Thou shall know thy neighorhood boundaries

It’s so important to know exactly where one neighborhood ends and another begins. Misunderstanding neighborhood boundaries can have a dramatic impact on perceived property value. When dealing with a short sale situation, loan modification, property tax reduction, bankruptcy, or really any transaction, it could really backfire if the decision makers for your loan or legal documents do not take into account important market boundaries.

Let’s look at the map below as an example. The area traced in red is a portion of the Central Oak Park neighborhood in Sacramento, while the area traced in blue is known as Tahoe Park West.

Both of these areas are really separate neighborhoods despite being right next to each other (divided by Stockton Blvd). There is actually a huge difference in property value between these two areas as indicated on the trend graph below. The median price level throughout most of the past year in Tahoe Park West hovered around $150,000, while the median price level for Central Oak Park was closer to $60,000.

It’s easy to imagine how online valuation websites (like Zillow or Cyberhomes) or even inexperienced real estate professionals might make sincerely wrong value judgments by looking at all sales within a 1/4 mile radius or some other parameter that does not encapsulate the true neighborhood. That’s why it’s so important to work with professionals who really understand the local market.

How might misunderstanding neighborhood boundaries really do some damage?

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.

“Tahoe Park” Real Estate Market Data in Sacramento: The Past 90 Days

What’s the latest in the “Tahoe Park” market in Sacramento? Below is some basic data based on information from Sacramento MLS as of 10/28/09. The points on the graph represent sales within the entire Tahoe Park neighborhood – all four sections.  I wrote previously about the different areas of Tahoe Park HERE as well as a look at thirty-six months of the market in Tahoe Park.

Tahoe-Park-Sacramento-Sales-2009-October

Tahoe Park Real Estate Market Data:

  • 36 sales over the past 90 days (07/28/09 – 10/28/09)
  • 15 current Active listings
  • 17 current Active Short Sale listings
  • 26 Pendings
  • Low sale in past 90 days: $67,000
  • High sale in past 90 days: $349,500

This graph is a bit interesting. It looks almost like a fork that represents two different segments of the market – a lower end and a higher end. So what does each of those lines represent? Now there is a great question worth exploring. Any thoughts? Let me know if you have any questions or a need for further research. Call me at 916-595-3735 or email ryan@lundquistcompany.com.

www.SacramentoAppraisalBlog.com  “Tahoe Park” Real Estate Market Data in Sacramento: The Past 90 Days

Real Estate Market Trends in the Tahoe Park Neighborhood in Sacramento

Tahoe Park” is an area of Sacramento off of Highway 50 and 65th street in the 95820 zip code (with one portion of the neighborhood in the 95817 zip code). The neighborhood consists mostly of single family detached ranch-style houses (some multi-units and occasional 2-story houses) and can be described with five portions as shown below. A previous post goes into detail about each of these portions.

tahoe-park-sacramento

What’s been happening in the Tahoe Park real estate market? What are properties selling for? Let’s take a look at the past three years of sales. What do you notice?

Tahoe Park Neighborhood in Sacramento Past 3 Years of Sales

Now let’s consider the past twelve months of sales in Tahoe Park from August 2008 to August 2009. What do you see? Does anything stand out to you?

Tahoe Park Neighborhood in Sacramento August 2009 Sales

Tahoe Park Neighborhood Real Estate Market Trends:

  • 95 sales over the past 12 months
  • Low Price over past 12 months:  $25,000
  • High Price over past 12 months:  $330,000
  • Current Actives:  19
  • Current Short Sale Actives:  13
  • Current Pendings:  19
  • 25 sales over the past 90 days
  • Median Price over Past 90 Days:  $206,000

If you have any questions about Tahoe Park or the graphs and data above, please let me know. I appraise properties in Tahoe Park for purchase, refinance, estate settlement, bankruptcy, litigation and more. Please contact me at 916-595-3735 or ryan [at] lundquistcompany.com.

www.SacramentoAppraisalBlog.com Real Estate Market Trends in the Tahoe Park Neighborhood in Sacramento

Tahoe Park Neighborhood in Sacramento

Tahoe Park” is an area of Sacramento off of Highway 50 and 65th street in the 95820 zip code (with one portion of the neighborhood in the 95817 zip code). The neighborhood consists mostly of single family detached ranch-style houses (some multi-units and occasional 2-story houses) that are most often 2 or 3 bedrooms with a 1-car garage (2-car garage sometimes). In Tahoe Park there are two commercial property strips, local schools, several newly constructed college dormitories (roughly 5 years ago), three church buildings, and a planned redevelopment project on 65th Street just South of Highway 50 on the Eastern side of the street.

The area of “Tahoe Park” can be described with five portions as shown below:

tahoe-park-sacramento

Dark Blue: This area is Tahoe Park proper and is referred to as “Tahoe Park“  It is the main area that contains the park (hence “Tahoe Park”).

Black: This portion North of Broadway is referred to as “Tahoe Terrace”. This section is located in the 95817 zip code, whereas other sections are located in 95820. The 95817 zip code is also shared by some other areas of Sacramento that are definitely a different market area than Tahoe Park. Just because a zip code is shared does not mean that two areas are the same neighborhood. The area to the West of this section is the “Elmhurst” neighborhood.

Light Blue: This portion is referred to as “West Tahoe Park“. The houses in this area are located close to a main street (Stockton Blvd) and tend to be fairly similar, but there are several streets that have a different feel to them in terms of design. These different portions contain brick houses or bungalows which are less prominent throughout other areas of Tahoe Park. There are also a couple of houses built in the 1990s in this area.

Green:  This portion is called “Tahoe Park South”. Just West of this section is the “Colonial Heights” neighborhood. 21st Street at the Southern border of this section is a natural divider due to its large median. There is an element of “charm” throughout Tahoe Park due to the area being generally kept up and houses containing era elements that buyers prefer. This “charm” element begins to fade the further South one travels from the green portion to “Tallac Village“. There is a noticeable value difference for being located in “Tahoe Park” when considering other nearby neighborhoods.

Orange: This portion is referred to as “Tahoe Park East” (includes Hiram Johnson High School too) and I actually used to live in this part of Sacramento years ago. The main stretch of housing is located off of Maita Circle and contains single family detached ranch-style properties along with a row of duplexes off of Redding Avenue (Eastern side of Redding). The local High School, Hiram Johnson HS, is located just West of Redding Avenue. North of Maita Circle on Redding Avenue are some properties with larger lot sizes on the Western portion of the street. There is a Little League field tucked in the corner of this orange section as well as a string of commercial properties on the Eastern edge.

All in all, each portion above may be described separately to a degree and yet they all tend to show up in MLS listings as “Tahoe Park”. This brings us to ask then if there are value premiums for certain areas of Tahoe Park. Well, some say that the further North you go, properties become more preferable to buyers, but some say there is no premium because if a house and street in any of the portions is right for the buyer, the market may see similar pricing in any section of Tahoe Park. It seems that there is generally not a hard and fast rule at hand because the location, view, condition, design, level of charm, lot size and layout, among other features all play into the equation for buyers.

Asking these types of questions, doing research, and knowing the intricacies of the local market is a crucial part of the appraisal process. If you have any questions about Tahoe Park or any potential appraisal needs, please contact me at 916-595-3735 or ryan [at] lundquistcompany.com