Sacramento=Best Market for Home Sellers

5 Best Markets for Home Sellers

Daily Real Estate News | Tuesday, February 19, 2013

Spring buying season is just around the corner, and sellers have gained an advantage in more markets across the country this year. With less competition from falling inventories, list prices have risen in many areas. Realtor.com recently identified the five best places to sell in 2013:

1.Sacramento, Calif.: Inventories have declined here by 67.20 percent in January year-over-year while median prices have increased 40.2 percent.

2.San Jose, Calif.: Median prices have risen nearly 25 percent year-over-year, and it ranks fourth in the inventory for tightest inventory. A strong economy is giving a boost to rents and home prices.

3.San Francisco: Inventory shortages have created a seller’s market here with list prices rising more than 20 percent in the last year.

4.Phoenix-Mesa, Ariz.: List prices have risen 23.59 percent year-over-year, while inventories have fallen nearly 16 percent.

5.Washington, D.C.: List prices have increased about 16 percent in the past year, while inventories have fallen 30.77 percent. Washington, D.C. is one of the country’s priciest markets with a median price of $429,000.

 

Source: “Asheville, NC Tops Best Places To Buy In 2013,” Realtor.com (Feb. 14, 2013)

 

Median List Prices in Sacramamento Continue to Rise

Current Realtor.com trends for median list price shows California, and specifically Sacramento,continues to exhibit largest year-over-year increases.

Median List Prices – Largest y/y Increases – California markets continue to dominate the list of areas experiencing the largest year-over-year increases in their median list prices. In addition, Phoenix, Atlanta, and Seattle are among the top performers. The 10 markets with the largest year-over-year list price increases are shown below. All of these markets have experienced year-over-year declines in their for-sale inventories of 18 percent or more, while half of these markets had inventory declines of 40 percent or more.

Median List Price

10 MSAs with the Greatest Year-over-Year List Price Increases

 

Median List Prices – Largest y/y Declines – For more than a year, older industrialized markets that never experienced the rapid run-up in prices that led up to the housing crisis have been registering some of the largest list price declines. This pattern continued in November. The 10 markets with the largest list price declines are shown below. While Jersey City, N.J., and Chicago had year-over-year inventory declines of 33 percent and 21 percent, respectively, most of the remaining areas experienced inventory declines that were well below the national average (17 percent decline).

Median List Price

10 MSAs with the Greatest Year-over-Year List Price Declines

Median Age of Inventory (y/y) – The median age of the inventory continued to be relatively high in the coastal areas of the Carolinas and in other vacation destinations such as Santa Fe, N.M., and Ashville, N.C. Reading, Pa. The Philadelphia metro area in New Jersey and Portland, Maine, also had inventories that had been on the market for more than 120 days.

Median Age of Inventory

10 MSAs with the Longest Median Days on Market

California markets continue to register among those with the lowest time on market compared to other areas of the country. The median age of inventory was also relatively low in Denver and Phoenix.

Top Ten Real Estate Predictions for 2013 by RE/MAX Chairman

1. With more pent up demand, more homebuyers and sellers are expected to enter the market.

2. Homes sales will rise by 6-7 percent, and prices will rise by 3-4 percent.

3. The inventory of homes for sale will hit a bottom. More homes will be on the market from homeowners whose equity has increased and from lenders who are foreclosing more efficiently.

4. Higher priced homes will begin to sell.

5. Distressed property numbers will bottom out. “We will be dealing with a significant number of distressed properties for a few more years, but the numbers should start retreating to more traiditonal levels in 2013,” Liniger said.

6. Shadow inventory will continue to fall. Liniger explained shadow inventory has already fallen 12 percent from 2011.

7. The number of short sale closings will rise to a peak.

8. Record low mortgage rates will rise slightly by year-end. Although they will remain near their historic lows, Liniger says rates may start to inch up towards the end of year.

9. Lending will remain tight was Liniger’s one negative prediction. “Due to increased government regulation and the soon to be established provisions of Dodd-Frank, lenders will be compelled to keep standards tight,” he said.

10. Home affordability will remain the best in years, bringing more buyers into the market.

Sacramento Region Ranked In Top Ten for Price Recovery

Apparently, what many real estate buyers have been experiencing with a strong buyer’s market in the Sacramento area was so noted in a recent DSNews article regarding a recent report from Trulia. Of the ten national markets noted for price recovery, the Sacramento metro was ranked number 7 with an improvement in 2012 of 9.5% over 2011. In 2011 the prices had decreased by 8.5% against the previous year. Quite a turn-around! Here is the complete article:
The year 2012 was a big year for certain markets as prices grew by leaps and bounds after seeing declines in 2011.

On Thursday, Trulia a report revealing changes in asking prices in 2011 and 2012 among the 100 largest metros. After measuring improvements over the two years, Trulia ranked Las Vegas as the top turnaround market based on its recovery in asking prices.
Over a one-year period ending in December 2011, Las Vegas saw an 11.2 percent decrease, but ended 2012 with a 16.3 percent year-over-year increase in asking prices in December 2012, making the metro’s improvement the most dramatic.
Trulia also found nine out of the top 10 turnaround markets were located West and Southwest, and the top six saw double digit increases.
The metro that ranked second for its recovery in asking prices was Seattle, where prices rose by 10.2 percent in 2012 compared to a 13.8 percent decline in 2011.
Phoenix took the No. 3 spot even though it saw the biggest surge in asking prices in 2012. In Phoenix, prices improved by 26 percent compared to a 4.2 percent increase in 2011.
Two California metros took the next two spots. Oakland and San Jose experienced double-digit increases of 12.7 percent and 16.1 percent, respectively, after seeing declines in 2011.
Salt Lake City was No. 6 after experiencing a 14 percent year-over-year increase in December 2012.
Atlanta was the only metro on the list that is not located West or Southwest. In Atlanta, prices grew by 9 percent in 2012 after falling by 9.9 percent in December 2011.
The metros that took the last three spots on the top ten list were Sacramento, Fresno, and Tacoma. Asking prices in Sacramento improved by 9.5 percent in 2012 and decreased by 8.5 percent the year before. Fresno experienced a 9 percent gain in 2012 but saw an 8.7 percent decrease in 2011. In Tacoma, prices increased by 4 percent after a steep 13.7 percent drop in 2011.

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