This chart shows the average listed sales prices (the green line) of homes in Sacramento County and the average sold prices (the red line), from September of 2007 through November of 2008. First, let me explain what this doesn't mean. It doesn't mean that homes were listed for a higher price than the eventual sold price. It means the homes that are selling are selling for less than the average prices of the homes for sale -- the lower end of the market is moving, while the higher end is not.
Homes that are priced around $200,000 are a hot commodity. That seems to be the price point where many first-time home buyers are entering the market right now. There's a huge gap in a monthly payment between a home that sells for $350,000 and a home at $200,000. A payment on $150K at 5.5% is $852. That's a big savings to first-time home buyers.
The average listed sale price fell from almost $400K to $286K from September of 2007 to November of 2008. However, the average sold price plunged from $354K to $203K. Numbers for December will undoubtedly dip as well, but come January, we could see an uptick; primarily because there is no inventory and buyer interest is high.
The Short Sale, by Elizabeth Weintraub, coming from publisher Archer Ellison in January 2009.
Image Chart: Trendgraphix
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Certified HAFA Specialist
My Sacramento Real Estate Listings
Elizabeth Weintraub is an author, home buying columnist for The New York Times-owned About.com, a Land Park resident, and a Land Park real estate agent who specializes in older, classic homes in Land Park, Curtis Park, Midtown and East Sacramento. Weintraub is also a Sacramento Short Sale agent who lists and successfully sells short sales throughout the four-county Sacramento area. Call Elizabeth Weintraub at 916.233.6759. Put 35 years of real estate experience to work for you. Broker-Associate at Lyon Real Estate. DRE License # 00697006.
The Short Sale Savior, by Elizabeth Weintraub, available at Amazon.com.
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Elizabeth: The lower end of the market is moving here too! God Bless first time homebuyers. I think they will be what turns our economy around.
In our market it is the 100,000 market that is the most active. We also have seen the average price reduce but not nearly as much. I would guess the 150,000 in our area is closer to 100,000 today.
Elizabeth
It is incredible what a great bargain Sacramento is. I only hope that all the wonderful buyers know it requires a combination of not only a great selection, but Sacramento's finest broker Elizabeth Weintraub. That combination is the most effective tool, in my eyes, known to Sacramento.
Sincerely
Tom Braatz
Absolutely, it is the $200,000 market here in Sacramento that is hot. And it is amazing how much more house a buyer can get, if they can just make it into the $250,000+ range.
The only problem with the $200,000 market is I have to sell three times as many homes to surpass last year's production, but I've been doing it, so I'm not complaining.