Home Front

A blog about the economy and the Sacramento-area real estate market.

June 16, 2009
Lights out in the move-up market

I've just finished a story on a huge dead zone in the middle of the Sacramento-area real estate market - the move-up scene that is traditionally the bedrock of any market.

 The move-up market is largely gone - and the market can't really revive until it comes back. That's the summary of the story that's scheduled to run Thursday.

In short, we've become  a market in the past 18 months in which first-time buyers and investors become the majority of buyers - accounting for two-thirds of sales.

In a normal market the majority is usually the people who sell one house and buy another. Now that category is really in the minority. Why? Most sales transactions now are distress sales: they pay off a bank and that's where it stops. Nobody moves up. Most people also have no equity or a lot less to carry to the next house. So they're sitting. And those who do have equity are scared for their jobs. So as you can see: it's all frozen.

    We found lots of statistics about how this affects move-up neighborhoods. Three move-up ZIP Codes - Land Park's 95818, East Sacramento's 95819 and Arden Park's 95825 - are seeing their collective market share fall because of the lack of move-up buyers. DataQuick says the three have seen their sales fall by more than half from the 10-year average.

Here's a chart from MDA DataQuick that will run with the story:



Number 1,500+sqft houses resold in 3-zip area

% countwide resales































YTD 2009*





About Comments

Reader comments on Sacbee.com are the opinions of the writer, not The Sacramento Bee. If you see an objectionable comment, click the "report abuse" button below it. We will delete comments containing inappropriate links, obscenities, hate speech, and personal attacks. Flagrant or repeat violators will be banned. See more about comments here.

What You Should Know About Comments on Sacbee.com

Sacbee.com is happy to provide a forum for reader interaction, discussion, feedback and reaction to our stories. However, we reserve the right to delete inappropriate comments or ban users who can't play nice. (See our full terms of service here.)

Here are some rules of the road:

• Keep your comments civil. Don't insult one another or the subjects of our articles. If you think a comment violates our guidelines click the "report abuse" button to notify the moderators. Responding to the comment will only encourage bad behavior.

• Don't use profanities, vulgarities or hate speech. This is a general interest news site. Sometimes, there are children present. Don't say anything in a way you wouldn't want your own child to hear.

• Do not attack other users; focus your comments on issues, not individuals.

• Stay on topic. Only post comments relevant to the article at hand. If you want to discuss an issue with a specific user, click on his profile name and send him a direct message.

• Do not copy and paste outside material into the comment box.

• Don't repeat the same comment over and over. We heard you the first time.

• Do not use the commenting system for advertising. That's spam and it isn't allowed.

• Don't use all capital letters. That's akin to yelling and not appreciated by the audience.

You should also know that The Sacramento Bee does not screen comments before they are posted. You are more likely to see inappropriate comments before our staff does, so we ask that you click the "report abuse" button to submit those comments for moderator review. You also may notify us via email at feedback@sacbee.com. Note the headline on which the comment is made and tell us the profile name of the user who made the comment. Remember, comment moderation is subjective. You may find some material objectionable that we won't and vice versa.

If you submit a comment, the user name of your account will appear along with it. Users cannot remove their own comments once they have submitted them, but you may ask our staff to retract one of your comments by sending an email to feedback@sacbee.com. Again, make sure you note the headline on which the comment is made and tell us your profile name.

hide comments

On October 14, The Sacramento Bee will temporarily remove commenting from sacbee.com. While we design the upgrade, we encourage you to tell us what you like and don't like about commenting on sacbee.com and other websites. We've heard from hundreds of you already and we're listening. Please continue to add your thoughts and questions here. We also encourage you to write Letters to the Editor on this and other topics.

Jim Wasserman on Twitter

Follow "jimwasserman" on Twitter

October 2013

Sun Mon Tue Wed Thu Fri Sat
    1 2 3 4 5
6 7 8 9 10 11 12
13 14 15 16 17 18 19
20 21 22 23 24 25 26
27 28 29 30 31