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property value in Sacramento County

Unemployment trending down in Sacramento County

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I don’t make predictions about the real estate market, but I’m glad to report unemployment has been trending downward lately – and that’s a good thing!! It’s nice to see that arch on the right side of the graph getting a bit more defined as unemployment is currently at 2009 levels. If we see jobs increase in the Sacramento area, that can only be positive for the housing market, don’t you think?

Sacramento County Unemployment Rate 2005 to 2011 by Sacramento Real Estate Appraiser

How far have property values declined? Generally speaking, property values in Sacramento are at a level near 2001 right now. Some areas like Pocket / Greenhaven show a trend in 2002, whereas other zip codes in East Sacramento are closer to 2003, while still other zip codes or property types are definitely before 2001. Generally, the areas with higher values tend to sell near 2002 or maybe 2003 levels when considering the overall market median sales price by zip code. At the same time, many areas that we’d think of as “challenged” due to crime or other issues are definitely before 2001 in many cases. Keep in mind the median sales price by zip code encompasses an entire geographical area and may or may not represent a certain niche or neighborhood within that zip code (that’s the problem when looking at data for an entire area).

DOWNLOAD HERE: Sacramento Area Median Price Graphs for sales between 1997-2011 (PDF) from the Sacramento Association of Realtors. This may be helpful to glean some context into some of the aforementioned bits I mentioned above.

Any thoughts about unemployment or how the real estate market is doing?

If you have any questions or Sacramento area real estate appraisal or property tax appeal needs, contact me by phone 916-595-3735, email, Facebook, Twitter or subscribe to posts by email.

Do garage conversions add value?

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A garage conversion is a quick way to increase the size of a house, but does it add to the overall value of a property? Here are five reasons why garage conversions tend to not help increase market value in the Sacramento area:

  1. No permits:  The conversion was done without permits (illegal).
  2. Not typical:  Garage conversions are not common in the neighborhood.
  3. Low Quality:  A partition and carpet in the garage really isn’t a very high-grade conversion, is it?
  4. No Storage:  Removing storage in a garage is not a plus in the eyes of most buyers. If there is no garage, where are you going to keep your bikes, tools, unused exercise equipment and holiday decorations? If a conversion is done properly, it may be appealing to buyers, but any increase in value may be offset by the negative of no longer having storage space. 
  5. It doesn’t feel like the rest of the house:  A converted garage often does not feel like the rest of the house because it still has the feel of a garage (despite sheetrock, a heat source, floor covering, windows). A converted garage is often on a lower foundation and it still contains the water heater and washer/dryer too. If some of the living area doesn’t conform with the rest of the house because it is lower in quality, the market will likely not give that portion as much value. This means the extra 400 square feet in the converted garage is usually not regarded the same way as an addition on the back of the house. Applying this point means a 1400 square foot house with a 400 square foot converted garage is probably not seen the same way in the market as an 1800 square foot house with no conversion.

What does this mean for home owners and buyers? You may not get the most bang for your buck in the resale market when converting a garage. If your conversion is done in a professional workmanlike manner though, maybe you’ll come out mostly even (this depends heavily on the quality of conversion and acceptance of conversions in your neighborhood). Ultimately, without regard to market value, if you need more space, converting a garage is a fairly inexpensive way to make that happen. Just keep in mind your future plans to sell the property and how your particular conversion might be perceived in your real estate market (and how much it might cost in case you need to turn it back into a garage).  

Any points you’d like to add? Would you convert your garage? Why or why not?

If you have any real estate appraisal, consulting, or property tax appeal needs in the Greater Sacramento Region, contact me at 916.595.3735, by email, on our appraiser website or via Facebook.