I attended the Sacramento Association of Realtors monthly main meeting this morning. The speaker was the California Association of Realtors Deputy Chief Economist, Robert Kleinhenz. Interesting insights. I wish I could have taped his presentation because he cited so many statistics and graphs. Couple interesting things... The Sacramento market specifically, has one of the highest affordability rates in the entire state - at about 53% (CA rate is 33%, and US rate is 65%). He makes the claim that the majority of the problem our market is suffering from the tightening of lending standards, which limits buyers' ability to purchase, especially for higher priced homes (jumbo lending over $417k). Basically his prediction is that the peak of the foreclosures will occur through the end of this year, and then start to decrease...once the REO inventory starts declining, the market in general will start to get back to a place where there is buyer / seller equilibrium.
Meet Robert Kleinhenz
3 comments • Erin Attardi, Realtor - Sacramento, CA 916-342-1372 • May 07 2008 12:37AMComments
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I totally agree with him! The market is really picking up this year and 2009 is going to be even better!
Deputy Chief Economist Robert Kleinhenz says sales have already bottomed in Sacramento, and I'm seeing it every single day. I'm confident you are, too, Erin. The entry-level market is so crazy hot right now. A bank-owned property came on the market late Friday afternoon, and by Monday morning, the bank was calling for highest and best, making a decision by first thing Tuesday. That's really fast for a turnaround. I'm also hoping my buyer gets it, heh, heh. I LOVE this market!
I really went out on the limb with my 2008 real estate predictions this year, but so far, they are coming true.
"hey, look, homes are selling again, there is no slump!" well, sheesh - they are selling for 1/2 what the person bought it for last year!
We have not seen the bottom people.