Placer County Real Estate Snap Shot

By
Real Estate Agent with Kirby Realty

Placer County Real Estate Snap Shot

First Quarter 2013

Jerry Rief

 

Like much of California Placer County has continued to see home prices rise due to a lack of inventory and pent up demand.    While the average home owner sees this as a good thing, (Who doesn’t like equity?), the reality is that we are down 36.2% in homes sold from last year.  Builders are trying hard to catch up and can sell everything they can produce.  Unlike past years standing inventory is almost unheard of.   It’s probably going take a year or more before they can meet demand.

This time last year investors were dominating the market and picking up the majority of the deals at trustee sales.  What a difference a year makes.  Trustee sales are way down.  Now many of them are chasing short sales, but they are starting to get outbid by actual homeowners with access to cash.  Investors continue to bid $20-$30k under asking price while cash buyers looking to live in the homes are pushing prices up $20k-$30k over asking price.   We may be seeing the beginning of the end for flippers.  Finding undervalued properties is getting harder and harder. 

How long can we expect to see these prices rise?  Short term prices will continue to rise at a more moderate pace until builders can meet demand.  Some leveling of prices is inevitable.  The price increases we have enjoyed over the past year can’t last forever.

New strict lending policies will ensure that prices more accurately reflect earnings.  Until wages rise significantly we won’t see the prices we saw in 2005 and 2006.

If you have considered selling take advantage of this strong seller’s market.   Stay ahead of the herd.  Don’t wait until everyone else has finally figured out it’s time to sell.

Below is a chart showing average sold prices in PlacerCounty.

Placer Cty

Avg. Sold

1st qtr chg

1 yr chg

Auburn

$317k

1.30%

14.00%

New Castle

$434k

4.30%

6.90%

Loomis

$513k

11.50%

39%

Penryn

$407k

10%

25.00%

GraniteBay

$626k

-6.30%

11.89%

East Rocklin

$346k

9.80%

39%

West Rocklin

$383k

13%

23.20%

Central Roseville

$244k

-0.89%

22.60%

East Roseville

$375k

7.40%

22.50%

West Roseville

$333k

0.90%

16.90%

12 Bridges

$436k

10.70%

31.30%

Lincoln Hills

$386k

4%

18.40%

Lincoln Crossings

$281k

6%

21.10%

Lincoln

$257k

4%

21.20%

 
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Comments (1)

Kathy Stoltman
Balboa Real Estate - Ventura, CA
Ventura County Real Estate Consultant 805-746-1793

I agree Jerry, without other economic fundamentals playing a role in price appreciation other than low inventory, this price rise we are experiencing will not be sustained.

May 07, 2013 06:05 AM