Thursday, November 16, 2006

Obstinate Sellers 'Run the Risk the Price Will Go Down Even Further'

The Sacramento Bee reports on DataQuick numbers for October.

A cold October for home prices

Of all the state's urban counties, Placer posted the largest decline in median sales prices for a month that traditionally begins real estate's slow holiday season, according to DataQuick Information Systems of La Jolla. The $442,000 median price for all homes and condominiums sold in the county during the month was down 13.3 percent from October 2005, the firm reported. Placer County topped California in September with a 14.3 percent price decline from the same month a year ago.
Across the state, median prices have fallen below last year's levels in San Diego, Ventura, Contra Costa, Napa, San Francisco, San Mateo, Solano and Sonoma counties. But none saw a year-to-year drop greater than 8.7 percent in October, compared with the double-digit percentage drops of 13.3 percent in Placer, 11 percent in Sutter and 10.9 percent in Yolo counties.
In Sacramento County, the median sales price of $354,000 for all homes and condominiums was down 8.1 percent from October 2005, DataQuick reported..."The data suggests that prices still haven't firmed up. There's still slippage going on," DataQuick analyst Andrew LePage said Wednesday.
"Pricing it competitively is the key to catching a buyer in this market," said Gail Jones, a Keller Williams real estate agent working in Placer County's Roseville and Rocklin neighborhoods. "The ones that need to sell understand if they keep waiting, they run the risk the price will go down even further."
"You've had people who have probably reconsidered and investors who have turned to renting their homes," said Bob Bronswick, president of the Sacramento-Tahoe region for Coldwell Banker residential brokerage.

"During the fourth quarter, there is a pullback, and this year is not going to be any different," added Anthony Graham, senior financial analyst at Lyon Real Estate. "Obviously, there's a lot more withdrawn listings because of the overabundance of supply."
October's 3,324 sales brought the number of new and existing homes and condos sold so far this year in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties to 35,174. That's 19,163 fewer than the 54,337 homes and condos sold during the first 10 months of 2005, according to DataQuick.


Anonymous said...

Has anyone else driven Highway 65 to Lincoln lately? All of the temporary billboard real estate signs from Roseville to Lincoln on both sides have been taken down, at least during the week. Apparently they were all illegal and the municipalities decided to crackdown and have them all removed. Just what the builders at Lincoln Crossing and Whitney Ranch needed. Could it be a conspiracy to help out the resale sellers? Hmmm. Just wait until the developer fees collected by the cities start dropping and watch those signs go right back up. But nothing's gonna help builders at this point.

JR said...

Anon 5:58,

I think the homebuilders voluntarily remove the signs during the week, so they have more visual impact Friday-Sunday, when they need them. This is Marketing 101.

You are right about permit fees. The cities and schools have become accustomed to that revenue, though the amount is not greatly significant to their overall budgets....unless the overall budget is shrinking too (is sales tax next????),

The best thing helping the home builders right now is all the individual re-sellers who are overpriced and refuse to adjust downward. The home builders are eating the re-sellers lunch, as the builders drop their prices, absorb all the buyers and reap all the sales.