Are we in a Bubble…? Not According to the Affordability Index…!

bubble_mania

No One Knows for sure… But Here’s some Stats You Should Look At…!

I remember the Real Estate Market back in 1989 and of course the big crash in 2007-2008.

If you want my opinion…?  I don’t think we’re there yet.   If you look at the links below, you’ll see what I’m talking about.

In 1989 I moved here from the Bay Area and the Index then was I believe about 19% of the folks living there at the time could afford to buy the median priced home with 20% down. Here in the Sacramento Real Estate market it was about 49% back then.

When we got to the top of the market in say, late 2004,  the index was way down through out the state. I’ll let the indexes below give you the data.   Take a peek at them and then decide for yourself if we’re in a bubble.   I think you’ll be surprised at what you’ll see.

Let’s talk about FIRST TIME BUYERS – it’s even better for them.

Bottom line is while interest rates are low and prices are going up some, there’s plenty of demand for Residential Real Estate.  There are plenty of Buyers out there but not much inventory to choose from.

If you’re thinking of buying and you’re worried we might be in a bubble, historically speaking we have a ways to go.

If you’re thinking of Selling you’ve probably heard from more than one source how low the inventory is so call me to get the latest valuation of your property.   We specialize in Single Family Homes, Duplexes, Four-Plexes and Small Apartment complexes.   If you’re in Investor, we also do Property Management.   So give us a chance at your business today.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE         favinger@rwnetwork.com 916-203-1260

 

Sacramento Real Estate Market is On a Roll…!

Bottom Line…? It’s the Affordable Index..!

I received an email update from the Sacramento Business Journal this morning and thought I’d pass it on.

Some of the larger Real Estate companies in the area are talking about how the market is going to be about the same as it was last year.   Click Here for the Article, but read below why.   It’s not discussed in the article but below you’ll see why it’s important.

My take on what makes a great market…?   Buyers who can qualify for a loan and purchase the inventory.

If you look at the links below, you’ll see why,  even though prices have risen a lot over the last few years, the “affordability index” shows there’s plenty of Buyers out there able to qualify and purchase a home in this market.

Why is this important…?  It’s a gauge in my opinion to know when a market is about to change.   For instance I remember when I moved here to Folsom in 1989, the index was at 19% of Buyers who could qualify for the median priced home using the “traditional method” in the San Francisco Bay Area,  while it was at 49% here in the Sacramento area.Affordability_2015-Q3

Just before the big crash of a few years ago in late 2006 I saw an article where the index was at 19% here.   Shortly after I read that report, I started seeing lots of short sales and REO’s hit the market just like it did in the early 90’s.

From the data below you’ll come away with idea that we’ve got a long way to go before prices go up so high they become unaffordable.   Of course this assumes  interest rates stay near where they are now.

 

 

 

First Time Buyers

First Time Buyer’s Affordability Index

First Time Buyer’s Affordability Index Methodolgy

 

Traditional Affordability Index

The Affordability Index

Traditional Housing Affordability Index Methodology

Let me know what you think.

If you’re thinking about buying a home or an investment property,  today’s data should give you confidence your decision to get into the market.   Call, Text or Email today and we’ll get you started on your way.

We specialize in sales of Single Family Homes, Income and Investment Property such as a Duplex, Four Plex or even an Apartment complex.      Don’t forget we also offer Property Management services – Click Here for Our Property Management Page.

In the Mean Time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE      favinger@rwnetwork.com     916-203-1260

 

 

Sacramento & Folsom Real Estate are Hot..!!!

But so are a lot of other places in California…!

Maybe it’s just got to be the great weather right…?

Take a look at this…CaliforniaHomeSales

 

 

So if you’re thinking of buying a Single Family Home or any other kind of Residential Investment Real Estate like a Duplex, a Four-Plex or a small apartment complex, give is a call today.

And don’t forget, we also do Property Management as well.

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker, CRS, GRI, SFR, CDPE    favinger@rwnetwork.com   916-203-1260

 

Foreign Investors Still Love California Real Estate

Here’s a story about a company that wants to scratch their itch.

I ran across this article that I thought I’d share.   Not a long read, but it’s an announcement about an “online” real estate investment management company moving into the Southern California market.Los-Angeles-highway

Real Estate has been overall a “safe haven” for many investors.

I’m sure you’ll be seeing stories soon about the growth in the area especially regards the South of 50 area of Folsom.

 

CLICK HERE FOR THE ARTICLE.

 

In the Mean Time..?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE      favinger@rwnetwork.com    915-203-1260

 

 

The Sacramento Region is going to be really hot soon…!

There’s so much going here and around us.

All you to do is read some of the business sections of various newspapers and trade magazines to know, there’s a lot of money out there looking for a home.

PandoraCase in point…?

I just got this article out of Bisnow.com and thought I’d share it because it just goes to illustrate what is happening in the San Francisco Bay Area which means there will be a “ripple” effect here in our area.

If you read the local media here you already know about the new Downtown Arena for the Sacramento Kings and developments around it.

Here’s an article in the Sacramento Bee from a couple of days ago about a Folsom venture capital firm and some of the successes here.

So if you are thinking of buying a home in Folsom, El Dorado Hills or other areas in the Sacramento Region, you just might want to get out there soon, before the prices start going up a little faster.  Business is picking here and elsewhere.

To make my point some more about Folsom….?  Here’s a typical article from just one other real estate agent here in town.  I could find more comments like this but I think you get the idea.

That’s my opinion.

In the mean time…?

Make it a Great Day…!

Ed Favinger, Broker CRS, GRI, SFR, CDPE    916-203-1260    favinger@rwnetwork.com