Wayne Tilcock/Enterprise photo

Inquiring minds want to know: does this spring mark the turning point in the local real estate market? After five or six years of declining home prices — locally, regionally and nationally — has the market finally steadied, pointing toward an impending upturn?

That question is on the minds of many prospective buyers and sellers. Realtor Cary Arnold at Coldwell Banker-Doug Arnold Real Estate thinks that for Davis homes, the market may be stabilizing and starting to turn around.

“What we saw from 2010 to 2011 was the average sales price dropped,” Arnold said. The average sales price for first quarter 2010 was $507,036 for Davis homes, and the average sales price for first quarter 2011 was $437,483.

“But from 2011 into 2012, the prices were more stable,” Arnold said.

The average sales price in Davis for first quarter 2012 was $433,160 — almost a tie with first quarter 2011. The number of homes sold showed a slight uptick — 69 Davis homes changed hands in first quarter 2011; 74 changed hands in first quarter 2012.

And the price per square foot also showed a teeny increase — $253 per square foot in first quarter 2011 versus $255 per square foot in first quarter 2012.

“This is the first year we’ve seen it stabilize this much,” Arnold said.

At Lyon Real Estate in Davis, veteran Realtor Herb Cross likewise says “the market today in Davis is relatively stable.”

This is not to say that Davis home sales are burning up the track. The pace of sales is still leisurely compared to its peak around 2005. There aren’t a lot of homes selling in the upper segments of the market — $900,000 and up. Many of the transactions in Davis are in the middle segments of the market, which in Davis means homes in the $350,000s to $450,000s. But the better-maintained properties in desirable locations still move pretty quickly, as long as they are realistically priced.

Seller Tammy Moulton listed her cozy three-bedroom, one-bath home near Slide Hill Park in March, with an asking price in the mid-$300s. And Moulton got an offer in about a month, at her asking price.

Moulton bought the house in 1999, and has made numerous upgrades.

“It was a plain vanilla house from the 1970s when I bought it,” Moulton said. “Avocado-colored Formica countertops. Unattractive linoleum on the floor. I did kitchen upgrades, and bathroom upgrades. I took the spongy acoustic stuff off the ceilings. I put more insulation in the attic, and installed a whole-house fan.” And she spruced up her yard with plenty of greenery, all the way around.

But while Moulton and the prospective buyer have settled on a price, and the buyer is pre-approved for a mortgage, it’s not yet a done deal. Unlike cars — where the seller and buyer are largely free to structure the deal — the lender is playing a significant role.

Moulton and the buyer are now awaiting an appraisal, which has become more complicated as federal rules sometimes require an out-of-town appraiser to assess a Davis property. If that appraiser comes from an area of Sacramento where the market was hammered by the downturn and home prices are in the $100,000s, he may regard a mutually-agreed upon sales price in the mid-$300,000s as high for a three-bedroom, one-bath house — even though the average sales price in Davis is currently around $430,000.

“The good news about Davis is that prices have held up here better than in surrounding communities,” Arnold said. “The bad news is that you don’t have as many things selling, because you don’t have the income opportunities. People who are buying in Davis are buying a home to live in.”

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Things look different in Woodland, where the average sales price was in the upper $100,000s during first quarter 2012. And Woodland homes are selling at a faster pace than Davis homes. As compared with 74 homes sold in Davis during first quarter 2012, there were 116 sold in Woodland during that same period.

“Sales of existing homes in Woodland continue at a faster pace than Davis, which has been the case for three years,” said Dave Taormino, senior vice president of Coldwell Banker-Doug Arnold Real Estate. “The Woodland inventory of homes is less this year than last, which often creates multiple offer situations. Interestingly, overall prices in Woodland have not yet increased” — even though multiple offers are occurring.

“We believe this is because buyers remain concerned about more foreclosures that might appear in the future … The pace of accepted offers has quickened, but close of escrows languish because a large percentage of Woodland sales are short sales requiring bank approval, most of which cannot move faster than 60 to 90 days,” Taormino explained.

By contrast, foreclosures and short sales do exist in Davis but account for a minority of sales.

Some of those Woodland buyers are investors, who are scooping up homes at fire sale prices, fixing them up a bit, then listing them as rentals — with the rent running higher than the mortgage payment on the house.

Arnold said that you don’t see the same level of investor activity in Davis “because you don’t have the income opportunities.” With Davis homes selling at higher prices, an investor would be hard-pressed to charge a rent higher than a mortgage payment.

