Sacramento Real-estate: In addition to Should be expected
Coming off the year we went from a super heated industry to stone cold the large question in solid estate circles is the place where the Sacramento market will conduct in 2007. The Sacramento Bee?s story this morning by Jim Wasserman, ?Hope seen on home front,? details the slowing of price declines in January. You’ll find others who don?t have as much hope for the market and then pound the collapse mantle everything the increase in foreclosure activity because the tool of doom.
Considering MLS data released the 2009 week by the Sacramento Association of Realtors showed new listings in January up over 75 % from December and an almost 20 % rise in inventory. This is normal and expected once we move out of christmas and end of the year rush. Compared to January 2005 there have been less new listings (2.9 percent) and current inventory is down 4.8 percent from recently to 4,926. The median price paid in January is virtually just like December but down 3.Five percent from 2005 to $355,000. The whole report can be acquired around the SAR website.
In Placer County the MLS data for single homes shows the same pattern as Sacramento County. There was 826 new listings in Placer County during January. That is more than twice just how much as reported in December but up only 48 listings from last January. Inventory was up 3.Four percent to two,178, from December or over 17.5 percent from the last year. During January there are 211 closed transactions making up a median expense of $430,000. This can be a Thirty percent decline in month-over-month closings and 2.2 percent decline in the median price paid. Rather than a last year the actual closings are down almost 14 % along with the median price paid is off 6.9 %. The above mentioned MLS details are available on the Placer County Association of Realtors website.
A fast report on a number of the communities in Placer County shows some interesting numbers and leads to a question concerning the quality of reported values when looking at small samples.
In Roseville we lower had lower year-over-year sales in January compared to this past year, higher pending and an boost in available inventory. There have been 73 homes purchased in Roseville during January having a median price of $415,000. This is decline from last year?s January median of $432,500.
Rocklin MLS data shows a modest boost in sales this January when compared with a year ago. The excitement continues when thinking about pending sales which can be reported up 3 sales to 52 compared to a year ago. There is also a small boost in listings this season when compared with this past year, with 236 homes reported as on sale. Unlike most areas the median price paid in January for any home in Rocklin was up in comparison to recently. The Placer County Association of Realtors reports an average price increase of $20,000 to $445,000.
The median price in Granite Bay also showed a boost in comparison to this past year. The January MLS data reported an average expense of $802,500 in comparison with $705,000 last year. Remember these numbers are computed on a very few sales and is misleading. In January on this year there were 18 sales when compared with only 11 a year ago.
Many pundits believe that property is local and searching at National, State or even County or City results can?t supply when you are conducting analysis on a neighborhood or single property. The reports for small communities and zipcodes often don’t have a large enough enough sampling to make accurate statements about pricing trends. The property value site, Zillow has evolved a house valuation index they call Zindex to help set a mean value on all homes within a given geographic area not just the homes which are sold throughout the period.
It doesn’t matter what you see Zillow, their Zestimates it is an interesting concept and value investigating.
In Sacramento County where we simply learned the median price purchased your house in December was $355,000 the Zindex for the similar area at the conclusion of the year was $357,148. Incidentally that is below $371,148 reported following another quarter of 2006 and down 6.74 percent from the previous year.
The reported Zindex for Placer County was $460,466 following the year. This even compares to MLS data median price paid in December of $430,000. The Zindex value was down 5.11 percent quarter-over-quarter and off by 5.97 percent from last year.
Going down towards the community level and searching within my example above, Granite Bay, we discover MLS data on 11 sales in December 2006 yielded a median price of $705,000. The Zillow Zindex reports a Granite Bay valuation of $703,382.
Determined by this cursory analyze it would appear that although the numbers come different ways the MLS data and median price based on the homes sold throughout the period just isn’t inconsistent using the Zillow valuation method. This really is something clearly requires additional examination and watching. In case you are thinking about studying the full Zillow report on the Sacramento area it’s available for download on the site.
Depending on the suggestions above it does appear that prices in Greater Sacramento area have started to stabilize. Inventory is, as expected, increasing even as we leave the holidays behind and go to the spring selling season. The sales activity is still anemic but reports from agents I’ve are exposed to within the last few weeks indicate situations are obtaining. The subsequent 60 days of sales activity will likely be suffering from the next thunderstorm. Whenever we keep having some dry days we’re able to see a nice boost in sales. If conversely it starts to rain and continues enjoy it did last year, it might be late March or early April before the buyers come out to look. January looks similar to some of us expected, however it is clearly too soon to put a bad for which we will see all year long.