Wednesday, March 4, 2009
Market Conditions in Auburn February 06-March 09
Dear Sue,
I am interested in buying an investment property. Here's the truth: There are opportunities in every market, good and bad. They are just different.
To make an informed decision, I have been researching market trends in the Sacramento and Placer counties. It looks as though the Auburn market has held up a little better than most and may be a good place to buy.
I know you are a local real estate expert. Before plunging headfirst into a real estate investment I was wondering if you had any market insights to share.
Researching Randy
Dear Randy,
I receive monthly market updates from appraiser, Jared Mickel. Jared regularly performs one of the most thorough analyses of the Auburn market that I have seen.
Jared’s most recent update indicates that over the last three years from Feb. 06 to March 09, the average home in the Auburn market lost approximately $155.00 in value per day.
In February 2006, the average sale price per square foot was pushing the ceiling of $300.00 per square foot. Today the average sales price per square foot is below $200.00.
Jared points out that there has been two serious gaps or bleeps in the market during the period he studied. The first was in September 2008 after the announcement regarding the first wave of bank failures. The market gapped down after a six-day stand still. The average price per square foot dropped in six days from an average of $225 per square foot down to around $212 per square foot.
The second bleep was a gap up. It took place in November of 08 and seems to have coincided with details of the finalization of the TARP program. The gap up was from an average of $165 per square foot to an average of $180 per square foot. I find it interesting that both gaps were triggered by “news”.
The foreclosures and short sales began to impact the Auburn market in November 2008. In the last six months the foreclosures represented approximately 19% of the closed sales. The short sales made up approximately 4%. Distressed properties as a whole represented approximately 23% of the total Auburn market. The majority of those sales were between $100,000 and $250,000.00. Of course these sales brought down the area’s average sales price!
Yesterday Leslie Appleton-Young, the chief economist for the California Association of Realtors, announced, “In Sacramento County we are through 80% of the sub-prime resets”. Ms. Young said that the greater Sacramento area was one of the first counties to go down and will be one of the first counties to recover.
President Obama’s plan was released today, Wednesday, March 4th 2009. The plan is expected to rescue millions of homeowners. I believe that over the next few months this news will positively impact Auburn’s market trend.
I hope that this has helped. Studying markets before jumping in headfirst is a matter of good Home $$’s and Sense.
I am interested in buying an investment property. Here's the truth: There are opportunities in every market, good and bad. They are just different.
To make an informed decision, I have been researching market trends in the Sacramento and Placer counties. It looks as though the Auburn market has held up a little better than most and may be a good place to buy.
I know you are a local real estate expert. Before plunging headfirst into a real estate investment I was wondering if you had any market insights to share.
Researching Randy
Dear Randy,
I receive monthly market updates from appraiser, Jared Mickel. Jared regularly performs one of the most thorough analyses of the Auburn market that I have seen.
Jared’s most recent update indicates that over the last three years from Feb. 06 to March 09, the average home in the Auburn market lost approximately $155.00 in value per day.
In February 2006, the average sale price per square foot was pushing the ceiling of $300.00 per square foot. Today the average sales price per square foot is below $200.00.
Jared points out that there has been two serious gaps or bleeps in the market during the period he studied. The first was in September 2008 after the announcement regarding the first wave of bank failures. The market gapped down after a six-day stand still. The average price per square foot dropped in six days from an average of $225 per square foot down to around $212 per square foot.
The second bleep was a gap up. It took place in November of 08 and seems to have coincided with details of the finalization of the TARP program. The gap up was from an average of $165 per square foot to an average of $180 per square foot. I find it interesting that both gaps were triggered by “news”.
The foreclosures and short sales began to impact the Auburn market in November 2008. In the last six months the foreclosures represented approximately 19% of the closed sales. The short sales made up approximately 4%. Distressed properties as a whole represented approximately 23% of the total Auburn market. The majority of those sales were between $100,000 and $250,000.00. Of course these sales brought down the area’s average sales price!
Yesterday Leslie Appleton-Young, the chief economist for the California Association of Realtors, announced, “In Sacramento County we are through 80% of the sub-prime resets”. Ms. Young said that the greater Sacramento area was one of the first counties to go down and will be one of the first counties to recover.
President Obama’s plan was released today, Wednesday, March 4th 2009. The plan is expected to rescue millions of homeowners. I believe that over the next few months this news will positively impact Auburn’s market trend.
I hope that this has helped. Studying markets before jumping in headfirst is a matter of good Home $$’s and Sense.
# posted by Sue Thompson @ 12:46 PM 
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