“The investors are definitely out there in Woodland, and many times they have cash offers,” said Cross, who also manages Lyon Real Estate’s office in Woodland. “But for me, the good news is that not all these properties are selling to investors. First-time home buyers have a real opportunity here. Currently, homes are actually and practically affordable for many of them. I think that speaks volumes for the future. When these first-time home buyers begin to realize equity, they’re going to want to move up. That stimulates the entire market.”

Taormino said that “many potential Davis first-time buyers cannot resist the prices in Woodland, which are roughly 50 percent less per square foot than Davis.”

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Other factors in the Davis real estate market include new construction. There aren’t a lot of new units coming on the market for sale or rent — but there are more projects in the mix than people may realize.

Regis Homes’ Verona development near Korematsu Elementary School in Mace Ranch has built 20 homes, of which 16 have sold. Regis has started construction on 10 more Verona homes, with another small batch scheduled to begin construction toward the end of the year. When complete, Verona will have about 71 homes.

In South Davis, Taormino said “construction in Willowbank Park continues with seven homes currently under construction, two of which are pre-sold. We anticipate building two more single-family detached homes later this year, and starting three attached villas on the greenbelt by early summer.”

Also in South Davis, the New Harmony Apartments — an “affordable” project that will encompass 69 units — broke ground last October and should be complete by year’s end.

Other infill projects in the pipeline include the Chiles Ranch subdivision (next to the Davis Cemetery), which will have 108 homes, and the Grande property on Grande Avenue (41 homes). But it is not clear when either of those projects might move into construction.

At UC Davis, construction of another 630 “student beds” is underway at the complex known as “The Ramble” in the West Village neighborhood. This comes on top of the 654 beds that came on the market last fall when The Ramble opened. The Ramble is aimed primarily at undergraduate students. UCD also is looking to build a similar project called The Boulevard Apartments, with 504 beds, opening in fall 2013.

But it is unclear when the university and development partner Carmel Properties might move forward with construction of the planned 343 West Village homes intended to serve faculty and staff.

“Right now, the developer is going through the process of establishing whether there is market demand at the pricing they are looking at,” said Steve Condrin, director of West Village and Faculty Staff Housing at UCD. “Carmel Partners is evaluating what the market demand is and will establish a construction schedule once they have finalized the details.”

In all likelihood, any new homes for faculty and staff in West Village likely will be added gradually in batches, much as the new homes in Verona are being built.

Further out on the horizon is the Cannery project, which would consist of around 600-some homes on the former site of the Hunt-Wesson tomato canning plant on Covell Boulevard (site of the recent Emerson Junior High School carnival). That project is still in the midst of an environmental impact review, and will need to go through city Planning Commission and City Council review, so any new homes there would still be years away.

Keep in mind, UCD has tentative plans to enroll around 5,000 additional students and add 300 new faculty by 2020, as part of the university’s 20/20 Initiative, announced last year by Chancellor Linda Katehi.

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In business since 1972 and the number one real estate office in Davis and Yolo County since 1978, we credit our success to having the best real estate associates in the area.

As we enter our 40th year, we look back on our humble beginnings when Bill and Nanele Arnold opened Arnold Real Estate with just a few sales associates. With Doug Arnold and his partner Dave Taormino at the helm, the company affiliated with Coldwell Banker in 1985 and now has the most productive associates with a consistent 60% market share, selling 3 of every 5 homes sold in Davis. Their closest competitor sells less than one of every five homes sold in Davis. When you work with a Coldwell Banker agent, you’re working with the most experienced, successful real estate associates in the area and that’s why our motto is “Expect Nothing Less Than the Best!”

Our office is housed in the historic Hamel House at 505 Second Street in the core of downtown Davis. We have two electric vehicles for our agents and staff to use and are proud to announce that we have clocked an impressive 100,000+ miles. Our owners and managers all live in Davis and are proud to be associated with the best agents the area has to offer.

To reach a Davis sales associate, call 530-758-3080.

Also celebrating its 40th year in business, the Woodland office touts full-time professional agents who specialize in residential and rural real estate. Coldwell Banker Doug Arnold Real Estate company is number one in the Woodland market, so our clients can feel confident that they’re working with the most experienced and successful agents in the area.

To contact a Woodland sales associate, call 530-666-2135.

Make certain your largest investment gets the focus and attention it deserves. Consult a Coldwell Banker Agent (530) 758-3080

Yesterday, today and tomorrow.

Interview a Coldwell Banker agent at a weekend open house.

When Doug Arnold and Dave Taormino started in the real estate business, they used carbon paper, there was no Multiple Listing Service and copy machines were just starting to become common.

Through the years, Coldwell Banker-Doug Arnold Real Estate has embraced advances in technology. Its agents have become more skilled in navigating short sales and the industry’s increasingly complicated rules and regulations.

