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New home sales down 40% in Sacramento area in last 3 months

kranky

kranky

Elite Member
Link.

Three months might be too soon to know if it's an ongoing problem, but the explanation of the reasons would be a concern to me - potential new home buyers not getting what they expected for their current home, a higher number of cancellations, and potential buyers not qualifying for a mortgage.

However, the stats don't include all condo sales, which represent a growing part of the housing market, and that could confuse the statistics to a degree.

 
Im in the market for a house, but it's just insane right now. Tho it does seem to be dying down. But $250k in my area gets you a shack and it sucks. However prices do seem to be dropping, Ive seen more then a handful of houses drop from $350+ down to around $300k.

Housing market has reached a point that it can't handle forever. When a family making $100k cant afford a 3 bedroom house that isn't falling apart, it can't last... I hope.
 
Yeah, my boss just sold his house and moved into another one. Had to drop his asking price twice and only got one offer after that from a pretty desperate buyer (were living in hotels). Just 6 months ago it was total madness still. Good news for me though, I'm looking to buy at some point here. Of course I don't live in California either.
 
In related news:
[*]Nationwide housing starts are down, to second lowest level in 2005, building permits sank with the biggest drop in 6 years, median prices down 6% from September levels, and September levels were down 9% from February levels (the all-time peak in median prices). These numbers are still historically strong, but falling.

[*]Home builder sentiment is still positive but falling sharply.

[*]Interest rate increases lead to drop in mortgage applications.

[*]New home inventories are rising and sell times increasing.

[*]Though, related to the original post, Sacramento prices are up 18.1% from last year. Of course, year over year numbers do tend to be unresponsive to short term changes like the 3 month change mentioned in the OP.
 
There was already a big problem when the selling values exceeded the normal market rate. I'm so glad the housing market stayed cool here in Texas (relative), no bubble to pop here.
 
Originally posted by: JS80
Housing prices will only "fall" if current owners sell for a lower price.
Click to expand...

You are a genius. You mean to tell me that prices fall when someone lowers their price.
Absolutely pure fvcking genius at work here.
 
I gave up trying to get a house because new home PRICES are up 80% in the last three years. The market ran out of people that can afford them.
 
as long as the market goes back up when its time for us to sell.

doh... we have to buy the next one high too.

CAN'T WIN.
 
I live in Sacramento County and bought my house in 2002.

The house prices here have SKY ROCKETED the past 4 years. More than anywhere else in the country I'm sure. There is a house three down from us equitable to ours that is selling for just under 3X what we paid for our house. It just wasn't sustainable. Also, people are pricing their houses far over market value, something they got away with last year because demand was so high.
 
Originally posted by: rh71
as long as the market goes back up when its time for us to sell.

doh... we have to buy the next one high too.

CAN'T WIN.
Click to expand...
House prices only matter in three cases:
(1) When you move from renting to buying. Usually this is when you buy your first house.
(2) When you move from buying to renting. Usually this is when you move into a retirement home.
(3) When you move from one extreme market to another. Usually this is when someone from the midwest moves to a coast.

The time to win/lose is only during those cases.

Otherwise, housing prices going up/down will cancel. You sell high and buy high - effects cancel. Or you sell low and buy low - effects cancel.
 
Originally posted by: dullard
Originally posted by: rh71
as long as the market goes back up when its time for us to sell.

doh... we have to buy the next one high too.

CAN'T WIN.
Click to expand...
House prices only matter in three cases:
(1) When you move from renting to buying. Usually this is when you buy your first house.
(2) When you move from buying to renting. Usually this is when you move into a retirement home.
(3) When you move from one extreme market to another. Usually this is when someone from the midwest moves to a coast.

The time to win/lose is only during those cases.

Otherwise, housing prices going up/down will cancel. You sell high and buy high - effects cancel. Or you sell low and buy low - effects cancel.
Click to expand...
You forgot rental or investment properties. You can just sell those for profit if you want.
 
I live in Sac too and have seen a reduction in homes on sale. The condo next to mine recently was put on the market...not sure about the asking price.

EDIT:
Link to condo for sale

Ours is almost identical to it and we bought it a year ago for $225K
 
I am still hoping for the market to take a dump. 😛
Unfortynately with my luck the real drop will come just after I've gotten a house. 🙁
I will be in the market this coming spring. Need to have a new place under contract by early April.
 
I bought my house in Sac early this year. There's sooo much open space around here and there are tons of new houses being built. ALready I hear that there are ten home sont he market for every buyer, when the new homes get built, theres going to be a huge oversupply.
 
Originally posted by: Slew Foot
I bought my house in Sac early this year. There's sooo much open space around here and there are tons of new houses being built. ALready I hear that there are ten home sont he market for every buyer, when the new homes get built, theres going to be a huge oversupply.
Click to expand...

I'm not concerned. We bought in Fair Oaks so our property has innate value due to the incredible location beyond anything you'll find in the sprawl out in Lincoln or Elk Grove.
 
It was inevitable that the first signs of market trouble would begin in Sacramento. Regardless, supply is still tight, so prices will remain flat admidst reduced volume.
 
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