New home analyst, the Gregory Group of Folsom is reporting that new home builders have shut down 10 percent of the regions new home projects.  Those closures removed approximately 2800 potential home sites from the market- a likely factor in reducing new home inventories by approximately 31%.  This is the first significant drop in inventory levels since the fall of 2005.  The Gregory Group found that since June, companies have halted sales in 34 of the region’s 370 new home communities.  New home builder’s have finally started to heed their own advice about the need to start restricting the new home supply to spur the market recovery.

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

The Federal Reserve reduced the Fed Funds rate yesterday by a quarter point. Wall Street responded with another volatile day of trading and the Dow lost 300 points because of unrealized expectations of an even larger drop in rates. 

The bigger question for homeowners and potential buyer’s is how this Fed funds rate drop effects mortgage rates.  Actually, mortgage rates follow the bond market, not the Fed funds rate. The interest rate on a 30 year fixed rate mortgage tracks the yield on the 10 year Treasury note.  Lenders typically set their base mortgage rate around two percentage points higher than the 10 year bond yield. Rates on adjustable rate mortgages are tied to yields on two, three, and five year Treasuries.  These short term loans are more sensitive to Fed rate movements, and those with the shortest maturities see the greatest impact when short term rates rise and fall.  So, if you want to know the direction of mortgage rates, you need to get a sense of where bond yields are heading.

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

The regulator for Fannie Mae and Freddie Mac recently confirmed that the maximum conforming loan limit in 2008 for single family mortgages purchased by the two mortgage-finance companies will remain at this year’s level of $417,000 in most of the US.  Higher limits apply to Alaska, Hawaii, Guam and the US Virgin Islands. The conforming loan limit determines the maximum size of a mortgage that Washington, DC based Fannie Mae or Mclean, VA based Freddie Mac may buy or guarantee.  Both companies purchase residential mortgages and also package loans into mortgage backed securities for sale to other investors. 

US lawmakers have sought to increase the conforming loan limit for the two mortgage finance giants with the hope that Fannie Mae and Freddie Mac could provide some liquidity to the mortgage market, which continues to struggle from the fallout in the subprime sector. 

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

Eli Broad, founder and former chairman of KB Home, recently announced his intention to seek annexation into the city of Roseville for the Placer Ranch development.  Placer Ranch is the 2,200 acre developement that has proposed as many as 5,000 new homes, up to 9 million square feet of commercial, office and light industrial land use, as well as a possible California State University campus.  Broad has been in discussions with Placer County for years over the costs of providing new services for the project.  Annexation approval must come from both Roseville, as well as Placer County.

If you’re considering selling your home In challenging times like these, it’s more important than ever to place your trust with "leaders".  Coldwell Banker is once again the top selling brokerage in the prestigious communities of Granite Bay (zip code 95746) and East Roseville (zip code 95661). Coldwell Banker has approximately 22% market share in Granite Bay and 17% in East Roseville in the last 12 months.

Steve Dailey & Steve Siegel ("Team Steve") have been Realtors with Coldwell Banker in Roseville since 2002.  In that time, we have focused largely on Granite Bay and East Roseville, along with other South Placer County communities like Rocklin, Loomis, and Lincoln.  During that time, we’ve work with clients on over 30 transactions in Granite Bay alone, and nearly 100 in the South Placer County area.  We’ve developed a keen knowledge of area schools, demographics, and neighborhoods, and we have a proven track record in not just "listing" but aggressively marketing and selling our clients’ homes. 

If you’re considering a move in the future or would just like a free, no-obligation market analysis from area experts, please e-mail us or give us a call!

Steve Dailey, Coldwell Banker
Email: steven.dailey@cbnorcal.com
mobile: 916.276.9244
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

By now we are all familiar with the Sacramento region’s "challenging" Real Estate market.  However, even in these difficult times there are some shining examples that the best communities perform the best in Real Estate during both good times and bad.  Granite Bay is one of the best examples of this.

Overall, prices in the greater Sacramento region have declined approximately 20% during the 2005-2007 downturn. And "transactions" (the number of homes sold) are down even more - 30% to 40% on average.  But check out these numbers in Granite Bay (source: Metrolist MLS):

• 2006: Median Sale Price - $791,000; total homes sold - 270 (22.5 per month)
• 2007: Median Sale Price - $811,000; total homes sold - 244 as of 11/20/07 (22.9 per month)

The numbers don’t lie!  Granite Bay’s median sales price is UP in 2007 by 2.5%, and the number of homes sold per month is up slightly as well!  It just goes to show - the old Real Estate adage "location, location, location" still holds true, in good markets and in bad.

Let’s be clear - we’re not saying it would be easy to sell your home in Granite Bay today.  In fact, there is almost 9 months of inventory currently in Granite Bay (that’s the number of homes on the market vs the number of homes sold per month).  But what we are saying is that Granite Bay continues to be one of if not the best location to own a home in the Sacramento region, and if you do choose to sell you’ll need patience, but you can still expect to receive a solid return on your investment when it does sell.

