Looking to buy under $50,000? Let’s take a look at all sales in Sacramento County over the past 36 months under $50,000 (SFR only – not condos). There were 1615 sales under $50,000 during the past three years. As you can see below, there were more sales under $50,000 during the first year on the graph (55% from 2008-2009). That’s a good sign for the real estate market, right? There have been very few sales under $20,000 over the past couple years, which is also good. Most sales at that level are severe fixers, fire-burned or they are priced low to offset the out-of-pocket code enforcement costs that investors have to pay (like this house).
What’s for sale these days under $50,000? There are over 180 properties listed below $50,000. 105 of them are already either pending or “contingent” in status, which means a contract is already in place. The lower end of the market is very competitive, so if you are looking to buy up properties at this level, you need to have cash, be quick, work with the right agent and have connections (or all of the above). If you need suggestions for a good agent, contact me.
By the way, the lowest-priced active listing at $18,000 is located on 24th Avenue in the 95820 zip code (the lowest pending is at $16,100). This is a fire-burned property and it’s bound to be snatched up quickly. I wouldn’t be surprised if there were already multiple offers since it’s been on the market for 4 days now.
If you’re local, what are you seeing happen in the market under $50,000? How hard is it to get into contract? What gems would you like to find in this price range?
If you have any questions, or real estate appraisal or property tax appeal needs in the Greater Sacramento Region, contact Lundquist Appraisal by phone 916-595-3735, email, Facebook or subscribe to posts by email.
August 23, 2011 2 Comments
Can you purchase a house in the Sacramento area for under $20,000? Yes, if you’re lucky and happen to be first in line on one of the rare sub-20K properties. The answer is mostly “no” though. Properties priced under $20,000 right now either have very extensive damage or they get picked up immediately by investors because of the low price. There is only one active short sale under $20,000 right now in Sacramento County, and very few sub-20K properties in surrounding counties too (Placer, San Joaquin, Yolo). There are a few condos priced at $20,000, but even then it’s slim pickings. Here is a graph of all SFR detached sales in Sacramento County under $20,000 over the past three years.
The lowest sale this year was $5,000, and I actually shot two videos of this property throughout the year because my friends at Housing Group Fund (also a client) purchased the property for a rehab program (NSP). I honestly didn’t realize this property took the lowest sale honor until I made the graph above, so it made me chuckle a bit when I saw it there. Keep in mind though that the original price on this MAJOR fixer was near $20,000 and was reduced to compensate for out-of-pocket code enforcement fines that had to paid to the City of Sacramento. Check out the video and let me know what you think. Would you have purchased this house for $5,000?
It’s interesting to see so few sales under $20,000 after 2010. What do you think is happening there? Why so few in comparison to previous years? Is this evidence of a decrease in inventory? Or has the bottom been reached?
January 26, 2011 1 Comment