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.
About Realtor Julie Jalone
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 HeadlinesAll-new Volkswagen Atlas a roomy SUVRoseville, CA,- Looking to fill what it considered a void in its sport utility vehicle offerings, Volkswagen developed the 2018 Atlas.
Lower Cost Electricity Anticipated for Some Placer County ResidentsPLACER COUNTY, CA - In December, residents and businesses will receive the first of several notices informing them about the coming change in their electric energy supply
Groundbreaking for Interstate 80 / Highway-65 Interchange ImprovementsRoseville, CA, - The Placer County Transportation Planning Agency (PCTPA), in partnership with Caltrans, the South Placer Regional Transportation Authority, the Federal Highway Administration
Merry Days & Holly Nights at Squaw Valley Alpine MeadowsOlympic Valley, Calif.- Squaw Valley Alpine Meadows is celebrating its second annual Merry Days & Holly Nights, two weeks of spirited events and activities December 16-31.
Southern California Fires Fueled by WindsCalifornia Fire Updates 2017: Over 8,500 firefighters have made significant progress on the wildfires burning in southern California. As containment lines continue to be reinforced, many evacuations have been lifted
$111 Million Budget Adopted by PCWA BoardAUBURN, Calif. , - At its December 7 meeting, the Placer County Water Agency (PCWA) Board of Directors adopted the Agency's 2018 budget
Woman Found Dead in the American River CanyonAuburn, CA,- The Placer County Sheriff's Coroner's Office has confirmed the identity of the woman found in the American River canyon Wednesday as Yin Wong, 33, of Sacramento.
Reward Offered in Khaki Bandit CaseSACRAMENTO- The Federal Bureau of Investigation (FBI) is offering a reward of up to $20,000 for information that will lead to the arrest and conviction of an armed and dangerous individual
Joey Travolta to Speak at MIND Institute(Sacramento, Calif.)-The UC Davis MIND Institute will host Joey Travolta on Wednesday, Dec. 13 as part of the ongoing Distinguished Lecturer Series. Travolta, owner of Inclusion Films
Medieval Armored Combat in Roseville @ the GroundsRoseville, CA - On Dec. 9-10 the newly renovated barn @the Grounds will showcase real knights in real battles in true medieval fashion for the Armored Combat League
Placer County Property Taxes Due ReminderAuburn, CA, - Placer County Treasurer-Tax Collector Jenine Windeshausen reminds property owners that the first installment of their annual property taxes for the 2017-18 tax year
Folsom Zoo Wild Nights and Holiday LightsFolsom, CA,- Many hours of hands-on work by local families, businesses, community groups and city staff go into installing the lights, decorations and displays for the Folsom Zoo
NEWS: In Case You Missed It