“The Sacramento housing market is still solid and housing prices are likely to keep going up,” said Campbell, who noted that his data shows a 9.8 percent year-over-year increase in median sales prices in May in Sacramento County. “That’s doing better than San Diego, Los Angeles and a lot of other places.” Campbell also tracks inventory of homes for sale, which his data shows is at 2.9 months and declining from a year ago — indicating that supply is shrinking. Meanwhile, the number of sales in Sacramento increased from a year ago — indicating strengthening demand. “So while demand is increasing, supply is dropping,” he said. “It’s a solid market. The pure fundamentals of supply and demand are driving the Sacramento market higher.” Campbell caveated his positive outlook for Sacramento with an acknowledgement that

2005, when buying a median-priced home required 76.6 percent of average weekly wages. “There has been a really frenzied sense among buyers: ‘I need to get into the market before prices get too high,’ and that reminds a lot of us of 2004 to 2005,” Lundquist noted. Job creation is not highly correlated to home prices, according to Robert Campbell, who publishes The Campbell Real Estate Timing Letter monthly for 19 U.S. cities, including Sacramento. For that reason job creation is not one of the metrics he relies on to advise his newsletter readers when to buy and when to sell real estate in any given market. Campbell said all of the metrics he tracks indicate home prices will continue to rise in Sacramento for at least the near term, and he is not yet advising his readers to sell there. Still a Solid Seller’s Market

Robert Campbell Publisher The Campbell Real Estate Timing Letter San Diego, California “ There’s nothing wrong with bubbles if you know when to exit. You are trying to get off the elevator before the cable (breaks). ”

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SOURCE: RealtyTrac


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