Placer and Sacramento County real estate update 8/30/17

The market trend continues...
I'm skeptical though, I think the market is due for a correction. We've shoot up again too much and too fast in accordance with peoples affordability.
I think we have a couple US markets to keep an eye on as they should decline before we do. When we start to see Florida, and Arizona drop, then I think we'll follow suit. The constant influx of bay area buyers will keep us stronger than other areas of our state and country.
Another key market indicator is market rents which have skyrocketed. Rents are up about 10% in the last year.
Looking forward to another strong year!

Home Prices ‘Unlikely’ to Reverse Course

Home prices increased in June 2017, and are unlikely to reverse course, reports the S&P Dow Jones Indices.

RISMEDIA.COM

August update: Roseville

Here we are in August already.  Wrapping up the nice summer we had, kids back in school already.

How is the real estate market and what can we expect?

In the past weeks, I've noticed a change in the market.  Demand is down and inventory is gaining.  I think we'll see 3-5% shift downward this winter.  We're due for a market check.  If you're a buyer right now and can wait until November, do it.  I think you'll be happy you did.  As for sellers, it's not so much a sellers market anymore.  We're more balanced right now, not a buyers market, nor sellers.

I have some new houses coming on the market soon in Roseville, Rio Linda, Orangevale, and a condo in Sacramento.

If you're looking for a one, I just listed a 8200 sqft house in Auburn.  1 millon for the view and only 600k for the house.  Great deal. (806 sunnyslope Way)

Another new one in Natomas, (5520 Lackland Rd) 2444 sqft 3/3 for 450K

Roseville and Rocklin Real Estate

Were seeing the beginning of some changes in the market.  There are some price points that are seeing some resistance and it's mostly the higher the price the less the buyer pool is.  Anything in the entry level, 300,000 to 400,000 in the Roseville / Rocklin area will go quickly.  Surrounding areas are hot too.  Take Orangevale for instance, we're seeing small 1300 sqft places going for the mid 300's.
The beginning of appraisal issues are here.  Values have been pushed where a new ceiling is being crated with every sale.  This trend cannot and will not go on much longer.  There will be a market correction coming in the near future.  I'm not calling it a bubble, but a market correction seems like a better description of what's to come.  One way or another, either supply and demand, interest rates, jobs, 10 year adjust coming due... something will come into play and reverse the values.  No one likes to take about the market going down, but it is a cycle.  The general consensus is around a 7 year cycle in california.  I think that's close when you look historically; however, the last recession was a whopper.  This time around is more like 10-11 years.
Here's my 2 cents for the day.  If you 're looking to buy or sell a home in Roseville, give me a call.

Chad Phillips
Re/Max Gold
916-390-1476

The color you paint your house can effect your sales price.

Here's a good article.  We know fresh paint is the cheepest way to clean up a house, but didn't know the color could be so important.

The Paint Colors That Sell—and the Ones That Don’t

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Paint colors play a crucial role in successfully selling a home, having the power to influence a homebuyer’s decision to make an offer or move on—and the best colors, according to a new Zillow analysis, are blues and grays.

Homes with bathrooms that have soft blue walls (e.g., periwinkle, powder blue), specifically, sold for $5,440 more than expected in the analysis, as well as homes with a “greige” (beige/gray) exterior, which sold for $3,496 more than homes with brown or tan stucco exteriors. Homes with dark navy blue and/or slate gray front doors also sold for more: $1,514.

Certain colors, though, have the opposite effect, lowering sale prices by a few thousand dollars or more. In fact, homes with bathrooms that have white walls sold for $4,035 less than expected, while homes with darker walls (e.g., brick red, terracotta) sold for $2,031 less than expected.

“Color can be a powerful tool for attracting buyers to a home, especially in listing photos and videos,” says Dr. Svenja Gudell, chief economist at Zillow. “Painting walls in fresh, natural-looking colors, particularly in shades of blue and pale gray, not only make a home feel larger, but also are neutral enough to help future buyers envision themselves living in the space. Incorporating light blue in kitchens and bathrooms may pay off especially well, as the color complements white countertops and cabinets—a growing trend in both rooms.”

