Off to good start
Date Published: February 2008
Real Estate
Mid January brought Bernake's testimony before the House Finance Committee and a stock market that headed south for the new year.
The media was filled with terms such as stagflation, recession, growth-cession and finally the suggestion that we are having a real estate depression. Our elected representatives started talking "stimulus programs" and those running for office switched campaign focus to the economy.
Let's dwell for a moment and attempt to get a perspective or a point of reference for our South Placer real estate market by looking at annual sales volume.
In 2007, the Placer County Association of Realtors reported an annual dollar volume for closed escrows of $1,708,376,111. This is a significant decrease from 2005 when the real estate was really cooking with an annual closed escrow volume of $2,885,488,585.
To keep things in perspective, in 2007, South Placer's annual sales volume was 14.5 percent higher than in 2002 ($1,492,163,000) but 14.2 percent less than the volume in 2003 ($1,991,367,338).
Bottom line: 2007's closed escrow dollar volume is about the same that experienced in 2002-2003 when our market was "heating up." I suspect this is about the fifth best year ever for South Placer.
December's closed escrows (226) were 2.6 percent less than in November (232) and off 25.2 percent compared to December 2006 when 302 escrows closed. The South Placer December median sales price ($356,928) was 2.5 percent less than November's $366,087 and 18.8 percent less than last year's $439,700.
We have had a very slow December in South Placer.
The same is true in Granite Bay, December closed sales (8) decreased slightly from November's 11 closings. This is a 43 percent decrease compared to December 2006 when 14 sellers closed escrow. In December, only six sellers found buyers, the same as in November, but this is a 76 percent drop compared to a year ago when 25 homes entered into contract.
Very slow 2007 close.
Fifteen sellers found buyers in the first half of January, which is great improvement over November and December.
A good 2008 start!
The media was filled with terms such as stagflation, recession, growth-cession and finally the suggestion that we are having a real estate depression. Our elected representatives started talking "stimulus programs" and those running for office switched campaign focus to the economy.
Let's dwell for a moment and attempt to get a perspective or a point of reference for our South Placer real estate market by looking at annual sales volume.
In 2007, the Placer County Association of Realtors reported an annual dollar volume for closed escrows of $1,708,376,111. This is a significant decrease from 2005 when the real estate was really cooking with an annual closed escrow volume of $2,885,488,585.
To keep things in perspective, in 2007, South Placer's annual sales volume was 14.5 percent higher than in 2002 ($1,492,163,000) but 14.2 percent less than the volume in 2003 ($1,991,367,338).
Bottom line: 2007's closed escrow dollar volume is about the same that experienced in 2002-2003 when our market was "heating up." I suspect this is about the fifth best year ever for South Placer.
Advertisement
In South Placer County, December new sales (159) decreased 14.1 percent compared to November (185). This is 34 percent fewer new sales than in December 2006. December's closed escrows (226) were 2.6 percent less than in November (232) and off 25.2 percent compared to December 2006 when 302 escrows closed. The South Placer December median sales price ($356,928) was 2.5 percent less than November's $366,087 and 18.8 percent less than last year's $439,700.
We have had a very slow December in South Placer.
The same is true in Granite Bay, December closed sales (8) decreased slightly from November's 11 closings. This is a 43 percent decrease compared to December 2006 when 14 sellers closed escrow. In December, only six sellers found buyers, the same as in November, but this is a 76 percent drop compared to a year ago when 25 homes entered into contract.
Very slow 2007 close.
Fifteen sellers found buyers in the first half of January, which is great improvement over November and December.
A good 2008 start!
Glen Walder has been a Granite Bay resident since 1977 and a Realtor since 1992. He can be reached at glen.walder@prurealty.com.
