Tuesday, October 14, 2014

Productive time spent at the fall meetings for the California Association of Realtors last week...

Last week was a long week...I arrived in Anaheim for the fall California Association of Realtors committee and Board of Directors meetings on Monday evening, and left on Saturday afternoon. It was a busy week...I spent most of my time in windowless rooms in committee meetings, roundtable discussions, and educational forums. It was a productive week...as usual, I got to represent the Sacramento region and talk about issues affecting property owners, private property rights, and real estate transactions -- AND be part of the conversation to fix what's broken, streamline what's already working, and brainstorm the next great things. It's been an honor and a privilege to serve Sacramento in this capacity since 2010, and my appointment to this position continues through 2015.

Friday, October 10, 2014

Sacramento Real Estate Statistics - September 2014

As the summer home buying season in our area winds down and we get ready for autumn, it's nice to see that the median home price is holding firm. Again last month, we saw the Sacramento County median home price increase ever so slightly to $275,000. As I have said this year, It's nice to continue to see a healthy leveling-off of home prices with modest value appreciation. In the last 12 months, Sacramento home values have increased just about 9.4%, If you look at this graph, during the same time period as last year the market dynamic looked much the same -- just bumping along with slight increases. You'll notice as winter approached, the prices decreased a little but bounced back in the spring...I anticipate a similar trend as we go through autumn and winter. These are seasonal norms -- based on many buyers suspending their home searches, going into hibernation mode during the holidays and then reinvigorating their home searches again in the spring. All good stuff...no crazy spikes, just nice, normal, and mellow. It's been nice not to have a frenzied market for one reason or another. I'm going to enjoy it while it lasts!

Many of my transactions lately have involved folks selling their home and purchasing another. With the mellow tenor to the Sacramento real estate market right now, this has proven to be an opportune time to upsize, downsize, move to a different neighborhood, etc.

While we have more inventory (homes on the market) right now than we saw in Sacramento this time last year, this level of available homes for sale is still LOW. We have about 2.8 months of inventory in Sacramento County in September. This is not a lot. A market with buyer/seller equilibrium is 5-6 months of inventory. Homes are taking an average of 40 days to sell as of September. I'm seeing more price reductions in the market...it seems that some sellers still want to test the market and they are trying to get a lot more for their home than the last comparable sale. BUT, as you can see, statistically that's just not happening in our Sacramento home market right now. With prices holding steady, sellers need to price homes realistically.

Tuesday, September 16, 2014

New Listing - 3716 Lankershim Way, North Highlands, CA 95660

Adorable 3 bedroom, 1 bathroom, 972sf remodeled North Highlands home on .16ac lot has been lovingly maintained by owner! You will love the high ceilings, granite kitchen counters, newer appliances, freshly painted interior and exterior, remodeled bathroom with tile flooring and tub/shower, newer composition roof, central heating and air, dual pane windows, huge backyard with new fencing, shed, patio and fire pit! Section 1 & 2 pest clearance. Close to public transportation, easy freeway access, shopping, parks and schools. Don't wait! Offered at $149,900. For more photos and detail please visit 3716 Lankershim Way, North Highlands, CA 95660.

Tuesday, September 9, 2014

Sacramento Real Estate Statistics - August 2014

As the summer home buying season in our area continues and gets ready for fall, it's nice to see that the median home price is holding firm. Again last month, we saw the Sacramento County median home price increase ever so slightly to $272,000 - an increase of 0.7%. As I have said this year, It's nice to continue to see a healthy leveling-off of home prices with modest value appreciation. If you look at this graph, during the same time period as last year the market dynamic looked much the same -- bumping along with a couple percent increase. You'll notice as winter approaches, the prices decrease a little but bounce back in the spring...I anticipate some similar activity as we go through fall and winter. These would be seasonal norms -- based on many buyers suspending their home searches, going into hybernation mode during the holidays and then reinvigorating their home searches again in the spring. All good stuff...no crazy spikes, just nice, normal, and mellow. Doesn't that feel nice? Ahhhh....

While we have more inventory (homes on the market) right now than we saw in Sacramento this time last year, this level of available homes for sale is still really LOW. We have about 2.6 months of inventory in Sacramento County in August. This is not a lot. A market with buyer/seller equilibrium is 5-6 months of inventory. Homes are taking an average of 39 days to sell as of August. I'm seeing more price reductions in the market...it seems that some sellers want to test the market and they are trying to get a lot more for their home than the last comparable sale. BUT, as you can see, statistically that's just not happening in our Sacramento home market right now. With prices holding steady, sellers need to price homes realistically.

Friday, September 5, 2014

Zillow...a fun tool for "entertainment purposes" - but has it become more accurate in predicting Sacramento home values?

If you have been reading my blog for a while, then you probably already know that I usually get a chill down my spine when one of my clients mentions "the Z word." What's the Z word? Zillow. What is Zillow? Zillow.com is a website that, among other things, provides information about neighborhoods and properties.

Zillow is a neat website. I have an agent profile on Zillow. I have clients who have found me using Zillow. However, my general thought about Zillow is that while it's a fun consumer tool that provides property information to people looking to buy or sell (or even rent property now), the vast majority of the time, the "Zestimate" (aka, the value that the website dreams up for a certain property), is usually not close to the market value of a Sacramento area property, and the homes listed for sale on the website are not current.

I posted a few times last year about how the sales prices of my transactions compare to Zillow data. I've closed 8 transactions in the last couple months so let's take a look to see how close Zillow is to the actual selling prices of these properties. This information is CURRENT as of today, September 5th, 2014.

