At The Tipping Point?

A little good news from the National Association of Realtors:

Existing-home sales – including single-family, townhomes, condominiums and co-ops – rose 2.9 percent to a seasonally adjusted annual rate (1) of 5.03 million units in February from a pace of 4.89 million in January, but remain 23.8 percent below the 6.60 million-unit level in February 2007.

Of course, one positive month does not make a trend, but are buyers ready to place their bets on an upswing?

The market was way past due for a correction, and we got that in spades. Unfortunately, while the prices have come down, buyers have gotten cold feet and even colder credit. The national mortgage crisis has dampened any rush on lower prices due to tightened credit, and sellers who can't get out from under their inflating payments are still succumbing to foreclosure. It will take some time for average buyers to feel confident enough to put their cash and credit on the line.

Further in the article, we find what region is dragging the national numbers down. It's the West of course. Yikes!

Existing-home sales in the West slipped 1.1 percent to an annual rate of 920,000 in February, and are 29.2 percent below a year ago. The median price in the West was $290,400, down 13.4 percent from February 2007.

If we have positive sales figures for March, I may become convinced that the we have seen the bottom of the recent market, and the only place to go is up. Regardless, if you have the resources to buy, now is a good time,especially if you plan on holding on to the property for a while. If you're someone who likes to flip houses and get a quick profit, good luck with that. I'll see you at auction. If you want to buy now while prices are low and hold on to it for a few years, then, well, I'll be happy to be your Broker down the road.

UPDATE: For a little old-fashioned optimism, head on over to Sacramento Land (ing). Sure to add a bit of cheer to your day.

February Stats for the Optimist

The Sacramento area housing market continues to struggle. Here is some selected home sales stats in several different parts of town from DataQuick for February '08:

Elk Grove 95624
Homes Sold: 58 Median Price: $299,750 %Change from '07: -26.8% Highest Price: $925,000


Folsom 95630
Homes Sold: 48 Median Price: $420,000 %Change from '07: -8.6% Highest Price: $635,000


Sacramento 95818
Homes Sold: 27 Median Price: $404,000 %Change from '07: -19.0% Highest price: $899,000


Sacramento 95822
Homes Sold: 44 Median Price: $179,250 %Change from '07: -34.8% Highest Price: $595,000


Sacramento 95834
Homes Sold: 10 Median Price: $280,000 %Change from '07: -27.7% Highest Price: $725,000


West Sacramento 95691
Homes Sold: 25 Median Price: $306,000 %Change from '07: -16.8% Highest Price: $470,000

Pretty grim isn't it? Unless your in the market to buy right now. We'll soon know if we'll see our usual Spring upswing or a continued downward spiral. Regardless of whether we've seen the bottom of the market or not, this downturn was needed to bring prices back down to affordable levels. Unfortunately, now credit is much harder to come buy.

But for some sellers in Placer County, here's a bit of good news:

Granite Bay 95746
Homes Sold: 11 Median Price: $735,000 %Change from '07: 8.8% Highest Price: $1,125,000

2605 Perkins Road, West Sacramento

Now, here's something that's tempting for those who want a little country close to the city. This West Sacramento home sits on 1.5 acres within a few minutes drive of downtown Sacramento. It is listed a $539,900 and has been on the market for 51 days. This custom home is 1,740 square feet with 3 bedrooms and 2 baths. It was built in 2003 and has an in-ground pool to cool your toes during the hot Sacramento Valley summers.

This property is off a unpaved road (Perkins Road), and close to new shopping, and a new high school currently under construction. The property faces a large undeveloped parcel owned by the Washington Unified School District whose future use, aside from a drainage detention pond, is unknown. While there is a lot of new homes in West Sac, most are on normal sized city lots which don't allow much room to stretch out if so inclined. Most homes in the immediate vicinity are older and sit on 1-2 acre or larger lots, and the area can be a mixed bag. For the price, it stacks up pretty well against the other properties in the area. It offers the largest parcel and newest home in this price range in West Sacramento. Not that there isn't room for negotiation.

This home shows promise. A buyer could have an almost-new home with plenty of room to grow. Is it a steal at $539K? No, but if your willing to spend that kind of money on a newer home, minds well get some acreage with it.

Listing Agent: MLS#80009249

3829 Aetna Springs Way, Sacramento

This home in the West Natomas area of Sacramento is just minutes from downtown. Built in 1999, it has 4 bedrooms and 2 1/2 baths, and has been on the market for 19 days. This home would be a great starter home for a new, growing family just getting into the market or possibly as an income property. It is listed at $317,000 which is on the low side of the pricing scale for similar sized homes currently for sale in the area. In February, a comparable home nearby sold for $295,000, so there may be a bit of wiggle room here.

This home was probably one of the first homes built in this part of Natomas known as Gateway West. The neighborhood is still going through some growing pains, but amenities are filtering in. It is within walking distance to Witter Ranch Elementary, completed in 2004, and a new Bel Air Supermarket on Arena Boulevard. You can even stand on your front lawn and watch as your future valedictorian strolls through the gates of his or her neighborhood school. For you sports fans, or you poor suckers who get dragged to Disney On Ice by your charming little bumpkins, Arco Arena is just on the other side of the I-5. The area continues to see restaurant pads, retail, and other commercial space go up, but there does seem to be an abundance of empty and brand spanking new store fronts just waiting for business tenants.

Overall, I think this home is a pretty good value. Once you get the keys, it wouldn't take much time, effort, or cold hard cash to make it your own.

Listing Agent: MLS#80020692

What's This?

Hi. My name is Rich Johnson, and I am an independent real estate broker in Sacramento, California. Sacramento Land Trader is a web-based forum for expressing my thoughts and opinions on matters related to the real estate market in the Sacramento Region. Topics will include national and local economic news, local market trends, and reviews of local properties on the market right now.

Properties that are reviewed on Sacramento Land Trader may or may not be listed on the local multiple listing service by me. However, all properties that are reviewed and posted that are currenty listed on a multiple listing service will be identified as such and will include a link to the public Metrolist site or, upon request, to the listing broker's website.

If you are a homeowner, and would like to see a review of your home at Sacramento Land Trader or if you just need some straight advice from a professional, email me at richjohnson08@gmail.com.