Rocklin Real Estate Market Update
This Is A Very Odd Start To The “Season”
The Rocklin real estate market is suffering from what looks like an affordability problem. If you take into account…
1) Interest rates are still at historic lows, 3.66% last I checked and I’m sure a better rate than that can be had.
2) Home sales are down 47.4% over last March. (the April numbers aren’t in yet)
3) Pending sales are down 15% over last year.
4) The number of homes for sale at the current pace of sales is 2.4 months. Last year, with same number of homes available, it was half that at 1.2 months. This is just a reflection of the slow pace of sales.
5) The number of homes on the market has stayed steady since December. Generally, we start to see more homes coming on the market in March than we have.
From the way it’s looking, few want to sell and few want to buy even though conditions are favorable for both in that there is very little inventory available (seller friendly) and, unless you’re in the sub $350,000 range, multiple offer situations have slowed (buyer friendly). It’s a very odd market.
Market Affordability
I saw an article on CNN from the Bay Area yesterday that said 1/3 of the people who live there would like to leave. Housing has gotten crazy expensive as has the cost of living and that said, wages have not gone up substantially for decades.
In April, San Francisco lost value for the first time in 4 years and typically, our region follows suit with the Bay Area either slightly before it or slightly after. This is no big revelation as the economy is the economy and we’re not that far away from the bay although the demographic is very different here than there.
In the news daily, I’m seeing this celebrity or that celebrity selling a mansion somewhere. My feeling is that their financial advisers are telling them we’re in for a downturn in values and to get out while the market is still somewhat favorable. I could be wrong, and often am, but the bottom of the market was the 4th quarter of 2012 and we’ve had nothing but growth since.
The average sales price in the first quarter of 2006 was $554,000 vs. $449,000 in 2016 so we’re still 19% below 2006 levels and loans aren’t as easy to get.
We’re currently in a slowdown that’s been going on since July of 2013 to this point. I don’t know but it would seem logical that this will continue for the foreseeable future.
Or maybe we’re just in a presidential year and folks are just waiting to see what comes. Your guess is as good as mine 
.
I can sell your home in 30 days or less for top dollar. Please call or text me directly at 916-532-7653 or click here, for my contact page and let’s talk about how I can help you.
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