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 firstname.lastname@example.org. 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 HeadlinesTransportation Sales Tax Closer to Ballot MeasureThe Placer County Transportation Planning Agency (PCTPA) Board of Directors, acting as the Placer County Local Transportation Authority, unanimously adopted the Keep Placer Moving Transportation Investment Plan
Beach House Restaurant in Pacific Grove Hits All the Sweet SpotsPacific Grove, CA- Gazing upon the ebb and flow of the cool, clear Pacific waters as they lap against the shore of Monterey Bay as the sun gently descends toward the horizon is a damn fine way
Placer County Grand Jury Report Critical of Local Government Operations This year's Placer County Grand Jury Final Report contains some individual reports which are critical of local government operations
Placer County Fair in Roseville 2016ROSEVILLE, CA. Just in time to head off the summer vacation blues, the Placer County Fair, June 23-36, comes to life with fabulous fair food, swirling carnival rides, farm animals
Summer of Free Museums in Placer CountyMuseums throughout Placer County will offer free admission on select days all summer as the Heritage Trail Museums Tour returns for its ninth year
Python Snake on the Loose in Rocklin LocatedRocklin, CA- The Rocklin Police Department was informed the snake that escaped from its owner was located.
Rocklin Police Investigating Suspicious CircumstanceRocklin, CA- On Monday, June 20, 2016, Rocklin Police responded to a report of a suspicious person inside a gated community near Hillcrest Drive.
Lexus RX 350: Revised and Not Just for WomenRoseville, CA- Although enamored with this Lexus model in previous years, the thinking here was the Lexus RX was a luxury, midsize crossover sport utility vehicle
Placer County to Limit Medical Marijuana CultivationCommercial medical marijuana cultivation and sale will not be allowed in unincorporated Placer County, after the board of supervisors voted 3-2
California Fires Update Summary (6.22.16)Over 5,000 firefighters are battling 4 large wildfires in California, while firefighters around the rest of the state battled dozens of new fires
Roseville Gas Prices Holding SteadyRoseville, CA- Roseville gas prices have been holding relatively steady this past week. As usual, Costco, Sam's Club and ARCO dominate the low price leaderboard
Students Impacted by Walsh Family ScholarshipsRocklin, CA - Sierra College students who received the John G. and Lillian M. Walsh Family Scholarship say that it encouraged them to come to Sierra College
NEWS: In Case You Missed It