Seize the Day

The Greater Sacramento Area maintained signs of improved real estate health in April 2012. Closed sales mapped to year-over-year and seasonal expectations with 2,343 closings combined in Placer, El Dorado, Sacramento and Yolo counties. New purchase contracts however, increased by a remarkable 25%. Short-Sale activity continued to overpower the waning “bank-owned” inventory as they reflected a 23% increase in closed sales and 39% increase in new purchase contracts compared to April of 2011.

The average sales price is also showing signs of stability with an overall increase of 3% in April. The 4 counties weighed in as follows: El Dorado $308,000, Placer $306,000, Yolo $279,000 and Sacramento $196,000.

Now here’s where it continues to get interesting; sales of homes above the $400,000 price point enjoyed a 46% increase over the same period. Total inventory declined further, leaving only 1.5 months of available homes at the current rate of sales. Unbelievably, interest rates relentlessly hover at, or below, 4%. Even above $400,000, inventory remains noteworthy at only 4.2 months in the four county areas.

“Heading toward summer, Short-Sale Sellers will provide opportunity for Buyers willing to endure longer escrow periods, and Bank-owned listings will trickle out to market and immediately see multiple offers,” said Pat Shea, President, Lyon Real Estate. “Home Owners with equity will need to wait awhile for significant appreciation. They can however, enjoy an excellent deal and interest rate on a move-up purchase. Cash Buyers will remain the “bully on the block” as those employing FHA & VA type loan programs will require hard work and exceptional patience to accomplish their goals. History tells us that timing is everything. Well now is your time, seize the day.”