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Sunday, April 20, 2014

SUPPLY AND DEMAND NOT YET BACK IN SYNC

This article explains why we have such a shortage of inventory here in the Sacramento region, what it is doing to prices and what it will take to get back to a normal market.  If you are considering selling your home, please call me!

By Hudson Sangree hsangree@sacbee.com  
   Home sales in the Sacramento region were stuck in an odd rut in March, traditionally the start of the spring home buying season. Even though prices rebounded to healthy levels not seen since before last decade’s housing boom and bust, the supply of homes on the market remained anemic.
   Inventory, measured in the time it would take for all the homes listed to sell, dropped from 2 months in February to about 1.5 months in March, several data sources reported. Inven tory that low makes for a strong sellers’ market but is bad news for buyers.
   In keeping with the trend, homes sold quickly, spending an average of about six weeks on the market, and the median sales price for Sacramento, Placer, El Dorado and Yolo counties bumped up to $300,0000 – the highest level since late 2007, Sacramento-based Trend-Graphix, an affiliate of Lyon Real Estate, reported.
   Today, after two years of double-digit increases, home prices are roughly the same as they were in 2003-04, before prices went crazy in the housing bubble, then crashed. Yet that big boost hasn’t been enough to trigger what economists call a supply response.
   If prices keep going up, it will invariably push more people to list their homes, said Andrew LePage, analyst for San Diego-based real estate information firm DataQuick. But for now, he said, we’re in a “stalemate that apparently could take some time to work itself out.”
   A pattern of low inventory and rising prices has also taken hold in the San Francisco Bay Area and Southern California real estate markets, DataQuick reported this week. Largely as a result of low inventory, sales in March in those markets – and in Sacramento – were the lowest for any March since 2008, the firm said.
   The inventory shortage is toughest on buyers seeking affordable homes, said real estate appraiser Ryan Lundquist. On his blog, sacramentoappraisalblog.com  ,
   Lundquist analyzes Multiple Listing Service data for real estate trends. Earlier this month, he broke down Sacramento County listings by price range and found there was about 1.4 months’ worth of inventory in the $200,000 to $300,000 range, but triple that figure for homes listed for $500,000 to $600,000.
   There was 10 months of inventory
   – a firm buyers’ market – for homes listed over $1 million, he concluded.
   “People don’t realize there are many markets within the market,” he said.
   Lundquist noted the number of listings actually rose in March, but more buyers and the pace of sales resulted in falling inventory based on the time it would take to sell the homes.
   “I think buyers are hungry,” he said. “We need to see a lot more sales for the market to progress at a healthy pace and at healthy levels.”
   Stuart Gabriel, director of the Ziman Center for Real Estate at UCLA, said the basic laws of economics are still functioning: Increasing demand will eventually lead to greater supply, he said.
   Other forces, however, are also shaping the market.
   Home builders, who normally create a steady supply of new homes in response to rising prices, are still holding back after a crash that brought the industry to a standstill, he said.
   “In the wake of the crisis, home builders remain relatively cautious and have been reticent to jump into the market,” Gabriel said.
   That’s just a part of a complex picture, he said.
   A still-shaky economy and job uncertainty are preventing many homeowners from selling and moving up, Gabriel said. The middle class has yet to recover from the deep recession, with its mass layoffs and business closings. The confidence consumers once felt may take years to return.
   “There has been a very significant shift in people’s levels of economic well-being and higher levels of caution,” Gabriel said.
   Others are holding on to homes in the hope that prices will continue to appreciate as they did in last decade’s housing boom, the economist said.
   “Whether those bets will come through or not remains an open question,” he said.
   Pat Shea, president of Lyon Real Estate, said many homeowners who would normally sell their houses and move to larger homes to accommodate growing families, or who would downsize in retirement, are staying put because there’s not much to buy. They don’t want to sell their homes with no assurance they can find a new place, he said.
   Agents and clients are learning to adapt to the new reality, he said. For instance, some are writing contingent offers that allow sales contracts to be canceled if buyers don’t enter escrow to sell their current home within two weeks. And to encourage sellers to accept offers with conditions, some buyers are offering full asking price, he said.
   Another issue is that homeowners who refinanced when mortgage rates fell to below 3.5 percent last year may not want to finance a new home at a current rate of about 4.5 percent, he said.
   “Anyone who bought or refinanced with a 3 percent mortgage has to ask themselves a tough question,” Shea said. “Do I want to pay more for my next home and pay a higher interest rate, too?”
   It’s going to take a significant change in market dynamics to create dramatic growth in inventory, such as rising interest rates that push wavering buyers and sellers off the fence, he said.
   For now, Shea said, “We’re in a transition phase. We’re trying to figure out how to get back to normal.”
   Call The Bee’s Hudson Sangree,

