April Showers
Traditionally, Northern California home sales usually rise along with the monthly temperatures. I call this phenomenon the sales/temperature curve. February sales are usually better than January’s. March sales will be greater than February and April better still. This sales/temperature curve continues until September when monthly sales decline, reaching their lowest point during the coolest months of December and January. The gradually increasing sales/temperatures are pretty predictable as we move from winter through early and late spring and into summer. This year was different. March weather was warmer than April in the foothills of El Dorado County and so were home sales. Well, that’s my excuse anyway, for the dreary sales report in April.
Depending upon where you get your real estate information, the market has: slowed-down, leveled-off, in a slump, plunged, plummeted, collapsed, corrected, burst, is landing softly or has returned to normal. For the 1,700 home sellers in the county who currently have their homes listed for sale, it’s a lonely time. The El Dorado County Board of Realtors reported 167 home sales for the month, down 9 percent from the 185 in March. That was the good news. It was the fewest number of April sales since 1997. A more typical April would account for 240 sales. In April of 2004 the Board reported 290 home sales and in 2005 we had 286.
The median price on the homes that did sell during the month closed at $445,000. It was a 14 percent decline from April of 2006 when the median price was reported at $521,000 and the lowest monthly median price since February of 2006. The “median” sales price is defined as the middle price point where half the homes sold for more and half for less. The “average” selling price is derived from the sum total divided by the number of sales. Our Board of Realtors reports the county’s “median” and “average” home prices but only reports neighborhood sales as “averages” not the “median.” This can be slightly misleading since the “average” price of a county home is $77,500 higher than the “median.” The difference results from a few albeit, very expensive home sales last month.
There were 10 reported home sales in excess of a million dollars with the highest at 2.4 million. Nine of the 10 homes that sold for over a million bucks were located in El Dorado Hills. That pushed the average selling price in the neighborhood to $759,000, slightly above where it was last year. High prices, however, didn’t lour many buyers to the closing table. Monthly sales dropped to 40 on a total inventory of 490 listed properties. That’s a new record high for the number of available properties. Cameron Park has an inventory of 195 homes for sale. Twenty-two sold last month for an average price of $493,000. Sales were less than half of what they were a year earlier while the average selling price remained the same. Thirty-seven percent of all county sales occurred in El Dorado Hills and Cameron Park.
The Placerville area nearly mirrored Cameron Park last month with the exception of the average selling price. The area currently has 190 homes for sale and buyers closed escrow on 22. The average price that buyers paid for a home in the area was $360,000. Diamond Springs/El Dorado has 90 homes listed, 10 sales were reported for the month at an average price of $445,000. Camino/Cedar Grove has 55 homes with a “For Sale” sign in the front yard. Seven sold in April for an average price of $600,000. Pollock Pines/Sly Park has 150 homes to choose from, 12 sold last month for an average price of $313,000. Monthly sales were nearly the same as a year-ago but the average home to close escrow was $70,000 less.
Over on the Divide (above Folsom Lake between the South Fork and the Middle Fork of the American River) the grass is growing faster than home sales. With 200 homes on the market, spread out between Pilot Hill, Cool, Georgetown and Garden Valley, there were only 13 sales for the month. The average price for Pilot Hill and Cool was reported at $435,000 while Georgetown and Garden Valley’s average was $371,500.
The number of land sales and their price continues to free-fall. Last year the price of a typical vacant residential lot sold for $385,000. This past month the priced had dropped to $231,000. With 750 residential parcels listed there were only 22 sales.
Another interesting phenomenon besides my sales/temperture curve is my theory on new listings. The postulate states: Sales will decline proportionately to the number of new listings. Thus, the more new listings that get added to the existing inventory of available homes, the greater number of buyers will postpone making a buying decision. Last month, 477 new residential listings came on the market, which resulted in fewer sales than the prior month. May and June will be pivotal months for county sellers and their agents.
Depending upon where you get your real estate information, the market has: slowed-down, leveled-off, in a slump, plunged, plummeted, collapsed, corrected, burst, is landing softly or has returned to normal. For the 1,700 home sellers in the county who currently have their homes listed for sale, it’s a lonely time. The El Dorado County Board of Realtors reported 167 home sales for the month, down 9 percent from the 185 in March. That was the good news. It was the fewest number of April sales since 1997. A more typical April would account for 240 sales. In April of 2004 the Board reported 290 home sales and in 2005 we had 286.
The median price on the homes that did sell during the month closed at $445,000. It was a 14 percent decline from April of 2006 when the median price was reported at $521,000 and the lowest monthly median price since February of 2006. The “median” sales price is defined as the middle price point where half the homes sold for more and half for less. The “average” selling price is derived from the sum total divided by the number of sales. Our Board of Realtors reports the county’s “median” and “average” home prices but only reports neighborhood sales as “averages” not the “median.” This can be slightly misleading since the “average” price of a county home is $77,500 higher than the “median.” The difference results from a few albeit, very expensive home sales last month.
There were 10 reported home sales in excess of a million dollars with the highest at 2.4 million. Nine of the 10 homes that sold for over a million bucks were located in El Dorado Hills. That pushed the average selling price in the neighborhood to $759,000, slightly above where it was last year. High prices, however, didn’t lour many buyers to the closing table. Monthly sales dropped to 40 on a total inventory of 490 listed properties. That’s a new record high for the number of available properties. Cameron Park has an inventory of 195 homes for sale. Twenty-two sold last month for an average price of $493,000. Sales were less than half of what they were a year earlier while the average selling price remained the same. Thirty-seven percent of all county sales occurred in El Dorado Hills and Cameron Park.
The Placerville area nearly mirrored Cameron Park last month with the exception of the average selling price. The area currently has 190 homes for sale and buyers closed escrow on 22. The average price that buyers paid for a home in the area was $360,000. Diamond Springs/El Dorado has 90 homes listed, 10 sales were reported for the month at an average price of $445,000. Camino/Cedar Grove has 55 homes with a “For Sale” sign in the front yard. Seven sold in April for an average price of $600,000. Pollock Pines/Sly Park has 150 homes to choose from, 12 sold last month for an average price of $313,000. Monthly sales were nearly the same as a year-ago but the average home to close escrow was $70,000 less.
Over on the Divide (above Folsom Lake between the South Fork and the Middle Fork of the American River) the grass is growing faster than home sales. With 200 homes on the market, spread out between Pilot Hill, Cool, Georgetown and Garden Valley, there were only 13 sales for the month. The average price for Pilot Hill and Cool was reported at $435,000 while Georgetown and Garden Valley’s average was $371,500.
The number of land sales and their price continues to free-fall. Last year the price of a typical vacant residential lot sold for $385,000. This past month the priced had dropped to $231,000. With 750 residential parcels listed there were only 22 sales.
Another interesting phenomenon besides my sales/temperture curve is my theory on new listings. The postulate states: Sales will decline proportionately to the number of new listings. Thus, the more new listings that get added to the existing inventory of available homes, the greater number of buyers will postpone making a buying decision. Last month, 477 new residential listings came on the market, which resulted in fewer sales than the prior month. May and June will be pivotal months for county sellers and their agents.
posted by Ken Calhoon at 7:27 AM
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