Median home prices in the Sacramento metropolitan area continue to rise at a brisk rate; on average 20% over the last 12 months. If you are interested in seeing what’s happening in your area, read on.
How long will prices continue to rise at this pace? Who knows? But one thing for sure is this…. It may be a good time to buy a home, but for many it’s a difficult and arduous process.
For sellers waiting to put their home on the market to maximize profit or reduce losses after the market crash, timing the market is usually determined in hind sight.
Keep this in mind if you are thinking about putting your home on the market in the near future……
- As interest rates rise, buyer’s purchasing power goes down.
- As prices rise, more homes will be placed for sale on the market. This will lead to increased inventory and will help to stabilize price and slow appreciation. In addition, the number of homeowners who owe more than the worth of their property is decreasing, allowing them to market their homes and avoid a short sale which will further increase inventory.
- The typical selling season runs from February – May/June. After June, people settle down and tend to focus on vacations and preparing their kids for school. August tends to be one of the slowest months of the year for home sales.
To see what’s happening with median price in your neighborhood CLICK HERE.
If you would like more specific information about home prices in your area, shoot me a quick email.
Real Estate Professional – 20+ years in home sales
Better Homes and Gardens Real Estate
I’m frequently asked by friends and clients, how much monthly payments are affected by changes in the interest rate. Here’s a quick summary based on a $150,000 loan amount. Click Here!
The Federal Government extended the Mortgage Debt Forgiveness Relief Act which, for the most part, protects a homeowner selling a home for less than what is owed on the loan (short sale) from paying taxes on the difference as taxable income. To see the law as it was originally created, CLICK HERE.
In addition, here’s an article from the Huffington Post that provides information on the Federal Extension- CLICK HERE!
California had a similar law which expired at the end of 2012. The California State legislature is considering an extension as well. If the California law is extended, it is likely (but not guaranteed) that it will become retroactive to January 1, 2013. Here is the California law that expired the end of 2012: CLICK HERE!
Most people today know that home prices are on the rise in the greater Sacramento area. Some areas like Rocklin, Roseville and Lincoln have seen median prices rise by double digits over the last year. It’s important to remember that median price can be affected, month to month, by the size and number of homes sold.
If you would like to see year over year sales and median price changes in your zip code for December 2012 CLICK HERE!
The real estate market in the greater Sacramento area continues to be very strong with prices continuing to rise, and many buyers competing for the limited inventory available. In most areas, sold homes (closed transactions) dropped in January which is typical after the holidays since there are fewer home sales gone pending in November and December. But, we have seen a strong increase in pending sales (contracts written) in January which will translate to increased sold/closed homes in February and March.
In addition, most areas in our marketplace have only 1-3 months of inventory available for sale. The number of months of inventory is an indicator as to what type of market we’re in. Inventory of 3 months or less, indicates a strong seller’s market. 4-6 months of inventory is neutral and is considered to be in equilibrium with buyers and sellers. 7 or more months of inventory indicates a buyer’s market.
If you’re interested in seeing what’s happening in your area CLICK HERE! If your area is not listed, feel free to contact me and I’ll get you what you need.
This home is located in West Park, one of the newer areas of Roseville. With 3019 square feet the home offers 4 bedrooms, 2.5 baths, bonus room / loft, and comes with Solar. Priced at $359,900.
To learn more about this home, click here.
It looks like the bill addressing the fiscal cliff has been ratified. Included in the bill were provisions to extend the Mortgage Debt Foregiveness Relief Act and the Mortgage Insurance Deduction. Both have been extended for one year. Had the Mtg. Debt Relief Act not been signed, home sellers would pay income taxes on the amount of mortgage debt forgiven. Mortgage Insurance (MI) has been a deduction along with mortgage interest but the MI was at risk as well.
Phew!! Nothing like waiting til the last minute.
This should help the continued growth and price appreciation we’re seeing in the real estate market. To read the news article, click HERE.