Thursday, June 22, 2006

Sacramento Area Price Level Inventory For June 22, 2006

As promised last week, I’ve expanded the price ranges for the price level inventory graphs. One quick thing to note is the inverse relationships between some adjacent price ranges. This is probably due to price reductions bringing inventory down in the higher range and bringing it up in the lower. These price drops must be very pervasive in order to overcome the cross-the-board inventory increases we have been seeing.


Anonymous said...

This site is amazing. I have been following home values infromally thru the adds ("motivated", "price reduced", etc.) and at open houses. The market is definitely down 10-15% since last year. If you purchased in the last 12 months, you house is worth less than your purchase price.

We visited a JTS community in early May (off Caledon Rd.?) in West Lincoln. 60+ homes "sold". Looked like a ghost town. Went back last week. ONLY person around: a security guard. I stopped to talk to him, saying the place looked like an "Outer Limits" set. He said there were only 7 homes occupied. The rest were probably bay area spec buyers. The day before, a panic faced speculator from the bay area offered him $10,000 if he could find a buyer. Asking $955,000 for 3700 sf ($258/sf). Same model we visited in May listed at $799,000 ($210/sf) and now had that one had a sign "price reduced". What a joke.
And in East Lincoln, Deutsche Bank just forclosed on a 5200 sf home in Catta Verdera and is asking $1,000,000 ($192/sf). This stuff is real now, and it is going to get more real for a lot of people in the next 12 months. The pain is just barely started.

Max said...

I just counted up 75 listings in the JTS development off Caledon, with 50 reduced. Here's just one example of somebody in trouble:

MLS# 60053222
539 Darlington Way
Lincoln, CA 95648

Asking Price: $370,000
Beds: 3 Baths: 2
Size: 1492 Square Feet
Down 6.3% from $395,000 On 05-20
Down 2.6% from $380,000 On 06-09

Sold on 2003-07-31 for $269,000
Sold on 2005-02-28 for $390,000