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Down Year For Sacramento Real Estate

The past year, 2006, marked the lowest volumeof pending sales decreased 6 percent in
of annual sales since 1999 with less thanDecember compared to November. December
47,000 new and existing houses andinventory is reported to be 10,317 for the
condominiums sold in the four countythree counties, up 28 percent from last year
Sacramento area according to DataQuick. Asbut still down from the July 2006 high of
reported in a Sacramento Bee story, "'0614,547. Trendgraphix reports the average
housing stats tell a scary tale," theprice per square foot of homes sold in the
inventory of available homes has dropped fromthree counties was $225, a 9 percent drop
August 2006 highs but still ended up withfrom  last  December.
just about 11,000 homes on the market in the
four  county  area.In Sacramento County December sales decreased
4 percent from November and inventory
The slowdown or market adjustment in thedecreased by 13 percent. Pending sales
Sacramento real estate market during the yeardecreased by 4 percent from 942 pending sales
also brought lower prices and an end to thein November to 907 pending sales in December.
red hot market that we experienced during theThe average price paid per square foot in
three previous years. Median sales pricesSacramento decreased by 1 percent during the
were down 7 percent in Sacramento County,month  of  December  to  $224.
16.9 percent in Placer County and there was a
14.1 percent decline in Yolo County.Placer County decreases in December from
According to the Bee article some of theNovember were 5 percent in sales and 14
price decline can be attributed to new homepercent in inventory. Pending sales also
builders  slashing prices to clear inventory.dropped 5 percent. The average price paid
per square foot in Placer County decreased by
According to Michael Lyon the president of3  percent  during  the  month  to  $223.
Trendgraphix, the statistics arm of Lyon Real
Estate, "2006 was a great year for buyersIn El Dorado County sales were off 21
and, at the same time, a reality-check forpercent, inventory declined by 14 percent and
sellers. Overall, prices dropped a minimumpending sales were down 17 percent. The
of 10% last year and days on the market foraverage price per square foot remained the
homes that have sold now averages above 70same  during  the  month of December to $231.
days," As part of the latest Trendgraphix
press release he went on to say, "Sellers onOverall the Sacramento real estate market in
average have to discount 4% below the last2006 will be remembered. Some will call it
sold  to  make  a  sale.the crash of '06 or the year the bubble burst
and others will remember it as the year of
Trendgraphix reported sales volume was down 2the slowdown or market adjustment. What you
percent in December for Sacramento, Placercall it and how you feel about it really
and El Dorado counties and 25 percent lowerdepends on how it impacted you.
than December 2005. In addition the number



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