Friday, April 18, 2014

Just Listed! 9411 Crowell Drive Elk Grove, CA

SINGLE STORY home with WHEELCHAIR ACCESSIBLE remodel in 2011 make this house a unique opportunity for anyone needing disability features in a home.  Updates include tile floors, master bath with walk-in tub, roll-in shower and accessible sink, garage with high door for wheelchair van and ramp into the house.  Sloped exit from the master bedroom to backyard provides access to the exercise pathway.  Convenient location in family-friendly Fallbrook community and only steps to Elk Grove Elementary!

$299,900.00
MLS #14019979







Tuesday, April 8, 2014

Shocking Research on Multiple Offers

How Did Home Sellers Handle Multiple Offers

I knew we had a lot of multiple offers last year, but I am shocked that 98% of sellers received more than one offer in 2013.  Although this graph addresses last year's data, we are still seeing multiple offers in 2014.  In fact, my last three listings have had at least two offers and this has spurred bidding wars.  The inventory shortage here in northern California has contributed to this trend and is one of the primary reasons real estate prices are escalating so quickly.  See yesterday's post with inventory and $/sq' graphs for Shingle Springs, CA which depicts basic economics of supply and demand.

Sunday, April 6, 2014

Poppies Along Sacramento's American River Bike Trail

My youngest daughter called from college yesterday to tell me how much she is loving her plant biology class.  She went on to tell me how cool her professor is because he takes the classroom outdoors to experience nature first hand, (doesn't get any better than that)!  But the biggest lesson she's learned in her first week of spring quarter is "what a wonderful childhood she had".  I was intrigued at how grown up she sounded.  She couldn't believe how many of her classmates couldn't identify a poppy!  She thanked me for taking her on outings all of her childhood to see, smell, listen and feel our natural surroundings.  She recalled riding her bike, hiking, skiing, canoeing, kayaking, boating, fishing and playing outside and now being able to identify trees, plants, grasses, rocks, water and animals that are all around us.  I'm super proud that she is pursuing an environmental management career.

So today after a house showing and a final walk through with a client, I stole away for a couple of hours to ride my bike along the American River and take in the most beautiful sign of spring....poppies in all of their glory!


