let sensational headlines stress you out: Headlines these days often talk about how hot the market is, but my advice would be to read stories carefully and ask a few real estate professionals what they think too. For instance, one headline says “Sacramento will be one of the hottest markets in the nation” as values are projected to increase by 7% in 2017. This one story has seriously saturated the market and I’m hearing this sentence about everywhere I go. The irony though is a 7% price increase is about what happened in 2016, which means the headline could have just as easily said, “The market looks like it’ll do about the same thing this year.” I don’t say this to gloss over how competitive the market is, but only to highlight we need to read articles carefully and think critically rather than immediately stress out.

5. Don’t mistake low-ball pricing for the market: Some properties are attracting 15-20 offers, but my sense is when that happens it’s usually more about low pricing than the actual market. This week I saw a property listed at $290,000 that probably should have been listed at $350,000. We can look at the 15 offers and bemoan how intense it is out there or we can realize this one was priced ridiculously low.

6. Be careful of bidding up to “no man’s land”: While it’s plausible to think the contract price might get pushed up a bit with multiple offers, don’t forget to be realistic about what the home is actually worth. If you know you don’t have cash to pay for the difference between a realistic appraised value and the contract price, you might not want to offer that high then. Somehow you’re going to need to stand out as a buyer to the seller, but an unrealistic offer well beyond a reasonable value probably isn’t going to help you in the long run.

7. Realize cash doesn’t always win: There is a false idea that cash investors from the Bay Area are beating out financed buyers all the time – especially those bringing very little money to the table. The truth is 1 in 4 sales last year in Sacramento County were FHA buyers who put down 3.5% (or less if they used down-payment assistance). Keep in mind only 14% of all sales were cash during this same time. Moreover, 27.4% of all sales under $500,000 had FHA loans in 2016 in Sacramento County.

8. Find a way to stand out: There could be multiple offers, so you need to figure out a way to stand out and make a positive impression on the seller. Of course the strength of your offer is the first place to start, but beyond that find a way to make an emotional connection with the seller too if possible. I might recommend brainstorming ideas with your agent. When my wife and I bought a house a couple of years ago there was actually a higher offer on the property, but the seller accepted our offer instead. When touring the home we were fortunate to meet the seller and we hit it off a bit. During the conversation the seller mentioned her son was going to start at a new private school. Anyway, when we submitted the offer we wrote a personal letter complimenting the house and reminding the seller who we were. We also looked up the school and found it was $1400 per month. We then wrote in our offer we were going to give the seller an extra $1400 at the close of escrow to help pay for her son’s school (The underwriter actually freaked out because she’d never seen a buyer do that). I’m not saying you need to do something like this, but in our case it definitely made a huge impression. It showed that we listened, we truly cared, and we were very serious about the home.

9. Listen to your agent: You probably know the market pretty well by now because you’re scouring listings in an obsessive compulsive way on Redfin, Zillow, and MLS. This also means you are most likely going to find your eventual home before your agent does. That’s how it works these days. Just remember finding the home is the easy part, but the most important thing your agent can do for you is negotiate on your behalf and offer professional guidance and advice along the way. Will you listen?

I hope this was helpful.