Wednesday, June 29th, 2011Doug Covill, president Sacramento Association of Realtors, speaks to the Carmichael Chamber of Commerce June 29, 2011.
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 We came back from the NAR Mid-Year meeting feeling a bit tossed around. The housing market will not recover, and therefore the economy will not recover, until all creditworthy homebuyers can get a mortgage. For example, we don’t need to get rid of Fannie Mae and Freddie Mac. We need to go to this time back before they got so loose. The pendulum has swung too far. Making it too hard to get loans won’t help the economy. Lawrence Yun, chief economist at NAR, said sales would rise 15-20 percent if FHA and Fannie and Freddie would return to normal lending standards. We heard a lot of talk about requiring all buyers to put 20 percent down to buy a home. We all understand the value of buyers making a down payment. But that is no way to encourage home ownership. The crowd burst into applause when one speaker called that idea “lunacy.” Mr. Yun referred to such proposals as an attack on the middle class. He also calculated that, using average prices and salaries, it would take a buyer 14 years to save for a 20 percent down payment. We all know that not everyone should be a homeowner. We also know that homeownership creates lots of benefits, including more education, less crime and better health. We also know lots of people who could and should be able to buy a home right now but are finding it very hard. Sales increase 8.3% from 1,524 units sold in April to the current 1,650 units sold this month. Year-to-year, closed escrows increased by 7.3% from 1,720. Making up the closed escrows this month were 685 REOs (41.5%), 386 short sales (23.4%) and 579 conventional sales (35.1%). These numbers have changed month to month with REOs down by 5.8%, short sales up 3.5% and conventional sales up 5.4%. The median home sales price continues along its bumpy path, decreasing this month by 1.2% from $169,900 to $167,000. Compared with the same month last year ($190,000), the number is down 12.1%. The $200,000 – $249,999 price range mode still accounts for a majority (15.8% or 261 units) of the 1,650 total sales this month, while homes under $100,000 totaled 294 (17.8%) units. Closed escrows from conventional financing (30.6%) cash buyers (30.9%) and FHA financing (30%) were nearly identical this month, making up 91.5% of all transactions. The remaining 8.5% is made up by VA financing (3.3%) and Other (cal vet, contract of sale, creative, farm home loan and owner financing). These numbers include the 145 condo sales this month. The average amount of days spent on the market (from list date to opening escrow) was 66 days – up from the 50 average DOM of April The Total Listing Inventory has been split up to more accurately display the current market. Active Listings numbered 4,111 properties and Active Short Sales Contingent showed 2,101. Active Short Sale Contingent properties are short sale properties on which initial offers have been made and are not entirely “active.” After breaking down Total Listing Inventory, we find that the Housing Market Supply figure is more accurately reflected. The Housing Market Supply figure for Month was 2.5 Months – down from the 2.9 Months of last month. This figure represents the amount of time – in months – it would take to deplete the Active Listing Inventory (4,111) given the current number of closed escrows (1,650). Continue reading: Sacramento Market Remains Affordable, Monthly Sales Up  2011 marks SAR’s 49th year of awarding scholarships to deserving Sacramento area students. The Scholarship Fund was initially a $600 yearly program that provided $100 to $200 scholarships for Sacramento students attending American River Junior College, Sacramento City College, and Sacramento State College (now California State University, Sacramento). Over the years SAR has expanded [...] When 34 area students receive college scholarships from the Sacramento Association of REALTORS® on June 7, they will join a group of students reaching back 49 years. Their scholarships, ranging from $750 to $2500, total $38,250 this year. “Through all the ups and downs of real estate over the years, Sacramento REALTORS® have always supported higher education through their own contributions,” Perry Georgallis, REALTOR® and chair of the Scholarship Foundation Trustees, said. The scholarship fund began as a $600 program that provided $100 to $200 scholarships for Sacramento students attending American River Junior College, Sacramento City College, and Sacramento State College (now California State University, Sacramento). Over the years, SAR has expanded the scholarship program to support students in a variety of other fields at many different institutions. “Education is one of the most important gifts we can give today’s youth. Education benefits not only the student but the entire community. The students who receive a SAR scholarship to attend college may one day be our clients, our co-workers and our community leaders. All these young people are so outstanding, they give us faith in the future,” Georgallis said. |
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