Numbers:

Some of you out there are like me and spend a lot of time looking at the numbers. I have updated some of the raw sales data for July and gives us a look at the first half of the year. As predictable we have seen a steady growth of both the amount of sales and volume. This is a pretty standard sale cycle as we peak midway through the year and then start to see a steady decline as school starts back up and the holiday season creeps up on us.

Resale Market:

We will see how the rest of this year pans out, we have seen the DOM rise heavily in the rural areas as well on housing over the 500k price point. I have seen a resurgence in activity on areas with older established neighborhoods that are on the lower end of each area. Such as old Rocklin where the prices are high 200s to low 300s. South Natomas areas, and the areas surrounding historic Folsom. This makes sense as the prices have gone up, entry level buyers are looking for places they can still afford.

New Homes:

Even though new homes have seen an increase in activity we are still far off where traditionally we would be in a normal market. Tim Lewis has had a steady pace on his Crowne point subdivision off Sierra College and I80 as Bass Pro Shops has recently broken ground. K Hovnanian is in full swing of building out the once stalled Paseo Del Norte off Pleasant Grove in Roseville.

Projections:

For the rest of the year I predict a tapering off on both the volume of sales and number of sales as mentioned before with school starting and the holidays fast approaching. Interest rates should stay down for the remainder of the year. But be aware by middle of next year we could see the Fed start raising rates. Also the mid term elections could play a small role in the upcoming market just as lenders and buyers do tend to sit on the sidelines during election time.

If you want a full excel spreadsheet of the numbers feel free to send us an email and we can get a copy off to you.

God Bless and Happy Investing.

Jake Harris