June 2016 H OUSING N EWS R EPORT Meanwhile, the median price per square foot for homes that sold for $500,000 or more increased 3 percent in May 2016 compared to a year ago. Annual appreciation in that above $500,000 price range dropped to as low as 2 percent in February this year and decreased 1 percent from a year ago in August of last year, according to RealtyTrac data. Gove said one of his clients recently passed up on a home solely because it had been sitting on the market for 28 days — considered a long time in the Sacramento market. “Twenty-eight days, there is something wrong with it. If no one else wants it, I don’t want to be the sucker who buys,” he said, describing the mentality of his client. Gove explained that the property was originally overpriced, which kept it on the market for so long — a cautionary tale for sellers who think they can get away with
The median sales price for single family homes and condos in the Sacramento metro area in May 2016 was $335,000, exactly double (100 percent higher) the $167,500 when home prices bottomed out in January 2012, according to RealtyTrac data derived from publicly recorded sales deeds. The May median home sales price was still 16 percent below the previous peak of $399,000 in August 2005. Including May, the median price per square foot in the metro area — comprised of Sacramento, El Dorado, Placer and Yolo counties — has increased on a year-over- year basis for 48 consecutive months, hitting a peak annual appreciation rate of 40 percent in May 2013. Relative to that increase three years ago, the median price per square foot in May 2016 increased a modest 10 percent compared to a year ago.
Brent Gove Broker, author and local radio show host Sacramento, California “ Before we could get away with an overpriced home; the market would catch up with it quickly. But we can’t get away with that now. ”
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SOURCE: RealtyTrac
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