Placerville Real Estate Market

All Real Estate is local

Okay I have heard that "all politics are local" and that can be debated but what can't be debated is that All Real Estate Markets are Local. I often get asked 'hows the market' ? And my response is always 'where do you live?' Most news stories you see regarding the real estate market get information from NAR (National Assoc. of Realtors) or if your lucky you may get statewide numbers form CAR (Calif. Assoc. of Realtors) and I am sure if you really dig you can find regional reports (Sacramento Region). All those numbers are great if you want a general idea of what direction the National, State, or Regional markets are is doing.

But if you want to specifically know what the market is doing in regards to a house you own or a house you want to buy you have to get hyper-local and look at what I call "Micro-Markets". I am sure we can agree that when creating real estate reports for even a small market area like El Dorado County, Homes for Sale in Pollock Pines will statistically impact Homes for Sale in El Dorado Hills but I doubt very much that a buyer/seller looking for Homes in El Dorado Hills would also be looking at Homes in Pollock Pines.

Listed/Sold - Pollock Pines vs. El Dorado Hills

Okay lets take a look (specifically) at the Placerville Market. 

While it can be debated what the most important indicators are (I am open to other opinions) I believe the two most significant numbers to look at when analyzing where the current "micro-market" is heading are the new listings (inventory) vs. the sold properties.  

As you can see from the chart, in January of this year (2013) there was big gap between the number of homes sold in Placerville and the number of homes listed in Placerville this naturally created a buyers market (more inventory for buyers to choose from). As we headed into spring of 2013 the total number of sales (solds) increased and the number of new listings decreased, this created more of a sellers market for April, May, and June. While the numbers changed (up/down) during parts of the year if you look at the (1 month/1 year/15 months) numbers they all point to a flat market with decreased sales and decreased listings.

There are several ways to look at this, one being that sellers are holding off selling because they think the market is going up (new listings down 29.7%) and because there is less inventory the total number of solds are down (20%). Another way to look at it is that because the inventory is low, buyers have less to choose from and seller can ask more for their house. Looking at the trend line there is no doubt that homes for sale in Placerville and Homes sold in Placerville have both decreased since July/Aug.

What does this mean to you as Buyer or Seller?  The numbers show there has been a dip in the last 2-3 months and this could be a trend or just regular seasonal fluctuations, but over the last 12-15 months the average price of Homes for Sale in Placerville and the average sold price of homes in Placerville have both increased.

Placerville Micro-Market Forecast

As I continue to keep close track of the market in Placerville, indications are it will continue a slow, downward trend until the end of January or Mid February. So if your buying my advice is to get off the fence and start negotiating while the market is in your favor. If your selling I advise to hold until the end of January, evaluate the numbers again then deiced how to proceed.

If you want to stay on top of the Miro Market for your area sign up for the "Market Insider" report on my website. After signing up you will be able to get micro market data and compare trends between zip codes, look at demographic data, School Reports, Crime data, Places of worship and much more.

Thank you for reading about the Placerville Real Estate Market

Provided courtesy Brian Creel - Real Living GreatWest  

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