Home owners often wonder how far the real estate market in the Sacramento area has declined since the housing “bubble” burst several years ago. Or in other words, if you bought your house today, how far back would you have to go to find the same price in the past? The graphs below from the Sacramento Association of Realtors help answer this question as they compare median sales price in respective zip codes to the county-wide median sales price from 1997 to 2010.
Have a look at the following graphs, see my commentary below, and let me know what you think. What do you see?
Carmichael Trend Graph (95608 zip code):
Elk Grove Trend Graph (95624 zip code):
Elk Grove Trend Graph (95758 zip code):
Fair Oaks Trend Graph (95628 zip code):
Greenhaven / Pocket Trend Graph (95831 zip code):
Land Park / Curtis Park Trend Graph (95818 zip code):
Mather Trend Graph (95655 zip code):
West Sacramento Trend Graph (95605 zip code):
Basically, if you bought a house today in the post-bubble real estate market in Sacramento, you’d be paying somewhere around late 2001 house prices generally (depending on the area of course). Many areas currently have a median price somewhere just before 2002, while some of the higher-priced zip codes tend to have a median price level right now closer to 2003-ish level. Keep in mind too that each house is different and may or may not be consistent with the overall zip code trend.
If you have any questions or insight, I’d love to hear your comment belows. If you have a need for my real estate appraisal or consluting services also, feel free to call 916.595.375, visit my website at www.LundquistCompany.com or email ryan@LundquistCompany.com.
How do the graphs above strike you?
Ryan,
I was doing some appraisal work over the weekend and was asking myself this same question. In my area you don’t have to go back as far as you did but our area did not seem to hit the highs like other areas did. Great informatio.
Thanks, Tom. It’s a good question to ask. The answer is not very easy on the ears, but I think information like this still has many uses.
Ryan,
Your Carmichael zip median reflects my beam restoration work there. Lots of MCM homeowners in 95608 leery about contracting any work up to around 2009. Then bids I’d put out as far back as early 2008 started coming in. Seems like spooked homeowners settling down. Can’t figure what else would explain the uptick after such a hard downturn.
Brady
That’s really interesting, Beam Guy. I’m glad to hear older bids are coming to fruition. The uptick recently probably inspired more confidence in real estate, which is a good thing. Thanks for the comment.
Great job assembling these stat Ryan. I wonder sometimes if we worry too much about the peak (though if that is where you bought – sucks to be you). While an effective measure, I believe it creates the illusion that we are seeking a return to the bubble.
Not a reflection on you, just noodling through our obsession with numbers.
Thanks, Scott. I appreciate the retweet too. You bring up an interesting point. I think the peak is a lense of sorts to help view the surrounding market, so it’s helpful in that regard. On a personal level though, we ought to be very cautious to not let real estate values or the economy define who we are. It’s very easy to look back on the days when gas prices were lower, when unemployment was closer to 5% in Sacramento, and when our homes were appreciating rapidly – those are the good ‘ol days. It’s obvious why those days are attractive and desirable, but those days are gone for now, and they may or may not come back again. That’s my two cents on life anyway. 🙂