What is Slowing the California Housing Recovery?
The California housing market and our local market in the Sacramento area has slowed and is not reaching the earlier predictions of many real estate pundits.
There appears to be three reasons why our housing market is not booming. Distressed properties have declined significantly, although improving the job and credit market remains tight, and there are very few first-time buyers.
Although a good thing we have seen a dramatic drop in distressed property sales. It was not that long ago when it seemed like every listing was a short sale or bank foreclosure. Last year in July distressed properties made up almost 26 percent of sales. This year they are down to 17 percent and declining.
Income and credit requirements have not kept pace with the rapid price gains over the past 18-months. For prices to continue to move up we need to see incomes increase and/or the easing of credit terms. We keep reading articles about credit getting easier but have yet to see any hard evidence. The job market in California remains tight despite a brighter employment outlook.
Many first-time home buyers have fallen by the wayside as prices have increased and because of the lack of affordable inventory. Although prices are not rising as fast this year, almost all metro areas are showing year-over-year price increases. The current median price of a California home is just over $390,000.
Until income growth catches up with affordability, the lack of first-time buyers and declining distressed property sales will most likely continue to slow the local and state housing market.
If you have any questions or comments I would love to hear from you. I can be reached at the MagnumOne Realty office in Roseville (916-899-6571) or by sending an email to email@example.com. If you like this kind of information combined with community happenings, like us on Facebook.
Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.
Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento
Pet Care | Real Estate | Restaurants | Tech | View All | * Add/Upgrade Business
Placer County News HeadlinesEstate Planning Workshop in Granite Bay June 2Roseville, CA- Come out for an informative seminar with Bill Walker to learn how about smart estate planning on Thursday, June 2, 2016.
Roseville Ride: Miner's Ravine Trail Roseville, CA- A great place to go solo or bring the family, Miner's Ravine Trail offers a great escape for those looking to get away without the hassle or cost of a more time consuming adventure.
3 Arrested in West Roseville Vehicle TheftsRoseville, CA- Kevin Patrick McFarland, Maksim Mishchenko, and Stanislav M. Taran, were arrested on suspicion of stealing from numerous vehicles in Roseville.
Annual Marysville Stampede Memorial Day WeekendMarysville, CA- An annual celebration of California Western and rodeo heritage, in the heart of California's cowboy country, the 83rd Annual Marysville Stampede
Downtown Woodland: Unexpected TreasureWoodland, CA- On a recent Sunday afternoon, I grabbed my wife and headed off on a rather short drive to Woodland to catch an afternoon show at the Blue Note Brewing Company.
Roseville Flash Crime Report (5.23.16)Roseville police crime report digest update for May 23, 2016.
Local Team Wins Spirit CUP at SMUD Solar RegattaRocklin, CA- The Sierra College Solar Energy program Team competed last Saturday May 14th in the Northern California SMUD Solar Regatta
Roseville Area Organization Helps Guardian Scholars ProgramRoseville, CA- Sierra College Guardian Scholars Program thanks the ALPHA DELTA KAPPA Organization for their generous donation to our Former Foster Youth
Placer County Water Agency Master Plan UpdateAUBURN, Calif. - At its May 19 meeting, the Placer County Water Agency (PCWA) Board of Directors received an update on the PCWA County-wide Master Plan.
Subaru BRZ: Reasonably priced old-school sports carRoseville, CA - For driving enthusiasts who want to own a light, agile car that provides an elusive fun factor while also looking cool, the smartly designed Subaru BRZ deserves a good look.
Roseville Gas Prices See DropRoseville, CA - While regional gas prices appear to have held steady, some gas station in Roseville are reporting a downward tick in prices.
Raising Awareness for Mental HealthIn the U.S., the month of May is (or was, depending on when your newspaper publishes this column) "Mental Health Awareness Month."
NEWS: In Case You Missed It