The Sacramento River is one of my favorite places because of its beauty. Every time I spend time on the River or appraise a house along the River or Delta, I have to remind myself to be content as I drive back to my tract home. 🙂
Today I wanted to share some research I compiled recently during the course of an appraisal assignment along Garden Highway (next to River for those who don’t know). Here is a scatter graph of all single family sales on Garden Highway in Sacramento County over the past twelve years. There are not many sales of course, but it’s clear that property values have declined in recent years to resemble values nearly a decade ago (that’s a very common trend in the Sacramento area). The market has really struggled also to break the barrier of $1,000,000 lately. This does not mean all properties are worth less, but only that buyers have not paid above $1,000,000 for any listings on MLS in a few years. It seems too that some sellers will list high and then withdraw their properties from the market when they are not selling for the prices they want.
Do you spend much time on the River? What do you do? What stands out to you about the graph below?
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Your comment about properties not being worth less but rather that buyers have not paid more than the $1,000,000 is a good one. My area is similar in that the upper price ranges are struggling, but we have to be careful when we make comments about declining values. This can best be proven if we have resales that show obvious declines in value. Thanks for sharing Ryan.
Well said, Tom. Thanks. The graph has recent sales between 800-900K only, but there are definitely some properties worth more. It’s just the owners probably don’t need to sell (so they won’t).