This week, the Sacramento Bee came out with its median existing home price update.  Among the specifics:

  • Median sales prices of existing homes in Sacramento County and West Sacramento reached $190,000 in May, their highest level since September 2008, the Sacramento Association of Realtors announced Tuesday.
  • Prices are now close to where they were in early 2002 – just before the housing boom sent values soaring.
  • There were 1,720 sales in May, up 12 percent from April.
  • Statistics showed the largest number of sales – 18 percent – were made at prices between $200,000 and $249,000.  Conventional sales that didn’t reflect distress accounted for 40 percent of transactions.

Also recently released was the S&P/Case Shiller indices for the first quarter, which indicated some weakening in home prices nationwide.  The National Home Price Index fell 3.2% in the first quarter of 2010, but remained above its year-earlier level.  Analysts said housing prices have rebounded from crisis lows, “but recently have seen renewed weakness as tax incentives are ending and foreclosures are climbing.”

Interestingly, Sacramento, as you saw above, is one of the anomalies.  In fact, according to DQNews.com, we’re seeing median price increases in a large majority of our communities.  In fact, Sacramento (zip code 95818) saw a 58 percent increases in its median.  Nearby Sacramento (zip code 95817) saw a 53 percent increases.  Other notable increases, North Highlands with a 26.4 percent increase, Roseville with a 35 percent increase, Homewood with a 57 percent increase and Olympic Valley with a 52 percent increase.  To see all markets, click here.

So what to make of all of this?  A couple of things: First of all, these reports are a strong reminder that real estate – like politics – is a very local business.  By all signs, the housing market recovery is slowly moving forward but the speed and degree of the rebound varies from region to region, from county to county and even from town to town.

While the S&P/Case-Shiller indices show our local region’s prices up modestly from last year’s crisis levels, many of our cities have seen even higher increases.  What’s really happening is that the mix of homes that are selling in our region is changing.  A year ago, most sales seemed to be foreclosures and other distressed properties.  Today, we’re seeing many more sales in the mid- and even upper-end of the market which is driving up median prices for the region.

So, while the improvement in the market so far this year gives us reason for optimisim, we must be mindful that we have our share of storm clouds overhead.  The federal home buyer tax credit has ended and it’s uncertain what that will mean to the market.  We won’t really know for at least three more months.  The financial markets, while greatly improved over last year, are still seeing a lot of volatility of sale.  And our unemployment rate remains stubbornly high.  Nonetheless, it’s important to remember that economic recovers are rarely smooth.  There will be potholes along the road, and lots of fits and starts.  But given all the data in recent months – and what I’m hearing from Agents and buyers out in the market – I’m cautiously optimistic that our local market is indeed on the road to recovery.

Now, let’s take a look at this week in local real estate:

Auburn:

REO/Short Sales

We have eight new Broker Price Opinions (BPO’s) that are waiting for prices in the Auburn area; including a very unique property with 10 garages on acreage and a nice house.  One agent is working with seven short sales but we are seeing actual responses in a timely manner from the lenders so it is easier than it was a year ago.  Some of the bank owned properties are priced too high for the market to bear, but current fair market value seem to sell quickly.

Sales are slow and inventory is low.  It is hard to find a property under $300,000 that is in great shape and under $200,000 is nearly impossible even going further up into the foothills.

Dixon:

Our inventory is decreasing on both the listing and the sales sides- unfortunately; and both short sales and bank owned properties are just trickling in.

Agents speculate that activity is slowing down because of the tax credit expiring.  Flip Home rules are causing some problems with FHA and VA buyers. We’re noticing a lot of short sale listings listed by out of area agents marketing short sales as ‘specialists,’ unfortunately they are not and the pricing is way off. Our agents would like to see an article in the paper or by mail explaining short sales to sellers and warning them of scammers. Our agents attended a recent short sale and foreclosure seminar and I think this will help increase our listing inventory with more short sales. Open house activity was great! One agent got four new buyers!  Agents are motivated and ready to sell!!

El Dorado County: El Dorado Hills and Placerville:

Our markets have unexpectedly slowed down- likely due to the expiration of the tax credit in April.  Although the inventory is low, it isn’t for lack of trying; one agent has taken three listings within the last week that is a traditional listing rather than a short sale or bank-owned asset.  Additionally, our agents are opening escrows that are a direct result of Coldwell Banker’s proprietary web based consumer rapid response system- LeadRouter.  Although I can’t be sure if these leads have been incubating for sometime, or were actuated from currently available properties, both the agent and the clients have found a great partnership!

