Posts Tagged ‘95834’

Sacramento Real Estate Market Update – Natomas Area

I remember back when the market was still booming, in those innocently happy 2004 days when prices were going up and the country was still in love enough with Peter Print-money (aka George Bush) to elect him to a second term.  (Don’t blame me; I voted for Kerry).

Around that time, I remember one agent telling me that Natomas was a booming area where she saw a lot of opportunity.

Remember 2004?  CNN Money ran this article, with this little by-line, which is rather funny in retrospect:

“Don’t look now, but $2 a gallon gas is here.”

Yeah, don’t look now.

Anyway, Natomas Real Estate

Like many of the areas that were so hot in 2004 (Elk Grove comes to mind), a large number of foreclosures has turned 2008 into yet another buyer gold rush for Natomas.  Sales have more than doubled since 2007 in Natomas (which consists of the zip codes 95833,95834,95835,95836, and 95837).  78 units sold in August of 2007, versus 179 in August of 2008, a 129.5% increase. 

The average sale price in August was $252,522, down 30% from last August’s average of $360,698.  Sold price per square foot fell roughly the same amount (29.6%), averaging $133.57 per square foot in August in Natomas.

About a fifth of the homes that sold in Natomas in August were non-distressed sales.  Bank foreclosures accounted for 71.5% of all sales in August in Natomas.

Inventory in Natomas is falling. There are 5.8 months of inventory in Natomas, or 4.4 months if you use the absorption rate of the last six months.

Natomas Real Estate Market Update

The Natomas area of Sacramento encompasses 95833, 95844, 95835, 95836 and 95837.  This is an area of Sacramento that has seen a dramatic rise in the number of foreclosures over the last year, with correspondingly steep price drops.  As a result, demand is now quite strong in Natomas.

This year the average home sold in Natomas for 272,810, down 29.8% from last year’s average of $388,821.  Sold price per square foot fell 29%, from $201.59 in May of 2007 to $143.08 in May of 2008.  In May of 2007, only 15.4% of the homes sold were either short sales or foreclosures.  By May of 2008, that number had risen to 79%.  As a result, unit volume more than doubled during this period, from 65 units in May of 2007 to 138 units in May of 2008.

Even with all that activity, however, there remain 8.4 months of inventory in Natomas.  Another strong month or two could easily put a dent in that, however.

The tables below have the numbers for May 2007 and May 2008 and the change during this period.

Unit Volume Data

Units Sold May, 2007 May, 2008 Change
Foreclosures Sold 4 100 2400.00%
(% of total units) 6.15% 72.46%  
Short Sales Sold 6 9 50.00%
(% of total units) 9.23% 6.52%  
Non-distressed Sold 55 29 -47.27%
(% of total units) 84.62% 21.01%  
Total 65 138 112.31%


Price Data

Prices May, 2007 May, 2008 Change
Sold Price / Square Foot $201.59 $143.08 -29.03%
Average List Price $388,821 $272,810 -29.84%
Average Sale Price $382,352 $267,429 -30.06%

Inventory

Sold Last 12 Months Active Months of Inventory
917 642 8.4

Natomas Real Estate Market

We lumped three zip codes together when dealing with Florin, now we’ll tackle the no less than five zip codes that the MLS considers “North Sacramento / Florin / Del Paso Heights”: 95833, 95834, 95835, 95836, and 95838.

The average home in Natomas sold for $292,763 in November, down 16.5% from the $350,415 average of November of 2006. The median price fell 16.2% from year to year, from $340,000 last November to $285,000 this November. Sold price per square foot fell 22.3%, from $215.11 last November on average to $167.20 this November.

Currently there are 13.5 months of inventory in Natomas. Of this, 27.1% are bank owned foreclosures, and 35.1% are short sales. Of the 92 units that sold in November, 33 were bank foreclosures (35.9%).