Sacramento Real Estate Views

The State of Sacramento Real Estate

2011 Year In Review – Sacramento County

I thought it would be a worthwhile exercise to pull up some statistical information and see how values as well as sales fared in 2011.  Generally speaking, we see a lot of national news on values but that is a composite number of all regions and doesn’t apply anywhere specifically.

While that may sound obvious, many people hang their hat on these numbers when in reality they’re meaningless and at best irrelevant.  Because real estate values tend to be hyper local, the only relevant information resides with local industry professionals.

All of the information below has been pulled directly from the Metrolist multiple listing service that serves the entire Sacramento region and covers single family homes only. (Thank you to Metrolist, Inc. for all of the fancy graphs)

Summary

Overall, most of the data shows that the bulk of the Sacramento region has lost anywhere from 2% to 8% of it’s value roughly speaking.  While that may or may not be 100% correct, what I think is most striking is the “leveling” off of prices region wide with a few exceptions.

Depending on the month, values were up and down all year long.  As the graphs will show, one month values were up and the next a little higher then a little down the month after that.

How the multiple listing service figures the percentage of decline or advance is by comparing the beginning month to the ending month in any report inquiry.  If the month in the beginning of the report was an up and the month in the end was down, this will give an over estimation of a decline in value with little compensation to what happened in between these two points.

I don’t believe this to be an entirely accurate view of the market so I’ve included all the graphs for each area in this summary of 2011 home values.

Citrus Heights Home Sales – Both Zip Codes

The average sales price bounced around from a high of $169K in January of 2011 to a low of $147K in April and July.  The yearly average was $156K.  Not a lot of variance in prices here.

Fair Oaks Home Sales

Fair Oaks home values bounced around a little more than other communities in our region.  The high for the year was in January at $303K and the low in September at $223K.  There was a substantial dip in values started in May at $269K and gradually slid down to $223K in September.  The average sales price last year as a whole was $253K.

Folsom Home Sales

The Folsom market has been very resilient throughout the region’s housing downturn.  The trend in Folsom all year was consistently down but largely level.  The high mark was in April at $409K and the low coming in August at $361K.  The average sale price in Folsom was $388K.

 

North Natomas Home Sales

The North Natomas market is one that has bounced around a lot over the last 13 months.  The high at $242K in January and the low in September at $203K.  Like a lot of areas of the region, since September/October 2011, values have been on the rise.  The average sales price in 2011 was $219K.

Orangevale Home Sales

The home values in Orangevale have also trended down with a precipitous fall from July to November of almost 20%.  The average sales price in Orangevale for 2011 was $203K.

Sacramento Home Sales

Sacramento, was largely unchanged throughout 2011.  Besides a blip July and August, values were very stable all year long.  In fact, the average sales price in January 2011 was the same as the average sales price in January 2009.  Not surprisingly, the average sales price over the entire year was $166K.  Very level home values without much in declines.

Availability of Homes For Sale

All of 2011 was plagued by an ever dwindling amount of available homes for sale in the Sacramento real estate market.  As the graph indicates, from January and February forward, the total amount of homes for sale decreased significantly.  Sales have been consistent but not barn burning so it’s not that the pace of sales has increased beyond the point where the homes coming on the market can’t keep up.

Since the fall of 2008, there have been rumors that there will be a flood of foreclosures coming on the market at anytime..BE READY!!  It’s all turned out to be horse hockey.  Move up buyers are largely stuck cause they are underwater and can’t sell to move up.  Those who do sell short have to wait until their credit clears up before than can make a move.  These issues combined have greatly reduced the total number of homes for sale in the region.

 

Please keep in mind that every neighborhood is different within each zip code in the region.  What might hold true for one area may not for the next.  If you have questions about the value of your home in your neighborhood, please let me know.  I’ll be happy to calculate the value of your home and present it to you in a report format.

Simply call, text, email or fill out the form below and I’ll get back to you promptly.

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Tags: homes for sale sacramento, sacramento real estate

Sacramento Regional Home Values Decline

Carmichael Is The Biggest Loser At Over 31%

After seeing the headlines this morning concerning nationwide home values increasing in the second quarter of 2011, I got curious about where we are in the Sacramento real estate market and come cities in the outlying areas.