Fair Oaks:

Listing inventory is picking up this month. We are seeing more traditional sellers deciding to put their homes on the market; some transferred because of job opportunities; some moving for retirement and also the move-up buyer and even downsizing.

Although unusual at this particular time, a few higher-end homes with multiple offers have gone into escrow.  One agent sold a home with multiple offers in two days on the market for all cash.

Open Houses have been strong with a lot of traffic. The nice weather has been a real asset for the past few weeks and more buyers are getting back into the market especially with interest rates staying low. Overall the traffic for Open Houses are stronger now than in the past months and even stronger than last year at this time. The agents are feeling a stronger momentum of buyers out there in the market place than a year ago.

Short Sales are going well as we are seeing closing timeframes being met in a reasonable time frame instead of sitting and waiting for answers.   Banks are getting approvals more quickly. The REO sales and listings are picking up hopefully we will see more inventory come into play in the future months.

Rocklin/Lincoln

REO/Short Sales—We have received many requests for BPO’s for new REOs.  Some of them are in good shape but we are seeing vandalism in vacant properties.  The turn around time on many of the short sales seems to have shortened and many of the negotiators with the banks are beginning to return calls more promptly.  We are seeing the junior lien holders increasing the payoff amount to release the lien and we have had some issues when the buyer offered to bring in more to escrow to close the deal but Fannie Mae guidelines are not allowing this to happen.

Sales—Sales continue but at a bit slower pace.  The prices have crept up slightly but we are also seeing more pre-approval letters from lenders that have been issued without even the credit report run.  We are emphasizing the need to have Coldwell Banker Home Loans or another direct lender take an application to find out if the buyer is for real.  We are doing more hand-holding to keep the transactions together.

Relocation-We are busy with buyers coming into the area but they are still shocked by our prices and they are often given information such as “to make an offer on an REO at 50% of list price”.  We are seeing some rentals and relocation as set up a program where an agent can get compensated for spending a couple of days with a transferee looking at rentals.

Multiple offers-Most REOs and some short sales, if priced right and in fair condition are still receiving multiple offers.  One of the last ones in our office received 14 offers.

New home sales are being aggressive with incentives for the buyer as well as a full commission plus for the selling agent.

Roseville- Granite Bay

Listing inventory is picking up –short sales- the sales are decreasing which is typical of June week with graduations and first vacations. Sales for the three counties were very strong in May as a whole and helped move up the medium prices in Sacramento to $190,000—highest level since September 2002.

REOs and short sales made up 60% of the sales. Our office had seven open homes that were slower this weekend. We have another agent to add to our team and look forward to a good summer as the market grabs traction.

North Lake Tahoe-Truckee Region

Residential and lot sales are up 79% from the previous year and all indications point to continued brisk sales as we enter the summer months.  We continue to see robust sales as a result of more advantageous sales prices as compared to the previous year.

The median sales prices have decreased by 12% to $400,000 and average sales prices have decreased by 7% to $540,206.  With the higher than expected number of sales and lower sales prices, it points to the fact that astute buyers continue to show strong interest in Tahoe-Truckee real estate which is priced in some cases at 2001 price levels.

The hottest segment of the market is homes priced under $500,000 as roughly 65% of the sales have occurred in this segment.  Additionally, distressed properties, REO and Short Sales represent roughly 36% of the sales.  However, there is still considerable interest in non distressed properties as many are priced at levels that are too good to pass up.

The active listing inventory for the Tahoe-Truckee market increased for the sixth consecutive week.  Listings increased by 3% from the previous week as more homeowners are putting their homes on the market for the summer season.  Currently there are 1,942 active listings in the market; 1,366 residential properties and 576 lots and land listed for sale.  Coldwell Banker has roughly 15% of the active listings in the market.

REO-Short Sale Listings:  Of the active listings, there are 146 properties listed as short sales, (8%) and 72 properties listed as REO sales, (4%).

For 2010, there have been 532 properties sold in the market as compared to 297 for the same period in 2009 which is a 79% increase in sales.

Of the properties sold, 117 were REOs, (22%), and 74 were Short Sales, (14%) which results in 36% of the properties sold being a distressed property.  In 2009 for the same period, there were 36 REO sales and 30 short sales or 22% total.

The median sales price for properties sold year to date is $400,000 while the average sale price is $540,206.  For the same period in 2009, the median sales price was $453,000 and the average sales price was $578,451 which is an (12%) and (7%) decline in price respectively year over year for the same period of time.

Pending sales went up slightly from the previous week to 176 properties.  Tahoe-Truckee Median Sales Prices of $400,000 Have Not Been Seen Since 2000-2001!


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