Friday, July 25, 2014
YOLO COUNTY NEWS
99 CENTS

Davis’ real estate scene continues to sizzle

By
July 04, 2014 |

Looking to buy a house in Davis? With a limited number for sale, it’s going to take persistence and a willingness to act fast.

Although the numbers fluctuate daily, there typically have been 70 to 95 Davis homes for sale at a time during the past two months. And the overall number of year-to-date home sales for 2014 is a bit lower than this time last year. But prices are running higher — up about 10 percent, on average.

The average sold price for the 288 property transactions this year is $571,000 and the average listing price is $669,000, according to Kim Eichorn of Lyon Real Estate. The median sold price is $522,000 and the median list price is $629,000.

Subtracting condos and half-plexes from the total shows that 188 homes have been sold thus far in 2014 with an average sales price of $628,000 and a median sales price of $600,000, she said.

Comparable figures for 2013 were 251 properties sold for an average price of $504,000 and a median price of $450,000. A total of 188 were single-family homes, with an average sales price of $567,000 and a median price of $527,000, Eichorn said.

For well-tended homes priced under $550,000 — which in the current Davis market roughly translates to three bedrooms, two baths and something less than 1,800 square feet — multiple offers are not uncommon.

Consider a recent sale on Pamplona Avenue — an attractive 1977 home with three bedrooms and two full baths, covering 1,754 square feet, with a high ceiling in the living room. Claire Black Slotton of First Street Real Estate worked with seller Marlyn Mainard to get the house prepared for the market.

“She had a pest report, a roof report and a city resale report prepared, and all the work recommended by those reports had been done,” Black Slotton said.

The house also received a fresh coat of paint, the bathrooms and kitchen were spruced up and the ceilings were refinished to remove the outdated “popcorn” textured material. Some old track lighting was taken out, as was all of the seller’s furniture so the home could be staged for an open house.

“By the end, it was really beautiful,” Mainard observed.

The house was priced at $540,000, pretty close to the middle of the market.

“We had a broker’s open house on May 24, and an open house on Saturday and Sunday of Memorial Day weekend,” Black Slotton said. By Tuesday’s end, there were three offers on the property, the highest being $555,000.

“I didn’t really expect it to sell that fast, even though I was told that it would,” Mainard said.

Multiple offers
Cory Gold, vice president of Coldwell Banker-Doug Arnold Real Estate, said he’s likewise seeing “multiple offers on houses that are in excellent shape (or have been completely remodeled), and are priced competitively relative to other homes that have recently sold.”

And while prices are rising — the average sold price is currently about $571,000 — “we are not yet at the 2007 peak of home prices,” Gold observed. After the market summited seven years ago, Davis home prices dropped back to approximately 2003 levels.

“Prices are now coming back,” Gold said, but in Davis they have not matched 2007′s peak.

By contrast, in portions of the Bay Area — particularly in Silicon Valley — home prices are now above 2007′s levels. Last week, the national Case-Shiller Home Price Index reported a 20.9 percent average increase in Bay Area home prices since March 2013. Many real estate market observers now regard the Bay Area as the nation’s most expensive and most competitive residential market, and the squeeze on prospective buyers as they compete for a finite number of homes is acute.

As economist Leslie Appleton-Young of the California Association of Realtors told the San Jose Mercury News last week, “For every six-figure software engineer, you have people working in the service industry, in restaurants and retail and living in very high-density situations or moving farther out where there’s affordable housing or rental housing.”

In the late 1990s and early 2000s, that kind of pressure led a number of families with jobs in the Bay Area to look at homes in Davis. Local real estate professionals say they aren’t seeing that sort of trend in Davis, at least not yet. The comparatively high cost of gasoline makes long-distance commuting expensive, among other factors.

But there are a number of Bay Area residents who are choosing to retire in Davis to be closer to children and grandchildren who live here. And while Davis home prices are expensive by Sacramento region standards, they are more affordable than parts of the Bay Area.

Black Slotton said she’s working with several retirees who are interested in Davis property, and Gold agreed that the trend for retirees to settle in Davis “has been going on for a while.”

From high-end to duplexes
Gold said he’s also seeing “renewed interest in higher-end properties. … The university is bringing in a number of new professors, and we’re also seeing a number of doctors buying houses.

“Lending doesn’t seem to be a big issue,” Gold added, “and appraisals are not as big of an issue” as was the case in some recent years. “We don’t have many deals falling apart because the loans didn’t come through.”

Another trend Gold noted is that more deals involve contingent offers, involving the buyer selling another property.

“In the past, most sellers didn’t want to look at contingent offers,” Gold said. “But we are seeing more sellers open to accepting a contingent offer on a short-term basis. And that’s loosening up the situation for a number of move-up buyers within Davis.”

Duplexes also are hot right now.

“We’ve seen investors coming in and buying those — a nice duplex can come on the market, and sometimes it’s gone the next day,” Gold said.

Not every property sells quickly.

