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Sales and especially prices for condos in NAPA have rocketed (condo prices, see below, shot up almost 30% and sales rose 33% over February number). Condo prices in Shasta were up 81% over February and in Monterrey, were up 48%. CAR stats show lower income Californians were hurt by the pandemic and aren’t participating in the recovery as yet.
October’s latest housing stats show sales are declining significantly again across California. The Old Sacramento Waterfront and downtown area boast many restaurants and endless entertainment; there are also numerous fun and free things to do in Sacramento. When you want to get away from the city, take a day trip to a nearby town or explore the great outdoors—the region's natural beauty will stun you. Most affordable Northern California cities, but Sacramento is also the most populous on our list with just under 500,000 inhabitants. Perfect for people who want to head north to explore, Stockton surprises residents and visitors in more than one way.
Fresno County
There is a dichotomy in the region as the housing market continues to flourish despite the stalled economic recovery. Although supply levels are increasing, home prices and market time suggest that demand remains remarkably robust. Gord is ManageCasa's content researcher and writer capturing the imagination of investors, landlords, and property management pros. According to C.A.R., buyer demand is dwindling as mortgage rates rise, reducing consumer spending power. Total construction spending rises despite falling single-family spending.
Riverside home prices stayed even at about $600,000 while sales declined 19.2% vs last month. The Central Coast region saw its average price rise 1.9% or $17,500 while sales fell 22% vs September and were down 38.8% from 12 months ago. The Los Angeles Metro Area in September suffered a 1% drop in price or $7,430 on average on the sale of a single family houses to $742,570. Sales in Metro LA fell 12.% from September and are down 40.8% from 12 months ago. CAR’s housing consumer index fell 5 points to hit 65, with 85% of respondents saying it’s not a good time to buy. 96% have no intention to buy in the next 12 months which projects tougher selling conditions for sellers.
House prices in other places of Northern California
The amount of time it took to sell a home dropped in every county other than Solano (+1 day) compared to a year ago. Days on market fell everywhere except Shasta, Placer, and San Luis Obispo compared to the fourth quarter of 2021. With listing activity rising 17% compared to the fourth quarter of 2021, the drop in sales was a little surprising. The greatest drop in market time from a year ago was in Shasta County, where it took seven fewer days to sell a home. Average market time fell in all counties other than Solano and Shasta compared to the first quarter of 2022.
However, when rates rise, there is typically a lag in time before we know the impact on the market. Affordability continues to be a concern, but the market does not appear to be overly affected thus far. Average listing prices in most counties are increasing, which suggests that sellers remain confident for the time being. The job recovery in Northern California picked up its pace last fall, which was good news given the lackluster job growth last summer.
The Most Affordable Places to Live in Northern California
Year over year, prices are up 2.7% even though sales have plummeted by 40%. And we might predict price declines will pick up pace given buyers have so many reasons to sit on the sidelines. Courtesy of Car.orgLet us look at the price trends recorded by Zillow over the past few years. Since the last twelve months, California home values have appreciated by nearly 8.7% — Zillow Home Value Index. ZHVI is not the median price of homes that are sold in a month within a geographic region.
In the first quarter of the year, 10,347 homes sold, which is a drop of 12.4% compared to a year ago. The San Francisco Bay Area saw prices rise .5% to $1,250,500 while sales declined 3.4% vs September — down 26% year over year. The rental market however appears to be a different story from the home resales market. Rental property investors have a completely different opportunity to recover their costs . There were only 30.7% of homes that had price drops, up from 15.0% of homes in November last year.
Northern California
However, the pace of price growth has slowed, which will likely continue as the area starts to move toward a more balanced market. The median list price in California is $720,000 and the average price per square foot is $435. Find out more about rental property investment is wise and how property management software is providing the foundation for profitable rental portfolios. Condo prices rose surprisingly by $1000 vs last month although sales did decline by1 2%.
❱ Average prices rose in all the counties contained in this report. Even more impressive is that all markets saw prices rise more than 10%. ❱ In the second quarter, 16,607 homes sold, an increase of 79.8% compared to the same period a year ago.
Members indicate reduced demand, but a lack of listings keeps inventory reasonably tight. According to C.A.R.'s, 1.6% of REALTORS® polled believe that prices will increase and only 4.6% think that sales will increase in the California housing market. The proportion of responders who think that listings will increase was 18.2%, still a drop of 12.1% from the previous poll.
A supply-demand imbalance will continue to put upward pressure on prices, but higher borrowing rates and partial adjustment of the sales mix will likely limit the median price rise. Looking at the current market shift, C.A.R. has reduced its 2022 housing prediction. The supply constraints and higher home prices will bring California home sales down slightly in 2022, but transactions will still post their second-highest level in the past five years. Far higher financing costs in concert with very low affordability levels are now impacting the region’s housing market. Although there may be some pain as the market continues to revert to a normal pace of price growth and sales activity, I am not overly concerned about the long-term outlook. Home values are correcting, but the adjustment will not be severe, and certainly nothing like the plummet we saw following the bursting of the housing bubble.
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