What's Going on in the Market?
Placer County
May 2007 - Vol 2, Issue 5
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Greetings!
Golf 2

I was just reading the May issue of Sacramento Magazine...you all should subscribe to it for the latest and greatest on what to do in the area. They had a huge section on local and N. Cal golf courses. I started learning the hard way how difficult golf can be. I began taking my golf game much more seriously since January. Lessons every Saturday and the driving range throughout the week. I bought new golf clothes, shoes and even spent an afternoon at the Haggin Oaks Golf Expo. THEN I took my game from the driving range to the course!!! Tennis may have been a better option that day! Despite my high score I had a blast. I'm heading down to Scottsdale to try it again this weekend!! Wish me luck. If you want a good chuckle, come join me on the golf course!

Don't forget Mother's Day Sunday May 13. I have the perfect present you can give your mom - a new home!! I'd be happy to help you go shopping!

Have a great day!
Kia Kapci

Analysts still are looking for a relatively mild downturn - but in some areas, things will get worse before they get better.

Major real estate forecasters are looking for prices to bounce along the bottom this year and next and fully recover by 2009.

"Once the correction from the boom works through, we'll see slow, steady growth," says Celia Chen, Economy.com's director of housing economics, who expects annual price gains of between 2 percent and 4 percent by 2009.

And on Wednesday, the National Association of Realtors said it expects its measure of home prices to fall this year for the first time since the group began tracking sales nearly 40 years ago.

Overall, her firm is predicting that the downturn that started in late 2005 will end up pushing median home prices down 8.7 percent nationwide by the time it ends in early 2008. The nationwide figures, of course, mask a great deal of local variation.

Regions that saw the greatest price appreciation (and speculation) during the boom, such as Florida, Las Vegas, Phoenix and San Diego, are now taking the hardest hit - and will continue to do so until all the air is out of the bubble.

While Fiserv is forecasting flat prices nationwide over the next 12 months, the firm expects price drops of as much as 9 percent in half of the 50 biggest markets. Home prices in Las Vegas, down 5 percent over the past 12 months, may fall another 9 percent in the next year.

Miami real estate could see a similar slump. The housing market will also struggle in non-bubbly rust belt states such as Michigan and Ohio, chiefly because of the ongoing loss of manufacturing jobs.

But in parts of the South and West - especially areas that never enjoyed double-digit annual price gains - homes continue to appreciate.
Info from CNN Money
"Information on market conditions has become the brass ring for sellers who need to sell and buyers who want a deal," said Michael Lyon, President of Trendgraphix.

"There seems to be a new round of sellers who will miss their opportunity in this market because they have priced their homes at 20% more than buyers are willing to pay. Unless you are one of the lucky sellers close to the large employers in the central Sacramento area, you had better have detailed market data to price your home or you may not even get a showing in this market.

"With inventory levels rising above 12,000 units, only the most competitively priced homes are going to sell. Equally, buyers waiting for an increase in foreclosure properties to buy will also miss the boat. Foreclosure properties are sold in an 'as-is' condition and are typically in need of major repairs and will only represent 4% of total sales. Most, even when fixed up, will not have the sweat-equity that buyers are hoping for. The best deals are well-maintained, well-located homes, priced to sell now.

"The strongest sales are being seen for homes priced $400,000 and below, and in all areas. Meanwhile, most homes over $750,000 are facing markets with 12-months of inventory; pricing right is the only option.

"In summary, there are some great buys that savvy buyers are finding, but buyers should be careful not to rely on generalized market hype. Before placing an offer, they should obtain detailed information on pricing trends, inventory levels, and pending sale data over the last 15 months and in the specific area of their search. In addition, the Federal Reserve may raise interest rates slightly to fend-off signs of inflation; this in-turn will affect their buying-power."

Placer County sales increased by 10 percent and inventory increased by 10 percent from February to March. Pending sales increased by 18 percent from February to March. 0.7 percent of the homes sold for under $200,000; 34.9 percent of the homes sold for between $200,000 and $400,000; and 64.5 percent of the homes sold for over $400,000. The average price per square foot increased by 1 percent during the month of March to $238.

FOR A FREE MARKET ANALYSIS OF YOUR HOME AND ESTIMATE OF VALUE CALL OR EMAIL ME! I WILL GET YOU THE INFO WITHIN 24 HOURS OF YOUR REQUEST. Please contact me with all of your real estate needs and questions. I am always available to you, your family and friends!

Happy Mother's Day,
Kia Kapci
Lyon Real Estate

phone: 916-782-0558
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