With Thanksgiving behind us and Christmas just around the corner, holiday shopping has officially started. For housing in the Sacramento region, homebuyers started shopping early and are likely to continue through the New Year. October 2011 showed a 19.5% year to year increase in volume. The reason? Home prices are continuing to fall…
San Diego-based DataQuick reported that the average sale price of homes in the Sacramento four-county region declined 9.5% from a year ago. Although, the decline is not because of falling home values… It appears as though more buyers are flocking to less expensive homes, which is influencing the downward trend in average home price.
The number of months of new home supply on the market is down to 4.2, and even as little as 2.0 in some stronger markets.
- The New Home Company purchased a 128-lot subdivision in the master planned community, The Parkway in Folsom. All but 44 of the lots were “mostly improved.” Construction on the new homes within the subdivision is scheduled to begin in March 2012.
- Most of the distressed finished lot deals have already sold in the Sacramento Region, leaving very few for opportunistic builders and investors.
- The heavy multi-family activity in the San Francisco Bay Area has not yet moved east to reach Sacramento. Multi-family builders are currently obtaining $1.00 to $1.20 per square foot revenues, which is not enough to justify construction for new product in the Sacramento region.
Source: Jim Radler, Senior Marketing Consultant, (916) 784-3329 x11