Davis Liked It : Roe Building Sold Out!
April 13th, 2008 Categories: Davis CA Real Estate, Davis RE Trends, RE Week in Review, Real Estate News, Roe Building
All of the citizens of Davis and interested parties from afar were intensely curious and interested in the Roe Building during its conception, construction and recent completion. We heard all kinds of comments - mostly favorable, in fact enthusiastic - and gave over 120 private tours of the building (thanks to you who braved the scaffolding in the rain). And now it is sold. Kim Merrell Lamb and I anticipate that it will be an interesting community - people of all ages, some dogs, a shared courtyard, an active homeowners association. Many asked if they could be on the list to rent if investors were buying, but in fact, every unit is going to be owner occuppied. We learned that my demographic (children raised, 1.7 people living in 4 bedroom 2800 sq ft homes and tired of caring for them) has a very real need for a new kind of housing, and little to satisfy it. More about that coming up when I write about Sage Creek…
Kim and I wish to thank all of you who showed interest, offered comments and supported our efforts (yes, that includes a boyfriend and a husband, respectively.) We want to express heartfelt thanks to the enduring efforts of Mark Rutheiser and Chuck Roe, to the puzzle-solving of mortgage broker Greg Fulkerson, to the staging talents of Mary Leachman and to all who played a role in this creative and successful project.
-Jamie Madison, 530.574.0596
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Bubbletown Not Immune:Davis Home Sales Q1 2007 vs 2008
April 9th, 2008 Categories: Davis CA Real Estate, Davis RE Trends, RE Week in Review, Real Estate News
It’s spring! Davis is gorgeous - trees have leafed, wisteria is blooming, birds are wildly busy feeding babies …and homes are selling - sort of. Inventory is up and open house signs once again grace the corners of Davis all weekend. But, a bubble we may be, we are not immune to the forces of the economy. Figures for single family home sales are out for the first quarter of 2008:
2007 2008
Number sold 101 48 -53%
Median price $520k $512k
Average price $558k $559k
Days/market 85 84
Total Revenue $112.8m $53.7m -53%
Takeaway? It is a good time to be a buyer! There are some great homes on the market and the prices are the best we have seen in years. - Jamie Madison
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Davis Home Sales Feb/Mar 2007 vs 2008
April 2nd, 2008 Categories: Davis RE Trends, RE Week in Review, Real Estate News
Buyers questions are dominated by the quest to understand where we are in the market….have Davis prices dropped? will they drop more? if I buy now am I going to regret what I spent in 6 months? should I rent? should I wait? we are pregant, can we upgrade to a larger home in this market? will it appraise?
The chart above compares February and March of 2007 and 2008. There are 36% fewer homes sold in 2008. For the higher end homes, we are seeing much shorter sales times on the market, and a whopping 100.35% sales price to list price ratio. But for lower priced homes we are seeing a $25/sq ft drop and a 37 day increase of cummulative days on the market.
My guess is that sellers who have traded up to larger, more expensive homes in the good years are content to stay put in this market. Where are they going to go?
Sellers, brace yourself for a longer wait to sell. Buyers, ask yourself, how long do you plan to live in this house? If this is going to be your peaceful respit for at least 5 years to come, settle in. You may very well be laughing at the price AND the interest rate you got a few years from now.
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New Rules: No More Funny Money, Credit is King
March 28th, 2008 Categories: Mortgage Loans, RE Week in Review, Real Estate News
We’ve been waiting for it - here it is! The new economic stimulus package has reached the mortgage product market - and we have the new “conforming jumbos”.
New loan limits are 125% of the median house price - $580,000 for a Davis jumbo.
The days of the computer generated approval are over! You will need to provide full documentation - income verification, asset statements, credit scores - to qualify for a loan approval. Maximum seller contribution is 3% for a single family home. Non-traditional credit is no longer allowed, and the maximum debt-to-income ratio has been lowered to 45%.
Credit is king - you will be rewarded for your good credit, but if your FICO is less than 640, well, how do you feel about renting? For an 85% loan, plan on having a credit score of 700. To get cash out, look for a 720 FICO. For second homes, loans are based on a 60/40 loan to value ratio, and dependent on a 660 FICO.
