It's finally official - Sacramento real estate is in decline
Sacramento Bee article: home prices head south
I did my usual check on zip realty:
264 single family homes and condos on the market in Davis
133 are reduced
The above numbers do not include the FSBOs and the reduced number doesn't include sellers relisting at lower prices like this one below
916 PENNSYLVANIA PL, Davis, CA 95616
MLS 60077388
Originally listed at $539,000 April 10th 2006 and back on market at $499,000 now. It's located 2 doors down from the rail line and right across the street from some student apartments. To make this owner even less happy, I've counted 11 properties within a mile all under his price. Some are even in much better shape with better amenties and 2 are under $400,000.
Sale History from Zillow
05/23/2003: $360,000
06/23/2000: $195,000
People here just don't make that kind of money to be able to afford $300,000 homes.
I know most of my friends are still bullish on RE and believe it can't possibly go down. I know I'm going to feel bad for some of them (they are my friends after all) when the jaw-dropping brick of reality comes crashing through their suburan picture windows and hits them upside the head.
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1 comment:
DJ,
I don't think that you can feel bad for them, really, because deep inside everyone knew this was WRONG. I rent in Manhattan and I am waiting for the tsunami to reach the island here. Of course the prevailing sentiment is "it can't happen here..." But now the Banker Bonuses are over, RE is toast.
Do you have any deflationist friends? I doubt it. There are not too many deflationistas here, more shopaholix and bling-babes. My last girlfriend said that real estate always goes up - she really believed that her studio was worth half a million and would soon be worth a million. We had one conversation about bubbles and money supply and shorting the stock market - she looked at me as though I was insane.
Bear markets are tough. Nobody makes money, not even the Bears. But I trade a few instruments from the short side and I am up on the year, which is about as much as one can hope for without being a massively leveraged hedge fund.
Fun for me is taking the opposite side of an over-extended trade and imagining a hedge fund burn up on the other side of the trade. The oil trade is an interesting one, but not for the faint-hearted.
Stay patient DJ, you will be able to buy half the town before this is all over....
best
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