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Archive for February, 2010

Any Light At The End Of The End Of Solano’s Foreclosure Tunnel?

February 17th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Foreclosures / Short Sales, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

Everyone agrees that the real key to restoring the economy and home values lies in working through that huge backlog of distressed properties.Pull Quote

For, the sooner we get to a point where the lion’s share of active listings are being sold by regular sellers with equity rather than banks or upside-down borrowers, the sooner this ugly market will be behind us.

About six months ago, I downloaded the foreclosure statistics for all five cities in our Solano County market area and back then almost 60% of what had already been foreclosed upon had not yet come on the market. Most banks were keeping what has become known as their “shadow inventory” off the market.

Since that time, the banks have started to release more inventory, but rather than a flood, the release of new bank-owned listings has been more of a trickle. So a few days ago, I decided to download the raw foreclosure data and see if anything had changed.

REO Graph for Solano - 2-15-10In a nutshell, as the numbers above and below illustrate, it looks like we still have quite a way to go before the local Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Jan. 2010 Vallejo-Benicia Recap: Details On Every Home That Sold Last Month

February 14th, 2010 categories: Benicia, Buying, Market Update, Selling, Vallejo

One of the regular features of this blog is my monthly Benicia and Vallejo Home Sales Reports, with full details on every home that sold in Benicia and Vallejo the previous month – a “tale of the tape” of sorts.

If you want to see how much every home sold for last month, the Jan 2010 Benicia-Vallejo Home Sale reports show not only the address, closing date and sales price, but also the square footage, bedroom/bath count, how long it was on the market, and whether it was a regular sale, short sale or REO (foreclosure). I also calculate the net price change between the original list price and eventual selling price.

Every month, there are always a few eye openers. For example, last month, two homes in Vallejo sold for less than half of their original asking price, including a home on Georgia St. that started out at $349,900 and eventually sold for $159,000 — a whopping $199,000 price drop.

To see the full report, with home-by-home totals for January, 2010, click on either of the two buttons below.

Benicia Report ButtonVallejo Report Button

Here are some highlights from those reports:

  • The lowest sales price in Benicia last month was $104,800 for a Bay View Villas condo on Southampton Rd. The highest was $744,000 for a Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Is The Party Over For Local FHA Borrowers?

February 13th, 2010 categories: Buying, Loans / Financing

StreamersBig Change For Benicia-Vallejo FHA Buyers Starting Monday


The party may not necessarily be over FHA borrowers just yet, but starting Monday, one of the big advantages that FHA borrowers have enjoyed for the past 9 months goes away.

I’m talking about the ability for a lender to send out their favorite appraiser in hopes of making sure nothing goes awry in the buyer’s attempt to buy the home of their dreams.

Come Monday, all FHA appraisers will have to follow many of the same rules that appraisers on conventional (Fannie Mae/Freddie Mac) loans have been following since last May.

New Appraisal Policy Starts Feb. 15

The new FHA policy is supposed to help ensure that lenders provide financing based on the true market value of the home rather than on a potentially trumped-up/inflated appraisal. Read the rest of this entry »

Written by Rod Herman | Discussion: 2 Comments »

January Monthly Home Sale Report: Solano Sales Activity Hits 20-Month Low

February 8th, 2010 categories: Benicia, Buying, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

Pull Quote

But The Median Price Is 7% Higher Than Last January

I just compiled January’s Solano County Home Sales Report and while prices were down slightly, the big news, as the headline indicates, was that Solano’s overall sales totals dropped dramatically last month, to their lowest level in well over a year.

County-wide, Solano totaled 389 home sales last month, compared to 520 in December — a 25% drop.  The last time there were that few monthly sales in Solano was May, 2008, when there were 384 sales. That was 20 months ago.Solano Home Sales - Jan 10So the big question, of course, is whether this decline is due to

  • a) the still-low inventory;
  • b) the traditionally softer holiday period (most contracts accepted during the holidays usually close in January); or,
  • c) an actual drop in demand due to a market-shift.

As I’ve cautioned before, Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Suisun Helping First-Time Home Buyers With Zero Interest Loans

February 5th, 2010 categories: Buying, Loans / Financing, Suisun City

Up To 25% When You Buy A Suisun Foreclosure


If you’re a first-time buyer looking to buy a foreclosed property, Suisun City has a program that might increaseRaining money your buying power by opening the door to homes you might otherwise never have been able to afford.

I’m talking about their First Time Home Buyer program, which not only helps those looking to get into their first home, but also helps prevent neighborhood blight at the same time.

The basic details:

  • It’s a “silent second” mortgage, with deferred payments and no interest.
  • You can borrow up to 25% of the value of the home.
  • You must purchase a foreclosure (or a short sale that’s already in foreclosure).
  • When you sell, you repay the loan PLUS the equivalent percentage of the home’s accrued appreciation.
  • To qualify, your household earnings must not exceed 120% of the area’s median income.
  • Homes must be located within Suisun’s Redevelopment District.

Here are the current income limits, which are based on the number of people in your household. Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »

Weekly Solano Real Estate Report For Feb. 1: Vallejo, Benicia Inventory Way Up In January

February 4th, 2010 categories: Benicia, Buying, Fairfield-Gr Valley, Market Update, Selling, Solano, Suisun City, Vacaville, Vallejo

Pull QuoteMore Like A Normal January; A Sign Of Things To Come?


The first month of 2010 is now behind us and judging by the week-to-week performance over the first 30 days of the new year, we may be seeing further signs that a more normal real estate market could be on the horizon.

Last year, of course, was anything but normal. Instead of starting low and building up over the first four months of the year, the local Solano County housing supply started Read the rest of this entry »

Written by Rod Herman | Discussion: No Comments »