Real Estate Market Update - Roseville, CA - August, 2006

August 2006 saw an apparently modest price decline from last year on most of the "surface" indicators, but our favorite measure, sold price per square foot, declined sharply. 119 units sold in Roseville in August, down 44% from last year's volume of 212 residential units. Meantime, the expired to sold ratio broke the 100% mark. With 125 listings expiring in August and 119 selling, the expired to sold ratio stood at 105% in August, compared to a more moderate 25.9% a year ago.

The median sold price in Roseville in August was $445,000, down 1.1% from last August's $450,000, while the average sold price of $475,949 decreased 3.5% from last year's average. With this year's home some 134 square feet larger than last year's, however, the average price per square foot moved down a full 10%, from $262.18 to $236.09.

As we've noted in other markets, however, the ratio between sale price and list price has not moved much. Last year it was 99%, and this year it's at 98%. Three possible explanations come to mind:

• Buyers aren't taking enough advantage of the market, and writing the lowballs they could be. Sellers, please note: your home needs to be priced right, because believe it or not, buyers aren't all that creative and tend to a large extent to take your word for it.
• With all the inventory there is, there is still a competitive market for the sweet spot -- the prettiest homes that are already well priced.
• Buyers are waiting for prices to drop to a certain point, then moving swiftly and decisively when that happens.