El Dorado County Real Estate Report

Local Summary: Cameron Park is experiencing a limited supply of housing. Sellers are receiving multiple offers at asking price.

National Summary: Home Sales Continue On Record Pace Across the Country

Sales of both new and existing single-family homes continue on record pace although a more balanced market between buyers and sellers is emerging in many metro areas of the country. Demand is being fueled by both repeat and first-time home buyers taking advantage of low mortgage interest rates and a more plentiful supply of inventory in most markets. This robust sales activity, while still strong, is expected to flatten somewhat in 2005 as interest rates slowly increase and affordability becomes a problem for first-time buyers in higher-priced markets.

Record existing home sales, estimated at 6.49 million in 2004, are projected to be the second highest in history in 2005 because of continued strong market fundamentals. David Lereah, chief economist for the National Association of Realtors, Lereah expects the 30-year mortgage interest rate to rise to 6.3% in the first quarter after averaging 5.9% in 2004.

”Home prices are still rising faster than historic norms because we continue to have more buyers than sellers,” Lereah explained. “However, those conditions vary widely with the greatest pressure on home prices in California and Florida.” Lereah said he sees no evidence of price bubbles in areas of rapid price increases.”