Thursday, April 3, 2014

March 2014 Home Sales for Folsom, CA

614 Vessona Cir #614 Folsom, CA 95630-8722  $  147,000.00
111 Pierpoint Cir Folsom, CA 95630-1763  $  178,000.00
1200 Moon Cir #1227 Folsom, CA 95630  $  199,000.00
1300 Moon Circle #1315 Folsom, CA 95630  $  230,000.00
609 Sibley St Folsom, CA 95630-3046  $  242,000.00
655 Balcombe Ct Folsom, CA 95630  $  275,000.00
1012 Vessona Cir Folsom, CA 95630  $  284,500.00
1051 School St Folsom, CA 95630  $  288,000.00
161 Barnhill Dr Folsom, CA 95630-8736  $  299,000.00
504 Sutter St Folsom, CA 95630-2543  $  300,000.00
104 Morning Dove Ln Folsom, CA 95630-2045  $  310,000.00
717 Loomis Cir Folsom, CA 95630  $  315,000.00
518 Diamond Glen Cir Folsom, CA 95630-3167  $  316,000.00
132 Gilded Rock Cir Folsom, CA 95630-3275  $  320,000.00
2108 Esplanade Cir Folsom, CA 95630-7371  $  320,000.00
140 Oxburough Dr Folsom, CA 95630-3500  $  329,500.00
211 Dean Way Folsom, CA 95630  $  332,000.00
862 Lavaliere Pl Folsom, CA 95630-3176  $  335,000.00
418 Carlson Way Folsom, CA 95630-7930  $  335,000.00
104 MATISSE Ct #104 Folsom, CA 95630  $  345,000.00
114 Goodell Rd Folsom, CA 95630-5278  $  350,000.00
821 Blossom Rock Ln Folsom, CA 95630-8739  $  350,000.00
154 Sutcliffe Cir Folsom, CA 95630  $  350,000.00
450 Crestridge Ln Folsom, CA 95630-2111  $  352,500.00
115 Stoney Hill Dr Folsom, CA 95630  $  354,000.00
116 Cobble Ridge Dr Folsom, CA 95630  $  354,300.00
1472 Farrell Ct Folsom, CA 95630-8453  $  355,000.00
268 Hornsby Ct Folsom, CA 95630-8461  $  358,000.00
1515 Guzzetti Way Folsom, CA 95630-5718  $  358,800.00
807 Stewart St Folsom, CA 95630-9566  $  359,000.00
143 Barnhill Dr Folsom, CA 95630  $  360,000.00
103 RAWLINGS Ct Folsom, CA 95630  $  360,000.00
121 Rambling Dr Folsom, CA 95630-4642  $  365,000.00
149 Penwood Folsom, CA 95630  $  365,000.00
127 Rockbolt Cir Folsom, CA 95630-3251  $  369,000.00
1405 Rutsey Ct Folsom, CA 95630-8429  $  375,000.00
424 Turn Pike Dr Folsom, CA 95630-8088  $  380,000.00
341 Leckenby Way Folsom, CA 95630  $  384,950.00
141 Timson Dr Folsom, CA 95630-5539  $  390,000.00
701 Larson Way Folsom, CA 95630-6904  $  393,000.00
780 Morningside Dr Folsom, CA 95630-6145  $  400,000.00
285 Barnhill Dr #60 Folsom, CA 95630-8735  $  400,000.00
130 Landrum Cir Folsom, CA 95630-2281  $  402,000.00
105 Wrentham St Folsom, CA 95630-7612  $  405,000.00
126 ELKINS Folsom, CA 95630  $  405,000.00
140 Orange Blossom Cir Folsom, CA 95630-8100  $  406,000.00
1200 Fergusen Way Folsom, CA 95630-7326  $  408,000.00
1314 Fong St Folsom, CA 95630  $  410,000.00
326 Willow Creek Dr Folsom, CA 95630-4865  $  412,000.00
101 Wilson Ct Folsom, CA 95630  $  422,000.00
121 Talleyville Folsom, CA 95630-6855  $  422,500.00
100 Donegan Ct Folsom, CA 95630-8024  $  425,000.00
1877 Greenlaw Way Folsom, CA 95630-6109  $  427,000.00
9805 Valley Pines Dr Folsom, CA 95630-1933  $  427,000.00
120 Conductor Way Folsom, CA 95630-8018  $  439,000.00
1538 THURMAN Way Folsom, CA 95630  $  439,900.00
498 S Lexington Folsom, CA 95630  $  445,000.00
1472 Freswick Dr Folsom, CA 95630  $  446,000.00
1111 Buckbrush Dr Folsom, CA 95630-7648  $  449,000.00
178 Willow Creek Dr Folsom, CA 95630-4805  $  455,000.00
1546 Kearns Ct Folsom, CA 95630-7302  $  475,000.00
1110 Houston Cir Folsom, CA 95630-7654  $  475,000.00
479 Rockport Cir Folsom, CA 95630-6762  $  479,000.00
2008 Stockman Cir Folsom, CA 95630  $  485,000.00
155 Thorndike Way Folsom, CA 95630-6562  $  492,000.00
1364 Folsom Meadows Cir Folsom, CA 95630  $  496,205.00
1710 Bowen Dr Folsom, CA 95630-7347  $  500,000.00
126 Cobbleoak Way Folsom, CA 95630  $  500,000.00
355 N Lexington Dr Folsom, CA 95630-7602  $  502,900.00
1660 Tibessart Ct Folsom, CA 95630-6210  $  505,000.00
1589 Broder Cir Folsom, CA 95630-7663  $  505,000.00
1057 Houston Cir Folsom, CA 95630  $  510,000.00
459 Chaparral Dr Folsom, CA 95630-6172  $  520,000.00
143 Biscayne Way Folsom, CA 95630  $  538,000.00
208 Dulverton Cir Folsom, CA 95630-6890  $  550,000.00
121 Burrill Dr Folsom, CA 95630-2271  $  565,000.00
1141 Boxelder Cir Folsom, CA 95630-7669  $  630,000.00
599 Broken Top Ct #25 Folsom, CA 95630  $  709,990.00
129 Feather Falls Cir Folsom, CA 95630-7163  $  710,000.00

