Sacramento Leapfrogs to #2 Spot on PMI's Risk Index
In June, Sacramento was ranked #5 (out of 50 major metros) on PMI's Market Risk Index. That was the first time Sacramento had landed on the top 5 list. Now, in the latest PMI Risk Index, the Sacramento housing market jumps to second place behind San Diego:
According to the report (pdf), the Sacramento housing market is cooling at the quickest rate in the nation.Fall 2006 PMI U.S. Market Risk Index
San Diego-Carlsbad-San Marcos, CA 603
Sacramento-Arden-Arcade-Roseville, CA 601
Oakland-Fremont-Hayward, CA 600
Santa Ana-Anaheim-Irvine, CA 599
Nassau-Suffolk, NY 598
Last quarter, 34 MSAs experienced deceleration, and this time a year ago only seven MSAs saw the rate of appreciation slow. The five areas with the highest rates of deceleration were all in the West. Sacramento led the trend with a 17 percentage point drop in year-over-year appreciation, to 6.3 percent compared to 23.31 percent a year earlier...Next up: #1?
13 comments:
no. In the meantime there is are the other housing bubble blogs. The bubblesphere has its addicts.
what? what does this mean?
Will Saca still give me an interest only no down payment loan on my new 28th floor condo? I do not currently have a job, but am expecting one any day soon because the DMV said I could be a license plate checker!
I'm already prequalified for my loan out at Anatolia (we liked the Hermes three bedroom, 2-1/2 bath model with "House of Ataturk" and "Troy" upgrades)! But I was sure I could switch over to the high-rise condo!
I am sure now that we are much higher on this index, everything will go much smoother for our new condo and good loan.
Oh, good. I thought my computer was malfunctioning when Ben's page refused to load.
But bottom line: appreciation still positive. Everyone overlooks this simple fact.
Last I checked YOY for Sacramento was -5%. Check out flippersintrouble.blogspot.com if you think there appreciation still exists in the Sacramento area.
"But bottom line: appreciation still positive. Everyone overlooks this simple fact."
The simple fact is that the median price when "n" is small, is not reliable data in gauging the housing market. My take is that the higher priced homes ie $600K+ are selling slightly better because their prices are falling more drastically. This combined with "n" getting smaller, will give a skewed median number. So if the median is going up, why aren't people selling their homes? hmmm... appreciation still positive? Try telling the sellers who are cutting their ask 5% weekly that it's appreciating and they'll give you a fresh one!
"The simple fact is that the median price {...} is not reliable data in gauging the housing market"
And I just discovered this explanation today. Might as well share the new knowledge I gained with all of you.
Oops. I actually meant for you to check out this one, but I got a little ahead of myself. Whatever; they are both worth the read.
Not so fast. #2 only on the shortened list. The appendix show you have company:
Oxnard-Thousand Oaks-Ventura, CA 601
Not thay it matters, both places have a 100% chance of a decline. PMI says the number is only a likelyhood of decline but it looks more like a potential amount of decline. Heck, a 60.1% decline in either area would "crash" prices to levels not seen for... well, not seen in nearly 4 years.
Robert-Sticking up for the hometown?
You are right. I should have said #2 among the "nation's 50 largest metropolitan statistical areas." The appendix link is here.
At quick glance, these smaller markets have higher scores than Sacramento:
-Barnstable Town, MA
-Salinas, CA
-Santa Barbara, CA
FYI, Ben Jones is having to move his blog since it's getting too popular, it should be up again soon. THis is a post from another of his blogs:
BTW, readers of my housing blog may note that the site is down. I am having to move it, again, due to traffic issues. It should be completed within 24 hours.
Try a 30% reduction in price.
What was the house worth in 2002?
That is what it is worth now.
Income levels haven't gone up.
Very few new high paying jobs.
Higher interest rates than in 2002.
Stricter lenders.
Did you hear the POP?
Tell these real estate Anal-Ists that Median prices don't mean jack!
All you have to do is look at sales price per square foot to develop a trend line.
What is the problem with the dumbbells in the real estate journalism field?
This ain't rocket science that we are talking about.
There is going to be alot of fraud investigating to do when this market tanks.
Mortgage Pimps beating up on appraisers to get pumped values.
Appraisers submitting to the pimps.
Let's hope China doesn't declare war on the U.S. when a huge amount of their tranches (blocks of collateralized mortgage obligations) have their value go up in smoke.
Hope CalPERS didn't sniff too much of the mortgage cocaine or the state taxpayers are going to be in a world of hurt.
Post a Comment