“Some houses are sitting on the market because they’re overpriced,” Black Slotton said. “Instead of pricing based on recent sales, some sellers want to price based on where they think the market will go if prices keep going up.”

These sellers may end up dropping their asking prices in order to close a deal. And, Black Slotton added, “The buyers will bid up the price (through multiple offers) if they think it’s worth more.”

Currently, Davis homes are typically selling for 98 or 99 percent of the asking price, on average.

There also continues to be a considerable differential between home prices in Davis and in nearby Woodland.

“The average listing price in Woodland is running around $347,080, with an average price per square foot around $170,” Gold said. “In Davis, the average listing price is around $673,363, with a price per square-foot around $316.”

Woodland sold prices are averaging somewhere in the higher $200,000s. New homes being built in Woodland range from the high $200,000s into the $400,000s.

New homes, changing conditions
Market conditions are expected to change a bit as new homes are built at The Cannery a development at Covell Boulevard and J Street that broke ground in May. The project — which will be built over a period of years — will include a mix of housing: 295 single-family detached homes, 72 single-family attached homes, 96 stacked-flat condominiums, 40 to 60 “permanently affordable” apartments and 40 accessory dwelling units (aka “granny flats”).

With the first homes on the market sometime in 2015, The Cannery will be the biggest addition to the local housing stock since Wildhorse was built in the late 1990s.

Dave Taormino, co-owner of Coldwell Banker-Doug Arnold Real Estate, predicted that new homes in The Cannery will be “positive overall” for the local real estate market. The development will mean “an increase in inventory, with more selection for buyers,” he said. “There will be some move-up opportunities,” leading to existing homes going on the market.

This will “increase the average days-on-the-market to 75 days for resale homes,” Taormino predicted, meaning prospective buyers wouldn’t feel as much pressure to make an immediate offer when an attractive resale home comes on the market.

Taormino also predicted that The Cannery homes will result in “less appreciation (in home prices in 2015) — 5 percent, more or less.” And that will mean “more equilibrium between buyers and sellers.”

Other possible new home projects around town — some of which have been under discussion for years — appear to remain on hold. At UC Davis, the student apartments in the West Village project are now complete, but there’s no indication that construction will begin soon on the single-family-home portion of West Village, reserved for UCD faculty and staff.

Mark Ruthheiser, assistant director of the real estate services department at UCD, said the university and the development company Carmel Partners “are still in discussions” regarding the single-family homes in West Village.

It is also unclear when construction might begin on the Chiles Ranch project on East Eighth Street, near the Davis Cemetery. Approved in 2012, Chiles Ranch would include 77 single-family homes and 30 attached units.

And finally, interest in the vacant eight-acre Grande Avenue property, which has been owned by the Davis school district since the 1970s, has not led to action. The site was divided on paper into 40-some lots in preparation for possible development.

Three times this year, the Davis school board posted on its agenda a closed-session item to discuss a possible sales price for the Grande property. Any deal for the land would be discussed and voted on in open session and that has not materialized yet.

— Reach Jeff Hudson at jhudson@davisenterprise.net or 530-747-8055.

Comments

comments

  • Recent Posts

  • Enter your email address to subscribe to this newspaper and receive notifications of new articles by email.

  • .

    News

    Tech Trekkers boldly go into STEM fields

    By Amy Jiang | From Page: A1 | Gallery

     
    Decoding breast milk secrets reveals clues to lasting health

    By Pat Bailey | From Page: A1 | Gallery

    California climate change policies to hit our pocketbooks

    By San Francisco Chronicle | From Page: A1

     
    Davis braces for six days of scorching heat

    By Enterprise staff | From Page: A1 | Gallery

    Appeals court upholds high-speed rail route

    By The Associated Press | From Page: A2, 1 Comment

     
    Carwash raises funds for funeral expenses

    By Enterprise staff | From Page: A2

     
    Unitarians will host summer camp

    By Enterprise staff | From Page: A3

    Artists, photographers invited to support Yolo Basin Foundation

    By Special to The Enterprise | From Page: A3 | Gallery

     
    Sudwerk’s sales grow, floating on a sea of dry hop lager

    By Elizabeth Case | From Page: A4 | Gallery

     
    Wetlands visitors will see migrating shorebirds

    By Special to The Enterprise | From Page: A6 | Gallery

    ‘Bak2Sac’ free train ride program launched

    By Enterprise staff | From Page: A7

     
    Explorit: Wonderful wetlands right at home

    By Lisa Justice | From Page: A8 | Gallery

    Recycle old paint cans for free

    By Enterprise staff | From Page: A8

     
    Where your gas money goes

    By San Francisco Chronicle | From Page: A12

    Americans, internationals make connections

    By Enterprise staff | From Page: A16

     
    Can you give them a home?

    By Enterprise staff | From Page: A16 | Gallery

    STEAC needs donations of personal care items

    By Enterprise staff | From Page: A16, 1 Comment

     
    .

