March County Sales
There was some good news associated with the March home sales reported by the El Dorado County Board of Realtors. The number of sales increased 52 percent from February. Historically, however, the market is still in a slump. The 179 monthly sales were 17 percent below last year’s 211 and far below the 300+ sales reported for March of 2004 and 2005. Closed March escrows have not been as sparse since 1998. The positive spin was that March sales were the highest number of monthly sales in a single month since June of 2006.
This last month was a reflection of continued homebuyers uncertainty that real estate prices had finally bottomed-out. Buyers, expecting further price declines, continue to rent or stay-put in their existing home until they perceive a clear direction.
Much to the disappointment of the bubbleheads, eagerly anticipating the immediate implosion of housing prices, the median price of a typical county home isn’t collapsing. Home prices, however, continue to slowly ratchet down. Last month’s median price of $462,000 was 8 percent less than February and 10 percent below March of 2006. Over the last 13 months, the county’s median monthly selling price has been greater than $500,000 for 5 months and less for eight.
The county’s highest priced homes were located in El Dorado Hills. The $685,000 average selling price on 57 reported sales was a decrease of only 2 percent from last year during the same month while sales dropped 18 percent. The current number of listings in El Dorado Hills stands at 466 properties accounting for 31 percent of all listings in the county and coincidently, 31 percent of all county home sales.
The Cameron Park area has 174 homes for sale. The average price of $445,000 is a 5 percent drop from last year but sales during March increased from 26 a year earlier, to 32 last month. Half of all the county’s listings and sales are occurring in Cameron Park and El Dorado Hills.
The third most active location for county home sales was the Placerville area. With 161 listings, the area reported an average selling price of $421,000 on 21 sales. The number of monthly sales was identical to March of 2006 while the average price declined 3 percent. Diamond Springs/El Dorado currently has 72 homes with a “for sale” sign in the front yard. The number of homes closing escrow last month was about the same as last year at 15 and the median selling price at $396,000 was $22,000 shy of a year ago.
Above Schnell School Road, the market really thins out. Camino/Cedar Grove reported only 5 sales for an average selling price of $418,000 and Pollock Pines/Sly Park had 8 closings with an average selling price of $384,000. Between the two areas there are 189 listings and based upon current sales, the area has a 14-month supply of homes.
The Georgetown Divide accounted for 11 monthly sales. The average price in Cool/Pilot Hill last month was $372,000 while Georgetown/Garden Valley reported $292,000.
A fascinating market phenomenon is the increasing number of new listings. Despite our existing over supply of homes, overly optimistic sellers in record numbers, continue to enter the competition for a smaller group of very discriminating home buyers. What’s up with that? Last month, 450 new properties hit the market, an increase of 27 percent from February and a 37 percent increase from March of 2006. With all the new “for sale” signs buyers are hesitating on making a buying decision. Excess inventory usually leads to decreasing prices and can be a sign of a future market weakness.
Comparing this year’s real estate market to last is less dramatic than when comparing 2006 lows to the record highs set in 2005. Closed sales for the first quarter of the year are down 5 percent from the first quarter of 2006 and the median selling price during the first three months has dropped about the same percentage from $490,000 to $462,500.
While notices of default and foreclosures in our county have increased, they are within acceptable parameters. Subprime loans, adjustable rate mortgages and creative financing are not a significant factor to our declining home values. Excessive inventory can be a concern.
This last month was a reflection of continued homebuyers uncertainty that real estate prices had finally bottomed-out. Buyers, expecting further price declines, continue to rent or stay-put in their existing home until they perceive a clear direction.
Much to the disappointment of the bubbleheads, eagerly anticipating the immediate implosion of housing prices, the median price of a typical county home isn’t collapsing. Home prices, however, continue to slowly ratchet down. Last month’s median price of $462,000 was 8 percent less than February and 10 percent below March of 2006. Over the last 13 months, the county’s median monthly selling price has been greater than $500,000 for 5 months and less for eight.
The county’s highest priced homes were located in El Dorado Hills. The $685,000 average selling price on 57 reported sales was a decrease of only 2 percent from last year during the same month while sales dropped 18 percent. The current number of listings in El Dorado Hills stands at 466 properties accounting for 31 percent of all listings in the county and coincidently, 31 percent of all county home sales.
The Cameron Park area has 174 homes for sale. The average price of $445,000 is a 5 percent drop from last year but sales during March increased from 26 a year earlier, to 32 last month. Half of all the county’s listings and sales are occurring in Cameron Park and El Dorado Hills.
The third most active location for county home sales was the Placerville area. With 161 listings, the area reported an average selling price of $421,000 on 21 sales. The number of monthly sales was identical to March of 2006 while the average price declined 3 percent. Diamond Springs/El Dorado currently has 72 homes with a “for sale” sign in the front yard. The number of homes closing escrow last month was about the same as last year at 15 and the median selling price at $396,000 was $22,000 shy of a year ago.
Above Schnell School Road, the market really thins out. Camino/Cedar Grove reported only 5 sales for an average selling price of $418,000 and Pollock Pines/Sly Park had 8 closings with an average selling price of $384,000. Between the two areas there are 189 listings and based upon current sales, the area has a 14-month supply of homes.
The Georgetown Divide accounted for 11 monthly sales. The average price in Cool/Pilot Hill last month was $372,000 while Georgetown/Garden Valley reported $292,000.
A fascinating market phenomenon is the increasing number of new listings. Despite our existing over supply of homes, overly optimistic sellers in record numbers, continue to enter the competition for a smaller group of very discriminating home buyers. What’s up with that? Last month, 450 new properties hit the market, an increase of 27 percent from February and a 37 percent increase from March of 2006. With all the new “for sale” signs buyers are hesitating on making a buying decision. Excess inventory usually leads to decreasing prices and can be a sign of a future market weakness.
Comparing this year’s real estate market to last is less dramatic than when comparing 2006 lows to the record highs set in 2005. Closed sales for the first quarter of the year are down 5 percent from the first quarter of 2006 and the median selling price during the first three months has dropped about the same percentage from $490,000 to $462,500.
While notices of default and foreclosures in our county have increased, they are within acceptable parameters. Subprime loans, adjustable rate mortgages and creative financing are not a significant factor to our declining home values. Excessive inventory can be a concern.
posted by Ken Calhoon at 8:03 AM
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