Please welcome our newest guest real estate blogger – Jim Walker
From the Sacramento region comes the news that foreclosures are still way high and prices are still way low. Those low prices are stimulating a high sales volume.
Here in the sales trenches we make offer after offer after offer to be told that there are ten other offers on a property – that several of them are all cash and that several are over the price.
Armed with Dataquick numbers, Sacramento Bee reporter Jim Wasserman reported that Sacramento County’s 2,053 existing home sales in June were the highest since October 2005. Sales of new and existing homes combined reached a two-year high – up 45.7 percent from June 2007! The mini-boom continued in July with 4,126 sales in the entire Sacramento region.
Some of the worst hit zips in terms of price devaluation are now being picked over voraciously by bottom feeders. Del Paso Heights in ZIP code 95838 lost 45.7% in median price from June 07 to June 08 – amazing considering that by June 07 the bubble had already burst over a year earlier and was lying on the ground. But since real estate is usually not a one year investment, a look at the sales and median value from Trulia in ZIP code 95838 for over 4 years:
As prices decline, we can see in the chart that in Del Paso Heights the number of sales is soaring – and it’s the same for the rest of the Sacramento region. Is this summer’s high sales a mini boom in the picked over discount aisle, or just a dead cat bounce?