The Davis market continues to be reasonably solid despite the mortgage issues. The lack of new homes continues to lessen the impact of the mortgage crisis. Davis is a much more balanced market for buyers and sellers than our surrounding communities.

New subdivision tracts in Davis are less likely to come soon because Measure J requires voter approval of any new subdivision outside of the existing City limits..

Probably due to limited new construction, the number of homes sold in Davis has steadily declined over the years. The number of sales in 2009 were down almost 49% from 2002. All markets, stocks, bonds, homes, etc. are driven by supply and demand. The current supply in Davis is lower than normal partially because discretionary sellers are waiting for a market improvement.

Interest rates for conforming loans are currently low at below 5%. Loans over $417,000 but, at or under $580,000, are considered jumbo conforming and, with add-ons are, for Yolo County, somewhat higher. Above that asking price, rates are still quite high. Also, the sources for no document and no down payment loans have disappeared. Many buyers are now using FHA loans to get into homes with only 3.5% down plus FHA closing costs. Rates and fees are changing constantly so check with a good lender to find what rate and max loan you can get.

Residential sales prices rose steadily from 2002 and peaked in 2006. (Rural properties not included.) We saw an 8% dip in 2007 prices, a 5% further drop in 2008 and another 8% drop in 2009. That is still almost 25% higher than 2002 prices. Davis homes are still selling at close to the asking price. Data for 2009 showed even fewer sales than 2008. Number of sales for the first half of 2010 are over 30% higher than 2009 but the median sales price is about the same as 2009. Homes requiring jumbo loans appear to be hit the hardest. For actual monthly market data back into the late 1990s, contact Julie.

Click the back button on your browser after viewing a graphic to return to this text.

Not all home sizes and areas of Davis have acted the same over the past few years. Sales were higher in the second and third quarters of the years than in the first and fourth quarters but it was most pronounced in homes between 1000 to 2000 square feet. Median price has held rather well for homes under 2500 square feet but has seen slightly greater drops as square footage increased. The drop in median price has varied among the different areas of Davis.

There have been a limited number of short sales and foreclosures in Davis in 2009. The steady demand from the University is keeping Davis values solid.

Data used for the Davis tables and graphs are from the Yolo County Association of Realtors' Multiple Listing Service. It is believed correct but is not guaranteed. It does not depict all sales in Davis.