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Housing Market Falters - But What About Sacramento?

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Real Estate Agent

A great analysis of current housing conditions and data as presented by Nick Timiraos and Robbie Whelan of the Wall Street Journal, is available on-line by clicking "Housing Market Stumbles."

While the Wall Street Journal quarterly surveys conditions in 28 metropolitan areas across the nation, I focused on data for Sacramento and other metro areas in the state of California.  Although data for Sacramento is encouraging on the surface in comparison to other tracked metro areas throughout the state, I continue to have concerns that our high rate of unemployment coupled with the percentage of homeowners late with payments, could cause future grief. 

I created the table below based on information compiled by John Burns Real Estate Consulting.  It tracks numbers at the end of June, against the previous year. 

Sacramento inventory was up 11.6% at the end of June, with a price increase of 7.4% The jobless rate for Sacramento sits stubbornly at 12.9%. 

I found the WSJ article informative for those interested in current real estate market conditions.

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Myrl Jeffcoat ActiveRain Signature
  

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Doug Anderson
Tucker Associates Real Estate Services - Danville, CA
Bay Area Real Estate Views

Very nice post Myrl highlighting the local stats.  I saw the WSJ article earlier today and was intending on reading it tonight.

Jul 22, 2010 05:31 PM
Tony & Darcy Cannon
Aubrey and Associates Realty - Layton, UT
The C Team

Myrl, thanks for reminding us that all real estate is local!  I am impressed with the 7.4% gain in the face of double digit unemployment!

Jul 22, 2010 05:38 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Doug - I appreciated the way the WSJ covered so many aspects of national conditions surrounding unemployment, the number of loans actually modified, and the possible inventory that could and probably will be unleashed by Fannie and Freddie.  Coupled with the data for various metropolitan areas, you begin to be able to more accurately predict what may occur in cities near each of us.

Jul 22, 2010 05:38 PM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Tony and Darcy - I see many properties being acquired by those that are fixing them up with the intention of returning them to the market.  There seems to be money and cash out there, and it is being worked to a degree.  Like another real estate professional said, "There is a place in the environment for vultures and scavengers. . .They have their place in the larger scheme of things."

Jul 22, 2010 05:42 PM
Diane Williams
Pell City, AL

Myrl, This is excellent information for your area to help them understand what is going on in the market.  It is sad to see the number of homes that are late in their payments. As we know until unemployment goes down this is going to continue to be a problem.

Jul 22, 2010 05:48 PM
William Johnson
Retired - La Jolla, CA
Retired

Hi Myrl,  We have been seeing a steady increase in our sales prices over the last 14 months according to Data Quick . Must be like the political polls. Everyone uses different criteria.  :-). Today our headlines were "Foreclosures , defaults fall to 3 year low. " Short Sales, tax increases and rising home prices  are credited with fewer foreclosures in San Diego County".

Jul 22, 2010 06:25 PM
Fred Carver Real Estate Consulant
Retired BC Realtor - Victoria, BC
Accredited Real Estate Consultant

Hi Myrl....you are sooo right Real Estate is local, even throughout a city. For example here we have a Buyers market, a Balanced market and yes a few Sellers market areas in Victoria...

Wise Lady to watch the trends, then you can adjust your business plan to work in the Balanced or Sellers market areas of  Scaramento.

Great information.

Jul 22, 2010 06:48 PM
Paul S. Henderson, REALTOR®, CRS
Fathom Realty Washington LLC - Tacoma, WA
South Puget Sound Washington Agent/Broker!

Ouch, That's not the leader board to be at the top of!
Have you gotten the news Myrl, it's Friday again!
Paul

Jul 23, 2010 12:41 AM
Myrl Jeffcoat
Sacramento, CA
Greater Sacramento Realtor - Retired

Diane - The percentage of folks behind in payments is of concern, especially when it is coupled with unemployment.

William - Perhaps we could label it data with an agenda - like politicians:-)

Fred - In Sacramento it is so interesting.  The entry level market can be very competitive among buyers - especially in good neighborhoods.  The upper end of things however, still could use a shot of adrenaline.

Paul -I really needed today to be Friday. . .LOL

Jul 23, 2010 12:55 AM
Barbara-Jo Roberts Berberi, MA, PSA, TRC - Greater Clearwater Florida Residential Real Estate Professional
Charles Rutenberg Realty - Clearwater, FL
Palm Harbor, Dunedin, Clearwater, Safety Harbor

 

the rate of unemployment is a problem across our nation right now! Food banks can't keep up with the demand!

Jul 23, 2010 08:43 AM
Karen Kruschka
RE/MAX Executives - Woodbridge, VA
- "My Experience Isn't Expensive - It's PRICELESS"

Myrl  Political rhetoric aside - the economy nationally is a long way from recovery - a double dip recession is a strong possibility

Jul 24, 2010 03:46 AM
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