Wednesday, October 18, 2006

'Prices are Dropping Every Day, and They're Not Little Any More'

The Sacramento Bee has September's DataQuick numbers:

Home slump deepens
All eight area counties report fewer sales with lower median prices.


"Prices are dropping every day, and they're not little any more," said Mike Toste, a Coldwell Banker real estate agent in Antelope...While worrisome for sellers, the downward trend is heartening for buyers. Many in the real estate industry have tried to pry them off the sidelines by citing low interest rates, an abundance of home builder financial incentives and a record inventory of houses for sale...

"We can see the prices coming down," said Diana Wallace, a Sacramento resident who hopes to buy houses to rent out for retirement income. "I feel sorry for these people. But I want a deal. I want to get the best value I can. "But I hope they don't drop too much because I have a home myself..."

Single-family detached homes in the region's four most populated counties are well below their 2005 peaks, according to DataQuick:
  • El Dorado County's September median of $434,000 compares with a September 2005 high of $475,000.
  • Placer County's $454,000 median sales price compares with an August 2005 peak of $502,000.
  • Sacramento County's $350,000 median price in September is off its August 2005 peak of $372,000.
  • Yolo County's $411,000 median is below its November 2005 peak of $436,500...
DataQuick reported sales of 3,558 homes and condos during September in the eight-county region. That was 234 fewer sales than August -- and 2,328 fewer than September 2005.

4 comments:

Anonymous said...

Sacramento was attractive because it was CHEAPER than the Bay Area...

unless one gets into the Foothills there is NO other reason to buy in Sacramento besides the CHEAPER price...

Until the "genius" Real Estate Dufus' and Developer Land Rapers figure that out...it's going to evenutually be a real nightmare

norcal ray said...

Yep, Sac was attractive because it was much cheaper than the Bay Area. Now it is only somewhat cheaper than the BA. This will slow down migration to Sac a great deal and put more pressure on prices. It just goes in cycles.

Anonymous said...

Somewhat cheaper but with wage rates that are 40% lower than in the Bay Area.

its mortgage magic said...

Very good subject. When you break it down it all evens out to aprox the same for mortgage and real estate. Sooner or later it will even out naturally. Cody