The numbers that came up were expected and yet some were shocking.

Understand, these are values that are a snapshot of where the average sales price was in July of 2010 versus July of 2011.  I don’t suspect that they are the end all, be all but do reflect how much home values have changed in the last year.

What Happened To Single Digit Losses in 2011?

Most economists said last year that the majority of the value losses that we would experience in 2011 would be in the single digit range if any value was lost at all.

Most agreed that we’d see perhaps less than 10% across the board with a flattening out of home values later this year.  It’s clear now that the “experts” weren’t correct in their assessment of our market and also, just how hard it is to predict what will happen regarding housing.

What we know is this – the Sacramento real estate market as well as other markets in the region have ALL lost value over the last year.

A 2 or 3 month increase in values nationwide isn’t news when you consider how much value has been lost over the last 12 months.  Trends in economics generally don’t become such until 2 quarters have elapsed showing a consistent direction.  In other words, we need 6 months of evidence that values are going up for it to begin to become newsworthy.

Two months of value increase isn’t a trend, it’s a start.  Let’s hope it continues.

Need to buy or sell a home in the Sacramento real estate market?  Please call, text, email or simply fill out the form below and I’ll respond to you promptly.

We handle real estate sales in Sacramento and South Placer County.  If you’re looking for representation in real estate matters, we’d like to hear from you.

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Tags: rocklin real estate, roseville real estate, sacramento real estate

Sacramento Real Estate Home Sales Report

Average Sales Price Increases 2 Consecutive Months

While the inventory of homes for sale continues to dwindle, it looks like we could be seeing a slight increase in the average sales price in Sacramento County.

From June to July, the average sales price increased 5.9% and from May to June we saw 1.08% increase in the average sales price.  While this is positive news, we are going into the slower time of year for real estate sales and this trend could easily be short lived.

 

Year over year changes aren’t positive but who knows, this could be the beginning of the turn in sales prices for Sacramento County.

Number of Homes For Sale Continues to Decrease

Since September/October of last year, the total number of homes for sale has decreased significantly.  It’s clear that the banks are metering out the foreclosures at a much slower pace than in 2008/2009 as the process for getting a foreclosed home through their systems has gotten longer due in part to the “robo-signing” debacle.  Additionally, the staggering amount of underwater mortgages has those who would like to sell holding off.  With the tough economic times, first time homebuyers are questioning whether or not purchasing a home is a sound idea.

Letting these foreclosures come on the market over time benefits everyone as a wave of them coming onto the market, especially considering that prices are still largely declining, would be crushing to home values as well as to the banks who would recover less from the distress sales.

That said, investors would have a field day.  Every market benefits someone.

The downside to the slow approach though?  The housing crisis will be with us for many more years to come and values, due to low demand, will either bounce along the bottom of the market or continue to go down.

The interesting thing about this report is that for as high as the pending sales are going, a 61.4% increase over the last year, you’d think that the sold numbers would reflect an increase higher than just 10% over the course of one year and a 15% drop in one month.

The mortgage market is a mess right now and getting financing has never been tougher in my career.  That could part of the reason for the low sales numbers.  I’d like to see the cancellation numbers.

Are you needing to purchase or sell a home in the Sacramento area?  Please call, text, email or simply fill out the form below and I’ll get right back to you.  We are short sale experts and can negotiate you to a successful settlement of your home sale with your lender.  Please call if we can help you.  All services and consultation are free and completely confidential.

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Tags: sacramento homes for sale, sacramento real estate

Homes Sales Report – Sacramento – August 2009

Pace of Home Sales Slows

The number of existing home sales in Sacramento declined in August to it’s lowest level of the year.  This is due to dramatic reductions in the number of homes available for sale and the time of year.

New home builders throughout the region, for instance, have been hammering out emails with quick move-in specials and increased commissions for agents to sell their homes since mid-July as sales are typically slow during this time of year.

Vacation months can be slow for home sales.

Click here to search for homes in any area of Sacramento or Placer County.

I wouldn’t be surprised to see and increase in volume by the end of September.  That said, without a significant increase in homes to sell, we may not see an increase.

The second slowest month of sales was February with 956, January with 962.  The rest of the year, sales numbers have exceeded 1000 homes sold per month in Sacramento.

