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 HeadlinesBeth Gaines Elected to Women In Government BoardAt its 21st Annual State Directors' Conference, Assemblywoman Beth Gaines (R-Roseville) was sworn into the Women In Government 2015 Board of Directors
Suspected Ebola Patient in the Hospital A patient with symptoms consistent with Ebola infection was transferred to UC Davis Medical Center Thursday morning from Mercy General Hospital in Sacramento
Placer SPCA Announces 2015 Board of DirectorsRoseville, CA - The Placer SPCA announced the election of its 2015 Officers and the installation of two new board members.
Project for Homes Overlooking Lake Tahoe WithdrawnA project that sought to build some 112 residential homes on land overlooking Lake Tahoe has been withdrawn from the review process.
Stand Up Placer Receives $10,000 Grant from Wells FargoStand Up Placer received a generous grant award of $10,000 from Wells Fargo. Stand Up Placer is a local non-profit that provides comprehensive services to domestic violence , sexual assault, and human trafficking survivors
50 Days of the Dead: Shining StarShining Star, a song by R&B group The Manhattans was among audience favorites. This version of the JGB covering Shining Star in the fall of 1991.
Life Time Athletic Roseville: Rob Chemaly Named GMHealth and fitness industry veteran Rob Chemaly has been named General Manager of Life Time Athletic Roseville.
Roseville Liquor Store Robbed by GunmanThe Roseville Police Department is asking for the public's help identifying a man who robbed a liquor store and pepper-sprayed the clerk.
Good News for FHA BorrowersRealtor, Julie Jalone, of MagnumOne Realty in Roseville, writes about the recent lowering of the FHA mortgage insurance premiums.
United Auburn Indian Community Invests in Danny Wimmer PresentsDanny Wimmer Presents one of the largest independent producers of destination rock music festivals in the U.S., announced today that it has received a significant investment from the United Auburn Indian Community Development Corp.
Roseville Offers Up Cash for GrassThe City of Roseville is offering up for $1,000 for your grass when converting water-thirsty turf with water smart landscaping
Invented Abundance by Mollie Oblinger in RocklinThe Ridley Gallery at Sierra College presents Invented Abundance, an exhibition of sculpture in which Mollie Oblinger examines California's water issues in response to the historic drought
NEWS: In Case You Missed It