Down Year For Sacramento Real Estate

The past year, 2006, marked the lowest volume ofDecember 2005. In addition the number of pending
annual sales since 1999 with less than 47,000 newsales decreased 6 percent in December compared to
and existing houses and condominiums sold in theNovember. December inventory is reported to be
four county Sacramento area according to DataQuick.10,317 for the three counties, up 28 percent from
As reported in a Sacramento Bee story, "'06 housinglast year but still down from the July 2006 high of
stats tell a scary tale," the inventory of available14,547. Trendgraphix reports the average price per
homes has dropped from August 2006 highs but stillsquare foot of homes sold in the three counties was
ended up with just about 11,000 homes on the$225, a 9 percent drop from last December.
market in the four county area.In Sacramento County December sales decreased 4
The slowdown or market adjustment in thepercent from November and inventory decreased by
Sacramento real estate market during the year also13 percent. Pending sales decreased by 4 percent
brought lower prices and an end to the red hotfrom 942 pending sales in November to 907 pending
market that we experienced during the threesales in December. The average price paid per square
previous years. Median sales prices were down 7foot in Sacramento decreased by 1 percent during
percent in Sacramento County, 16.9 percent in Placerthe month of December to $224.
County and there was a 14.1 percent decline in YoloPlacer County decreases in December from
County. According to the Bee article some of theNovember were 5 percent in sales and 14 percent in
price decline can be attributed to new home buildersinventory. Pending sales also dropped 5 percent. The
slashing prices to clear inventory.average price paid per square foot in Placer County
According to Michael Lyon the president ofdecreased by 3 percent during the month to $223.
Trendgraphix, the statistics arm of Lyon Real Estate,In El Dorado County sales were off 21 percent,
"2006 was a great year for buyers and, at the sameinventory declined by 14 percent and pending sales
time, a reality-check for sellers. Overall, priceswere down 17 percent. The average price per square
dropped a minimum of 10% last year and days onfoot remained the same during the month of
the market for homes that have sold now averagesDecember to $231.
above 70 days," As part of the latest TrendgraphixOverall the Sacramento real estate market in 2006
press release he went on to say, "Sellers on averagewill be remembered. Some will call it the crash of '06
have to discount 4% below the last sold to make aor the year the bubble burst and others will
sale.remember it as the year of the slowdown or market
Trendgraphix reported sales volume was down 2adjustment. What you call it and how you feel about
percent in December for Sacramento, Placer and Elit really depends on how it impacted you.
Dorado counties and 25 percent lower than