MICHAEL MIZUNO
Phone:
916-960-1881
Mobile:
916-628-3163


Fax:
916-404-2981
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Office:
Folsom
2600 East Bidwell Street, Suite 150
Folsom, CA 95630

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Each Office Independently Owned and Operated
Sacramento Area Market First Time Home Buyer update for August 2008
I’ve defined homes up to 1800 Square feet in size as homes generally purchased by first time home buyers. This report includes all resale homes listed on MLS less than or equal to 1800 square feet and sold in the three county area of El Dorado, Placer and Sacramento. The chart below represents single family home sales trend broken down into three categories. Short Sales, Bank Owned (REO) and other (sold by a private party). 
Influencing the Real Estate Market
The Federal Government has stepped in to take over the Fannie Mae and Freddie Mac. There are a number of scenarios describing what the outcome of this action will look like. It is way too early for anyone to know the exact outcome. Interest rates did take a small dip with the news of the takeover of Fannie Mae and Freddie Mac. This week the headlines are full of Lehman and AIG. We will have to wait for things to settle out.
Twice as many homes sold in August of 2008 as did in Jan of 2007. Another striking change is the huge increase in the number of bank owned sales. In August of this year, almost three times as many bank owned homes sold as privately owned homes (other on chart). Many of the buyers of these homes are not first time home buyers but investors. Another change this year is appraisers are bringing in appraisals less than the price agreed upon by the buyer and seller (and comparables).  
Peek into the future
In the middle of September, there are almost 1869 short sales, 1763 bank owned and 1790 privately owned homes actively being marketed. This indicates that the downward pressure on the First Time Home Buyer homes will continue to be under pressure.
If you are interested in a specific area or additional information contact Michael.