Friday, May 05, 2006

Spring "Rally" Falters, First Sacramento YOY Price Decline Reported

Local real estate agents give their take on the Sacramento housing market. John over at the Sacramento Real Estate blog has some early April MLS numbers:

Average Sacramento County home prices fell again in April, erasing the gains made in February and March and falling slightly below January’s level. The average sold price for residential property (including single family, condos, halfplexes, etc), fell to $392,252 in April based on Metrolist MLS data. Because the overall trend since August has been downward, appreciation since last April has been very low at only 2.23% per year. We predict that by next month the year-to-year price change will be negative and remain so until August at least.

As to median prices, we’ve hit our first year to year decline in recent memory. The median sold price in Sacramento County was $356,000 this April, versus $358,950 last April.
Keep it Real's Julie notices all the open house signs:
The sun is out, buyers have returned and it was a great weekend for open houses! Anyone out driving around on this past Sunday had to notice scads of open house signs on almost every corner. I wish I would have had my camera when came across one Rocklin corner with eight different signs. I did an open house and had lots of visitors, with many saying they have been waiting for a nice weekend to start looking.
And finally, Jimmy is predicting price increases this summer for the Sacramento housing market:
As we move into May I think we are going to start seeing sellers, especially new home builders, start taking away the buyers ability to negotiate as much as they have been these last few months. We all know that spring ranks among the worst time to make a deeply discounted offer. It's a popular time for families to make there move, taking advantage of pleasant weather, longer daylight hours and children being out of school.

So if you're thinking about buying a home in the Sacramento area, now is the time to do it! There's still a little time before we get into the summer months where I predict homes prices to increase across the board in Sacramento around 3%-5%......

25 comments:

tom stone said...

how do you take away a buyers ability to negotiate? kidnap their children? this re agent jimmy is flat stupid,anyone wanting to sell now had best drop their price to 5%-10% below the most recent comp and RUN to the bank with the check...usually a dead cat bounces a little bit,but it doesn't look like it is happening at all in sacto.maybe jimmy coluld fill it with hot air and throw it harder next time.

Happy Renter said...

With yoy decreases,an uncertain economy, energy concerns, interest rates increasing, construction projects being scraped, and inventory going up this market is toast.

"maybe jimmy coluld fill it with hot air and throw it harder next time"

The cats been dead to long and there are to many leeks.

Happy Renter said...

Realtors need to realize a quick crash is in their best interest.
The stock market crashed and then it was back to business as usual.
A quick crash will leed to a return of healthy sales numbers and more money for them. Sales will fall off for a short while but it's better then them stagnating for years.

Come on realtors say it with me
"It's a bubble reduce your price!"

Happy Renter said...

We should have over 13000 homes on the market by the end of the weekend.
http://sacramentohousingbubble.blogspot.com/

Happy Renter said...

http://www.harpers.org/Newsstand200605.html

Gwynster said...

Here in Davis, I watched a Bidwell condo drop to 239k from 285k before it finally sold. None of the other condos in this area are selling although there are over a dozen listed right now with price reductions.

Every spring the listings spike here as parents buy homes for their college -bound child. We're up to 243 listings in small town (up from 207-208 during late winter/early spring) but not much is moving and when is does, the discounts are deep.

Gwynster said...
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Happy Renter said...

I been watching a house in River park. It listed 6 months ago for 550,000 the most recent flyer listed for 499,000, with make an offer on it. It's in escrow I'm curious as to what it finally went for.

Anonymous said...
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Happy in SF said...

I'm sorry, but it makes me more than a little bit sick that so few can honestly afford housing and yet some are so rich they can purchase condos in Davis for there kids. The middle class has vanished.

Anonymous said...

you right 285k for kids campus idiots

Happy Renter said...

I've been cloned

ocrenter said...

hey guys, we are just 27 homes away from an all time high housing inventory volume in the 4 county region.

Tracking Sacramento Metro

Happy Renter said...
This comment has been removed by a blog administrator.
HighSierraGuy said...

Happy-

I've been watching the same on C$%^*@n Dr for several months, wondering the same. Plus, there's 1-2 major re-model/spec jobs further down on Min$#a. Each went for ~400K in the last 2 months and needs 100k to 200K of work (one's going to two stories). I do not get it...we're 8-12 feet underwater in a matter of hours under some levee break scenarios and I'm going to pay $500K? Not.

HighSierraGuy said...

Lander-

Having trouble using Firefox; "visual verification" not showing up. Had to resort to IE (could be user error for all I know).

Happy Renter said...

highsierraguy,
I assume your talking to me and not the Happy San Fransiscan.

How about that duplex they tore to the ground on the end of Messina Dr.
They of course left 1 wall so they could say they were remodeling and tore the rest down. Those idiots are going to lose their arse.

Happy Renter said...

Min$#a,

Sorry just got that.

Happy Renter said...

I do not get it...we're 8-12 feet underwater in a matter of hours under some levee break scenarios and I'm going to pay $500K? Not

Sacramento was second in the nation in terms of flood potential.

Now we are first.

Happy Renter said...

Everyone is showing a good healthy jump in inventory.

http://www.sacramentohousingbubble.blogspot.com/

ocrenter said...

well, as of 8 pm today, we have crossed the prior record high in inventory.

Happy Renter said...

More on arms.

http://www.sacbee.com/content/business/story/14252405p-15068533c.html

Thanks OC renter

Happy Renter said...

The 13,500 homes on the market right now is approximately 2.5% of the total market(approx=500,000 total units).
Last year at this time .25% was for sale.This is a pretty extreme jump in availability.
Considering how many people played this "bubble game" the inventory reaching 4% or 20,000 doesn't seem unresonable at this point.

Happy Renter said...

Actually, Can we have a thread just on

What percentage of the population will try to sell in the next year due to ARMS/foreclosure,Retirement expectations,Speculation?

We know all the statistics

40% of all home loans were adjustable

25-40 of all purchases were investments

10 percent of the baby boomers have the means to retire

It's tough to guage what percentage of households are in trouble or looking for the exit in Sacramento.

Happy in SF said...

Can somebody answer the question I've been asking myself for the last couple years? I've been watched Sacramento real estate thinking I might want to move back to Sac someday and realize the dream of home ownership. I want to know why anybody would buy a house in Rio Linda/Oak Park/Del Paso Heights/North Highlands/Most of S. Sac for 350k up? Have there been buses running 24/7 shipping violent criminals and meth lab operators out of town in the 6 years I've been gone? In 99' you bought a house in those hoods cuz they cost 80-100k. Plenty of money left over for a shotgun and alarm system. Last time I was in Rio linda there were dirt roads and tons of stray dogs, also, I seem to recall Rio linda floods every year. Is it mass mental retardation? I mean, what's the mortgage on 350k, like 2,100 a month before insurance/cars/kids? The few friends I have who have moved to Sac from the bay area have had a difficult time finding a job and then were offered very very little $$. One example, a paralegal who was making 60k in Oakland was offered 28k at 3 places before taking a job for 37k. After buying a car (out of need in Sac) her cost of living was the same as in Berkeley! needless to say, she can't even afford a shack in North Highlands. What's going on in Sacramento?