Average Sales Price Increases In Sacramento Real Estate

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Tags: homes sacramento, real estate agent sacramento, sacramento real estate

Sacramento Home Sales – April

Sacramento Real Estate Market Takes a Breath

The April numbers, honestly, aren’t that surprising.  That said, I expected the average sales price to be closer to the numbers in the first quarter of this year.  I guess buyers, especially investors, are taking a bit of a break from the harried pace of the last 4 months.  With fewer sales, prices have come down.

Average Sales Price and Homes Sold Dips

The average sales price of homes in Sacramento County dropped almost 16% in April.  Compared to the numbers in the first quarter, this is a little startling.  While not surprising due to the number of homes that are not occupied AND not on the market. This has created a “false bottom” in the Sacramento real estate market and investors are waiting to see what’s going to happen going forward.

This news has gained national attention and it’s my guess that buyers, especially investors, are waiting to see what the next couple months will bring.  It’s been my advice to investors to sit tight for a month or so to get a better read on what the banks will do with the homes that have been foreclosed on but aren’t on the market.

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Tags: sacramento home sales, sacramento real estate, sacramento real estate statistics

Get $18000 To Buy a Home In 2009

Tax Credit for First Time Home Buyers in 2009

Some time ago, I was in a meeting with some local lenders and they brought up a great point worth mentioning about the consumer tax credits given by the government to inspire first time home buyers to purchase in 2009.

The lenders we met with told us that a first time home buyer could file for the $8000 tax credit on their 2008 taxes BEFORE the home is purchased.  This, as it has turned out, was dead wrong.   See below.

CORRECTION: It has been brought to my attention that this information was incorrect as it was presented to me by the lenders in question.  According to sources since this article was published, the IRS considers filing before the close of escrow tax fraud.  Again, you will need to verify all tax related information with a tax professional.

(Disclaimer:  Check with your accountant or a tax professional to verify any and all tax related information!)

It’s free money to buy a home in 2009 when the prices are going to be at the lowest point in this market cycle. (Hopefully!)  You must purchase by December 1, 2009.

Last year, there was a $7500 “loan”, that’s what it amounted to, that had to be repaid in $500 increments until satisfied.   This year a purchase could result in a $18000 wind fall depending on who is buying and where.

$8000 First Time Home Buyer Tax Credit

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Active Listings Watch – Sacramento Real Estate

Geez, it’s great to be home!  I love Disneyland as I have fond memories of it from my childhood.  Sharing those with my 4 year old son was very special.  Back to work!

Home Prices Stabilize

The average sold price for a home in Sacramento real estate has stabalized over the last 2 months.  So far for the month of March, there appears to be an increase in the average sales price but that was also the case in the beginning of February.  The difference in average sales price from January to February is less than .04%.

There are still many vacant homes that are not on the market in the Sacramento region.

What will happen to those at this point is anyone’s guess and the guessing is proceeding in full force!  I believe that they will be “metered” out in smaller releases in an attempt to control the inventory levels and increase demand. This may result in increased values across the region.  Additionally, many could go to bulk sales as this is the fastest way to rid non performing assets from the banks books.

Something similar to this happened with the RTC in the late 80′s and early 90′s.

Inventory Levels Decrease

Over the last month and a half, the total number of homes for sale in Sacramento county has decreased almost 6%.  There are still multiple offers on every home that I submit for my clients but that said, we’re picking up some properties at lower prices than what they offered for.  My most recent escrows were exactly that way.

The variables here don’t seem to line up:  Less inventory for sale, multiple offers on every listing and getting homes for less than the listed price yet prices have stabilized over the last 2 months?   That formula doesn’t seem to add up.

My sense is that this year will be more active than last year if the inventory levels remain consistent.  If they drop lower and the vacant homes out there now don’t come on the market, at the current sales pace, there won’t be much to sell.  It looks as if the pace of sales and values should increase but time will tell.  This could be the year of market stabilization.

The Sacramento real estate market has proved to be very resilient over the years.  We were first in and we will be the first out of this downturn.  Stabilization is the first sign of things turning around for the better.

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Tags: sacramento homes for sale, sacramento real estate