Thursday, November 15, 2007

DataQuick: Sacramento Median Falls Below $300,000

From the Sacramento Bee:

For new and existing homes combined: Sacramento County's October median sales price fell to $299,500. That's the first dip below $300,000 as the price slump continues and the lowest median price since April 2004. Sales prices have now fallen 22.6 percent from their August 2005 peak of $387,000, DataQuick reported.
...
For existing resale homes only: Sacramento County reported 1,306 sales with a median sales price of $295,000. That's the lowest since June 2004 and down 21 percent from an August 2005 high of $374,000, said DataQuick.
From the Stockton Record:
We're No. 1! Unfortunately, that's for the rate of foreclosure activity in the United States. The latest quarterly report on foreclosures nationwide once again put Stockton in the top position, with one foreclosure filing - notice of default, auction notice or bank repossession - per 31 San Joaquin County households, said Irvine-based RealtyTrac, which markets data on foreclosure properties.
...
"I'm busier than I've ever been," said Kevin Moran, a Coldwell Banker Grupe real estate agent specializing in foreclosed homes. "It's unprecedented, and it's multiplying quantumly." Moran had 35 foreclosed home listings in August. That has climbed to 90, and the pace is quickening. He got 12 new foreclosure listings last week, plus six more this week through Wednesday.
...
Steve Carrigan, economic development director for Stockton, said the mounting foreclosures already appear to be taking an indirect toll through reduced consumer spending. "The realist in me says everyone better prepare for the worst," he said. "I don't want to be an alarmist. It's more of being a realist. Foreclosures are a big problem out there with the psychology of the consumer. They have a hunker-down mentality."

17 comments:

mopar777 said...

'Had a vacancy in one of my duplexes this month(Orangevale.)
At least four of the applicants said they were "waiting it out" to buy a place when sanity returns to the market in that part of town.
One of them works for a major builder here in Roseville.

WatchingTheBubble said...

All I can say is, "Hallelujah!"

I never imagined in all my life that houses in Sacto would be upwards of $400-$500K without some influx of private industry wages. I'm glad sanity is returning to the market, but I don't know if it's enough to keep people here, especially if they can't get the mortgages necessary to buy.

BMac said...

that is a great psychological breakthrough for this market. Perhaps more sellers, including REO/bank owned, will accelerate their price reductions in order to unload some of this dead weight out there.

Diggin Deeper said...

Wow...just makes the next several months even more interesting. This will put more pressure on the big financials that need home prices to stabilize in order to stop the bleeding in their tier 3 accounts. If prices across the country continue to fall, they are in much bigger trouble then they've let on so far.

Rumors are swirling about GMAC and GM going into BK due to the subprime problem. GM sold 51% of GMAC but has to take hits on their balance sheet for huge losses being racked up by GMAC's subprime unit. Apparently, if GMAC's value falls below $5.2 Billion by the end of the year, the banks can call the notes in and BK will be the likely option.

This real estate/credit bubble has a life of its own, and now has morphed into a machine that just gobbles up cashflow and net worth without warning.

Rob Dawg said...

if $300k is a big deal imagine the celebration that will break out at $200k. Never mind that. John Lockwood is hiring. This is just opportunity knocking.

I don't care whether anyone is thinking next year will see recovery or not. That's opinion or conjecture. What I care about is anyone saying you should buy now. That's just plain old immoral. You just plain old don't advise 9 people to lose money based on the odds of the 10th who did alright.

Patient Renter said...

I'll drink to this tonight :)

sf jack said...

"That's the lowest since June 2004 and down 21 percent from an August 2005 high of $374,000, said DataQuick."

*******

So, in only 27 months, prices have declined 21%.

Any predictions here for how long it will be before we see another 21% lopped off the median?!

Quicker? Or slower?

Given my memory of the Ivy Zelman reset chart and the building of momentum... I say... (drumroll, please)...

Quicker!!

But not by much.

Bakersfield Bubble said...

Where is that realtor at? or the guy from Folsom?

Almost half way there. 50% decline from the peak

Gwynster said...

"Where is that realtor at? or the guy from Folsom?"

Please don't say the names three times

Gwynster said...

Mopar,

My neighbors left in August because the Landy raised the rent by $25. They had just had enough. So for $75 more, they found a place with 1 more BR on 2/3 of an acre out of town.

I guess the good news is that if you ever wanted to own MFRs in Davis, this is your market. I keep seeing more and more Apt complexes up for sale here.

Diggin Deeper said...

Whoa...drove over to Raleys on Del Paso and was shocked by all the apartments that are going up between 5 and Truxel. There must be a 500+ units finished and they are still building! I wouldn't be surprised if these weren't originally intended to be condos that got converted.

smf said...

"I wouldn't be surprised if these weren't originally intended to be condos that got converted."

It could also be:

1. Housing for those who were 'priced out forever'
2. Those who were foreclosed upon
3. Since so few apartments were built during the bubble, some tried to fill the niche. Remember that these projects may have been on the pipeline for years prior to construction.

Cow_tipping said...

What was the previous non bubble year in sac, anyone have a good guess.
Cool.
Cow_tipping.

Cmyst said...

Gwynster said...
Please don't say the names three times.

LOL!

Well, I'm obviously going to have to revise my "under 300k" category to an "under 250k" category. Under 300k just became the norm!

bubblemachine said...

Standby for a press release from C.A.R. breathlessly reporting that since the Sacramento median has fallen below $300,000, there will NEVER be a better time to buy.

SheWrestles said...

lol @ never!

Brand-new 3400 sf Richmond Americans now listed at $499,000.

:)

bubblemachine said...
This comment has been removed by the author.