What story does this graph of sales tell you? Let’s unpack the Meadowview area of South Sacramento for a moment as we look at sales over the past several years.
I’ve done a substantial amount of work in this neighborhood over the past few years for private appraisals, lenders and investors flipping houses. Overall there was a huge flood of foreclosures on the market in later 2008 as you can see with the dense sales at the bottom left side of the graph. As foreclosures were purchased and inventory decreased during that time period, the market began to improve a bit. The tax credit sure helped as you can see the impact of the tax credit from 11/07/2009 to 09/30/2010 as there was a greater stability during that time period. Its seems over the past year since the tax credit expired values have persisted to decline. Investors were selling standard 3/2 houses for $125,000 very easily a couple of years ago, but now flipped sales tend to range between $100,000 to $115,000 (for 1100-1200 sq ft). Lastly, the interesting thing about this neighborhood is that the graph above includes a newer portion of houses built over the past ten years and the bulk of other units built in the 1960s and 1970s. The newer houses in the larger newer subdivision tend to sell at the top of the market.
Any other insight or comments? I’d love to hear your input. If you invest in the neighborhood, why do you invest in Meadowview? If you live in the neighborhood, what is it you enjoy about Meadowview?