‘We Knew This Day Was Going To Come’ For SJV
The Modesto Bee reports on falling home prices. ” After six years of defying gravity, home prices dipped in January throughout the Northern San Joaquin Valley. Homes sold for a median $386,750 in Stanislaus County, which was about $5,250 less than the record set in December.”
“The decline is part of a statewide trend that began elsewhere in California several months ago. January’s median California home price was $452,000, down $6,000 from December. Sales prices dropped $20,000 in San Joaquin County to a median of $430,000. In Merced County, they dropped $23,750 to a median of $357,000. In Tuolumne County, they dropped $36,250 to a median of $298,750.”
“The region has been overdue for a price drop, according to realty experts. Median prices have been breaking records virtually every month since 1999, when the typical Stanislaus County home cost $122,000. ‘We knew this day was going to come,’ said (agent) Mary Prieto. She said she has lowered the asking price of some of her listings.”
“One home, in Modesto’s coveted La Loma neighborhood, went on the market in the summer with a $595,000 asking price. Prieto took over the listing in November, lowering the price to $549,996. Now it’s been reduced to $474,996, which Prieto thinks will attract buyers. ‘The sellers were asking top dollar when they first listed it. They wanted to try for a high price, like all sellers do,’ Prieto said. ‘We’re going to go through this adjustment period, with sellers getting out of denial mode and into the reality of the market now.’”
“Is a price downturn bad for real estate? Many experts say no. ‘The market is absolutely softening. But for the long haul, that’s good for everybody,’ said (broker) Ken David Elving. ‘We’re just settling down.’”
“Elving said investors, who were buying strictly with the intent to ‘flip’ houses for a quick profit, have gone away. That means buyers looking for family homes have more from which to choose.”
“‘A year ago, the pressure was on the buyer to make an offer immediately,’ recalled John Walton, a 28-year veteran agent. ‘Now buyers have plenty of choices, so they have time to pick the right home.’ Sellers, by contrast, now must make sure their homes are priced right and look good, said Jeannie Mazzanti. ‘They’re competing with other sellers now,’ said Mazzanti, an agent for 20 years. Sales of homes priced $450,000 to $650,000 ‘are very sluggish.’”