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30 Sep

Market Update – Focus on Davis

Posted September 30th, 2007 | View Comments

The city of Davis (zip code 95616) seems to be holding up well in this turbulent market. When contrasted with a few other cities, the number of active listings in Davis have fallen along with the number of solds which keeps prices fairly stable.

In 2006, 406 single family residences sold for a median price of $587,500. This year so far 189 homes have sold and 8 more are pending sale for a median price of $560,000. A drop in prices of less than 5% – not bad. But here’s what’s interesting. There are only 67 more houses for sale and their median price is at $630,000.

We see the same result with condos in Davis. In fact, the median value of condos is up since last year, when 57 condos sold for a median price of $329,900. This year, fewer condos sold – 21 to be exact – but the median price was $336,000. 4 more condos are pending sale. There are currently only 16 condos for sale between $259,500 and $577,900.

The Sacramento Bee today reported that Davis is the 56th most expensive place to live in a survey of 317 American housing markets. Sacramento ranks as the 197th most expensive.

  • Bubble head

    There’s one figure that you don’t want to touch, and that’s YOY sale figure,assuming there are 10 closes/month from now till year end,that will give 219 sold for 2007 a 45% drop from 2006.Is it too close to the truth for you to handle?

  • http://www.sacramento-home.com/real-estate-agents/ John Lockwood

    Hello Bubble,

    Why wouldn’t I want to touch that figure? I’ve been publishing market data for Greater Sacramento since early 2004. If that’s what the numbers are, I’ll report them (if I report on Davis at all — actually this was Purva’s article). I wouldn’t be suprised if something like 50% or more is the YOY drop from October to October for all of Sac County, for example. Based on current numbers I estimate 49%, and that we’ll have a much worse October than September in terms of sales.

    As to your other question, the market’s doing much worse than it was. If you want to characterize the problems we’re having as the bubble in the process of bursting, or having burst, or about to burst more, that’s fine with me. However, I think the use of such language suggests a parallel to the stock market which may be somewhat oversimplified, since real estate has more intrinsic value than certain worthless tech stocks of the 90s, for example. I also think the drop in value was much less precipitous — I’m sure those who lost their retirement income in NASDQ stocks in 2002 wish they could have had 12% YOY depreciation to make it out in time. See http://en.wikipedia.org/wiki/Image:NASD2002.png#file.

    Thanks for your comment.

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