Wednesday, June 21, 2006

Sacramento Market Loses Its Sparkle

At least it's not as bad as the Sacramento housing market...

[Broker Denise] Aquila said that the Bay Area won't get the kind of price drops seen in areas like Sacramento that have a lot of land and new construction.

UCLA Anderson Report (pdf): The HPI [Home Price Index] also gives some insight into the Central Valley, where the Sacramento region is slowing significantly while other markets are still showing double-digit appreciation. In spite of these ambiguities related to measuring price appreciation, all the data show a major slowdown underway in California real estate markets, with a significant drop in sales and a very sharp deceleration of price appreciation in 2006...

While Southern California and the Bay Area have seen construction employment plateau and fall a little, the Central Valley has lost about 3,000 jobs (-3%) since the end of 2005, mostly in the Sacramento area.

Southern California's housing and job markets generally have fared better than Northern California's, the study says. In particular, the Sacramento area has been hit hard.

The slowdown has tarnished even markets that once sparkled. The Sacramento area saw a 1 percent annual decline in home prices in the first quarter of 2006 after rising 12 percent in the fourth quarter.

5 comments:

tom stone said...

yesterday's sf chronicle reported that elk grove was booming,and quoted a couple whose home was appreciating $10k a month....today they quoted dq news and claimed sonoma co. had 3.5% appreciation yoy in may,and that the median price was %582,500.oddly fq news shows a .2% drop in the median to $532,000.

Anonymous said...

You want to see UGLY?

Go to the following link:

http://www.foreclosure.com/search.html?st=CA&cno=067&z=95757&tab=a


496 houses in preforclosure in Elk Grove up from 231 homes in the middle of May.

rocklin renter said...

All of those "Elk Grove is Booming" stories failed to mention one very important thing.

The time period sampled was from 7/1/04 - 7/1/05.

That data is a YEAR OLD!!!!!!!

What a crock.

Anyhow, "Fastest Growing City" is the last designation I would want if I were in charge. It always leads to disaster.

Anonymous said...

Elk Grove - Fastest growing slum with wannabee gangsta punks wearing pants showing their crack. These fool should go back to where they are from namely Bay Area ghettoes

Anonymous said...

The pick of the day --Centex homes is offering a 5,000 dollar referal reward www.centexhomes.com
now what that all about anyone, it just looks funny ???????