    Forum

    Trio disagrees on best option

    By Creators Syndicate | From Page: B5

     
    Support these local restaurants

    By Letters to the Editor | From Page: A10

    Let’s get the bench repaired

    By Letters to the Editor | From Page: A10

     
    Tom Meyer cartoon

    By Debbie Davis | From Page: A10

    Predicting climate changes

    By Letters to the Editor | From Page: A10, 1 Comment

     
    Clinton’s book is worth a read

    By Letters to the Editor | From Page: A10, 3 Comments

    Thanks for emergency help

    By Letters to the Editor | From Page: A10

     
    Commenting system to change

    By Debbie Davis | From Page: A10, 32 Comments

     
    .

    Sports

    Hudson solid, Hamels better in Giants’ loss

    By The Associated Press | From Page: B1 | Gallery

     
    Petrovic, Putnam share Canadian Open lead

    By The Associated Press | From Page: B1 | Gallery

    Moss powers A’s past Astros

    By The Associated Press | From Page: B1 | Gallery

     
    Enriquez brilliant, but Post 77 season ends with Area 1 loss

    By Bruce Gallaudet | From Page: B1 | Gallery

     
    The un-Armstrong? Tour ‘boss’ Nibali wins Stage 18

    By The Associated Press | From Page: B8 | Gallery

    .

    Features

    .

    Arts

    ‘A Most Wanted Man’: Superb espionage drama

    By Derrick Bang | From Page: A9 | Gallery

     
    Clyde Elmore: Art in the Wild

    By Evan Arnold-Gordon | From Page: A9 | Gallery

    Musicians perform at Sunday service

    By Enterprise staff | From Page: A17 | Gallery

     
    .

    Business

    Accord’s latest model is most fuel efficient

    By Ann M. Job | From Page: B3 | Gallery

     
     
    .

    Obituaries

    Mary Lita Bowen

    By Special to The Enterprise | From Page: A4

     
    James Thomas Feather

    By Special to The Enterprise | From Page: A4

    Richard ‘Dick’ Robenalt

    By Special to The Enterprise | From Page: A7

     
    .

    Comics

    Comics: Friday, July 25, 2014

    By Creator | From Page: A13

     
    .

    Real Estate Review

    Featured Listing

    By Zack Snow | From Page: RER1

    Professional Services Directory

    By Zack Snow | From Page: RER2

    Remax

    By Zack Snow | From Page: RER3

    Sherman Home

    By Zack Snow | From Page: RER4

    Tracy Harris

    By Zack Snow | From Page: RER4

    Vaughan Brookshaw

    By Zack Snow | From Page: RER4

    Lyon Real Estate

    By Zack Snow | From Page: RER4

    Julie Leonard

    By Zack Snow | From Page: RER5

    Ciana Wallace

    By Zack Snow | From Page: RER6

    Melrina A Maggiora

    By Zack Snow | From Page: RER7

    Joe Kaplan

    By Zack Snow | From Page: RER7

    Jo Vallejo

    By Zack Snow | From Page: RER8

    Karen Waggoner

    By Zack Snow | From Page: RER9

    Jamie Madison

    By Zack Snow | From Page: RER9

    Malek Baroody

    By Zack Snow | From Page: RER10

    Carol Coder

    By Zack Snow | From Page: RER11

    Diane Lardelli

    By Zack Snow | From Page: RER11

    Jason Sull

    By Zack Snow | From Page: RER11

    Coldwell Banker

    By Zack Snow | From Page: RER12

    Coldwell Banker

    By Zack Snow | From Page: RER13

    Julie Partain

    By Zack Snow | From Page: RER14

    Lisa Haass

    By Zack Snow | From Page: RER14

    Leslie Blevins

    By Zack Snow | From Page: RER14

    Yolo FCU

    By Zack Snow | From Page: RER15

    David Campos

    By Zack Snow | From Page: RER16

    Heather Barnes

    By Zack Snow | From Page: RER16

    Willowbank Park

    By Zack Snow | From Page: RER16

    Kim Eichorn

    By Zack Snow | From Page: RER17

    Dana Hawkins & Caitlin McCalla

    By Zack Snow | From Page: RER18

    Dana Hawkins & Caitlin McCalla

    By Zack Snow | From Page: RER18

    Susan von Geldern

    By Zack Snow | From Page: RER19

    Open House Map

    By jboydston | From Page: RER19

    Chris Snow

    By Zack Snow | From Page: RER19

    Travis Credit Union

    By Zack Snow | From Page: RER20

    Patricia Echevarria

    By Zack Snow | From Page: RER21

    Lynne Wegner

    By Zack Snow | From Page: RER21

    Kim Merrel Lamb

    By Zack Snow | From Page: RER21

    Martha Bernauer

    By Zack Snow | From Page: RER21

    Open House Map

    By Special to The Enterprise | From Page: RER23

    F1rst Street Real Estate

    By Zack Snow | From Page: RER24