The analysis considered over 32,000 photos of sold homes across the U.S.

low inventory effecting housing prices

I try to get a monthly update out about our local real estate market.
The Sacramento area is seeing inventory around 30 days on the market, and Placer is showings zip codes of less then 30 days.  I often wonder where the jobs are and whats driving the crazy train; however, when you look at the state of the economy as a whole then you start go get a clearer picture. I was a little surprised to find out that our area is actually in the top 10 cities for finding a job.  This coupled with the bay area prices is fairing well for us here in the valley.  The builders know it, that's why they've vaped up production.  Recently I went to check out a couple of the new communities in Rocklin and Lincoln.  They are selling houses before they're even built.  We're talking 6 months out!
Most of us went from little to no equity, to having some change in our pockets again.  As long as the loan programs stay within reason we should see continued growth for several years.
Great time to sell, especially for the move up buyers.  If you're thinking about buying or selling in the roseville area, give me a call.  We can look closer at the situation and find the best coarse of action.  My cell phone is always on!
916-390-1476

Chad Phillips
Broker Associate - Re/Max Gold
BRE # 01405825

Sacramento / Placer Real Estate

Here we are already past tax time.  This year is going as predicted by most in an upward trend, somewhere in the 4-5% appreciation.  Overall things are looking healthy for the economy and our real estate market.  There are certain factors that shouldn't be ignored in this optimistic view point.  Jobs!  Are we seeing an increase in jobs, salaries?  Is it duel income making up the difference in a families household income.  How long can prices continue to climb before a simple 3 bedroom 2 bath houses costs more than 48% DTI?  I like to be optimistic, but also realistic.  I think we have a correction coming in the next year.  Another factor to keep in mind is the interest rate.  The Feds keep threatening to raise rates but they don't want to upset the economic balance.  The rates are artificially low and raising them would in theory be a good thing.  Rates in my opinion should be around 5-6%.  That should encourage people to save and help combat inflation.
When it comes to buying or selling in our area, clearly now is a great time to sell.  We're seeing values in some areas above what the where before the market crash in 08.  On the flip side, is it a good time to buy?  It depends!  With rents sky high, I think it's still a good idea for people to buy a primary residence.  Now, investment property I wouldn't recommend right now.  I'm looking to buy a rental myself, but I'm thinking I'll wait until I find a good deal. 
In other areas there are signs too.  The values around San Diego are declining.  Property values around San Francisco are so crazy that they're running into appraisal problems.  Thanks to the bay area values, our niche market will hold longer than other cities and states. 

Looking to buy or sell in Roseville / Rocklin?  Feel free to give me a call.

Chad Phillips
Re/Max Gold
916-390-1476

Roseville real estate - Market Update

1/10/17

Here we are in the beginning of a new year.  The housing market has been trending upwards for quite some time now, roughly 2012.  There has been some inadvertent bumps and hiccups, but we're continuing to see a positive growth in values.  Most predictions are bringing 2017 within a 4-5% increase, year over year.  So far, this year is certainly showing this to be the case.
Typically this time of year the market is soft.  Not many people are looking to move during the winter and rainy season.  The supply and demand are both low right now but the demand is still higher then the supply.  I've been telling most sellers that are thinking of selling, not to wait.  Usually I would be telling folks to maybe ride it out and wait until spring to get top dollar, but right now we're seeing properties selling fast.  There are buyers just waiting and looking at MLS daily for something new to come on.  The last house I listed in Roseville sold as soon as I put the sign in the yard.  I was still working on the marketing...
I have 8 different properties that I'm currently looking to get on the market.  They are scattered around the area from Lincoln to Fair Oaks.  If your a buyer, you might want to contact several brokers and see what new they have coming.  We have over 80 agents in our office in Roseville and we're constantly updating each other about new properties via our intranet.
2017 is already off to a good start!

Trusted Roseville Realtor since 2004

Chad M Phillips Broker Assoc. (Lic: 01405825)
RE/MAX Gold (Lic: 00983982)
2998 Douglas Blvd., #125
Roseville, CA 95661
Primary: 916-390-1476 Secondary: 916-218-7500
http://www.realestate-roseville.com