Monday, September 18, 2006

Placer County August Sales

The median selling price of an average home in Placer County last month dropped $57,000 from its highest price in August of 2005 when it was $517,000. It has been consistently declining since then, hitting $460,000 last month. The median was still well above August of 2004 when it was $417,000 and way above August of 2003 when it stood at $330,000.

While prices are sliding, the number of people putting their home up for sale is increasing. A year ago, Placer County had 1,800 published listings. Last month 3,000 houses were for sale, a 60 percent increase.

The number of monthly sales has declined by 33 percent. Last month 332 closed escrows were reported by the MLS. A year earlier, closed sales in August totaled 500.

Roseville’s average price on 184 sales declined from $509,900 in August of 2005 to $485,600 last month. Loomis/Penryn saw their average drop from $870,00 a year ago to $780,000. Lincoln reported 77 monthly sales down from 95 last year same month and the median price has fallen from $500,000 to $418,500. Auburn/Newcastle had only 35 sales with the average price dropping from $682,000 last year to $541,000. Granite bay wasn’t exempt from falling prices. The median selling price of a home in that prestigious zip code dropped from $829,000 to $760,000.

The condo rage is officially over in Placer County. There were only 8 that sold during August but the average price is holding at $255,000 still up from $249,000 average last year same month.

While there were only 8 single-family homes that sold during the month for less than $300,000, 13 homes sold for over a million dollars. Fifty-seven percent of all county sales were priced between $400,000 and $750,000.

The excess supply of newly built homes in Placer County is negatively effecting resale values. Builders are offering big incentives to homebuyers who are choosing new over resale. Once new standing inventory is sold builders will be quick to eliminate incentives and increase prices. Resale values will follow. It may take a year.

Now go take on the week!


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