That Spring Rebound? Forget About It
Some more housing bubble news from California. “A total of 47,250 new and resale houses and condos were sold statewide last month. That’s down 13.3 percent from 54,500 for March and down 22.4 percent from a revised 60,900 for April 2005.”
The Sacramento Bee. “Through a long winter of rain and discontent, when home sales plunged nearly 30 percent from a year earlier, Sacramento-area home sellers and real estate agents yearned heartily for a spring rebound. Spring is here. That rebound? Forget about it.”
“In the most explicit sign yet of the continuing down cycle gripping home sales in the Sacramento area, median prices fell again in April in El Dorado, Placer and Sacramento counties, while home sales remained flat or fell behind those in March.”
“April showed more price cutting and still more choices as another 1,028 homes put ‘For Sale’ signs out front. It was the biggest jump in real estate listings since last August, when 1,200 houses flooded the market and signaled the impending end of the region’s five-year housing boom.”
“‘It’s a supply-and-demand market, and right now we have a lot of supply,’ said real estate agent Dennis Colar in Sacramento. ‘Buyers are looking at more things on the market and taking their time.’ Tuesday, one of Colar’s clients shaved $20,000 off his midtown Sacramento home, for sale since February. Another, Ron Rael of Novato, also cut the price on a house he’s selling south of downtown Sacramento.”
“‘The market is definitely in a funk right now,’ Rael said. He is selling to buy houses in San Antonio, he said.”
“In April, both houses were among 11,344 listed for sale in Sacramento, Placer, El Dorado and Yolo counties. That’s the most homes for sale in the region since August 1993. The record is 13,507 homes in April 1992 during the cooling cycle that followed a late-1980s housing boom.”
“Suburban home builders feel the same pressures. ‘People are out looking at projects and saying, ‘Hey, I can go buy a resale so what kind of price can you do?’ said Greg Paquin, a Folsom-based consultant for home builders.”
“Sacramento County’s median sales price fell more than $5,000 in April to $353,750. April’s price remained $18,250 below the county’s August peak of $372,000. Yolo County April’s median $420,000 price remains below its November high of $436,500.”
“El Dorado County saw the April median sales price fall slightly to $449,000. The county’s sales price remains $26,000 below its September peak of $475,000. Placer County’s median sales price fell to $472,500 in April. Sales prices remain almost $30,000 below their August peak of $502,000.”
“Sales of houses, condos, half-plexes and duplexes (excluding new construction) in Sacramento, Yolo, Placer and El Dorado counties from January through April totaled 7,162, down from 10,673 last year. It’s the first time since at least 2002 that sales dipped during the first four months of the year.”
“San Fernando Valley home sales fell for the seventh consecutive month during April and inventory ballooned 142 percent as the market continued softening, a trade group reported Wednesday. Those two factors finally took some steam out of prices with last month’s 9.4 percent gain the first single digit increase since January of 2001, said the Southland Regional Association of Realtors.”
“Last month consumers bought 926 previously owned homes, 18.6 percent fewer than a year ago. Sales have now been under the 1,000 mark every month since last October. That’s the longest period since a 20 months string of sub 1,000 transactions from September 1995 to April of 1997.”
“At month’s end there were 3,660 houses for sale across the Valley, up from 2,147 a year ago. Add condominiums and inventory totaled 4,950 properties, up 162.3 percent from a year ago.”
“‘Builders are offering a lot of incentives, and sellers are becoming more educated,’ said (realtor) Bill Velto in Upland. Velto pointed out that builders are still going ahead with projects.”
“Jack Kyser, chief economist for the Los Angeles County Economic Development Corp. said, ‘There are still too many unrealistic sellers, but it’s pretty clear the frenzy has gone out of the market.’”