Falling October Sales
The leaves were not the only thing falling during the month of October in El Dorado County. The average sales price of a typical county home fell 7 percent to $506,500 from the $545,500 average in September. October’s monthly average price was the lowest since last March when the county’s average recorded home price was $493,000 but still 13 percent higher than a year ago.
The number of monthly home sales (178) was down 26 percent from the previous month and 22 percent off October of 2004. It was the slowest October since 1997 when the County’s Board of Realtors reported 172 residential sales.
The number of new residential listings (386) was 91 percent higher than October of 2004. In fact, October was the third highest month for the number of new listings in over two years, preceded only by this last September’s of 421 new listings and August’s at 408. During the last 3 months there have been a total of 1,215 new residential listings and only 690 sales.
Based upon the number of county home sales in relationship to the number of listings and comparing their average selling price, the real estate market peaked on Friday July 15th. The rate of appreciation has been gently falling since. Prior to August every monthly report that I was forwarded by the El Dorado County Association of Realtors (thank you Mary) reflected a 20 percent plus (year-over-year) housing appreciation rate for most communities. Although all areas in the county continue to show yearly appreciation rates well above last, the rate of appreciation is declining.
The county’s highest average selling priced homes remain in El Dorado Hills. The $703,500 average home sale last month was 15 percent higher than October of 2004 when it stood at $609,000. Cameron Park reported a 16 percent increase in their average priced home at $477,000 but the area had only half the sales it did last year during same month.
The Placerville area had a 40 percent drop in sales and only a 10 percent increase in their average price of $441,500. Diamond Springs/El Dorado had the same number of sales as last October (11) and a 16 percent bump in the average price at $402,500. Pollock Pines/Sly Park finished the month with the same number of monthly sales as last October and an 8 percent increase in price to $359,000. The average selling price in Cool/Pilot Hill was $426,000, a 6 percent increase over last year and Georgetown/Garden Valley reported 11 sales with an average of $355,000.
The number of monthly vacant land sales dropped significantly. The increased county fees for building a new home is having the desired affect that the “Citizens for Preventing Any Growth Anywhere” had hoped. Typically, there are 75 to 100 land sales each month. In October of 2004 there were 89. Last month there were 37, demonstrating that recessive economic measures (increased taxes, fees and assessments) can repress growth as well as legislative mandated measures.
Total yearly sales are down 13 percent from this time last year while the total MLS listing inventory is up 50 percent. The average time that a home stays listed for sale is 52 days. The least expensive home that sold in the county last month was for $ 99,000 and the most expensive was $1,745,000.
A good sign for October was the decrease in the number of new listings coming onto the market. In August, 408 new “For Sale” signs went up in the county. September’s new listings were 421 but in October new listings declined to 386. A seasonal adjustment? Maybe, but I would like to think that “less than serious” sellers are removing their homes from the Multiple, waiting for a more favorable time to sell.
Watch for this lackluster market to continue until spring. With interest rates headed north and an over supply of homes for sale, buyers have little incentive to act quickly. Spring won’t come soon enough for many county home sellers and the 1,200 members of the El Dorado County Board of Realtors.
The number of monthly home sales (178) was down 26 percent from the previous month and 22 percent off October of 2004. It was the slowest October since 1997 when the County’s Board of Realtors reported 172 residential sales.
The number of new residential listings (386) was 91 percent higher than October of 2004. In fact, October was the third highest month for the number of new listings in over two years, preceded only by this last September’s of 421 new listings and August’s at 408. During the last 3 months there have been a total of 1,215 new residential listings and only 690 sales.
Based upon the number of county home sales in relationship to the number of listings and comparing their average selling price, the real estate market peaked on Friday July 15th. The rate of appreciation has been gently falling since. Prior to August every monthly report that I was forwarded by the El Dorado County Association of Realtors (thank you Mary) reflected a 20 percent plus (year-over-year) housing appreciation rate for most communities. Although all areas in the county continue to show yearly appreciation rates well above last, the rate of appreciation is declining.
The county’s highest average selling priced homes remain in El Dorado Hills. The $703,500 average home sale last month was 15 percent higher than October of 2004 when it stood at $609,000. Cameron Park reported a 16 percent increase in their average priced home at $477,000 but the area had only half the sales it did last year during same month.
The Placerville area had a 40 percent drop in sales and only a 10 percent increase in their average price of $441,500. Diamond Springs/El Dorado had the same number of sales as last October (11) and a 16 percent bump in the average price at $402,500. Pollock Pines/Sly Park finished the month with the same number of monthly sales as last October and an 8 percent increase in price to $359,000. The average selling price in Cool/Pilot Hill was $426,000, a 6 percent increase over last year and Georgetown/Garden Valley reported 11 sales with an average of $355,000.
The number of monthly vacant land sales dropped significantly. The increased county fees for building a new home is having the desired affect that the “Citizens for Preventing Any Growth Anywhere” had hoped. Typically, there are 75 to 100 land sales each month. In October of 2004 there were 89. Last month there were 37, demonstrating that recessive economic measures (increased taxes, fees and assessments) can repress growth as well as legislative mandated measures.
Total yearly sales are down 13 percent from this time last year while the total MLS listing inventory is up 50 percent. The average time that a home stays listed for sale is 52 days. The least expensive home that sold in the county last month was for $ 99,000 and the most expensive was $1,745,000.
A good sign for October was the decrease in the number of new listings coming onto the market. In August, 408 new “For Sale” signs went up in the county. September’s new listings were 421 but in October new listings declined to 386. A seasonal adjustment? Maybe, but I would like to think that “less than serious” sellers are removing their homes from the Multiple, waiting for a more favorable time to sell.
Watch for this lackluster market to continue until spring. With interest rates headed north and an over supply of homes for sale, buyers have little incentive to act quickly. Spring won’t come soon enough for many county home sellers and the 1,200 members of the El Dorado County Board of Realtors.
posted by Ken Calhoon at 10:25 AM
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