May sales in El Dorado County
It was the slowest May for home sales since May of 1997. Normally the month of May is the seasonal beginning of the four best home selling months of the year. If last month is an indication of the rest of the summer, several agents should plan on taking extended vacations. Home sales last month, as reported by the El Dorado County Board of Realtors, were down 27 percent from May of 2005 and year-to-date remain 33 percent below last years level.
While potential homebuyers are showing their lack of enthusiasm for making home buying commitments, sellers are listing their homes in record numbers. More homes went up for sale in May (584) than in any single month ever. It was a 67 percent increase in the number of listings over May of 2005 and a 36 percent increase from the previous record number of listings set in April.
Home prices continue to escalate in defiance of traditional market forces. Despite the record number of 1,650 homes for sale and the large drop in the number of interested buyers, home prices continue to increase. With an eight-month supply of homes on the market, we are clearly in a “buyers market” but the average price paid for a county home continues to increase. The $544,000 average selling price last month was $10,000 higher than a year ago. So what’s up with that?
There are 450 homes currently for sale in El Dorado Hills. Last month there were only 55 sales. At that current sales rate and if no other homes go up for sale (not likely) it would take 9 months to sell all of them. Statistically, free market forces should drive down the average price but that isn’t happening. The average price increased from $696,000 in May of 2005 to $724,000 last month.
The average selling price for a home in Cameron Park did slip below last year but not by much. There are currently 200 homes for sale in Cameron Park and there were 27 sales during the month at an average selling price of $470,000. In May of 2005 the average price of a home sold for $489,000.
The Greater Placerville area has 190 homes with a “For Sale” signs in the front yard. The average price of the 15 that sold was $458,000, which was $50,000 higher than last year during the same month. Pollock Pines reported 15 monthly sales on an available housing inventory of 157. The average price at $398,000 was eighteen thousand above a year ago. Cool/Pilot Hill has 70 homes currently for sale, 12 sold last month at an average price of $597,600, which was $150,000 higher than May of 2005.
Land sales are dismal with only 30 reported sales for the month. Last year during the same month there were 80. The average price for a vacant land sale did fall 9 percent from a year ago for an average of $260,600.
The sale of Mac Mansions in El Dorado Hills and large estate homes in the rest of the county is responsible for bumping up the “average” selling price. There were 13 million-dollar home sales in the county last month. Ten were in El Dorado Hills. The lowest of the bunch was for $1 million and the highest was for $1.7. The average size of the 13 sales was 4,400 square feet for an average price per square foot of $294. In case you missed out on one, there are still 40 others to choose from.
Existing price levels will not hold with the current amount of available inventory and with more homes going on the market each day. Seller’s price expectations will need adjusting and more than a few should reevaluate their need to sell. Listings agents are discovering that increased advertising and creative marketing will not sell over-priced listings. In a free market, buyers and not sellers control the price.
While potential homebuyers are showing their lack of enthusiasm for making home buying commitments, sellers are listing their homes in record numbers. More homes went up for sale in May (584) than in any single month ever. It was a 67 percent increase in the number of listings over May of 2005 and a 36 percent increase from the previous record number of listings set in April.
Home prices continue to escalate in defiance of traditional market forces. Despite the record number of 1,650 homes for sale and the large drop in the number of interested buyers, home prices continue to increase. With an eight-month supply of homes on the market, we are clearly in a “buyers market” but the average price paid for a county home continues to increase. The $544,000 average selling price last month was $10,000 higher than a year ago. So what’s up with that?
There are 450 homes currently for sale in El Dorado Hills. Last month there were only 55 sales. At that current sales rate and if no other homes go up for sale (not likely) it would take 9 months to sell all of them. Statistically, free market forces should drive down the average price but that isn’t happening. The average price increased from $696,000 in May of 2005 to $724,000 last month.
The average selling price for a home in Cameron Park did slip below last year but not by much. There are currently 200 homes for sale in Cameron Park and there were 27 sales during the month at an average selling price of $470,000. In May of 2005 the average price of a home sold for $489,000.
The Greater Placerville area has 190 homes with a “For Sale” signs in the front yard. The average price of the 15 that sold was $458,000, which was $50,000 higher than last year during the same month. Pollock Pines reported 15 monthly sales on an available housing inventory of 157. The average price at $398,000 was eighteen thousand above a year ago. Cool/Pilot Hill has 70 homes currently for sale, 12 sold last month at an average price of $597,600, which was $150,000 higher than May of 2005.
Land sales are dismal with only 30 reported sales for the month. Last year during the same month there were 80. The average price for a vacant land sale did fall 9 percent from a year ago for an average of $260,600.
The sale of Mac Mansions in El Dorado Hills and large estate homes in the rest of the county is responsible for bumping up the “average” selling price. There were 13 million-dollar home sales in the county last month. Ten were in El Dorado Hills. The lowest of the bunch was for $1 million and the highest was for $1.7. The average size of the 13 sales was 4,400 square feet for an average price per square foot of $294. In case you missed out on one, there are still 40 others to choose from.
Existing price levels will not hold with the current amount of available inventory and with more homes going on the market each day. Seller’s price expectations will need adjusting and more than a few should reevaluate their need to sell. Listings agents are discovering that increased advertising and creative marketing will not sell over-priced listings. In a free market, buyers and not sellers control the price.
posted by Ken Calhoon at 7:25 AM
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