We are hearing recent news about the slowing in sales volume
this spring and naturally the slowing has lead to questions of where is the
Real Estate Market heading? Let's face it - the real estate fall out (2007 to
2010) is not too far in the distant memory and volume of sales has slowed this
spring, inventory has increased, and prices seemly level following a general
period of extended appreciation. While I can't definitely state where the
market may be heading, it is a very honest and reasonable question to consider
the current market fluctuation and the recent shift in the market. Are prices
going to continue to rise? Why is inventory increasing? While there is not easy
answers to these questions, it's important to identify some basic
underlying factors of what drove the market prior to the 2007-2010 fallout
compared to today's market and monitor those factors in helping assess one's
position.
Real Estate Boom - Factors Then and Now:
The prior real estate boom that peaked generally in 2006 or so was driven by a multiple of reasons, one of which is known as the "wealth affect". Many homeowners took equity out of their homes to buy investment properties with aggressive loan programs and housing values increased and the cycle repeated for some time until ceiling hit and we all know the rest of the story. This time around, the recent increase in real estate values has not generally been driven by the "wealth affect" but more by large investment (hedge fund) companies, government related stimulus programs, historical very low interest rates, and for a period of time - an extreme shortage of inventory (less than 1 month of inventory in some areas). So the external factors driving the market are generally different from the prior housing boom.
While values have generally increased in Placer county the last few years - they are still below their 2006 year peak and tend to fall more in the 2008-2009 price range (see median and price per SF charts). Given the underlying factors, it's impossible to know exactly where the markets are heading in the short to long term. Will prices increase ? Stay flat ? Or even fall back? By following the above for mentioned external factors will help stay current on where the markets may be heading before it gets there. Sometimes the real estate news we read about is already "old" news when it's hits the print.
It is important to acknowledge that many real estate articles often talk about real estate markets in too broad of a stroke. For a clearer picture of what is happening in your local market, it's imperative to look at "your" specific market. There may be fluctuations and different trends from neighborhood to neighborhood. One thing is certain - accurately pricing your home in today's market is becoming more and more critical for a timely sale.
Bryan Lynch, Realtor
Direct: 530-878-1688
Cell/Text: 916-765-6785
Email: BryanLynchRE@gmail.com
www.BryanLynchRE.com
License#01790398
CURRENT LISTINGS:
www.1375BooleRd.com
MLS#14012596 - JUST REDUCED TO $719,000. High quality, custom built 3,822sf home located 7.1 acres with a park like setting and year round pond & creek and beautiful hilltop views. This property is a MUST see in person!
Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.
Real Estate Boom - Factors Then and Now:
The prior real estate boom that peaked generally in 2006 or so was driven by a multiple of reasons, one of which is known as the "wealth affect". Many homeowners took equity out of their homes to buy investment properties with aggressive loan programs and housing values increased and the cycle repeated for some time until ceiling hit and we all know the rest of the story. This time around, the recent increase in real estate values has not generally been driven by the "wealth affect" but more by large investment (hedge fund) companies, government related stimulus programs, historical very low interest rates, and for a period of time - an extreme shortage of inventory (less than 1 month of inventory in some areas). So the external factors driving the market are generally different from the prior housing boom.
 |
| PLACER COUNTY - MEDIAN PRICES 2006 - 2014 |
While values have generally increased in Placer county the last few years - they are still below their 2006 year peak and tend to fall more in the 2008-2009 price range (see median and price per SF charts). Given the underlying factors, it's impossible to know exactly where the markets are heading in the short to long term. Will prices increase ? Stay flat ? Or even fall back? By following the above for mentioned external factors will help stay current on where the markets may be heading before it gets there. Sometimes the real estate news we read about is already "old" news when it's hits the print.
 |
| PLACER COUNTY - AVERAGE PRICE PER SF- 2006 - 2014 |
It is important to acknowledge that many real estate articles often talk about real estate markets in too broad of a stroke. For a clearer picture of what is happening in your local market, it's imperative to look at "your" specific market. There may be fluctuations and different trends from neighborhood to neighborhood. One thing is certain - accurately pricing your home in today's market is becoming more and more critical for a timely sale.
Bryan Lynch, Realtor
Direct: 530-878-1688
Cell/Text: 916-765-6785
Email: BryanLynchRE@gmail.com
www.BryanLynchRE.com
License#01790398
CURRENT LISTINGS:
www.1375BooleRd.com
MLS#14012596 - JUST REDUCED TO $719,000. High quality, custom built 3,822sf home located 7.1 acres with a park like setting and year round pond & creek and beautiful hilltop views. This property is a MUST see in person!
Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.
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