Wednesday, March 12, 2008

March 2008 Asking Price Distribution

Below is the March 2008 update on Sacramento's progress toward affordable housing for your average family. We seem to be making some nice progress in the lower 50%. The upper 50% doesn't seem to be budging much, but I have a feeling their day will come. After all, a 10% decline on a $1,000,000 home is $100,000, compared to $20,000 on a $200,000 home. While the percent is the same, the actual $$ pain is more acute on the higher end.

Once again, this is a very unscientific data set, gathered from Zip Realty's website (the mapping function) for all home types (SFH, condo, multi family).

6 comments:

Max said...

I should be able to duplicate this graph fairly easily using my data. Don't want to step on any toes however...

Gwynster said...

BT,

Your last post about taxes really brought some realty into my life.

I looked at a few properties that were S/S or REOs in West Sacramento that were possibly going on the maybe list. Then I checked what they paid last year on taxes. If I were to purchase one, the taxes including MR fees and HOA would come to just under $600! This would be 23% of the monthly P&I just in taxes! Sure I could argue that the taxes should come down based on decling value but never depend on winning a fight with city hall is my motto.

I have zero sympathy for the city having to absorb the costs and loosing tax revenue for the declining market. They allowed the developers rope them into a communities that were doomed to fail from the beginning.

Buying Time said...

Max - I would be honored to have you adopt one of my metrics. It would be great to have a more methodical approach since I didn't have the means to standardize it.

G - Did you recalculate based on your purchase price? 23% seems really high.

Gwynster said...

Max, it was based on a $270k purchase price. Taxes paid in 07 were $6,407.00 I was assuming a buydown to 4% on a fixed (yes we can do this)

That was an extreme example but it sure woke me up.

Max said...

OK, I'll give it a shot. The price ranges might be a little different, but it should look fairly similar.

Gwynster said...

Max, it would be for education purposes only. I am flat out opposed to MR and HOA fees but if a $75/sqft large build came up I'd think about it, maybe.

I guess my next question is what is the tax rate in Yolo Co.? If everything looks this crazy, I'll be happy to rent for the rest of my life.