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Monthly Archives: June 2013

The Real Estate Ride

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In my last article entitled The Housing Revolution; I spoke about the shortage of available homes for sale which continues to remain a major factor in most local real estate markets throughout California. This shortage of the supply of homes, and the continued demand from buyers wanting to get in or back into the market, is causing home prices to dramatically increase (5%+ per month in some areas), as well as fueling a significant wave of growth in the overall real estate market that we haven’t seen for some time. When I was thinking about a title for this article and some sort of iconic image to reflect what I believe captures what the real estate market has faced these past 7 years, I thought of the book entitled; The Little Engine That Could. As the markets began to stall in 2007 and the subsequent fall of home prices by as much as 50-60%, it has been an uphill climb to where we are today, but nearly all historic indicators are hinting at a positive growth pattern. There remains a sense of cautious optimism in the air and the overall economy remains a little fragile, but the housing market is clearly the engine that is driving us forward. Here are a four important indicators that evidence this:

We have seen a significant decline in distressed real estate transactions (REO and Short Sales) which once dominated our market by as much as 65%. In May of 2012 for instance; bank owned sales and short sales (where the owner owed more than they could sell their house for) made up 44% of the sales and by May of 2013 that number changed to 22%. This means that equity sale (where the seller sold and received a profit) transactions made up 78% of the closings in May 2013. This is trending in a positive direction.

Home prices across all major markets in California are up anywhere from 12-15% year over year. According to the S&P Case-Shiller report “the recovery is definitely broad based” and we are finding that in some of our local markets the month to month change from there is anywhere from 5-10%.

Mortgage rates (though still low) are witnessing a significant jump and although some might see this as a negative influence on the housing market, it is actually spurring buyers to move rapidly to secure a home and close escrow before rates climb even higher. Very few consumers, if any, like higher interest rates but this increase was expected and already built in to most financial forecasts. Rising interest rates and unemployment are two significant components that have a direct impact on long term sustainable growth in not just the real estate market but also in the overall economic picture so those factors will continue to be a large influence and necessitate wise choices by our economic decision makers as well as consumers.

New home construction is the final component that I would like to show as evidence of an upward trending real estate market. A recent article from Bloomberg Businessweek (June 17, 2013) mentions that “confidence among U.S. homebuilders surged in June to the highest levels in seven years”. In Bay Area markets, such as Sunnyvale, California, some builders like O’Brien Homes have had to implement a lottery system to handle the huge demand for new construction and other builders like Shea Homes and Shapell Homes have followed suit with similar lottery systems to sell their new homes. These types of lottery models for selling homes are driven by the pent up demand by the consumer to obtain a quality home and builders are preparing themselves to meet that need. In areas where there is a fair amount of open land, the builders are beginning to break ground for both small scale and large subdivisions. In El Dorado County, for instance, there are at least 5 major building projects or subdivisions that are in process and could bring anywhere from 5000 to 7000 residential units to that area. These type of new construction projects when properly planned bring construction jobs, commercial business, schools, parks, and other forms of supporting employment to those regions.

The buzz in the air is that Real Estate is back and all indications are that this Little Engine That Could is gaining steam and heading in a positive direction.

Written by Mike Southwick
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Posted by on June 27, 2013 in Real Estate News

 

July Festivals

July 2013 Festivals

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July 2013 Festivals

During the summer months you may want to take in one of these local festivals. We have listed several of them throughout the State of California and they feature the heart and soul of the culture that makes each community they represent very distinct and unique. We often forget this when we only think in global or large scale terms. I would encourage you to take the time and visit some of these festivals listed here and check back, follow this page or book mark this web site as we plan to try and post these on a monthly basis. For a printable version click here – July 2013 Festivals

 

July 4th Celebration Opportunities – 2013

July 4th 2013 Celebrations

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In just a couple of weeks our country will celebrate one its most cherished holiday’s – Independence Day! Our forefathers, who after much diplomacy and debate were left with a choice; either continue to submit to tyranny or fight for their freedom. They in turn drafted a Declaration of Independence that brought about a war that cost many lives but it also changed the course of history. Here are their words:

When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature’s God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.

We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness.–That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, –That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shown, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security.–Such has been the patient sufferance of these Colonies; and such is now the necessity which constrains them to alter their former Systems of Government. The history of the present King of Great Britain is a history of repeated injuries and usurpations, all having in direct object the establishment of an absolute Tyranny over these States. To prove this, let Facts be submitted to a candid world.

