Market trends in Fair Oaks, CA through November 2011
I normally like to present graphs showing the last 12-15 months of transactions to demonstrate how the real estate market if trending in a certain area, like Fair Oaks, California. When I was comparing the most recent 15 months through November 2011 with an earlier graph I prepared, I found a very clear image of how much our local market has improved. Take a look.
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This first graph illustrates the number of listed homes (light green), the number of closed sales (dark green) and the homes placed into escrow or pended (red line) each month from December 2009 through February 2011. You can see that through most of 2010 the unsold inventory increased every month, while homes languished on the market.
The market was simply stalled, and although there were pockets of improvements in some parts of Sacramento County, it was not yet apparent in Fair Oaks. Listings just weren’t selling for some reason.
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Now compare the most recent 15 months. What a difference! Inventory is much reduced, while sales and new pendings are up. And in case you are wondering if this is simply seasonal, compare September 2010 with September 2011.
We went from 212 homes sitting on the market to just 163, while the number of closed sales went from 25 to 44 and the number of new escrows went from 29 to 41.
In other words, homes that are placed on the market are selling much more quickly than they did in 2010, and it appears to continue to improve.
As for sales prices, it can be difficult to gauge those in Fair Oaks because this is a community of mostly custom homes, and they are of all sizes, styles and ages. There are a few very tiny very old homes in terrible shape, there are mansions owned by celebrities and sports figures, and everything in between. In any given month there may be more homes in the million dollar plus range or more in the under $150,000 range.
Therefore, to make sure that there is an accurate month-to-month comparison when comparing sales prices over time, I usually use the range of $200,000-$399,999, which is the most popular price point for buyers.
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This graph compares the average listing price versus the average sales price for the 15 month period ending November 30, 2011. There appears to be an average for the year of more than 90 percent sales price to listing price, with a couple of months around 86-88 percent, one month of 100 percent and most months around 94-96 percent.
This is a hint to buyers that they probably will not be successful in making extremely lowball offers, especially since inventory is low. If you find the house you want, you should offer at or pretty near the listing price, and in some cases where there are multiple offers, you may need to offer more than list.
I can tell you from my own experience that we are seeing more and more multiple offers on homes in nice condition.
If you are a seller, follow your Realtor’s advice on preparing your home for sale, and you should be able to get it sold quickly and for the appropriate market price. Remember that your buyer will be getting an appraisal that will determine the loan he can obtain, so if you overprice your home, it will not appraise and you might not be able to close an escrow that opens, so that is a waste of your time. Ask your Realtor to provide you with comparable sales information and market trends, so that you can properly price your home.
If you are a buyer, consult a Realtor familiar with the area in which you are interested, and ask her to guide you through the process of getting preapproved for a loan amount, searching for homes in the price range that your loan will cover, and making the right offer, with price and terms that will be comfortable for you.
There are many programs available for low down payments, down payment assistance, energy upgrades, and you might even qualify for a grant (free money you do not have to repay). Your Realtor and lender can find all the programs that will be right for you, and some of them can be combined to get you great deals.
This is a great time to buy, but it is also a great time to sell! Call a local Realtor and ask for a free consultation to review your options.
If you are in the Sacramento County area, give me a call and I will be glad to meet with you.
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Susan Neal "Happy clients make me happy."
Broker / Realtor
Century 21 Noel David Realty
Fair Oaks, California
Full time real estate services in Fair Oaks CA, with friendly professionalism, 30+ years experience.
I work hard to give my buyer or seller a low-stress transaction.
For all your real estate needs or questions, call me at (916)705-8951 or visit my website at www.SusanNealFineProperties.com.
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