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Housing Crisis to End in 2012 as Banks Loosen Credit Standards

February 28, 2012 Leave a comment

Capital Economics expects the housing crisis to end this year, according to a report released Tuesday. One of the reasons: loosening credit.

The analytics firm notes the average credit score required to attain a mortgage loan is 700. While this is higher than scores required prior to the crisis, it is constant with requirements one year ago.

Additionally, a Fed Senior Loan Officer Survey found credit requirements in the fourth quarter were consistent with the past three quarters.

However, other market indicators point not just to a stabilization of mortgage lending standards, but also a loosening of credit availability.

Banks are now lending amounts up to 3.5 times borrower earnings. This is up from a low during the crisis of 3.2 times borrower earnings.

Banks are also loosening loan-to-value ratios (LTV), which Capital Economics denotes “the clearest sign yet of an improvement in mortgage credit conditions.”

In contrast to a low of 74 percent reached in mid-2010, banks are now lending at 82 percent LTV.

While credit conditions may have loosened slightly, some potential homebuyers are still struggling with credit requirements. In fact, Capital Economics points out that in November 8 percent of contract cancellations were the result of a potential buyer not qualifying for a loan.

Additionally, Capital Economics says “any improvement in credit conditions won’t be significant enough to generation actual house price gains,” and potential ramifications from the euro-zone pose a threat to future credit availability.

Do you have specific questions about any homes in Folsom in El Dorado Hills on the Sacramento real estate market? Contact Alvin Newton and the Newton3 team by email (FolsomProperties@gmail.com ), phone (916-941-5798), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Folsom MLS and set up a customized email-based home search for you to track a specific  Folsom Home, El Dorado Hills Home, and other Sacramento properties at your leisure. Thank you for visiting the Folsom Real Estate blog and we look forward to serving you and your real estate needs.

Are You Selling a House With a Dated Kitchen?

February 23, 2012 Leave a comment

You have a dated kitchen and you need to fix it up in order to sell your home, but you find yourself short of the typical $30-40K for a full upgrade.  What do you do?

My experience as a Realtor has shown there are three important areas of the kitchen that are important to home buyers – appliances, counter tops and cabinets.  Replacing old appliances with new working ones makes a huge difference to a buyer.  The buyer doesn’t have to worry about the appliances not working, or having to shell out money immediately to make them functional. There are plenty of places to purchase these cheaply, from appliance outlet centers to the big box retailers.

BEFORE:

Folsom Homes By Folsom Realtors

Now on to the fun stuff – counter tops and cabinets.  In this picture (right), the appliances were fairly new, but the counter tops and cabinets were decidedly not.  It seems as though each are fighting for attention.

This was a property that my client had been renting for some time and now was looking to sell.  The fact that the appliances are fairly new gets lost with the dated cabinets and countertop. Plus the refrigerator had a slight lean towards the back wall, which made the room seem unbalanced.   Lots of chaos!

I advised my client to tackle the large visual elephant in the room – the cabinets.  I suggested painting all of the cabinets and the walls the same color — white — to brighten the room and melt the cabinets into the walls, making the kitchen feel larger. And of course, have the refrigerator straightened up. She had both things done and this was the final result…

AFTER:

Folsom Homes By Folsom Realtors

Look at that! The cabinets and countertops are now playing nice! Notice that the countertops and floors were NOT changed but each becomes less of issue with the cabinets painted.

Sure, the floors could have been updated with self-adhesive vinyl floor tiles but remember – tight budget!  It seemed to work, as the client received 3 offers on the house after the first open house weekend and the house sold quickly thereafter.

As in most kitchens, the cabinets take up the most visual attention in the room so don’t be afraid to address them! You can paint them, update the hardware or even replace cheaply with standard sized cabinets, from  discount cabinetmakers.  If you have the funds to update the countertops with laminate from local hardware store, do it. Just don’t ignore your kitchen, it could easily block your sale more than you know!

Folsom Homes By Folsom Realtors

Do you have specific questions about any homes in Folsom in El Dorado Hills on the Sacramento real estate market? Contact Alvin Newton and the Newton3 team by email (FolsomProperties@gmail.com ), phone (916-941-5798), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Folsom MLS and set up a customized email-based home search for you to track a specific  Folsom Home, El Dorado Hills Home, and other Sacramento properties at your leisure. Thank you for visiting the Folsom Real Estate blog and we look forward to serving you and your real estate needs.

Empire Ranch Real Estate Update 2012

February 3, 2012 Leave a comment

Empire Ranch Homes / By Empire Ranch Realtors

The median sales price for homes in Empire Ranch Village for Oct 11 to Dec 11 was $680,000. This represents an increase of 65.9%, or $270,000, compared to the prior quarter and a decrease of 20% compared to the prior year. Sales prices have depreciated 26.5% over the last 5 years in Empire Ranch Village, Folsom. The median sales price of $680,000 for Empire Ranch Village is 142.86% higher than the median sales price for Folsom CA. Average listing price for homes  in Empire Ranch Village was $552,186 for the week ending Jan 25, which represents a decline of 1.6%, or $8,764 compared to the prior week and a decline of 1.5%, or $8,414, compared to the week ending Jan 04. Average price per square foot for homes in Empire Ranch Village was $189 in the most recent quarter, which is 23.53% higher than the average price per square foot for homes in Folsom.

Do you have specific questions about any homes in Folsom in El Dorado Hills on the Sacramento real estate market? Contact Alvin Newton and the Newton3 team by email (FolsomProperties@gmail.com ), phone (916-941-5798), or on Facebook with your questions or to set up a viewing appointment. Our team can provide customized services, help you navigate the Folsom MLS and set up a customized email-based home search for you to track a specific  Folsom Home, El Dorado Hills Home, and other Sacramento properties at your leisure. Thank you for visiting the Folsom Real Estate blog and we look forward to serving you and your real estate needs.