El Dorado Hills Real Estate Market Update, February, 2011

Like many areas, the market in El Dorado Hills is still experiencing some price decline, but the numbers are lower than in many surrounding areas.  El Dorado Hills home prices fell 5.4% on a sold price per square foot basis, from $156.31 per square foot last year (i.e., one year ago in February) to $147.92 this February.  Coupled with the fact that this year’s crop of homes is 4% smaller than last, a mere 2972 square feet as opposed to last year’s 3096, this has pushed the average sale price down 9.1%, from $483,984 last year to $439,708 this year.

Taking a look now at “the swing” (the difference between sold price and list price), this year the average discount that buyers negotiated was 2.9% of list, or $13,150.  To one digit decimal precision, this is the same number for last year.  One of the things that sometimes surprises buyers is that the discount they can expect doesn’t change much in a “buyer’s market”.   Why is this?  Well, it’s because typically the home they’ve selected is already at the low end of the price range compared to comparable sales.   Does that mean there isn’t room to negotiate?  Not at all, and often an experienced buyer’s agent can still save you many thousands of dollars (sometimes by pointing out subdivisions you might not have even considered).

The number of distressed home sales selling as a percentage of the total in El Dorado Hills has risen from last year’s 57.8% to an “even” two thirds at 66.7%.  This February of the 33 homes we and our cooperating brokers sold in El Dorado Hills, 12 were foreclosures, 10 were short sales, and 11 were non-distressed.

As usual for the current market, short sale inventory is high at 10.6% — the bank approval speed of short sales ranges from slow in the best of circumstances to never.  Foreclosure inventory, the buyer’s favorite, is low at 2.7%, while non-distressed sales inventory splits the difference at 5.6%.

If you’re interested in distressed properties, as of early March we had 33 bank owned foreclosures available (now down to 25) and 142 short sales (currently up to 145).  To check out what we currently have available, visit our foreclosures page and our results page for short sales.   To get the very latest news on what’s coming available and where you might get ahead of an upcoming price reduction, give me a call at (916) 997-4086.  I look forward to working with you.

New Search Pages and El Dorado Hills Custom Links

We’re very happy to announce that many of the site’s new search pages are now live.  You can use the “Search for Homes” menu option on the top of the page to access the various search options, and we’ve also put together several custom links that are available from the “Homes in El Dorado Hills” menu.

We’ve still got a lot to do to bring you more search options and other functionality, but I think we’re at the point where we can declare the site “Not Half Cheesy(tm)”.

Please note that there’s a small glitch in the menu system where sometimes you’ll hover over the menu and the options won’t appear — especially if you enter the menu and then leave without making a selection.  We’re looking into how to fix this problem, but in the meantime, if this happens to you, simply click on any menu link to refresh the page and the menu should work from there.

Sacramento County Real Estate Market Update, February, 2011

The real estate market to our east in Sacramento County in February continued the trend that we have seen lately of falling prices combined with very low inventory numbers for foreclosures and very high inventory numbers for short sales. On the positive side, demand for homes has increased significantly since last year. Throughout the county, 1317 homes sold in February, an 11.7% increase compared to February of 2011, when 1179 homes sold. Of these sales, 28.3% were traditional, non-distressed sales, 22.3% were short sales, and 49.4% were foreclosures.

Because of the demand on foreclosures, as usual, foreclosure inventory was very low, at 2.2 months. Our inventory of non-distressed homes is slightly higher, at 3.9 months, and as usual, the inconvenience and difficulty of short sale transactions made them the category with the highest inventory numbers, at just under one year of inventory (11.9 months).

In terms of price, this February’s average home in Sacramento County sold for $107.86 per square foot, an 8.3% decrease from the $117.59 of a year ago. This years homes are slightly (4%) bigger than last year, at 1660 feet versus 1596 feet, so the average sale price fell somewhat less dramatically, 4.6%. Last year’s average sale price was $187,691, while this year’s average sale price was $179,108. The median price fell 5.9% during the same period, from $169,000 in February of 2010 to $159,000 in February of 2011.

According to Warren Buffet, the increasing demand for homes coupled with falling prices that we’re seeing here will be enough to allow the real estate market to reach equilibrium this year. Naturally we’re hoping he’s right, but the market has surprised me far too often to want to make a prediction. In any case, it’s a great time to be a buyer, and that’s why the demand is increasing.

Unit Volume Data

Units Sold February, 2010 February, 2011 Change
Foreclosures Sold 557 650 16.7%
(% of total units) 47.2% 49.4%
Short Sales Sold 249 294 18.1%
(% of total units) 21.1% 22.3%
Non-distressed Sold 373 373 0.0%
(% of total units) 31.6% 28.3%
Total 1179 1317 11.7%

Price Data

Prices February, 2010 February, 2011 Change
Sold Price / Square Foot $117.59 $107.86 -8.3%
Square Feet 1596 1660 4.0%
Average List Price $188,503 $183,794 -2.5%
Average Sale Price $187,691 $179,108 -4.6%
Median Sale Price $169000 $159000 -5.9%

Inventory (Based on 12 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1555 7965 5.1
Foreclosures 638 1380 2.2
Short Sales 375 4469 11.9
Nondistressed 544 2127 3.9

Inventory (Based on 6 months of prior sales)

Sale Type Average Sales Per Month Active Months of Inventory
All Sales 1456 7965 5.5
Foreclosures 643 1380 2.1
Short Sales 342 4469 13.1
Nondistressed 473 2127 4.5