Friday, July 20, 2007

Home Front: In some spots, house sales just ZIP along

Great article in the Sacramento Bee today. Look people, despite all the mass media doom and gloom regarding the Real Estate market, many areas in Sacramento (and surrounding counties too) are still doing really well!!! The areas that are suffering the most are those where new home construction is still rampant - Elk Grove, Natomas, Lincoln, etc...

Luckily for me I do little or no business in those areas. If you look at my current active listings, you will see the majority right now are in the Land Park area (you can see my listings here: The bulk of my real estate transactions are in Downtown / Midtown Sacramento, East Sacramento, Land Park, Curtis Park, Tahoe Park, Arden, Carmichael, Rosemont / College Greens, Fair Oaks, Orangevale, Citrus Heights, and Antelope. If you want to learn more about these areas, visit


Home Front: In some spots, house sales just ZIP along

Sometimes it seems the for-sale sign has become the official flag of Sacramento-area cities. Everywhere you look, there's another one stuck in the ground. But there are a handful of well-populated ZIP codes in the region where the number of homes on the market is actually shrinking.

Consider 95616 in Davis. It had 67 houses for sale in June, compared with 195 in the same month last year. That's a 66 percent reduction. And so it goes in certain pockets, according to recent June statistics on housing inventory in the four-county region of El Dorado, Placer, Sacramento and Yolo.

The 193 listings in Auburn's 95603 were down 15 percent from last June. Roseville's 285 listings in 95678 were down 9.5 percent. Other ZIP codes where inventory is falling were Roseville's 95661, Mather's 95655, midtown Sacramento's 95816 and Foothill Farms' 95841. The statistics, which come from Sacramento-based TrendGraphix, are good signs, evidence of supply and demand coming into a better balance in some areas.

Downtown still boomtown
Anecdotal evidence continues to pour in that the housing slump doesn't apply in neighborhoods near downtown Sacramento. While cocktail party talk elsewhere in the region revolves around the bulging inventory of thousands of houses for sale, people in east Sacramento, Curtis Park and Land Park like to talk about multiple bids and runaway prices.

In recent months, million-dollar deals and two-bedroom homes listed for $800,000 and $900,000 are not unheard of. "I've got a friend in Land Park who said a couple of houses sold for record prices. They sold within a week," said Jon Nastro, a real estate agent and broker associate who sells in Elk Grove. "Land Park is Land Park. The investors never came in there," he said. "They couldn't afford to." It's the same in east Sacramento, home to the "Fab 40s" of tree-lined streets and stately, sizable homes.

In those neighborhoods, people like to swap stories of that one house that couldn't possibly be worth its asking price, given all the fixup it needs. Then it goes on the market for $700,000 and gets multiple offers the same day. Housing slump? What housing slump?

Like many things in real estate, it's all about location.

As he's been saying for months, TrendGraphix owner Michael Lyon says of the region's current market conditions: "We are awash in homes for sale." But every month he adds the caveat: "The only exceptions remain the areas closest to the Capitol."

In a sense these neighborhoods are becoming like Santa Barbara or the regional equivalent of what some analysts have dubbed "superstar cities." For most buyers, that means if you don't already live there, it's likely you never will.


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