Sunday, May 01, 2011

Sacramento Real Estate Market - May 2011 Water Cooler

Post off-topic links, observations, and stories about the Sacramento real estate market. Please read the comment policy before posting.

21 comments:

husmanen said...

Ok, now I gave a question about pool leaks. Anyone have a good suggestion for a pool leak detection company in the area?

ash said...

rent-

then you do not have to pay stupid stuff like that

veronica said...

Pool leaks are very rare. If you have some sort of water feature, turn it off. That sucks up water like there is no tomorrow.

husmanen said...

Thanks. Water feature is off, still losing water. A challenge but I'll figure it out. Green is a nice color anyway...ha!

husmanen said...

Ash. Speaking of renting. My old rental is still not rented.

Could it be that is shows up on the foreclosure sites all over the place with auction dates every month?

Actually, it has somehow fallen off Realtytrac's website, but I see it on the auction block for May.

I sure hope noone falls into this trap unknowingly. But if you get a great deal and don't mind moving soon it could work, students come to mind.

veronica said...

You will also have normal evaporation during summer months. If you suffered no leaks in the winter, then you have no leaks.

When the weather heats up, our pool has to be topped off almost once a week.

sbg said...

I agree with Veronica. We did not have any leaks during the winter months but now starting to notice the water level going down. I reckon we need to top off once a week in May/June and then twice a week in July/August when the temperatures reach the maximum.

sbg said...

Hus - are you doing your own maintenance for the pool, or do you have some one taking care of it?

Giacomo said...

We just bailed on a rental with a pool. What a money suck! Power to run the filter pumps, chemicals to keep it from turning into frog habitat... unless you're prosperous and have a bunch of active kids at home, it's not worth it.
Now in a new rental, no pool, low-maintenance landscaping -- and 15% less rent. Our 3rd in this neighborhood; all these "owners" far underwater, BTW.

husmanen said...

I will be doing my own maintenance on my pool when I get it in order. I have had much bigger fish to fry lately, but I am getting close.

Just reseeded the backyard after putting it all back together from the damages to the drainage and irrigation done by a bad contractor.

Back to the pool thing. I did buy a new pump and will be putting it in next week. That is the first step to figuring out the leak, my guess is it is in connection to the skimmer. When I pumped out the water to below the skimmer the rate of water decrease nearly stopped. Stressful but an unknown will hopefully become a know in short time.

Chris said...

It now appears that many of the leading postesr here, sagacious as they were about the emerging bubble, were in the end all-too-eager buyers.

I remain very grateful to them for their insights, but I'm glad I'm still renting.

husmanen said...

Chris. You are correct. Renting continues to be a good choice and prices are not going up in the near future. I bought for a number of reasons:

(1) about 25% below rental parity
(2) awesome neighborhood of custom homes, green belt, biking trails etc
(3) great house, fits my family perfect
(4) great lot, all on my wish list
(5) great schools, top quality
(6) stability (my rental was in foreclosure, but could have found another pretty easily)

But if I was in a rental now I would still be enjoying it. The prices for my previous rental are at or below rental parity now. If I would have like the area and house it could have been an option.

I foresee the prices dipping below rental parity in the near future, just as an over-correction.

Whatever will happen will be slow, well maybe, if inflation takes off its a wild card.

Roy said...

House price is going down, in both Folsom and EDH.

husmanen said...

Roy, I see that, good news. The sooner we get to a rental-parity market the better. There have been some drastic price drops in the last few weeks. Keep em comin!

A-Rod said...

Some amazing deals to be had out there. This one just cleared in my area. 1 million + in 2004, 330k sale last month. 3.12 acres!

http://www.trulia.com/homes/California/Orangevale/sold/950678-7501-Cardwell-Ave-Orangevale-CA-95662

husmanen said...

A-Rod. True. That is just a little more than a light fixer. But if you are willing you could really get a deal. At $330k that house could have a monthly payment of around $1700 (PITI). Nice.

Roy said...

NAR is crazy, "NAR to lobby against 20% downpayments... 20% Down Payments Put the American Dream Out of Reach...as it would take 14 years for a typical person to save up a 20% down payment to buy a median-priced home.”

That's crazy, if you have to save 14 years to get 20% downpay, how can you off rest 80%? If you cannot afford a house, why you buy it? For foreclosure? Report the bubble again?

http://patrick.net/forum/?p=698034

Roy said...

husmanen, 1561 terracina in EDH is a 4878 sqft house with nice upgrade, kill view and a pool. It was just closed the day before, for ONLY $575k.

My friend bought a 4500 sqft house 2.5 years ago with similar location/upgrade/pool and he laid mid-700k's.

This is $130k lower than 2002 price, I think this is kind 2000 or even 1999 level.

smf said...

Is everyone still forgetting about maintenance costs?

Tell you what, that $23K bill to replace the roof was real. So are many other costs that are normal in having a house.

Our pool will have to be resurfaced for $7000, the A/C units will crap out soon, etc.

My understanding is that yearly maintenance costs are 1% of the house price.

husmanen said...

Roy. I like comparing prices over years but I really like comparing them to what you can rent them for.

561 Terracina in EDH has nearly $200 per month in HOA fees. Ouch!!

I guess the Mello Roos are probably around $150/mon.

If you bought it for $575k, 20% down, 4.87% APR for 30 years your PITI would be nearly $3200/mon.

Total $3550/month.

I don't track rents in Serrano but that does sound a tad high.

BUT, a higher rent/sale price can be had IF the house is unique (view etc) and has high quality craftsmanship.

husmanen said...

SMF. I hear you. I put a new roof on my house and the bids were $24k, $16k and $12k. What a range for the same materials and requirements.

We went with the $12k roof after we viewed previous work. The company did a awesome job, I crawled around the roof to check it out and had a contractor friend look at it too.

Even had a City inspector get on the roof, now that doesn't happen everyday.

HVAC, now that story hasn't played out yet, but the heater works great!! HA!!