Jan 23 2009
Good News…..Bad News About Real Estate in Sacramento
Forbes.com has ranked Sacramento number two housing market to watch in the U.S. because of rising home sales. Mark Feder, CEO of Radar Logic, in an interview with forbes.com said that it is a positive sign that home sales are up, but that doesn’t guarantee that the market has hit bottom. The increase in activity is because motivated sellers (mostly banks) are slashing prices; approximately two thirds of the homes sold in Sacramento in 2008 were foreclosures. In December, 2,485 new and existing homes sold in Sacramento County. A dip in the county’s median sales price to $176,000, lowest since May 2001, drove 2,148 existing-home sales to the highest for the month since 2004.
Is this good news or bad news? According to all the experts it’s a little of both. The record number of foreclosures (the bad news) has driven prices down so that more people can actually afford to buy a house (the good news). The distinction of being the number two market in the country to watch is a big responsibility so hopefully we will live up to these big expectations and the sales will continue.
Maybe all the experts are wrong and the reason home sales are up is that everyone has found out that Sacramento is really a great place to live. Sounds like a slogan for advertising, maybe I should try to sell it to the new mayor……..”Sacramento, a great place to live!”
Sacramento Real Estate Market
I purchased a home towards the end of 2008. I got a really great home at what a consider a very good price. Mine was a foreclosure. It took a good part of the year, months in fact looking at home after home to find this one. The banks seemed to be playing a game and putting a price on the home, only to find that when you bid the offered price, they would say you are one of 2 or 3, etc. so give us your last and best offer. Just another way t play the old bidding game.
We were determined to get a good buy at a fair price. Even though the market is possible close to the bottom I believe it still has a ways to go. I feel we bought into the market at the right time and at this point we should be able if necessary to sell an walk away without a loss.
So I urge anyone out there looking to buy to begin the search. Don’t be in a hurry, take your time and stay with what you feel is a good offer. Do not let the lenders push you to overbid a home. Be patient and you will be satisfied with what you come up with.
Good luck.