He has refused his Assent to Laws, the most wholesome and necessary for the public good. He has forbidden his Governors to pass Laws of immediate and pressing importance, unless suspended in their operation till his Assent should be obtained; and when so suspended, he has utterly neglected to attend to them. He has refused to pass other Laws for the accommodation of large districts of people, unless those people would relinquish the right of Representation in the Legislature, a right inestimable to them and formidable to tyrants only. He has called together legislative bodies at places unusual, uncomfortable, and distant from the depository of their public Records, for the sole purpose of fatiguing them into compliance with his measures. He has dissolved Representative Houses repeatedly, for opposing with manly firmness his invasions on the rights of the people. He has refused for a long time, after such dissolutions, to cause others to be elected; whereby the Legislative powers, incapable of Annihilation, have returned to the People at large for their exercise; the State remaining in the mean time exposed to all the dangers of invasion from without, and convulsions within. He has endeavored to prevent the population of these States; for that purpose obstructing the Laws for Naturalization of Foreigners; refusing to pass others to encourage their migrations hither, and raising the conditions of new Appropriations of Lands. He has obstructed the Administration of Justice, by refusing his Assent to Laws for establishing Judiciary powers. He has made Judges dependent on his Will alone, for the tenure of their offices, and the amount and payment of their salaries. He has erected a multitude of New Offices, and sent hither swarms of Officers to harass our people, and eat out their substance. He has kept among us, in times of peace, Standing Armies without the Consent of our legislatures. He has affected to render the Military independent of and superior to the Civil power. He has combined with others to subject us to a jurisdiction foreign to our constitution, and unacknowledged by our laws; giving his Assent to their Acts of pretended Legislation: For Quartering large bodies of armed troops among us: For protecting them, by a mock Trial, from punishment for any Murders which they should commit on the Inhabitants of these States: For cutting off our Trade with all parts of the world: For imposing Taxes on us without our Consent: For depriving us in many cases, of the benefits of Trial by Jury: For transporting us beyond Seas to be tried for pretended offences For abolishing the free System of English Laws in a neighboring Province, establishing therein an Arbitrary government, and enlarging its Boundaries so as to render it at once an example and fit instrument for introducing the same absolute rule into these Colonies: For taking away our Charters, abolishing our most valuable Laws, and altering fundamentally the Forms of our Governments: For suspending our own Legislatures, and declaring themselves invested with power to legislate for us in all cases whatsoever. He has abdicated Government here, by declaring us out of his Protection and waging War against us. He has plundered our seas, ravaged our Coasts, burnt our towns, and destroyed the lives of our people. He is at this time transporting large Armies of foreign Mercenaries to complete the works of death, desolation and tyranny, already begun with circumstances of Cruelty & perfidy scarcely paralleled in the most barbarous ages, and totally unworthy the Head of a civilized nation. He has constrained our fellow Citizens taken Captive on the high Seas to bear Arms against their Country, to become the executioners of their friends and Brethren, or to fall themselves by their Hands. He has excited domestic insurrections amongst us, and has endeavored to bring on the inhabitants of our frontiers, the merciless Indian Savages, whose known rule of warfare, is an undistinguished destruction of all ages, sexes and conditions.

In every stage of these Oppressions We have Petitioned for Redress in the most humble terms: Our repeated Petitions have been answered only by repeated injury. A Prince whose character is thus marked by every act which may define a Tyrant, is unfit to be the ruler of a free people.

Nor have We been wanting in attentions to our British brethren. We have warned them from time to time of attempts by their legislature to extend an unwarrantable jurisdiction over us. We have reminded them of the circumstances of our emigration and settlement here. We have appealed to their native justice and magnanimity, and we have conjured them by the ties of our common kindred to disavow these usurpations, which, would inevitably interrupt our connections and correspondence. They too have been deaf to the voice of justice and of consanguinity. We must, therefore, acquiesce in the necessity, which denounces our Separation, and hold them, as we hold the rest of mankind, Enemies in War, in Peace Friends.

We, therefore, the Representatives of the United States of America, in General Congress, Assembled, appealing to the Supreme Judge of the world for the rectitude of our intentions, do, in the Name, and by Authority of the good People of these Colonies, solemnly publish and declare, That these United Colonies are, and of Right ought to be Free and Independent States; that they are Absolved from all Allegiance to the British Crown, and that all political connection between them and the State of Great Britain, is and ought to be totally dissolved; and that as Free and Independent States, they have full Power to levy War, conclude Peace, contract Alliances, establish Commerce, and to do all other Acts and Things which Independent States may of right do. And for the support of this Declaration, with a firm reliance on the protection of divine Providence, we mutually pledge to each other our Lives, our Fortunes and our sacred Honor.

July 4th 2013 Celebrations

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July 4th 2013 Celebrations

 
 

California County Fairs – July 2013

California County Fairs – July 2013

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California County Fairs – July 2013

 

I have spoken to a number of people who find that vacation costs have increased dramatically and many people are choosing to do things closer to home. This particular posting shows some of the upcoming County Fairs for the month of July in various Counties throughout California in case you want to take in one or two of these. The County Fair is one of those timeless events that does not seem to lose its old fashioned charm and we usually take in two or three of these a year. Be sure to follow us or bookmark this page as we will post County Fairs for the remaining months of the summer in future blog posts. For a printable version please click here – California County Fairs – July 2013

 

July Calendar of Events – Northern California Counties

July Calendar of Events – 2013

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July Calendar of Events – 2013

Now that summer is in full swing, you may want to take in a few of these events mentioned here – some of which are perfect for the whole family! We have done the research for you and all you have to do is click on this link July Calendar of Events – 2013 and you will be taken to the full schedule that we have created for you. There are a number of plays, events, concerts, races, car shows, along with a host of fairs and festivals throughout the month of June. Take a look at the attached schedule July Calendar of Events – 2013 and click on the links (pictures) for full details and the web site associated with each event. There are enough local events going on throughout Placer County, Sacramento County, El Dorado County, Amador County, Yolo County, and Solano County to fill your whole calendar for the month of June. So get out your calendars and have some fun!

 

 
 

118 Acres For Sale in Camino, CA

118 ACRES IN A GORGEOUS, EXCLUSIVE SETTING ADJACENT TO THE APPLE MOUNTAIN GOLF RESORT IN THE HEART OF APPLE HILL. WITH VIEWS OVERLOOKING BEAUTIFUL BLAKELY RESERVOIR, THIS PROPERTY HAS MANY POTENTIAL USES, FROM ORCHARD,VINEYARD, OR ESTATE WINERY,TO RECREATION OR RESIDENTIAL USE. BUILD YOUR HOME IN THE FOREST AND ENJOY YOUR VERY OWN HIKING AND RIDING TRAILS THAT MEANDER THROUGH THE WOODS. WITH A 20 ACRE MINIMUM AGRICULTURAL PARCEL SIZE, THERE’S POTENTIAL FOR A SPLIT TO FOUR TO FIVE PARCELS. Priced at – $1,400,000. MLS# 12067068

 
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Posted by on June 2, 2013 in My Listings