Sacramento Real Estate
On Monday, I was asked about my thoughts on the Sacramento real estate market for an article being
written. ?The journalist as do most journalist made wide statements about the entire CA real estate market painting a picture that inventory was way down and home buyers didn?t have the selection of homes for sale that was inticing them to buy.
As a REALTOR? I have had no trouble finding homes for sale to show a number of different home buyers from investor, first time home buyer and luxury relocation home buyer.
One of the reasons some may say there is less inventory is only natural since we were inundated with an incredible amount of foreclosures for years. ?However, month over month for the past 15 months there has been a steady decline of foreclosures as witnessed by the Sacramento real estate reports and graphs I provide each month from our Sacramento MLS system for the readers. ?So, yes inventory is down but that?s a good thing.
Now, the next statement this journalist made was that since inventory was down, then prices should be going up?the old supply and demand theory. ?Well, in some neighborhoods there are home for sale getting multiple offers. ?Everyone wants the best neighborhood and the nicest home?this will always be the case. ?I never get a home buyer that says, ?I want to buy a house in the worst neighborhood.? ?The point is, it depends on the amount of money a home buyer wants to spend as to where they can buy a house. ?I digress?
Sacramento Real Estate Hits Bottom
I went out on a limb and announced the bottom of the Real Estate market Monday night and happen to hear on the Today show on Tuesday morning an announcement that we have hit the bottom of the real estate market. ?I always find it interesting that announcements are made that affect everyone nationwide when real estate is definitely local and NOT nationwide.
It is also important to note a couple of things. ?Real Estate needs to remain on a steady liner plane for a year in order to be stable BEFORE prices go up. ?When prices do go up and in some neighborhoods they are, we will see 1-3% increases per year not the 10-20% increases we saw during the boom. ?These small increases will have a direct correlation to the condition of the home with upgrades and remodels done correctly.
Another key note in the Sacramento area that is a good sign that Sacramento real estate is ont the upswing is the development of 3500 acres Folsom is planning on the south side of Hwy 50 with no redevelopment funds being used. ?Over a 5 year period developing this land, jobs, businesses and homes will be created.
In my travels showing homes for sale, I?ve been noticing a few builders building again and actually will be showing a relocating Canadian family 3 new homes for sale in Granite Bay by a builder who is in the process of building homes again. ?There is an ere of hope and renewal for real estate in Sacramento.
So, I am taking a giant leap and announcing the bottom of the Sacramento real estate market with a disclaimer that the government stay out of real estate so we can recover. ?Many of the government plans have failed and give false hope to distressed homeowners and the latest one about refinancing when there is no equity I find more ridiculous than some of the others. ?Not only would Congress have to go along with that but more importantly the banks would have to agree and I don?t see that happening.
When thinking of a graph, I believe Sacramento is at the beginning of the bottom, the bottom of a real estate market is not short lived, it is a straight line that is needed for about 1 year and I believe we are on that line. Do we have a way to go? ?Yes, you bet. ?We need to get rid of all distressed property and our employment numbers must improve but I do believe we have started this process. ?And 1 year from now, those that report I believe, will report that Sacramento real estate hit the real estate bottom in 2012.
That?s my take on real estate, today!
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Source: http://www.sacramentorealestatevoice.com/bottom-hits-sacramento-real-estate-in-2012/
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