The Lyon Real Estate report for February sales is in.
Chief market watcher Mike Lyon describes a tale of two markets: slow at the high end and nearing bottom amid multiple offers in the $200,000 range. Here is the news, directly.
TRENDGRAPHIX MONTHLY REAL ESTATE REPORT
BROUGHT TO YOU BY
Lyon Real Estate
Sacramento, CA 95864
The Story of Two Markets
For those relying on closed sales figures from the County Recorders Office, standing inventory for homes $750,000+ is ranging from 2 years in Sacramento and up to 5 years in El Dorado County; dismal by any definition, said Michael Lyon, CEO of Lyon Real Estate. Yet pended sales have cut those inventories in half, most likely a result of sellers dropping their prices as much as 30%.
For homes below $200,000 it is a different story. We are seeing high inventory levels not seen since the mid 90s: 24% of homes pending sale in the Four County region are under $200,000. Prices have dropped to an average of $125 per square foot with some homes selling for under $100 per square foot. In this price range, you will find yourself competing with 5 or more bona-fide offers within days of the home coming on the market. FHA loan limits are up to $580,000 with a 3% down payment - no maximum income levels and no credit scores required equates to a modern day gold rush of investors and first time home buyers.
It has become evident that the bottom of the market for homes under $200,000 is near but for homes over $750,000, it is still far off. Exceptions still remain homes close to the major job centers.