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 HeadlinesStem Cell Grants for Spina Bifida and Diabetic Wound TreatmentsThe state stem cell agency, California Institute for Regenerative Medicine (CIRM), awarded a pair of grants totaling more than $7 million to UC Davis School of Medicine
Top 100 Paying Jobs in California (Part 6)Part 6 in our series on the Top 100 Paying Jobs in California.
$11.5 Billion Backlog at National ParksThe National Park Service recently released its fiscal year deferred maintenance statistics for national parks
Roseville Crime Report Digest Update (3.30.15)The Roseville Police Department's crime report digest update
Nelson Earned PhD Despite Three Disabilities"I grew up in a time when no one understood ADHD (attention deficit hyperactivity disorder)," said 53-year-old Eric Nelson of Sacramento, California, in a telephone interview.
Kia Sedona Minivan Delivers More in Redesigned VersionKia redesigned its minivan and didn't hesitate to make some significant changes. Borrowing a time-honored line when it comes to remodeling, the 2015 Kia Sedona arrived new and improved.
U2 Tour 2015: Tickets Selling QuicklyU2 will return to the stage on May 14 north of the border at Rogers Arena in Vancouver, British Columbia to kick off their 2015 Innocence + Experience World Tour
Sierra College CACT Partnership Wins AwardSierra College, the California Conservation Corps and Golden Sierra Job Training Agency were recognized by the Placer County Economic Development Board
David Boesch Honored at North Lake Tahoe Awards DinnerPlacer County Executive Officer David Boesch was presented the Public Servant of the Year Award at the North Lake Tahoe 61st Annual Community Awards
Garth Brooks Tickets: Six Nights in SacramentoSaddle up cowboys and cowgirls! Garth Brooks will be making the first California appearance on his current world tour
Vacation Deals: On Tight BudgetsLet's face it, we all love our vacation time. A time to break off from everyday routines, ditch a portion of the responsibility we call life and enjoy doing what we love
Joyce and Jim Raley Teel & Joseph Gallo HonoredMore than 700 guests came out to honor Joyce and Jim Raley Teel, Raley's Family of Fine Stores and Joseph E. Gallo at their induction into the California Grocers Association Educational
NEWS: In Case You Missed It