March 2014 Home Sales for El Dorado Hills, CA

1604 Lakehills Dr El Dorado Hills, CA 95762  $      300,000.00
929 Mount Ranier El Dorado Hills, CA 95762  $      307,000.00
943 King James Way El Dorado Hills, CA 95762-4118  $      360,000.00
1137 saint andrews El Dorado Hills, CA 95762  $      365,000.00
3810 Park Dr El Dorado Hills, CA 95762-4556  $      365,000.00
970 King Canyon El Dorado Hills, CA 95762  $      369,900.00
3759 Park Dr El Dorado Hills, CA 95762-4560  $      375,000.00
1001 Emerald Hills Ct El Dorado Hills, CA 95762  $      389,900.00
7048 Cinnamon Teal Way El Dorado Hills, CA 95762  $      395,000.00
2040 Rocky Springs Rd El Dorado Hills, CA 95762-9730  $      400,000.00
3031 Stanford Ln El Dorado Hills, CA 95762  $      407,000.00
3841 Tilden Dr El Dorado Hills, CA 95762  $      425,000.00
3603 Ridgeview Dr El Dorado Hills, CA 95762-4412  $      425,000.00
7042 Cinnamon Teal Way El Dorado Hills, CA 95762  $      447,000.00
8017 Fallview Way El Dorado Hills, CA 95762  $      449,000.00
2060 Larkstone Pl El Dorado Hills, CA 95762-9518  $      450,000.00
4086 Bothwell Cir El Dorado Hills, CA 95762-5204  $      460,000.00
3410 Cabrito Dr El Dorado Hills, CA 95762-7631  $      465,000.00
3023 Copperwood Way El Dorado Hills, CA 95762-9516  $      468,500.00
2271 Ethel Dr Rescue, CA 95672-9419  $      470,000.00
4187 Torrazzo Way El Dorado Hills, CA 95762-5443  $      475,000.00
4577 Beechwood Dr El Dorado Hills, CA 95762  $      489,000.00
2899 Springburn Way El Dorado Hills, CA 95762-5331  $      495,000.00
1199 Busselton Way El Dorado Hills, CA 95762-5337  $      495,000.00
1193 Cornerstone Dr El Dorado Hills, CA 95762  $      500,000.00
1576 DAUNTING Dr El Dorado Hills, CA 95762  $      500,000.00
3495 Falkirk Way El Dorado Hills, CA 95762-7854  $      509,000.00
4131 Arenzano Way El Dorado Hills, CA 95762  $      510,000.00
4533 Cartina Way El Dorado Hills, CA 95762  $      512,000.00
5730 Gelston Way El Dorado Hills, CA 95762-5208  $      515,000.00
4531 Monte Mar El Dorado Hills, CA 95762  $      529,000.00
4675 Monte Mar El Dorado Hills, CA 95762  $      550,000.00
3414 Kensington Ct El Dorado Hills, CA 95762  $      551,000.00
1004 Autumn Sky Way El Dorado Hills, CA 95762  $      564,150.00
7026 Hearst Dr El Dorado Hills, CA 95762-5485  $      575,000.00
2201 Fortrose Place El Dorado Hills, CA 95672  $      590,000.00
208 Dorsey Ct El Dorado Hills, CA 95762-5484  $      590,000.00
4074 SAMUEL Way El Dorado Hills, CA 95762  $      599,000.00
3034 Montrose Way El Dorado Hills, CA 95762-9677  $      600,000.00
1596 Barcelona Dr El Dorado Hills, CA 95762-7211  $      600,000.00
3383 Archetto Dr El Dorado Hills, CA 95762  $      610,000.00
1104 Manning Dr El Dorado Hills, CA 95762  $      615,000.00
3527 Falkirk Way El Dorado Hills, CA 95762  $      625,000.00
2067 Lamego Way El Dorado Hills, CA 95762-7557  $      642,500.00
1743 Terracina Dr El Dorado Hills, CA 95762-5409  $      650,000.00
345 El Greco Ct El Dorado Hills, CA 95762  $      654,000.00
1203 Souza Dr El Dorado Hills, CA 95762-7559  $      660,000.00
356 El Greco Ct El Dorado Hills, CA 95762  $      664,000.00
304 Ridgeview Ct El Dorado Hills, CA 95762-4478  $      675,000.00
5054 Tesoro Way El Dorado Hills, CA 95762  $      677,000.00
2224 Tabari Ct El Dorado Hills, CA 95762  $      689,000.00
3217 LAGO VISTA Dr El Dorado Hills, CA 95762  $      690,000.00
4263 Hensley Cir El Dorado Hills, CA 95762  $      705,000.00
2740 Aberdeen Ln El Dorado Hills, CA 95762-5667  $      720,000.00
8172 Anastasia Way El Dorado Hills, CA 95762-3997  $      731,800.00
2017 Impressionist Way El Dorado Hills, CA 95762-5235  $      735,000.00
3186 Warren Ln El Dorado Hills, CA 95762-4285  $      749,000.00
5300 Bantry Pl El Dorado Hills, CA 95762-7651  $      756,000.00
1720 Terracina El Dorado Hills, CA 95762  $      762,000.00
4362 Suffolk Way El Dorado Hills, CA 95762  $      800,000.00
3101 Lennox Dr El Dorado Hills, CA 95762-5661  $      960,000.00
6095 Aldea Dr El Dorado Hills, CA 95762-7716  $  1,035,000.00
4015 Errante Dr El Dorado Hills, CA 95762-7724  $  1,095,000.00
6050 Aldea Dr El Dorado Hills, CA 95762-7716  $  1,255,000.00
5017 Gresham Dr El Dorado Hills, CA 95762-7703  $  1,600,000.00

