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24 Jan

Sacramento Real Estate Market – Rosemont

Posted January 24th, 2007 | View Comments

Rosemont is one of my favorite areas in many respects, partly because the current listing Vicki Agregado and I have is with one of the nicest people I’ve met in this business, and partly because I think its neighborhoods contain many beautifully well maintained homes (as well as some recent luxury condo conversions), yet at the same time, the area is affordable compared to many other parts of town. If you’re not familiar with the area, Rosemont is basically the area of Sac in the zip codes 95826 and 95827 that lies along Highway 50 in the area south of Fair Oaks and Carmichael and north of Florin.

Like most areas in Sacramento, of course, Rosemont has become more affordable over the last eighteen months as prices have been falling. From December of 2006 to December of 2007, the average selling price for a home in Rosemont (95826 and 95827 combined), dropped 8.1%, from $339,532 in December of ’05 to $311,932 in December of ’06. At the same time, however, buyers this year purchased a slightly smaller home, on average, so some of this drop is an artifact of the changing size. Because of this, average price per square foot dropped less dramatically, only 4.2%, from $226.20 per square foot in December of 2005 to $216.77 in December of 2006.

As we’re seeing in most other areas, the ratio of listings that expire to those that sell has risen during this time. In December of 2005 the ratio was 25 units expired versus 45 units selling, for an expired to sold ratio of 25/43, or 58.1%. This year 37 units sold while 36 sold, for an expired to sold ratio of 97.3%.

Again, Rosemont’s area is roughly typical for Sacramento as a whole. Most of its indicators compared somewhat worse than Downtown and but better than Land Park and Greenhaven, for example.

  • http://none tom

    Rosemont is a very nice community but dont’ be fooled by the
    prices there. I’ve been looking for a new home for the past 8
    months. Since I’m retired now (and preapproved) I have had
    the time to do quite a bit of comparison shopping throughout the
    entire sacramento area and beyond and believe me Rosemont is
    WAY OVERPRICED for the area and the price per square footage
    (Sorry John). My advice is wait six to eight months and let the
    prices come down even more. I’m thinking that’s what I’m going to do. Also, any house you feel you want to make an offer on immediatly on knock off 20% before you do so. In this buyers
    market half would be glad to accept. Good luck.

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

    Thanks for stopping by and offering your opinion. I’d be interested in the experience it’s based on. For example, did you find lower prices per square foot for homes of similar size, or are they significantly larger, offering economies of scale? Also, I was comparing homes built several years ago (largely), so if you compare new homes, I can see where you might come up with different numbers. What other areas are looking at? I’m not arguing, I’m just curious what bargains you’ve seen — maybe I should be writing about those! :)

    As for offer price, every buyer should do what they want, of course, but in most situations I would take issue with your formula. For example, have you worked with your Realtor® to understand what the actual average difference between list price and sale price is? Would you offer that same 20% off if the home were already discounted 10% from the average sold comps, or if it were overpriced by 40%? I wouldn’t (in either case). In fact, I wouldn’t spin my wheels on 20% offers if it were me, because the average swing in most areas is 5% or less, so based on that average, a lot more than half of sellers would be likely to reject an 80% value offer, but of course if you pitched low balls for two months, you probably could get it done on some house. Unless I were investing, I’d pick out the home I really want to live in and check the comps for that home and adjust them intelligently for the features of that home, rather than trying to apply some standard formula. I’d be more concerned with getting what I want at a fair value than feeling like I was victorious over someone else — but different buyers have different styles, so sometimes the fit is better with an agent whose style matches your own.

    Have you read my article about Star Trek?

    There’s no need to apologize to me if you don’t want to buy. Three buyers closed with me in December, though none in Rosemont (one just north of there though on La Riviera). 37 buyers closed there with a Realtor® in December — 1018 in Sacramento County as a whole. January’s been a little off in my case (partly because I was busy in December and then relaxing for Christmas). Looks like February will be tasty, however.

    If you want to wait, or not buy at all, that’s of course your prerogative, and you may in fact get a better buy that way. I’m sure if you do you’ll let me know. All day long I help buyers and sellers who are ready to go, and all night long I hear it from renters who aren’t, talking other buyers out of it. I think it’s a 24-hour biorythm thing.

    Fortunately for me the buyers are all on the Search Page looking for what they want, not here looking to get talked into or out of it by either of us.

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