Saturday, April 19, 2008

Sacramento Price Slashing

From Business Week:, with the help of Mountain View (Calif.)-based Altos Research, a real-time housing research firm, ranked 14 of the country's largest cities based on how much sellers have slashed listing prices. At the top of the list is Sacramento, where the median asking price on Apr. 11 was $226,978—a 41% drop from a year earlier, according to Altos.
From News10:
Just a few years ago it seemed impossible: a home in Sacramento County for under $100,000. But a condominium developer is ready to sell some units at auction Sunday for as little as $85,000...One-bedroom condos were initially listed for $150,000 with three-bedroom units listed at $230,000.
From the Appeal-Democrat:
Median home sales prices in Yuba County dipped to $199,000 in March on nearly a third fewer home sales than a year ago, DataQuick Information Systems said....The sales price has declined $90,000, or 31 percent, from March 2007.
From the Sacramento Bee:
Layoffs are spreading to many segments of the area economy. Michael's Furniture, a Sacramento manufacturer owned by struggling retailer Restoration Hardware, eliminated 108 jobs in March, according to state records...National Distribution Centers, a West Sacramento warehouse, expects to lay off 175 workers at the end of April.


Lander said...

From the Modesto Bee:

Stanislaus County's unemployment rate rose in March to the highest figure it has recorded in five years...The unemployment rate last month, at 11.3 percent, hasn't been that high since February 2003. It is...2.4 percentage points higher than the previous year.

"That is up quite a bit from a year ago," said Liz Baker, an EDD labor market analyst. "It is unusual."
San Joaquin County recorded a similar jump in its unemployment rate, rising to 10.3 percent in March from 8.2 percent last year. Construction jobs were down 1,800 from the previous year, and the financial sector lost about 1,200 jobs.

wannabuy said...

I feel for the workers in the peripherally REIC related industries. I respect an honest forklift operator far more than any greedy REIC member.

Sadly, we've only seen the start. *Everyone* still thinks we'll have a second half recovery. History has shown once the faith in a quick rebound is lost, layoffs are quick and fierce.

This isn't just Sacramento. Its global. Some industries will still grow. But the USA is just too mal-invested in real estate to not have net job losses in 2008/2009. :(

Got Popcorn?

Jacob said...

Yea we are just getting started now. forget about reic related jobs for a moment. What's left? Retail, government, healthcare. Anything else?

Practically every company sells things or services and a lot of those are and will continue to be hurt. $6 coffee is gonna be one of the first things to get cut from peoples budgets.

john_star said...

Any tips out there on the best MLS site? I drive by many for sale signs that don't show up on my MLS search. Where is the most comprehensive search? Thanks..

And, does this make sense to anyone - an REO in River Park - 2/1 820 sq ft for $330k - thats $402 per sq ft. For a BANK OWNED home.
MLS#: 80030710

Where are the deals in "decent" hoods?

Real said...

"Where are the deals in "decent" hoods?"

Exactly like you have been told by the people your entire life - RE is about location, location, location. In a downturn, good areas will perform much better than bad ones. Just look at what is on the market today - many sub-prime fall out from low income/liar loan types that could not afford the $300K nut when the loans adjusted. Simply put, the nice neighborhoods never had a huge influx of these types of people so you don't see huge amouns on REO's anywhere that you would actually want to live.

I think the REO's give people what the want - rather than buying a 'flipper' home 3 years ago which had extensive upgrades (granite, landscaping, hardwood, cherry cabinets) for a smaller home, the market now has much larger homes lacking upgrades and in poor condition at the same price points. There is a large segment of the market which believes 'bigger is better' without looking at the quality of the construction. For these people, this is a great time to be a buyer - these types of properties are also much better as rentals as the owner does not have to look at the low quality construction everyday and can charge more for extra bathrooms and bedrooms. Price have come down - no doubt about it - but the quality decrease in the listed inventory is almost as big.

smf said...

Where are the deals in "decent" hoods?

We are buying a house in GR for its 2003 price.

In a very good village.

Some areas look overpriced still, till a little searching brings out the fact that a lot of these homes are already well below their prior sale price.

Real said...

"We are buying a house in GR for its 2003 price.

In a very good village."

The house you are buying was purchased in 2003? What maintanance/upgrades were done since then?

smf said...

No, it was purchased in 2005. But looking at prior the houses that are selling now are at about 2003 prices.

Essentially, the house was cleaned up and the kitchen was redone. The house is in good condition considering its age. But some heavy maintenance will come up soon.

We are also selling our for 2003 price.

Agentbubble can verify what I am telling you.

As a matter of fact, it was his bright idea that allowed us to do what we are doing.

Patient Renter said...

it was purchased in 2005. But looking at prior the houses that are selling now are at about 2003 prices.

LIES! Gold River is a fortress!!


Sippn said...

Lander - thanks for the link to Business Week.

Interesting that they just listed Sacramento as the "#1 best buying opportunities".

The only place I've heard it was here.... buried.

smf said...

Interesting that they just listed Sacramento as the "#1 best buying opportunities".

Isn't that what many analysts were saying right after the collapse?

How well did their suggestions turn out?

How was the dude who suggested you buy Bear Stearn a few days before its collapse as well?