Rocklin Real Estate Report – 2012 – 95765
Is Your Home Still Underwater?
Hopefully not!
2012 was a great year for Rocklin homeowners. Home values have moved up and many will no longer be underwater on their mortgages however we’re not out of the woods just yet..but we’re closer!
The market is being driven by low availability of homes for sale and low interest rates. Investors are dominating the market region wide right now seeing that values are climbing with little government intervention. Investor confidence has returned to our market.
This is making life tough for owner occupied, financed home buyers as they are competing mostly with all cash offers. Right now, all cash purchases are making up 35% of all real estate transactions conducted in our region.
The Rocklin market had as good a year as any city in the region. Considering what a great place it is to live, that should surprise no one.
Rocklin Average Sales Price Climbs How Much?
In 2012, the average sales price in the 95765 zip code of Rocklin went up over 19%. As you can see by the graph below, we will continue to see up and down fluctuations in the average sales price as we march along toward housing recovery.
However, we can’t expect that this kind of skyrocketing in the average sales price will continue unabated for long. There will come a time when this levels off or at least slows down and when it does, that will lead to increasing inventory levels and decreased demand. When that will happen no can know. One of the indicators to watch for will be increasing interest rates, which we got a taste of last week.
Rocklin Homes Days On The Market
By the end of 2012, the average days a home stayed on the market was only 35 days. That is an astonishingly low number of days on the market. Generally, a couple of homes that are not considered desirable by the market and overpriced will languish longer on the market and drive this number up to 60 to 90 days as you can see in the beginning of the year.
A number this low is indicative of homes flying off the market regardless of condition, location, amenities and price. Amazing!
THE Reason The Average Sales Price Has Increased In Rocklin
There are a couple of factors that have caused the average sales price to climb during 2012. One of them is the availability of homes for sale. Generally speaking, 6 months of available homes for sale is said to be a “balanced” real estate market. Anything below 6 months of inventory is said to favor sellers and above 6 months is said to favor buyers.
During the downturn we’ve seen in excess of 2 years worth of homes available to new lows of less than a month of homes for sale. It would be nice if there were a happy medium wouldn’t it? LOL
What’s at play is the simple economics of supply and demand. Not much supply increases demand and drives up prices. The result is increasing average sales prices, multiple offer situations and homes selling for much higher than list price. The historically low interest rates compound matters even further.
Keep in mind, this will end sometime soon. Will it be in the next 6 months, year or two years is anyone’s guess. What’s yours??
Summary
The Rocklin real estate market, like most markets in the region, is smoking hot right now. Low inventory levels and low interest rates coupled with the secret that the market is recovering is driving average sales prices higher. This in turn is helping homeowners get above water on their mortgages which will result in putting people back to work who depend on housing for their livelihoods.
When folks feel like they’ve got equity in their homes they fix them up and dress them up keeping home improvement people working. Homeowners with equity also refinance keeping lenders and title people in business and the trickle down goes on from there.
While it is a major pain for buyers right now, the overall affect on our local economy is very positive and that’s not news we’ve been able to report for the last 6 years.
Need to purchase or sell a home in Rocklin? Please call, text, email or simply fill out the form below and I’ll get back to you promptly.
Thanks for visiting!