March 2014 Home Sales for Cameron Park, Shingle Springs and Rescue

3227 United Dr #2 Cameron Park, CA 95682-7801  $  152,000.00
4020 Tammy Ln Shingle Springs, CA 95682  $  215,000.00
3232 Heights Dr Cameron Park, CA 95682-8543  $  230,750.00
2927 Royal Park Drive Cameron Park, CA 95682  $  262,000.00
3263 Topaz Ln Cameron Park, CA 95682  $  267,000.00
3120 Quad Ln Cameron Park, CA 95682-9060  $  280,000.00
2524 Sandpiper Way Cameron Park, CA 95682-7807  $  286,000.00
3514 La Canada Dr Cameron Park, CA 95682-7991  $  290,000.00
3541 CASTLEBROOK Rd Cameron Park, CA 95682  $  293,000.00
3837 Archwood Rd Cameron Park, CA 95682  $  294,000.00
4602 FRENCH CREEK Rd Shingle Springs, CA 95682  $  300,000.00
3091 Cambridge Rd Cameron Park, CA 95682-9100  $  300,000.00
3664-3666 Cothrin Ranch Rd Shingle Springs, CA 95682-9737  $  301,000.00
2684 royal park Cameron Park, CA 95682  $  302,000.00
4591 Carol Ln Shingle Springs, CA 95682-9571  $  305,000.00
2873 Holly Hills Ln Cameron Park, CA 95682-9078  $  314,000.00
4181 Sparrow Ln Shingle Springs, CA 95682-9338  $  318,000.00
5000 Reservation Rd Placerville, CA 95667-9746  $  320,000.00
4829 Canfield Cir Cameron Park, CA 95682-7311  $  320,000.00
1489 Tanglewood Dr Placerville, CA 95667-8931  $  330,000.00
5144 Deerwood Dr Shingle Springs, CA 95682  $  338,950.00
3600 Luneman Rd Placerville, CA 95667-8762  $  350,000.00
3020 Calido Ct Cameron Park, CA 95682  $  365,000.00
3685 Millbrae Rd Cameron Park, CA 95682  $  370,000.00
3777 MILLBRAE Rd Cameron Park, CA 95682  $  385,000.00
1851 Delphina Ct Cameron Park, CA 95682-8963  $  386,000.00
1630 PAMPAS Shingle Springs, CA 95682  $  395,000.00
4831 Castana Dr Cameron Park, CA 95682  $  409,900.00
1225 TREE TOP Ct Placerville, CA 95667-8793  $  410,000.00
6600 Ryan Ranch Rd El Dorado Hills, CA 95762  $  414,000.00
3037 Cambridge Rd #C Cameron Park, CA 95682-8179  $  425,000.00
607 Taraya Ct Cameron Park, CA 95682-7323  $  425,000.00
4281 Hillock Dr Placerville, CA 95667-7714  $  455,000.00
3579 Foxmore Ln Rescue, CA 95672  $  464,900.00
1675 Puma Crossing Placerville, CA 95667  $  500,000.00
5161 Coyote Pass Rd Shingle Springs, CA 95682-9314  $  525,000.00
4951 RESERVATION Rd Placerville, CA 95667  $  530,000.00
4121 VEGA Loop Shingle Springs, CA 95682  $  625,000.00
5461 Pyracantha Dr Shingle Springs, CA 95682  $  788,000.00
5531 Bryant Rd Shingle Springs, CA 95682  $  855,000.00
5625 RAYMOND Ct Shingle Springs, CA 95682  $  875,000.00
3030 Strolling Hills Rd Cameron Park, CA 95682-9640  $  939,500.00