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8 things you can buy if you win Powerball (and the market in Sacramento)

January 12, 2016 By Ryan Lundquist 14 Comments

Have you bought a Powerball ticket? It’s wild to think someone is probably going to win 1.5 billion dollars this week. Of course there’s an extremely slim chance you’d actually win, but if you do, here are some things you can buy when it comes to real estate. After that, let’s take an in-depth look at Sacramento’s housing market.

powerball winner - real estate - sacramento appraisal blog

8 real estate things you can buy if you win Powerball

  1. All current listings in Sacramento: You could literally buy every single active residential listing in Sacramento, Placer, and Yolo County (and still have about $150M left).
  2. NBA Team: You could buy the Sacramento Kings NBA team and have about one billion to spare.
  3. 63 million Shares of Zillow: You could buyΒ 63,911,376 shares of Zillow ($23.47 per share).
  4. Buy an Island: This is an obvious choice for a billionaire. You could easily buy your own island. Heck, you could buy a group of islands. See some islands that are for sale right now.
  5. Own 7 Years of East Sacramento Sales: If you bought every single house that sold on MLS in East Sacramento since October 2008, you would still have 600 million left.
  6. Build a Sports Stadium: Most recent professional sports stadiums have ranged in cost from around $500M to $1.5B. For instance, the 49ers new stadium cost around $1.3B and the Sacramento Kings stadium is coming in around $500M. If you buy, what are you going to name it?
  7. Build a Bigger House than that One Guy in India: You may remember hearing about a 27-story residential home that was built in India in 2014. This home can withstand an 8.0 earthquake and it’s the second most expensive home in the world behind Buckingham Palace. Keep in mind it requires a staff of 600 to care for it. The property was said to have cost $1B total, so you have the coin to pull it off (Wikipedia).
  8. Do Some Good: Imagine the good you could do if you won the lottery. But we know that’s not going to happen. The great thing is we don’t have to wait to win Powerball to be generous since generosity is only relative to how much money we have – whether two dollars or $1.5B.

By the way, the winner won’t actually get 1.5 billion. I realize a huge sum is coming off the top right away for taxes and such.

Now let’s look at the latest Sacramento real estate trends.

the market in 2015 in sacramento

Two ways to read THE BIG MONTHLY POST:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

DOWNLOAD 78 graphs HERE (zip file): Please download all graphs in this post (and more) here as a zip file (or send me an email). Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share (please don’t copy verbatim). Thanks.

Quick Market Summary: If I had to sum up the market last year I would say: Modest value appreciation, but aggressive demand. If I added a few more details I would say the story of the market is summed up as follows: More sales, lower inventory, higher demand, a fairly normal fall (though far less dull than 2014), and modest value increases over the year. Right now housing inventory is only 1.28 months in the region, which is 32% lower than last year at the same time. Overall sales volume in 2015 was 10.8% higher in the regional market, and it’s important to note FHA volume increased by 30% this year. In December it took 4 days longer to sell a home than it did in November, and that reminds us the market experienced a seasonal softening dynamic even in the midst of more competition. Remember though it was taking 90 days to sell a house four years ago, and selling in less than half the time right now helps us see the market can be different each year depending on inventory, interest rates, the economy, etc…Β  Overall most of the value increases came in the first two quarters of the year, and the market was fairly flat for the past six months in terms of value. Buyers really haven’t had very many options because of how low inventory has been, but at the same time buyers are exhibiting price sensitivity by not pulling the trigger on overpriced listings. One last aspect worth mentioning is rents have been increasing in many areas in Sacramento, and it’s worth watching this trend.

SACRAMENTO COUNTY:

  1. It took 4 more days to sell a house last month than November (but 7 days less than last year at the same time).
  2. Sales volume was 20% higher this December compared to last December.
  3. Sales volume was 10.9% higher in 2015 compared to 2014.
  4. FHA sales represented 27.5% of all sales during the past quarter.
  5. Housing inventory is 41% lower than it was last year at the same time.
  6. The median price increased by 2% last month (see #6).
  7. The average price per sq ft and average sales price stayed about the same from the previous month (so don’t put too much weight on #5).
  8. The average price per sq ft is 10% higher than last year at the same time.
  9. The median price is 11% higher than it was last year at the same time.
  10. REO sales were less than 4% of all sales last quarter (Short Sales were less than 5%).

