Wednesday, November 15, 2006

CAR's Sacramento Outlook for 2007: "Sluggish"

From the Sacramento Bee:

Housing outlook called sluggish

The Sacramento area's residential real estate market is likely to remain sluggish for another year, with a "very good chance" of turning the corner in 2008, a California Association of Realtors economist told hundreds of real estate agents in Sacramento and Placer counties Tuesday.

Though median sales prices have fallen 9.3 percent from their peaks in Placer County and are off 3.8 percent in Sacramento County, a healthy economy and stable interest rates should prevent any chaotic downturn in coming months, said Robert Kleinhenz, the association's deputy chief economist.

"It's not like we're seeing a huge erosion in home prices and really do not expect to see that going forward," he said during separate housing forecasts before CAR's Sacramento and Placer County chapters.

5 comments:

Anonymous said...

“New jobs bring people who can then bid up housing prices. Placer County, which is partially included in Ofheo's Sacramento statistical area, showed a housing price gain of 121 percent over the past five years and 25 percent through the second quarter. “ (see http://www.bloomberg.com/apps/news?pid=10000039&sid=aNH81GPbAsaY&refer=columnist_wasik (09/05).

So now we are faced with a 9.3% decline. While it is relatively insignificant given the increase over the previous 5 years, tell that to the new homebuyer who purchased their home in September 2005 and paid $525K for it. I doubt that they would agree that a $ 48,825 is not a “huge erosion in home prices.”

Anonymous said...

don't worry,it's only cold sore.

Anonymous said...

sure one of those new stucco pieces of crapola in El Dorado Hills is worth about, hmmmmmm, $187,000 or maybe $224,000 MAX...

but don't worry, just because you purchased that El Dorado Hills Schlock for $650,000 doesn't mean you were ROBBED...You were just confused and there will be a SLIGHT market correction...

Anonymous said...

these "Expert" Real Estate Goons who are always quoted...

they work for, related to, or are,

Ali Babba and The Seven Thieves?

Max said...

I've got some erosion for you:

Priced to Sit: How Flippers Get Into Trouble

What would you call new house builders coming in at 40% below the resale market?