Tuesday, April 24, 2007

Sacramento Home Sales Slump Hits 2 Year Mark

California Association of Realtors - March 2007 Statistics:

  • Change in median price from 2006: -3.5% (price decline streak: 9 months)
  • Change in median price from peak: -8.0%
  • Change in home sales from 2006: -26.4% (sales decline streak: 2 years)
Based on MLS single-family homes sales in the Sacramento region.

To compare with other price indexes, click here.


Sittin' Out This One said...

The more I watch this housing debacle, the more I see a long slow slide back to affordability levels. 1998 prices plus reasonable inflation, current annual market rents times 10 = value.

It would be so much better if the correction would hit bottom, but I think it is going to take 3 to 4 more years to hit the bottom at this rate of decline. Probably 2010.

Anyone who buys a home today will not see that home worth what they pay for it until 5 years after the bottom. Probably 2015.

Business Week was right in their Dec 2006 article.

Cmyst said...

Current annual market rent from me would equal a value of 186K on the place I'm renting in EDH. It's currently "valued" at a little over 400K.
I noticed that a decline of 1%/month in home prices was mentioned in at least 2 of the recent news articles, since the market began receding last year. So, at that rate, it would be about 4 years until this place hit 10 times annual market rent in value, from today.

WatchingTheBubble said...

As someone who has been waiting on the sidelines for this market to "correct", I, too, wish that we could just get on with the correction. I do, however, have some sympathy for first-time buyers who were honest-to-goodness owner-occupiers who dealt with unscrupulous mortgage brokers and didn't have a clue that you can't afford a house that's 10x your annual salary. If some of these first-time buyers were also among the first generation of their families to own homes (yes, America, not everyone comes from a home-owning tradition), they probably didn't have someone to tell them that just because the lender will give you the money doesn't mean you can afford the mortgage. Even the old adage about "growing into your mortgage" doesn't hold water when the cost of the home you're buying is 10x your annual salary.

I feel for the honest-to-goodness first-time buyers who were owner-occupiers. As for the investors, flippers, and speculators, well, they took a risk and they lost. Let the bloodletting begin.

Cow_tipping said...

2 years ... you sure about that ???
Cos even a year ago Properties were selling for waaaay more than market rates ... OK they were selling to Casey serin, but they were selling is all I am saying.