Some of my Favorite Graphs this Month:

sales in 2015 2

Median price and inventory since 2011 by sacramento appraisal blog

bottom of market

fha and cash in sacramento county by sacramento appraisal blog - part 2

CDOM in Sacramento County - by Sacramento Appraisal Blog

inventory - December 2015 - by home appraiser blog

REOs and Short Sales in Sacramento County since the bottom

price metrics since 2014 in sacramento county - look at all

SACRAMENTO REGIONAL MARKET:

  1. It took 3 more days to sell a house last month than November, but it was taking one week longer to sell at the same time last year.
  2. Sales volume was 14.5% higher this December compared to last December.
  3. Sales volume was 10.8% higher in 2015 compared to 2014.
  4. Housing inventory is 32% lower than the same time last year.
  5. Cash sales were only 15% of all sales in 2015.
  6. The average price per sq ft, median price, and average sales price showed a slight seasonal dip over the past few months.
  7. The avg price per sq ft is 7.5% higher than last year at the same time.
  8. The median price is 5.6% higher than it was last year at the same time.
  9. REO sales were 3.5% of all sales last month.
  10. Short sales were only 3% of all sales last month in the region.

Some of my Favorite Regional Graphs:

sales volume 2015 vs 2014 in sacramento placer yolo el dorado county

prices in sacramento region - FHA and conventional - by appraiser blog

months of housing inventory in region by sacramento appraisal blog

days on market in placer sac el dorado yolo county by sacramento appraisal blog

median price and inventory in sacramento regional market

interest rates inventory median price in sacramento regional market by sacramento appraisal blog

PLACER COUNTY:

  1. It took 6 more days to sell a house last month than November, but it was taking 5 days longer to sell at the same time last year.
  2. Sales volume was 1% higher this December compared to last December.
  3. Sales volume was 13% higher in 2015 compared to 2014.
  4. Housing inventory is 16% lower than the same time last year.
  5. Cash sales were only 15% of all sales in 2015.
  6. The average price per sq ft, median price, and average sales price showed a slight seasonal dip over the past few months.
  7. The avg price per sq ft is 3.6% higher than last year at the same time.
  8. The median price is 2% higher than it was last year at the same time.
  9. REO sales were 1.8% of all sales last month.
  10. Short sales were only 3% of all sales last month in the region.

days on market in placer county by sacramento appraisal blog months of housing inventory in placer county by sacramento appraisal blog number of listings in PLACER county - December 2015 Placer County price and inventory - by sacramento appraisal blog Placer County sales volume - by sacramento appraisal blog

I hope this was helpful and interesting.

DOWNLOAD 78 graphs HERE (zip file): Please download all graphs in this post (and more) here as a zip file (or send me an email). Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share (please don’t copy verbatim). Thanks.

Questions: How would you spend the money if you won at Powerball? What stands out to you about the latest stats in Sacramento? How would you describe the market? I’d love to hear your take.

If you liked this post,Β subscribe by email (or RSS). Thanks for being here.

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Filed Under: Market Trends, Random Stuff Tagged With: appraisal blog in sacramento, appraisers in Sacramento, cash investors, El Dorado County, FHA, housing inventory, low inventory, market graphs, market trends in Sacramento, Placer County, Powerball, sacramento appraisal group, sacramento housing market, Sacramento Real Estate Market, stats, Yolo County

Reader Interactions

Comments

  1. Wendell Browne says

    January 13, 2016 at 5:32 AM

    Nice overview of your market area, Ryan. If I win tonight’s drawing, I’ll be in touch with you to help stimulate your economy !

    Reply
    • Ryan Lundquist says

      January 13, 2016 at 5:52 AM

      Thanks so much Wendell. If you win, you can reach out by phone, email, or Twitter. You choose. πŸ™‚ Have a wonderful day!

      Reply
  2. Matt The Mortgage Guy says

    January 13, 2016 at 8:54 AM

    Pure Gold as always Ryan. Thanks for all the great info.
    Maybe if I win the lotto I’ll open my own bank.

