Need an Update on the Sacramento Housing Market (Santa Cruz, Folsom: credit, loan)

[Calidreemer]

I was checking on some homes in El Dorado Hills and noticed that the housing costs don't seem to be moving down and that Blackstone is selling out (Lennar) in the St. Laurent homes. I was shocked to see this. Are things turning around out there?

We are still planning to move out there, but probably not until 2009 now due to our housing market and employment. Are we going to miss good deals? Is the job market rebounding? I would love to hear your thoughts. Thanks!

[CityGirl72]

Being that I'm in the same boat as you - I'll give you my opinion as someone trying to relocate but also as someone who lived in the area for about 10 years.

Now I'm not looking at El Dorado Hills - new developments. I am looking at Folsom, and the older parts of El D Hills. So I'm watching the area as well. But I'm also looking at other parts such as Fair Oaks, and Land Park, and East Sac.

Here's my take. When you are looking at a house that costs alot, and in Sacramento Market I'll say that's over 550K, those people are usually in secure high paying jobs. Thus their economy is not as weakened then others.

The Sac Housing burst is at the 200K range (150K to 250k). Those people are having a hard time of it. That's where the majority of foreclosures or unstable financing or short sales, or people moving out are. Not El D Hills, the majority of those people are fine.

So Folsom etc, does not have as much price lower or houses for sale, there is no need. Things just aren't as dire.

Plus on the employment homefront, we are both from stable job markets. Seattle & Chicago. And even in the best of times Sacramento will not compare to either of those metropolitans...best is to just move and get a job ASAP - then really do a job searcho nce here and settled

[Calidreemer]

Thanks for the information. We have been out to Sacramento a couple of times last year and it seemed things were depressed even in the 550K and up market, especially in new construction. I was surprised to see that only one house remains available in Blackstone with Lennar and the crazy thing is it is on the lot we looked at and wanted if things were all in place and now they built the model we liked on it.

We are both in careers that are portable if we can get transfers. I have about a year to go before I can apply for one at my company if there is an opening. We were just hoping we could make the move before the housing market rebounds. I guess we will have to wait and see like everyone else.

How are things going for your move? I used to live in Sacramento in 1990 and loved it. I miss the weather and location. What about you? Why do you want to move back?

[CityGirl72]

We are putting our Seattle house up for sale in January. But have been job searching since about May, just in case I get a job before the house goes up for sale. Plus it would be nice to get a relocation package. I've had many many phone interviews and bites on my resume, I've had two companies fly me in and put me in a hotel with rental car...both didn't hire me (last one was last week) - it's alot to invest the time and money to relocate someone when there are local candidates available.

SO I just keep pluggin away at it. We might hurt ourselves financially just to get out of Seattle and back there - but I'm hoping in the long run it will be worth it. We are moving with two kids now...so it's hard on the whole family.

I loved every day I lived in Sacramento. Every day. My husband adores Seattle (he's lived here 14 years) so I hope he'll be okay in Sac.

My job I can get hired anywhere. My husband on the other hand might have aq hard time, and maybe even a pay decrease...we are playing it by ear, and hoping that I will make enough for the whole family just in case he doesn't find a job.

[Calidreemer]

I hope things go well for you. It is hard to move the whole family.

I would love to hear from others about what is currently going on in the housing market and employment in Sacramento. Thanks!

[ElenaF]

Housing is the main reason we're looking at Sac metro area (that and the weather). While prices have fallen where we are (Santa Cruz), they are nowhere near what anyone but McCain would think is 'affordable'. I looked it up and there's like a 60% difference between the two counties, holy toledo!

[firedup1]

I am in El Dorado Hills right now. I just sold a house and decided to rent as the market here is still in a free fall. We have gone from drops of 5% per month to about 2-3% per month. The fall still continues though. I sold a home that sold in 2005 from $730K for a little over $500k. I sold 2 months ago. The same house now would sell for under $500k and continues to fall. It looks like things will continue to fall through mid 2009 at that point the bottom will remain stagnate until sometime in 1010-2011. You both have plenty of time to grab a screaming deal on a home. The area has changed significantly over the last decade. A major influx from the Bay Area was lead to some of the worst pollution in the country along with long commuter traffic. A commute from Placerville to Sac in 1995 was about one hour. Today that trip would be well over 2 hours. The weather is still great here and despite the over migration from the Bay it still remains one of the best values for living in California. I would be glad to answer any questions. Best of luck with your upcoming moves.

[clongirl]

Banks are not loaning money anymore (yes, even to seemingly qualified people). This is not just a Sac thing but a worldwide problem. My husband and I were turned down for a loan and not only had the 25% down payment on a house, but were actually close to being able to pay cash. Eventually bought a "short sale" but it certainly wasn't the exciting/fun experience that buying a house should/could be!

House prices must fall (though don't ask me how much!) because houses are not able to sell when the banks have no more money to lend. Don't let yourselves be deceived by agents/brokers/mother-in-law that you need to hurry or it'll be too late. Those days are over. Prices will stagnate for a very long time.. The economy is in shambles and won't recover anytime soon. Take your time and don't purchase because you are fearful that prices are suddenly going to rise. They are not.

Also, if you haven't had your job for more than a year, then very few banks will lend to you. Also make sure your job is secure as lenders are taking 0 risk at this time. Take care of all debt, pay off credit cards, automobiles etc. The banks want to see 6+ months in savings also. Whew! Good luck!

[CMKM-Miller]

CityGirl, my family and I will trade houses with you, lol. We're looking to move out of Sac and head up north, quite possibly to the Seattle area. We're done with Sac. For probably a lot of the reasons you love it here, we don't like it. The tough part is doing the job search from such a distance. The time and energy it takes. I had a second interview with a company almost 2 weeks ago, this one in person, but like you, didn't get the job. We're though optimistic and are giving ourselves time to hopefully make it materialize.

[CityGirl72]

You are more then WELCOME to switch houses with us - ours is a 5 bedroom in Greenlake (the heart of Seattle) we are putting it up for $565k! Go for it!

Make sure you are highly aware of S.A.D, it's big for people coming from sunny climates. Sacramento is the top ten cities of sun in the US, and Seattle is the BOTTOM ten...it's a huge change.

And Seattle's job market kicks a$$. You'll find a job in no time! Seriously - I still get job offers without trying, weekly.