15 Waterfront Court, Sacramento, CA 95831; this was a nice remodeled home I sold (represented the buyer) in the Pocket/Greenhaven area. The original listing price was $270,000, and after multiple offers this sold on 6/4/14 for $281,000. Zillow's Zestimate: $263,576 -- approximately 6.61% below it's selling price. 
 
2509 Butano Drive, Sacramento, CA 95821; this was a fixer home I sold (represented the buyer) in the Arden area. The original listing price was $239,000, and this sold on 6/18/14 for $225,000. Zillow's Zestimate: $242,722 -- approximately 7.87% above it's selling price.

7244-7246 Canelo Hills Drive, Citrus Heights, CA 95610; this was a duplex I sold (represented the buyer) near in Citrus Heights. The original listing price was $255,000, and this sold on 6/20/14 for $215,000. Zillow's Zestimate: $220,478 -- approximately 2.56% above it's selling price.

6134 Van Alstine Avenue, Carmichael, CA 95608; this was a home I sold (represented the buyer) near in the American River in Carmichael. The original listing price was $1,595,000, and this sold on 7/17/14 for $1,495,000 (and it appraised significantly higher than the purchase price). Zillow's Zestimate: $1,336,127 -- approximately 11.89% below it's selling price.

1419 Hopkins Street, Sacramento, CA 95822; this was a home I listed and sold (represented the seller) near South Land Park in Sacramento. The original listing price was $129,900, and this sold on 7/20/14 for $129,900. Zillow's Zestimate: $125,415 -- approximately 3.58% below it's selling price.

3201 T Street, Sacramento, CA 95816; this was a home I listed and sold (represented the seller) near the UC Davis Med Center in East Sacramento. The original listing price was $299,900, and this had multiple offers and sold on 7/24/14 for $308,000. Zillow's Zestimate: $264,769 -- approximately 16.33% below it's selling price. WOW.

5364-5366 Elsinore Way, Fair Oaks, CA 95628; this was a home I sold (represented the buyer) in Fair Oaks. The original listing price was $259,900, and this sold on 8/26/14 for $259,900. Zillow's Zestimate: $304,522 -- approximately 17.17% above it's selling price. WOW.

4336 52nd Street, Sacramento, CA 95820; this was a home I listed and sold (represented the seller) in Colonial Heights. The original listing price was $189,900, and this sold on 8/28/14 for $183,000. Zillow's Zestimate: $175,871 -- approximately 4.1% below it's selling price.

I have said it before and I will say it again...I think a couple conclusions can be drawn from the information above. First, Zestimates are generally not accurate. They don't take into consideration property features that can not be quantified. Is it on a main street, is it near a park, was the kitchen remodeled, does it have unique architectural features...? Second, our dynamic Sacramento area real estate market has changed significantly in the last couple of year, and Zillow has a long way to go to catch up to pricing these trends and factoring them into their mathematical equations that determine these values. But it is still a fun website for entertainment purposes. 

If I can assist you determine an accurate price range for your Sacramento home, I welcome your call or email.

Tuesday, September 2, 2014

New Listing - 2480 Sandpiper Way, Cameron Park, CA 95682

Stunning Cameron Park 3 bedroom, 2 bathroom, 1,478sf home on .39ac with an amazing VIEW!! You will love remodeling and attention to detail; kitchen is open to the living room and has granite counters, center island with sink and breakfast bar, laminate and tile flooring throughout, formal dining room, freshly painted interior, master bathroom has dual sinks, huge stall shower and jetted tub! Front and rear deck and huge yard are great for entertaining and playing. On a clear day you can see Folsom Lake and the Sutter Buttes in the distance! Large sunny raised planter beds are all ready for your veggies! Large open sub-area for LOTS of storage or maybe more living space? RV access too. Don't wait! Offered at $359,900! For more photos and information visit 2480 Sandpiper Way, Cameron Park, CA 95682.

Thursday, August 21, 2014

New Listing - 5000 Priscilla Lane, Sacramento, CA 95820

Adorable and well-loved 3 bedroom, 1 bathroom, 925sf Colonial Village home on large .15ac lot is ready for a new owner! You will enjoy the light bright kitchen w/dishwasher, gas stove and tile counters/backsplash. Remodeled bathroom has new vanity, tub/shower combo with tiled surround. Also has dual pane windows, high end carpet, newer roof, central heating & air, recently painted interior & exterior & large attached garage. Large yard has a shed, covered patio, new fencing,  and wisteria-covered arbor. Don't forget the rare RV access. Located a short distance the new Joseph Bonnheim K-6 Charter School. Offered at $169,900. For more photos and information, please visit 5000 Priscilla Lane, Sacramento, CA 95820.

Friday, August 8, 2014

Sacramento Real Estate Statistics - July 2014

As the spring home buying season in our area turns into summer, it's nice to see that pending sales are at a high for 2014, and that the median home price is holding firm. Again last month, we saw the Sacramento County median home price holding firm at $270,000. As I have said this year, It's nice to continue to see a healthy leveling-off of home prices with modest value appreciation. Large spikes are nice and all, but just not sustainable for the long term. While we have more inventory (homes on the market) right now than we saw in Sacramento this time last year, this level of available homes for sale is still really LOW. We have about 2.3 months of inventory in Sacramento County in July. This is not a lot. A market with buyer/seller equilibrium is 5-6 months of inventory. Homes are taking an average of 37 days to sell. I'm seeing more price reductions in the market...it seems that some sellers want to test the market and they are trying to get a lot more for their home than the last comparable sale. BUT, as you can see, statistically that's just not happening in our Sacramento home market right now. With prices holding steady, sellers need to price homes realistically.