This week I saw quite a few large price reductions (defined as 20k or more in my book). However the average price per square foot did not go down this week, even with all the price reductions. The reason is because the well priced places are selling, which tends to keep the for-sale-per-square-foot prices a bit higher.
The pending to available ratio seems to be fluctuation around 20% or so for the last 4 weeks. One of the factors I plan to use to gauge as recovery, is if this ratio gets above 40%.
The re-listing rate also appears to be picking up as more listings expire (go off my list, only to come back on later).
Again this data is only for Folsom and El Dorado Hills homes that meet my criteria. I have been tracking this data for three and a half months now.
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I track some Streng homes, but I've lost about half of them because they are getting pulled off the market.
One that just came on in Elk Grove, purchased *two months ago* for $315K and put on the market 3 weeks ago for 439K. They dropped the price yesterday to 429K. Now, it looks from the pictures as if they did a lot of remodeling to this place, even put in a wine station and custom basins (which are very cool)in the bathrooms. But, come on -- they turn the place over in a month and expect to make over 100K on the deal? At most, they may have put 20 to 50K in to the remodeling, and it looks like mainly cosmetic and upgrade stuff. It's a very cool house, and I'd love to own it, but not at anywhere near the price they're asking. I couldn't believe it when I saw when the last purchase was -- are people actually still out there trying to flip homes?????
Meanwhile, another great modern/contemporary home dropped their asking price by 40k last week. Unfortunately, this brings it to the price they paid for it when they bought it in 2005, at the high end of the market. This home is very unique and stylish, but it is in a regular middle-class neighborhood in Carmichael. It is way overpriced, even with the 40K haircut.
I know prices are coming down somewhat because it used to be impossible to find *anything* less than 300K and now, you can. But I think that seller's expectations are still pretty unreasonable.
In my database of 49 properties here in Cool, I have noted price reductions on 13 (about 26%). Several of these have had 2 or more reductions since I started tracking in January.
Some of these would would not qualify as "large" by your criterion, and are really trivial reductions on grossly overpriced homes; a few, though, have already dropped their price into money-losing territory.
It was a slow week up here, not much coming on the market, and handful of reductions. Met some more neighbors today, though, and wouldn't you know it- they're planning to put their place on the market soon. Hey, the more the merrier!
Out here in Yolo, some people have lowered to just about their purchase price in 04 and those homes are still sitting with zero activity.
On K street in Davis, there are 3 houses for sale and another for rent within 3 small blocks.
The interesting thing is that I see lots of multiple units just sitting. Something tells me that rental units here are coming under price pressure. I know another 4000 student units which UCD is building will have a huge impact. I just didn't think that fact would sink into JoeRentalOwners's head yet. People in Davis can be criminally disllusional.
In Woodland, new home sales are slow but at least they are doing better then the resale market. I can find homes that I might be interested in lowballing when I find out they bought in 01 to 03 and want double the purchase price. At least they have room to move.
The people who bought in 04 to 06 are completely screwed in this market. Local wishing prices put them in the new home price territory which there is no way in hell they can compete with.
Not sure what to say about West Sac. Only one development seems to be doing well and everything else is at a stand still. Foreclosures all over the central area north of the freeway by Bryte and Broderick.
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