Home Sales Dip in June? Not in our area!

The National Association of Realtors recently published an article that homes sales nationwide dipped in June due to cancellations and soft condo sales. That may have been nationally, but the Sacramento and surrounding area is very different. Check out the chart below that has active, pending and sold homes over the past 15 months in Sacramento, Placer, El Dorado and Yolo Counties:

In our area, sales were slightly above last months. Pending sales continue to rise and inventory is declining. In fact, the chart below has the month's of inventory:

Right now, we are at less than 3 month's supply. A "buyer's market" is 6 months or more supply. Technically, we are in a "seller's market." If you are a buyer, you know the frustration of competing on the desirable properties. Why people think it is a buyers market is because of the values. Check out the chart below that has the average price per square foot:

At $124 per square foot, there are great values for those looking to buy. While the values are down compared to 15 months ago, they are starting to tick up. Keep in mind, regular or "equity" sales go for $10 to $30 per square foot high than distressed properties. If you are waiting to get back to 2005 high levels, CNN recently predicted it will be 2025. It is predicted we will have short sale and foreclosures with us until 2014, 2015. Those will continue to keep the values flat. If you cannot wait to move, or are at risk of losing your home, you may have more options than you realize. Contact me bob.walatka@kw.com. Also, if you are renting, you can probably own a home for less than you are paying in rent and their are programs that can get you into a home for as little as .5%.