With all of the media hype regarding how awful the Real Estate Market is in Sacramento, I thought I would clear the air by posting some stats for ya'll to look at. Allow me to translate because I know the image itself is a bit small (if you click on the image you can see a larger version). The green squares represent the average listing price in Sacramento County, while the red triangles represent the average selling price. Although this graphic is small, I am sure the average reader of this blog can still tell that this slide we are in is gradual, not the sharp decline that the media would lead you to believe. At the very peak of the market back in August 2005 (not shown on this chart), the average listing price vs. selling price was $482k/$427k. In December 2005 (first data points on this chart), the list price vs. selling price was $461k/$412k...as of the end of February it was $432k/$408k. Hmm...that is a average drop in price of $19k, or roughly -4.4%. Notice the sharp rise between January and February of this year...
Now of course this is an average of all of Sacramento County. Some areas have suffered worse than others. Areas inundated with new and newer homes suffered double digit losses last year, and it has been predicted that those areas will continue to decline this year. These losses are fueled by a really high listing inventory, and builders blowing out their inventory of new homes by drastically reducing their prices, offering free upgrades, and lender incentives that newer resale homes just can't compete with normally. In case you aren't sure which areas I am referring to, some Sacramento County examples are Natomas, parts of Rancho Cordova, and parts of Antelope...also some Placer County examples are Lincoln, Rocklin, Roseville, etc. Some older areas of Sacramento County have been really resilient to this slide we have been in...downtown Sacramento and most of the Carmichael/Arden area, for example, are still really hot.
What does all of this really mean? If you are a looking to buy - yes in some areas there are some very motivated sellers out there, and some good deals. Now is a great time to buy.
If you are looking to sell, do not over-price your home, and also expect your home to take longer to sell than it would have back in mid-2005. FYI homes that are appropriately priced sell relatively quickly! If you bought your home at the peak of the market, try to hold on to it for a few years...if you can not wait, - expect to sell for less than what your purchase price was.
Source: TrendGraphix / Sacramento MetroList MLS / Sacramento Association of Realtors
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