    Reply
    • Ryan Lundquist says

      January 13, 2016 at 8:56 AM

      Thanks so much Matt. If you do open a bank, please have a full-service Starbucks inside. I’d like to go to the bank and pick up a free Grande dark roast at the same time. Just saying…. πŸ™‚

      Reply
  3. DeeDee Riley says

    January 13, 2016 at 9:26 AM

    Hi Ryan,

    My husband and I were throwing around ideas of how we can spend the money if we win. These really put into perspective how big the number is!

    Your Sacramento market report is fantastic! Love all the graphs and am excited to share your link with my readers!

    Reply
    • Ryan Lundquist says

      January 13, 2016 at 9:33 AM

      The number sure is big, DeeDee. I hear if nobody wins today, the prize will go up to two billion dollars. A friend just watched a documentary on lottery winners, and it actually made life more complicated in so many ways for those who won. I imagine winning would bring many challenges – both good and bad. Paying off my mortgage would be the first thing I did. πŸ™‚

      Thank you for the kind words. I really appreciate you sharing too. I’m so glad the graphs are useful. I find it fascinating to look closely each month at how the market is trending.

      Reply
  4. Margaret Holland says

    January 13, 2016 at 10:34 AM

    It’s really difficult to visualize what one could do with that kind of dough but you helped paint a pretty picture. I’m ready!

    Reply
    • Ryan Lundquist says

      January 13, 2016 at 10:38 AM

      Glad you’re ready Margaret. I’ll be waiting to hear the good news of your winnings. πŸ™‚

      By the way, for any onlookers, there is a 5-acre island in the Bay Area for sale at 5M right now. It’s apparently the only privately-owned island in the Bay. Granted, it is a large mound without water and sewage. But if you’re thinking local and don’t have 1.5 billion, it may be a good option. πŸ™‚ Thanks Joe for the heads-up on this one. http://blog.sfgate.com/ontheblock/2015/09/03/red-rock-island-now-yours-for-only-5m/

      Reply
  5. Tom Horn says

    January 13, 2016 at 11:28 AM

    Great list there Ryan. Most people (including me) tend to say “I’m going to do such and such when I win the lottery” but as you pointed out in #8 it’s probably a good idea not to wait, since something like this is not very likely to occur. Acting on what we have available to us now to bless others is probably the most realistic thing to do. Great post.

    Reply
    • Ryan Lundquist says

      January 13, 2016 at 11:40 AM

      Thanks Tom. Well said. Your comment reminds me of a biblical parable where a poor widow gave two coins to the synagogue. This was all the money she had, and even though it was such a small amount Jesus said she gave more than anyone else. She gave out of her poverty, whereas others gave out of their wealth. I’m not writing a sermon in this comment, but there is something so powerful about that. It’s so difficult to escape the death grip (or tractor beam if we want to think of Star Wars) of consumerism in today’s culture. There is such a thirst to keep up with the Joneses and never be satisfied. We always want more and more…. I wonder what our kids catch from us. Will they grow up to be generous people based on what they see us do? Deep thoughts. It’s fun to get to think through stuff…. on an appraisal blog too.

      Reply
      • Tom Horn says

        January 13, 2016 at 1:00 PM

        Hey, it ties into supply and demand, which is a part of the real estate market. I kind of think of all that money in the context of the law of diminishing returns. The more money you have the less value you get out of it, especially that much…now a little less and I could handle that. πŸ˜‰

        Reply
        • Ryan Lundquist says

          January 13, 2016 at 1:04 PM

          Ha. Yeah, I think we would all want to test the struggle of how “difficult” it could be to win or inherit multiple millions. πŸ™‚

          Reply
  6. Wendell Browne says

    January 14, 2016 at 4:51 AM

    A Fla. winner in Powerball… Stand by and let me check my ticket. …………

    O.K. back to work I go……… Good luck, all !

    Reply
    • Ryan Lundquist says

      January 14, 2016 at 5:21 AM

      Darn, Wendell. It sounds like you almost won though. πŸ™‚ Here’s to another day as non-billionaires.

      Reply

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