Too many homes for sale
There is too much housing inventory on the market. It is the best opportunity for buyers to find a home in their price range since 1994. The over supply is only temporary and will balance itself out in another year or two but until that time, sellers will need lots of patience in trying to sell their homes.
There were 2,212 homes sold last April in the Capital Region. It was the slowest sales month since 1998. It was a 36.7 percent decline from April of 2005 according to Data Quick Information Systems.
The number of homes for sale was the highest its been since 1994 with 11,344 homes currently on the market. In April of 2004 that number of homes for sale was 3,000, in April of 2005 it was 5,000.
El Dorado County reported 192 home sales for the month or a decline of 36 percent from last year same month. Placer County had 371 sales for a 38 year over year drop, Sacramento had 1,500 reported sales with a 36 percent decline from last year and Yolo County had 118 sales and sales volume declined 47 percent from a year ago.
How much worse can it get for sellers? Lots! In 1992 there were 13,500 homes up for sale. Subsequently the percentage of homes for sale in relation to population and number of homes was much higher than it is today. In some neighborhoods more homes were for sale than not. It was not a good time to be a seller. Could inventory get that high again? Probably not as long as our employment gains continue. In the 1990’s three military installations were closed in Sacramento and there were other serious defense industry cutbacks that drove jobs out of the area. Today regional employment gains continue to remain strong but watch any news from Intel. They are a large employer and if they catch a cold, Folsom will get the flue.
There were 2,212 homes sold last April in the Capital Region. It was the slowest sales month since 1998. It was a 36.7 percent decline from April of 2005 according to Data Quick Information Systems.
The number of homes for sale was the highest its been since 1994 with 11,344 homes currently on the market. In April of 2004 that number of homes for sale was 3,000, in April of 2005 it was 5,000.
El Dorado County reported 192 home sales for the month or a decline of 36 percent from last year same month. Placer County had 371 sales for a 38 year over year drop, Sacramento had 1,500 reported sales with a 36 percent decline from last year and Yolo County had 118 sales and sales volume declined 47 percent from a year ago.
How much worse can it get for sellers? Lots! In 1992 there were 13,500 homes up for sale. Subsequently the percentage of homes for sale in relation to population and number of homes was much higher than it is today. In some neighborhoods more homes were for sale than not. It was not a good time to be a seller. Could inventory get that high again? Probably not as long as our employment gains continue. In the 1990’s three military installations were closed in Sacramento and there were other serious defense industry cutbacks that drove jobs out of the area. Today regional employment gains continue to remain strong but watch any news from Intel. They are a large employer and if they catch a cold, Folsom will get the flue.
posted by Ken Calhoon at 8:08 AM
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