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.
Print This Article
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
Placer County News HeadlinesLoomis Students to Learn About Pediatric Iron Lung for World Polio DayIn recognition of World Polio Day, Rotary Club of Sunset Loomis will bring a pediatric iron lung to Loomis Grammar School and Loomis Basin Charter School
Esteemed Roseville Historian DiesLeonard "Duke" Davis, considered by many the foremost authority on the history of Roseville, passed away on Friday, October 10.
Michaels Store in Auburn to Open November 16thMichaels, North America's largest arts and crafts specialty retailer, announces the grand opening of its new Auburn store, featuring an inspiring new design, located at 2785 Bell Rd
Janina VanVooren at Patrons Club November 3rd Rocklin, CA - The Patrons Club, a volunteer arm of the Sierra College Foundation, invites the public and those interested in becoming members of the organization to attend
Roseville Men's Tennis Team Edged Out in National ChampionshipsThe men's tennis team from Roseville, Calif., representing the USTA Northern California Section, finished second at the USTA League Adult 18 & Over 2.5 National Championships
Dermatomyositis: Woman Battles Weakness, RashIn 1993, and only two weeks after having given birth to her second child, Becki Lanser of Cary, North Carolina, was experiencing severe muscle weakness and fatigue.
Jeep Grand Cherokee: More Refined Than EverA 2014 "refreshening" has given the Grand Cherokee a more modern, sophisticated look that will have admirers giving it the double take.
People & Culture Days in Rocklin October 22- 23Rocklin, CA - Have you ever sampled Persian food? Have you listened to Peruvian music? Can you make a Japanese origami crane? Would you like to get a henna tattoo?
Heartstoppers Haunted House Frightening Ghosts and Ghouls You will be scared out of your wits for a good cause this October as the Heartstoppers Haunted House returns to the former Mine Shaft venue
PCWA Encourages Rapid Watershed ProtectionIn wake of the King Fire, the Placer County Water Agency is encouraging expanded and rapid remediation of heavily burned National Forest Lands to protect water quality of the Rubicon River watershed before winter storms.
Big Bad Voodoo Daddy at Thunder Valley on New Year's EveGuests will have the chance to purchase tickets to Thunder Valley Casino Resort's much anticipated $100k Big Easy New Year's Eve Celebration Main Event- as tickets go on sale Saturday, October 18 for Big Bad Voodoo Daddy.
Ebola Virus: Oral and Facial Surgeons AdvisoryThe California Association of Oral and Maxillofacial Surgeons (CALAOMS) has issued an advisory to all oral and facial surgeons in California that provides important guidance on Ebola virus