Loans will be risk based. For the same loan (with one point), someone with a FICO of 720 or higher may get a 5.75%, while the person with a 659 FICO will pay 6.375% for the same loan.
Additionally, the FHA reform bill is pending to make FHA changes permanent. In Yolo County, the loan limit is $580,000, with a minimum FICO score of 660 and a minimum of 3% cash. For example:
Sales price: $575,000
Cash required: $ 27,359
Loan @ 6.75%: $566,991
Payment: $3677 Principal and Interest
Insurance: $100
Tax: $599
MMI: $233
Total Payment: $4609/ month
Is this all a good thing? Yes, it is. The loan practices of the past decade have defrauded us all, and most of all, they have not been good for the people who have signed up for interest only 5 year ARMs. Well-intentioned people were finally able to buy a house. Inexperienced and often poorly informed, they instead entered in to a loan obligation that they could not sustain. Perhaps if the traditional loan practices had been in place they never would have been buying a home in the first place.
And for those who do have good credit and the ability to sustain a loan, the new jumbo limits are now aligned with the very real price of homes here in Davis.
Find out more details about how the new loans will work in Davis by calling Vicki, Greg or Cara Mengali at Mortgage Resource Network.
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Davis Home Prices : 20 Year View
March 22nd, 2008 Categories: Davis RE Trends, RE Week in Review, Real Estate News
With the abundant news of the mortgage disaster swirling around us, it seems like a good time to take the long view and consider the history of prices in Davis over the past 20 years - the center figure is the median price:
1987 $118,000
1988 $154,300 +21%
1989 $192,000 +25%
1990 $234,700 +22%
1991 $246,600 +5%
1992 $243,200 (2%)
1993 $205,200 (16%)
1994 $187,900 (8%)
1995 $191,600 +2%
1996 $195,400 +2%
1997 $203,500 +5%
1998 $213,300 +4%
1999 $231,500 +9%
2000 $266,600 +15%
2001 $318,700 +19.5%
2002 $393,300 +24%
2003 $438,660 +11.5%
2004 $514,700 +17.3%
2005 $605,900 +17.7%
2006 $601,100 (1%)
2007 $571,100 (5%)
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2007 vs 2008: Davis Housing 3 Month Snapshot
March 12th, 2008 Categories: Davis RE Trends, RE Week in Review, Real Estate News
There were 16 homes on the Coldwell Banker realtor tour in Davis yesterday - signs that although late, spring inventory is finally starting to come in. For those of you from out of town, the listings you look at will seem like a throwback to 2005. Prices are still up, homes are better prepared than they were 3 years ago, but they are still Davis homes - sometimes needing a little updating or staging. Ad could read “average home, comes with wonderful town”.
TIP: If you are looking for a gorgeous updated Streng (mid-century modern) tucked away on a lush, quiet cul-de-sac in the center of town, call me to see 826 Cherry Lane. It is an awesome treat!
STILL STRANGE: We are still seeing certain homes selling quickly for over asking price in multiple offers (Almond Lane, Dartmouth, Pine Lane) while other perfectly good homes languish without offers. The schism is so noticeable yet hard to explain. One thing about the homes that sell quickly, they are clean, bright, well priced and thoughtfully prepared for market.
FEW CONDOS: We are up to 28 condos on the market - they are either built in 1972 or they are brand new - not much in between. Price range is $239k for a McKeon Condo to $529k for the exciting downtown Roe Building Unit 201. Average price is $351k with an average of 42 days on the market. I have several condo searches going on and it is not easy to find the happy medium.
THE NUMBERS: Here is a comparison of the period from 12/1 - 3/7 for both 06/07 and 07/08 for Davis only:
Number of units: 91 vs 48
Median price: $508k vs $514k
Days/market: 87 vs 85
Average price: $552k vs $521k
For January and February for the 2006, 2007 and 2008:
Price per sq/ft $363 vs $319 vs. $309
For more information, contact Jamie Madison at 530.574.0596
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