WHITCOMBE & CO. OPEN HOUSES THIS WEEKEND

2:30 - 4:30 p.m.:  2338 Lassen Place:  A marquis home in the best location in a premier Davis neighborhood!  Almost 3500 square feet.  5 bedrooms, 4.5 baths, marble and hardwood floors, and one of the best locations in all of Davis.  Come see what a $1 million view looks like.  $1,070,000.

April is sometimes the first busy month of the calendar year in terms of real estate closings.  April 2007 was relatively strong, although the increase in the number of closings from March was small (53 vs. 50 in March).  On the other hand, April 2007 was much stronger than the same month last year, with sales up 50%. 53 homes, condos, and halfplexes closed escrow during April 2007 (up from 35 in March 2006) (note that these numbers are actually indicative of market activity in March 2007 when most of the sales actually went pending).  For comparison, there were 63 sales in the white-hot market of April 2005.

In April, the average time on market of sold properties plunged to only 46 days.  Overall housing prices using my favorite measure, median price per square foot, were $324.96 in April, up from $312.09 in March.  The average price per square foot also rose to $337.00 in April, up from $322.00 in March.  On the other hand, the volatile median sale price dropped to $529,000, down a bit from $543,000 in March.  Taken as a whole, the data again show that prices at least held their ground in April, and have come off their late 2006 lows.  We now have at least six months in a row of relative price stability, and are just now heading into the busy season, when prices tend to rise.

The overall inventory of homes, condos, and halfplexes in Davis rose modestly to 180 units, up from 151 at the writing of the last Newsletter, (and still moderate compared to the high of about 265 units in the Spring of 2006).  Increasing inventory is a normal part of the beginning of the Spring season.

The market continues to be very stratified (i.e. different price ranges are experiencing different market conditions), with the mid-range in a strong sellers' market, and the higher ranges remaining strong, but not nearly as busy has the middle market (see price segment breakdown, below).  

Notably, the demand for single story homes between $400,000 and $650,000 appears to be very strong.  This is likely due to the fact that many of the most important buyers, those 50 years of age and older, will not even consider a two story home. 

The sub-$300,000 market is basically dead right now, with only three listings and no sales in the last month.  This would be technical "buyers' market" territory.  However, it's hard to consider a price category to be in a "buyers' market" with only three listings.

This price range moved just barely into a technical "neutral market" as a surge of listings hit the market.  There are 39 units on the market, and 12 sales in the last 30 days.  That's an inventory of just over three months.  Price concessions have generally been $10,000 to $15,000.

With 31 units on the market, and 12 pending sales in the last month, this price range continues in a "sellers market" despite a surge of new listings at the start of May.  Price concessions are averaging around $10,000.

This segment has now heated up.  There are 27 units on the market, and 13 pending sales in the last month.  This market segment has thus moved back into into very solid "sellers' market" territory in spite of the surge of May listings.  Price concessions have gotten a bit smaller, but you can probably still negotiate $5000 to $10,000 off most homes in this category.  As expected, it appears that the extremely hot market in the $400,000 to $500,000 has begun to push into this segment.

Inventory in this price range is currently 29 units, up from 27 at the writing of the last Newsletter.  There have been nine sales in the last month, for an inventory of just barely over three months'.  Thus, this market segment is still in a technical "neutral" market," but on the verge of a "sellers' market."  The small increase in inventory in the face of the Spring listings makes one wonder if this will be the next segment to heat-up.  Price concessions have decreased, but you can probably negotiate $10,000 off most homes in this category.

Inventories stand at 21 listings in this price category.  With four pending sales in last 30 days, this price range moved into technical "buyer' market" territory after its very strong showing earlier in the year.  You can probably negotiate $25,000 off an average home in this category.  Still, given the strength above and below this segment, I wonder if this reading is an anomaly.

With 21 listings, and seven pending sales in the last 30 days, this price segment continues (for the fifth letter in a row) in technical "sellers' market" territory, in spite of some new Spring listings.  The inventory is now at exactly three month's supply.  There continues to be strong demand in this price category, where you can still get a pretty nice house for under $1 million.  Price concessions were generally very small, with a couple homes selling above list price.

Inventory in this price range is now at 13 listings, and with four pending sale in the last 30 days, this segment has moved into "neutral market" territory.  Based on open house traffic, there appears to be at least a couple dozen buyers shopping in this price range.  Indeed, it is now on the verge of "sellers' market" territory.  The best time to buy may have passed, but it is still a very good time to buy in this segment.

With 14 listings and no pending sales in the last month, the income property market has moved into technical "buyers' market" territory.  

Stonegate 4/2 for $410,000: Fell out of escrow!  Best investment property I've seen in a while.  Four bedroom for about $400,000.  Great condition.  Great rental location.  Schedule a showing.

Rare Village Homes 2/1 for $479,000:  Costs a bit more, but its worth it.  Schedule a showing.

Willowcreek 4/3 for $550,000:  Still on the market?  Special circumstances mean good deal.  Newer 4/3, over 2000 square feet in nice South Davis neighborhood.  Could get it for around $550,000.   Schedule a showing.

Northstar 4/3 for $720,000:  Great 4/3 in Northstar.  2200-plus square feet.  It's a good time to make offers in this price range.  Schedule a showing.

Central 3/2.5 for $879,000: Amazing 1900 square feet 3/2.5 on large lot in prime Central Davis location.  Very nice finishes and updates, elegant layout, large yard with pool.  Short walk downtown.  A good property at $879,000.  Schedule a showing.

Investment Property:  Prime location, about 6% gross CAP.  Excellent deal that will go fast at $1.1 million.  Schedule a showing.