Steve Dailey, Coldwell Banker
Email: steven.dailey@cbnorcal.com
mobile: 916.276.9244
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

One of the best kept secrets in the local Sacramento golf world is Sierra View Country Club.  Designed in 1953 by architect Jack Fleming, it can be found within minutes of downtown, historic Roseville on 180 acres of land rich with mature oak trees and gentle, rolling hills. Fleming, who was right-hand man to famed golf course architect Alister Mackenzie, designed 18 courses in Norther California in the 1950’s and 1960’s. Some of his work included Sharon Heights Golf and Country Club, Golden Gate Park, Boulder Creek Golf and Country Club, as well as Almaden Golf and Country Club. 

Playing this well maintained 6,481 yard course with magnificent ancient oaks, well-bunkered greens, strategically placed water hazards and elevated tees make each round a new challenge. Sierra View’s membership is limited to 430 members which not only allows easy access to tee times, but also maintains the excellent quality of the golf course as well.

Sierra View CC is a non-profit corporation with private, proprietary golf memberships, as well as corporate golf, tennis and social memberships.   Facilities include the golf course and pro-shop, driving range, 6 well lighted tennis courts, swimming pool, dining room for members and guests, as well as a bar area to enjoy your favorite libation after a round of golf.  Sierra View’s mission is to provide individual and family recreational  and social activities to a diverse membership in a private, full service country club setting.  

The Country Club is located at 105 Alta Vista Avenue in Roseville.  Any questions about the club can be directed to their General Manager, Steve Reynolds at (916) 782-3741, extension 13.

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

Placer County was just named to the No. 43 ranking among the nation’s 100 wealthiest suburbs, according to a report released this week by Bizjournals, the sister company of the Sacramento Business Journal.  El Dorado County was No. 44.  Bizjournals created a nine part formula to determine the relative affluence of 291 suburban counties, seeking the places with the highest incomes, most expensive houses, lowest poverty levels, strongest educational backgrounds, and the most extensive ownership of stocks, rental properties and vehicles.  Placer County had per-capita income of $35,014 per year, while El Dorado County’s per capita income was $32,122. 

Placer and El Dorado counties are the wealthiest Sacramento area communities and in fact are the only ones that made the top 100.  There were four other Northern California counties in the top 30, all in the SF Bay Area.  The top 10 were led by New Jersey with three and Virginia and Maryland with two each.

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

We’ve all become accustomed to seeing what seems like almost daily real estate articles filled with news about declining housing values.  As 2007 comes to an end anyone who owns a home is longing for something better.  Although most local experts agree that it is too early to be talking about a recovery, there may be at least some hope for anxious homeowners.

For if history has anything to teach us, it’s that real estate recoveries usually come pretty fast once they start.  Consider 1997 across much of the Sacramento region.  After years of military base closings, a recession and loss of jobs, homeowners across the region started to see their home values start to climb again.   Even before the tremendous "boom" that occured from 2001-2005, prices steadily increased from 1997-2001 as well; 62% in Placer County, 53% in El Dorado County, and 51% in Sacramento County.

No one is predicting that we will ever see another boom in values like we did in 2001-2005.  But as the slump goes on, it helps the nerves to understand that the economy–and real estate–is a cycle of ups and downs.  There are many who say that the excess of rising prices and easy lending practices and standards make these unchartered waters.  But if history is a guide say the experts, this too will pass!  It isn’t easy, but homeowners should remind themselves that, fundamentally, Real Estate has always been a sound long-term investment and should continue to be so in the future.

Steve Siegel, Coldwell Banker
Email: steve.siegel@cbnorcal.com
mobile: 916.212.5066
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search

It’s every shopper’s dream to browse through hundreds of stores within minutes of each other.  Well, that’s exactly what they’re going to get in 2008!  The intersection of Galleria Blvd. and Roseville Parkway already offers a plethora of of stores and restaurants, but the growth continues.

The Galleria at Roseville continues its expansion which will add 80-100 new stores, 3 multi-level parking garages, a movie theater with 14-16 screens, the possible addition of an upscale supermarket, and modifications to the Promenade.  The Cheesecake Factory has an anticipated completion date of Spring 2008 (sorry folks, not in time for the Christmas rush!), and Penney’s is hard at work to complete their expansion project.  Some of the new stores coming include Apple, Juicy Couture, and Kate Spade, and it has been rumored that Tiffany & Co., Roxy, and Louis Vuitton – among others — are considering tenancy.

And just when you think you’ve got it all at the Galleria, a competitor pops up: The Fountains.  Directly across Roseville Parkway from the Galleria is this upscale, open-air, lifestyle center located on 52 acres and set to open in Spring 2008.  More than 50 shops, restaurants and entertainment venues are anticipated at The Fountains, including Boudin Bakeries, Coldwater Creek, West Elm, Z Gallerie, Orvis, Chico’s, Peet’s Coffee & Tea, California Pizza Kitchen, and — drum roll, please — a Whole Foods Market!

Whether you prefer a multi-level shopping mall or an open-air center with single story stores and sidewalk cafes, Roseville will be able to more than meet the needs of shoppers throughout our region for years to come.

Steve Dailey, Coldwell Banker
Email: steven.dailey@cbnorcal.com
mobile: 916.276.9244
www.teamstevehomes.com
Visit our Complimentary Sacramento Area MLS Search