Hi All --I am a little late with my monthly market report, but I have been nearly as busy as the Elk Grove real estate market. Things are crazy out there.A few information highlights:-- Appreciation in the region has been the highest since 2004.-- Nobody....repeat NOBODY...knows if it will continue at this rate.-- One respected analyst is predicting 20 percent appreciation for the rest of 2013.-- Others think it will be closer to 7-8 percent, which still is amazing.What does this mean? Well, remember what happened in 2007ish after the huge runup of the first few years of the 21st century. At some point, appreciation will slow down. Or worse.So if you are thinking about selling a home in the near future, it might be wise to make it the really near future. Houses are selling at a breathtaking pace and virtually everything (which means everything that is not absurdly priced and even some that are absurdly priced) is drawing multiple offers and selling for higher than list price.Meanwhile, if you are trying to buy a home, let's get cracking. It is a frustrating time for buyers, especially those looking to finance a home and not a cash investment, but it can be done.One thing for (almost) certain -- prices are not going down any time soon.Another thing that absolutely is certain -- FHA loans are going to cost more. They are raising the basic cost and changing the rules regarding PMI, or private mortgage insurance. In the past, PMI (about 1.25 percent of the loan amount) could be removed after five years and when the home's loan-to-value ratio reached 78 percent.NO MORE. After April 1, PMI will be 1.3 percent and will remain in force for the life of a 30-year mortgage and for at least 11 years on a 15-year loan. This will be a huge boon for refinance lenders, but a major pain for buyers. If you can move quickly, let's get a loan approved and locked!The bottom line is please give me a call if you have any questions about buying, selling or anything about real estate (anywhere, remember, we are the biggest company in the world and the known universe). If I don't know the answer, I promise to find it.Until next month, or when I finally get around to calling all of you to check in, thanks for your support in the past and the future. I truly appreciate it!Cheers,BobBob WalterSales AssociateColdwell Banker Residential Brokerage9250 Laguna Springs Drive #205Elk Grove, CA 95758916 691-3652cell 916 616-0829DRE #01876679Please visit my blog, http://bobwalteronrealestate.blogspot.com/,as well as my Business Page on Facebook:And remember, I am never too busy for your referrals!
Market Action Email Report
Robert "Bob" Walter Sales Associate bobwalter22.com (916) 691-3652 bob.walter@cbnorcal.com
Zip Code: 95624, 95757, 95758, 95829 January 2013 Property Type: Single Family Home, Townhome, Condo | Price $0 to $999,999,000
Trending Versus*: Trending Versus*: Market Profile & Trends Overview Month LM L3M PYM LY YTD PriorYTD PriorYear Median List Price of all Current Listings $220,000 Average List Price of all Current Listings $257,022 January Median Sales Price $246,500 $246,500 January Average Sales Price $271,692 $271,692 Total Properties Currently for Sale (Inventory) 500 January Number of Properties Sold 176 176 January Average Days on Market (Solds) 48 48 Asking Price per Square Foot (based on New Listings) $128 $128 January Sold Price per Square Foot $125 $125 January Month's Supply of Inventory 2.8 2.8 January Sale Price vs List Price Ratio 103.2% 101.9%
* LM=Last Month / L3M=Last 3 Months / PYM=Same Month Prior Year / LY=Last Year / YTD = Year-to-date | Arrows indicate if values are higher (up), lower (down) or unchanged (flat)
Property Sales January property sales were 176, down from 237 in January of 2012 and -28.7% lower than the 247 sales last month. January 2013 sales were at their lowest level compared to January of 2012 and 2011. January YTD sales of 176 are running -25.7% behind last year's year-to-date sales of 237.
Prices The median sales price in January was $246,500, up 20.2% from $205,000 in January of 2012 and up 0.6% from $245,000 last month. The average sales price in January was $271,692, up 28.4% from $211,542 in January of 2012 and up 2.7% from $264,479 last month. January 2013 ASP was at highest level compared to January of 2012 and 2011.
Inventory & MSI The total inventory of properties available for sale as of January was 500, down -6.7% from 536 last month and down -50.2% from 1,005 in January of last year. January 2013 Inventory was at the lowest level compared to January of 2012 and 2011.
A comparatively lower MSI is more beneficial for sellers while a higher MSI is better for buyers. The January 2013 MSI of 2.8 months was at its lowest level compared with January of 2012 and 2011.
Market Time The average Days On Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM tends to indicate a move towards more of a buyer's market, a downward trend a move towards more of a seller's market. The DOM for January was 48, down from 64 days last month and down from 78 days in January of last year. The January 2013 DOM was at its lowest level compared with January of 2012 and 2011.
Selling Price Per Square Foot The selling price per square foot is a great indicator for the direction of property values. Since median sales price and average sales price can be impacted by the 'mix' of high or low end properties in the market, the selling price per square foot is a more normalized indicator on the direction of property values. The January 2013 selling price per square foot of $125 was up 2.5% from $122 last month and up 21.4% from $103 in January of last year.
Selling Price vs Listing Price The selling price vs listing price reveals the average amount that sellers are agreeing to come down from their list price. The lower the ratio is below 100% the more of a buyer's market exists, a ratio at or above 100% indicates more of a seller's market. The January 2013 selling price vs list price of 103.2% was up from 101.6% last month and up from 99.3% in January of last year.
Inventory / New Listings / Sales This last view of the market combines monthly inventory of properties for sale along with new listings and sales. The graph shows the basic annual seasonality of the market as well as the relationship between these items. The number of new listings in January 2013 was 236, up 41.3% from 167 last month and down -39.8% from 392 in January of last year.
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Based on information from MetroList Services, Inc. for the period 1/1/2004 through 1/31/2013. Due to MLS reporting methods and allowable reporting policy, this data is only informational and may not be completely accurate. Therefore, Coldwell Banker Residential Brokerage does not guarantee the data accuracy. Data maintained by the MLS's may not reflect all real estate activity in the market. This information will expire 30 days from when it was generated.
