While the same cannot be said for other regions of our area, the 95765 zip code so far this year is out performing last years numbers by roughly 15% and the overall California numbers by over 20 percent. While this isn't "burning down the barn" so to speak, it's nice to see that properties are moving. Our inventory of homes is up but that is to be expected as we are now in the prime selling time of the year. My listings are getting more acitivity than they were over the same period last year and these are good signs.
New homes: Over the last six months, I've become intimately familiar with the new home market in the Lincoln, Rocklin and Roseville areas. Prior to the subprime lending market "collapse", it was thought that new homes had reached the bottom of their market last September but as we are now seeing, this could, as it is with resale homes, still be off in the future.
No one can say at the moment where the market is going, all we know is what has gone on from so far. Some say that we will reach the bottom sometime toward the middle of this year, others say we are in a trough for 2008 as well. I think it will largely be dependent on interest rates and then price adjustment. While this isn't new news, it's true in my opinion.
Home prices are favorable at the moment and I don't think we will see them decrease too much more than they have. Resales have lost 5 to 10 percent depending on the source and new homes, now that they have gone back up a bit in prices, have lost somewhere around 20 percent of value. All uncertainty aside, it's a great time to buy.
Got questions? Feel free to ask.
Rob Saxe
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