Frightening September sales for El Dorado County
September was a frightening month for local agents and their sellers. Home prices and there numbers tumbled. The 111 monthly sales reported by the El Dorado County Association of Realtors, dropped 33 percent from August and 22 percent from September of last year. It was the slowest month for escrow closings since March of 1997. Three years ago, September’s sales were 168 percent higher than last month. The average selling price for county homes closing escrow at $491,000 was a 5 percent decline from August and a $67,000 drop from September of 2006.
El Dorado Hills is normally credited with holding up the county’s average home prices. Last month it didn’t happen. Usually one-third of all county home sales take place within EDH and the number of high-end and multi-million dollar sales prop-up the county’s average price. September sales in El Dorado Hills, fell 39 percent while the average priced dropped $143,700 from $781,348 in September of 2006 to $656,000 last month. The area reported 28 sales, 4 in excess of a million dollars. A year ago there was twice that many. With 475 current listings, the area has no shortage of homes available. The drop in monthly sales pushed the supply levels to a record high of 17 months.
Cameron Park didn’t fare much better than its neighbor down the hill. Currently, Cameron Park has 200 homes for sale. There were only 13 homes sold during the month. The average listing price for a home is $485,000 while the average selling price last month dropped $110,000 from a year earlier to $408,000.
The Shingle Springs, Rescue/Luneman area has 123 homes for sale. Seven sold last month with an average price of $650,000. The Diamond Springs/El Dorado area has 170 homes currently listed for sale. Fifteen sold last month with an average price of $351,000.
The greater Placerville area is usually the third most popular destination for county homebuyers following Cameron Park. That changed last month. Placerville not only had 60 percent more sales than Cameron Park but the average selling price at $432,138 was $24,000 higher. Last year during the same month the average selling price was $384,500.
The area has 176 homes for sale.
Pollock Pines/Sly Park was another area that reported higher selling prices than a year earlier. There are currently 220 residential listing in the Camino/Cedar Grove, and Pollock Pines/Sly Park area. Sixteen sold last month for an average price of $427,700, which was $77,000 higher than September of last year. The Georgetown Divide currently has 170 homes for sale and 7 closed escrow last month with an average price of $450,000.
At our current sales rate, the county has a 14-month supply of homes available provided no new listings come on the market. An unlikely event. Although the number of county residential listings has declined 11 percent from last year, the decreasing inventory isn’t enough to offset the declining rate of sales. A six-month supply of homes is considered balanced so we are definitely lopsided in favor of buyers.
Most the county’s new home sales occurred in El Dorado Hills. The Folsom based research firm Gregory Group, reported 49 new county home sales for the third quarter and 31 were located in El Dorado Hills. The average selling price of $725,500 was 10 percent below last year.
I expect even slower sales and weaker sales prices this fall and winter. The usual September buyer’s rush never happened. October isn’t showing any improvement. Many buyers are waiting on the sidelines for the next calamity to befall the housing market. Others who would like to move into the county are struggling to sell their existing home. Most housing economist are predicting more of the same through much of 2008. In light of the current and anticipated market, I am continually amazed to see many over priced listings and unrealistic sellers.
Last week a lady e-mailed me about what I thought she needed to do to sell her house. The house had been on the market for a year without any activity although she had consistently reduced the listing price several times over the past year. Should she change her agent? Let the listing expire and re-list the property after a rest? Drop the price another $10,000? Her situation is typical of many sellers who have initially listed their property too high and then have been gradually reducing their listed price. Their price reductions, however, never catch a receding tide. My suggestions included a major price reduction of 25 percent off the current listed price. If she was not prepared for a significant price reduction, she should not sell and rent the property or not sell and hold until the market improves. This is not a market for the faint hearted. Trick or treat.
El Dorado Hills is normally credited with holding up the county’s average home prices. Last month it didn’t happen. Usually one-third of all county home sales take place within EDH and the number of high-end and multi-million dollar sales prop-up the county’s average price. September sales in El Dorado Hills, fell 39 percent while the average priced dropped $143,700 from $781,348 in September of 2006 to $656,000 last month. The area reported 28 sales, 4 in excess of a million dollars. A year ago there was twice that many. With 475 current listings, the area has no shortage of homes available. The drop in monthly sales pushed the supply levels to a record high of 17 months.
Cameron Park didn’t fare much better than its neighbor down the hill. Currently, Cameron Park has 200 homes for sale. There were only 13 homes sold during the month. The average listing price for a home is $485,000 while the average selling price last month dropped $110,000 from a year earlier to $408,000.
The Shingle Springs, Rescue/Luneman area has 123 homes for sale. Seven sold last month with an average price of $650,000. The Diamond Springs/El Dorado area has 170 homes currently listed for sale. Fifteen sold last month with an average price of $351,000.
The greater Placerville area is usually the third most popular destination for county homebuyers following Cameron Park. That changed last month. Placerville not only had 60 percent more sales than Cameron Park but the average selling price at $432,138 was $24,000 higher. Last year during the same month the average selling price was $384,500.
The area has 176 homes for sale.
Pollock Pines/Sly Park was another area that reported higher selling prices than a year earlier. There are currently 220 residential listing in the Camino/Cedar Grove, and Pollock Pines/Sly Park area. Sixteen sold last month for an average price of $427,700, which was $77,000 higher than September of last year. The Georgetown Divide currently has 170 homes for sale and 7 closed escrow last month with an average price of $450,000.
At our current sales rate, the county has a 14-month supply of homes available provided no new listings come on the market. An unlikely event. Although the number of county residential listings has declined 11 percent from last year, the decreasing inventory isn’t enough to offset the declining rate of sales. A six-month supply of homes is considered balanced so we are definitely lopsided in favor of buyers.
Most the county’s new home sales occurred in El Dorado Hills. The Folsom based research firm Gregory Group, reported 49 new county home sales for the third quarter and 31 were located in El Dorado Hills. The average selling price of $725,500 was 10 percent below last year.
I expect even slower sales and weaker sales prices this fall and winter. The usual September buyer’s rush never happened. October isn’t showing any improvement. Many buyers are waiting on the sidelines for the next calamity to befall the housing market. Others who would like to move into the county are struggling to sell their existing home. Most housing economist are predicting more of the same through much of 2008. In light of the current and anticipated market, I am continually amazed to see many over priced listings and unrealistic sellers.
Last week a lady e-mailed me about what I thought she needed to do to sell her house. The house had been on the market for a year without any activity although she had consistently reduced the listing price several times over the past year. Should she change her agent? Let the listing expire and re-list the property after a rest? Drop the price another $10,000? Her situation is typical of many sellers who have initially listed their property too high and then have been gradually reducing their listed price. Their price reductions, however, never catch a receding tide. My suggestions included a major price reduction of 25 percent off the current listed price. If she was not prepared for a significant price reduction, she should not sell and rent the property or not sell and hold until the market improves. This is not a market for the faint hearted. Trick or treat.
posted by Ken Calhoon at 8:35 AM
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