Home Selling in 95816>Question Details

Jeanne, Home Seller in Sacramento, CA

How are house prices holding in East Sacramento 95816? I was thinking of selling my house but there are a

Asked by Jeanne, Sacramento, CA Thu Oct 16, 2008

number of homes within my area that just went on the market. thanks

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Hi Jeanne,

Both Elizabeth and Paula are correct. The neighborhoods in East Sacramento are definitely an anomaly with compared to the majority of the Greater Sacramento real estate market. As I am sure you know 95816 encompasses several different neighborhoods, and some are outperforming others, and certain price ranges are outperforming others - although as a whole the area is very strong.

So as you consider whether now is the right time for you to sell, I ask you these two questions - What neighborhood is your home in? What general price range does your home fall in?

If your home is a $2M 4 bed / 3 bath estate in the Fabulous 40's, you will have a much narrower market of buyers for your property vs. a $325k 2/1 in the Alhambra Triangle that will have a broader market of buyers.

I had a listing in 95816 that was right on Folsom Blvd that sold in 1 day at the end of August...the house was priced in a lower end price tier for the area, and although it was on a busy street, was right across from Crescent Park.

Buyers are most definitely out there. There is a lot of demand that will carry over through the winter, when most sellers take their homes off the market. East Sacramento is a highly desirable area where people just want to live. My advice to you is that you should strategize with your agent based on your individual scenario (neighborhood, price range, your personal reasons, etc). Good luck to you as you make your decision.

Erin
1 vote Thank Flag Link Thu Oct 16, 2008
Erin Stumpf, Real Estate Pro in Sacramento, CA
MVP'08
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Any of the older established neighborhoods in Sacramento seem to be holding their own right now. (East Sac, Curtis Park, Land Park) The caveat in this is that the home must be priced sharply. You don't want to leave money on the table but you want it well enough priced to get offers. Sellers should not leave "negotiating room", because at an inflated price, you won't have any offers to negotiate. Also, homes should show well. Staging is important as well as fresh paint, being sure flooring is in good shape and all light fixtures are working. Landscaping and curb appeal must be paid attention to. If all this is done, the home should sell quickly. Good Luck! Paula Swayne
Web Reference: http://www.PaulaSwayne.com
1 vote Thank Flag Link Thu Oct 16, 2008
Hi Jeanne: As you may know, my company's midtown office, Lyon Real Estate, is the number one office in East Sacramento, so I feel qualified to answer your specific question. This is the one area in Sacramento that has actually experienced a bit of appreciation over last year.

There has been an explosion of million-dollar homes in McKinley Park, a result of renovation of existing smaller homes. Contractors tear down every wall but leave one standing, and essentially rebuilt the entire home. The lower-end homes are in high demand because of the influx of buyers who want to find affordable housing in East Sacramento. Most homes of 1,000 square feet or so with two bedrooms are flying into escrow. So, it sort of depends in which end of the spectrum your home lies.

I will say that the fourth quarter market in East Sacramento is doing extremely well, and I fully expect it to out perform the first three quarters of this year. Putting your home on the market now might be a good move. If you're not quite ready to sell yet, the spring market is another great choice -- however, typically we see more inventory in March / April, which drives competition. You might fare better when there are fewer homes on the market and more buyers than vice versa.

However, to attract buyers, your home should be immaculate, repairs completed, sparkling with curb appeal, staged and priced appropriately with extensive marketing, especially online.

Feel free to contact me if you'd like specifics.
1 vote Thank Flag Link Thu Oct 16, 2008
Jeanne, the only reason anybody would want to sell in this market is for 2 reasons:

1) They Have To Sell
2) They are relocating out of area

If you dont have to sell, i would advise not. If you dont, I would speak with an agent and talk about strategy positioning when dealing with other listings.

Before you list your property, I would take the time to preview the other houses in the neighborhood that you and your agent consider a comparable and then make an educated decision if you will get the price you want without having to wait months and months.

Its all going to come to price and what else is out there at the time your property is being marketed.

Ideally, you want to be the only house on the block for sale, if thats not possible, wait till a few of them fall off the market.

Its very important in todays market to not only price it correctly but to properly position your property when its time to list...


I know of several agents in Sac that can help with buyers if the price is right.
Web Reference: http://www.renter2buyer.net
1 vote Thank Flag Link Thu Oct 16, 2008
The theory of substitution proposes that a consumer may choose to substitute a similar product (house) for their preferred house if there is a noticeable price differential. Thus I am amazed to see mid-town house prices continue to hold at year 2005 peak levels while many surrounding neighborhoods and towns have dropped by 30% -40%-50% and more. While they might hold at their current high level, I don't see how they can hold such a valuation premium of houses that could be substituted for them.

The median listing price and sales price for a 95816 home sized between 2000 and 2400 square foot home is $638,000. Arden (95864) and Land Park (95819) also enjoy a median over $600K for that size.

However, drive all the way out to Carmichael the median sales price this year for houses 2000 to 2400 square feet dips below $400K.

Trade the Hummer in for a Prius and drive all the way out to Northwest Roseville (always amazing) even at $5 gas,(it is coming back, enjoy the $3 gas for the moment) the median sales price of $358K for this size range house is a significant savings for someone who is looking for good schools, parks, lots of shopping, recreation and employment opportunities.

Folsom was at $430K on median sold price in 2008 so far.

Even Granite Bay looks a bargain at median of $507,500 for this size range against those close in neighborhoods.

I think I am comparing apples to apples here. Carmichael, Roseville, Land Park, Arden, mid town,Folsom, Granite Bay
but let me throw in a pomegranate, a nectarine, and guava.

Natomas (95835) $289K, Elk Grove (95757) $299K, Rosemont (95826 and 95827) $305K

Sure McKinley Park is nice but is intrinsically worth twice as much as these other towns and neighborhoods?

Oh, the median sale price in this size range for Florin area? $252,750 ; The same size home in midtown is worth two and a half times as much on average.

Either these desirable suburban areas will revive to their peak prices, or the close in desirable neighborhoods are going to have a hard time holding their value as people move in and out of the metro area. I think this degree of disparity between the close in neighborhoods and the suburbs is a recent phenomenon. I have only lived here for 16 years though. Does anybody remember a time when city houses on small lots were worth twice as much as suburban houses? Maybe before the freeways were built?
0 votes Thank Flag Link Fri Oct 17, 2008
Jim Walker, Real Estate Pro in Carmichael, CA
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