When I sit down to write this real estate article each month, I try to bring the most up to date information possible. I research market trends, inventory, prices, number of days on the market and number of properties sold. I speak with other realtors, brokers and lenders. I pay close attention to our local and the nation's housing markets, as well as the economy as a whole. I wish I had a crystal ball so that I could tell you what will happen. Believe me when I tell you that there is really no way anyone can predict with “exact certainty” when this market will turn around. The housing market is a cycle. Home prices will go up and home prices will go down. Some areas of the country will recover sooner than others. I think the question on everyone’s mind is “Have we hit bottom?” All we can do is look at the numbers. A slow but steady increase in home values, homes in pending sale and the slow decline of inventory are all positive signs of recovery.
Many home owners are finding it difficult to keep up with their mortgages due to job losses, decline of the work week and lower hourly wages. Many banks are holding off foreclosing on homes allowing the borrower more time to see what options they may have. The number of bank owned properties coming on the market have slowed down drastically. It is estimated that in the Sacramento area alone, there are over twenty thousand bank owned properties still waiting to come on the market. When they will is anybody’s guess.
The number of single family homes sold in North Highlands in the first three quarters of this year is 501. In the first quarter of 2009, the median sale price was $90,500. The median sale price for the second quarter was $94,500 and the median sale price for the third quarter was $102,500. This is an impressive increase of 13%.
In the Antelope area, a total of 616 single family homes were sold in the first three quarters of 2009. The median sale price in the first quarter of this year was $200,000. The median sale price for the second quarter was $195,000 and the median sale price for the third quarter was also $195,000. The decline in home value from the first quarter to the second quarter was 2.5%, but the median sale price from the second to third quarter remained the same with no decline in value.
The numbers do show some signs of improvement. Buyers are looking at a lot of houses. Many first time buyers are trying to take advantage of the $8,000 tax credit before the November 30th deadline. Bank owned properties are receiving multiple offers with banks leaning toward all cash offers. Short sales continue to make a large presence on the market with many lenders revising and streamlining the short sale departments to quicken the process.
As I have said before, the housing market is a cycle. Prices go up and prices go down. Certain areas will recover sooner than others. The area of North Highlands is definitely showing signs of improvement. The Antelope area has not yet seen an increase of home values but it does show that home values are stabilizing which is still a very good sign. The numbers will tell us where we’ve been in the housing market crisis and they will tell us where we’re going.