Sacramento Housing Market Price Appreciation: 242 Out of 275
Last week, we again had confirmation that the Sacramento housing market is one of the weakest real estate markets in the country. In their House Price Index (HPI) report [pdf], the Office of Federal Housing Enterprise Oversight (OFHEO) ranked the Sacramento housing market 242 out of 275 for the rate of house price appreciation (1.37%). Just one year ago, the Sacramento real estate market ranked 41st in the country (out of 265), with a yearly appreciation rate of 19.42%. At this rate, Sacramento may soon land on OFHEO's bottom 20 list, joining the ailing markets of the rust belt.
On a quarterly basis, Sacramento's HPI declined for the third straight quarter, falling 0.89% from the second quarter. Next quarter, this lagging indicator should finally register a year-over-year price decline. Here's a look at Sacramento's HPI since 1977.
9 comments:
Anyone know a good place to find out about new developments, especially condos?
Yeah, Omaha.
I released three more Q3:2006 reports today - San Francisco, Seattle and Los Angeles. Seattle is particularly interesting because it's never had a period of nominal price decine. Thanks for posting a link to our page. We need to get the truth out! I will run a Sacramento Q3 report within weeks.
thebubblebuster.com
gwynster,
There seem to be a lot of new single family homes being built - most of the big builders have some major project or the other going on - like the west park development in Roseville.
I'm interested in buying a condo when prices fall and I think it might be possible to negotiate a lower price, but I want to find something that I like. Most condos are 3 levels these days and I want to look for something that is only 2 levels. That's why I was looking for where to find information about new developments.
Definitely can't afford a single family home now and it's hard to say if prices will fall enough or not.
Sorry I put my first post as anonymous.
Thanks.
Hi Gwynster,
What do you mean when you say that Natomas and Elk Grove are "toast"? I rent in Elk Grove but I'm not looking to buy here, and I'm wondering if you've reached the same conclusions I have about Elk Grove.
Ironically enough, I'm considering West Roseville (it's close to my in-laws), but I'm wondering whether it's "toast," too.
Curious Anonymous
"...and I'm wondering if you've reached the same conclusions I have about Elk Grove."
-- What? That Elk Grove and South Sac are one in the same? The old adage "never live south of 50" still rings true!
Natomas, Elk Grove, and West Sacramento -- all falling butter-side-down on the rug.
Overbuilt + too many money-losing rentals + too many desperate flippers + too many throat-slashing homebuilders = plunging prices, neighborhoods with virtually no owner/occupants, and a shrinking tax base as owners petition their property taxes down to their new market values.
Instant slums...
But aren't the Fabulous Forties south of Highway 50?
Good point about Elk Grove. It does seem on the verge of becoming an extension of South Sac, if it hasn't already. And they're not done building yet -- Madeira, the newest development, is just starting to build.
So, how does one avoid "instant slums" when buying a new home? I personally believe in pulling county assessor's records to get a sense of the percentage of renters, but that's labor intensive.
And what do you make of West Roseville (WestPark, Crocker Park, etc?) Are these instant slums, too?
Curious Anonymous
Well Yes, there are some FORTIES south of Hiway 50 BUT I don't consider those ones to be FABULOUS ! The Forties grid parameters are debatable but call it 37th street to 47th street and J street to Folsom Blvd. Of which I dumped my 1/2 interest in a 1575 Sqft brick Tudor 2 months ago, motivated by this Blog. I think the Fab 40s will weather decent while EG and Natomas sink...but 10 years of coming holding costs with no appreciation gives me the creeps. I sold out for 88 cents on the dollar and am not crying about it.
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