In an effort to be more eco-friendly, the firm maintains two electric vehicles that its agents can use — and do, racking up more than 100,000 miles.

But one thing has stayed the same — a commitment to customer service that’s remained at the core of this local business since it was founded in March 1972.

“Our basic philosophy has not changed in 40 years,” said Taormino, co-owner and senior vice president. “Our clients come first … ”

That approach and “a great group of agents” can be credited for the firm’s success over the past four decades, Taormino said.

In fact, Coldwell Banker-Doug Arnold Real Estate leads the industry in Yolo County based on sales. Its agents handle three of every five homes sold in Davis and about four of every 10 in the combined area of Davis, Woodland and rural parts of the county.

This month marks the firm’s 40th anniversary. To celebrate, several events will be held throughout the year. Details will be announced at a later date.

In honor of the occasion, state Sen. Lois Wolk presented the business with a resolution of congratulations on Tuesday.

“It truly is a milestone,” Taormino said. “So many companies come and go or merge or just fade out of existence and we’re very pleased that through both the good and the difficult times we’ve been able to prosper.”

The firm, which focuses on residential real estate, has offices in Davis and Woodland and includes 62 real estate agents and eight other employees.

Bill Arnold — after running Arnold Pontiac dealership in downtown Davis during the 1960s — and his wife Nanele opened Arnold Real Estate with just a few sales associates in 1972. Eventually, their son Doug Arnold took over the business and partnered with Taormino. They affiliated with Coldwell Banker in 1985. Doug’s daughter, Cary Arnold, serves as the firm’s sales manager.

“We are essentially a family-based organization,” Taormino said, noting their deep roots in the community.

The firm’s leaders and many of its agents have raised their children here. All of the agents are involved in civic and charitable organizations, he said, in addition to other volunteer work they may do as parents and grandparents — getting involved in their children’s schools, sports teams or youth groups.

“They are individuals of exceptional character,” Taormino said. “They’re very committed to the communities we serve.”

In addition to the agents’ volunteer efforts, the business is also invested in the community. For example, the firm made a contribution to the recent campaign for Measure C, the property tax approved by voters to help support the schools.

“I think by and large, people in Davis and Woodland appreciate the neighbor- and family-oriented concept,” Taormino said. “They feel comfortable in having us deal with one of their biggest investments, which is their home.”

During the recession, the firm’s agents have taken an even bigger role in guiding clients through the home buying and selling process. While “we’ve been somewhat insulated” in Davis, Taormino said, home sales have dropped about 25 to 30 percent in Davis since the market started to falter across the nation.

Agents have received special training in short sales, which are particularly prevalent in Woodland. And they’ve become more involved in helping clients acquire the best financing possible — something that was more common in the 1960s and ’70s, Taormino said.

He also highlighted the company’s friendly and accessible office where clients can call or drop by any time to have their questions answered.

“All they have to do is pick up the phone or come into my office or Doug’s office,” Taormino said. “That’s what we’re here for.”

Coldwell Banker-Doug Arnold Real Estate’s Davis office is in the historic Hamel House at 505 Second St. and may be reached at (530) 758-3080. The firm’s Woodland office is at 1100 Main St., Suite 180, and may be reached at (530) 666-2135. For more, visit coldwellbankerdougarnold.com.

Saturday, March 10, Davis Little League’s opening day, was beautiful baseball weather. Sunny skies and crisp air set the stage for a great day at the ballpark.

The day was packed with festivities and baseball, with more than 800 little leaguers participating. A parade kicked off the festivities, starting in Community Park and making a path to the Little League complex, led by the Cal Aggie Marching Band-uh. According to event organizer Colin Anderson, it was quite a sight with “all the teams in uniform marching into the little league complex, lead by the Cal Aggie Band.” The parade congregated on the east end of the field, where the players gathered to observe the national anthem and recite the Little League Pledge. League Board President Steve Olney addressed the assembled crowd, and Jeremy Brooks took a moment to thank the many community sponsors that help make Little League possible. The UC Davis Baseball players did a demonstration with city council members Joe Krovoza, Sue Greenwald, Stephen Souza, Rochelle Swanson, Dan Wolk, and Yolo County Supervisor Don Saylor, putting everyone in the mood for some baseball action.

The games began in the afternoon, so the uniforms got a chance to get a little dirty. There are two leagues in Davis Little League (DLL) baseball: the National and American leagues. Each league has five levels: T-Ball, Farm, AA, AAA and Majors. The season will last through June, with fourth-of-July exhibition games for some leagues. All games are played at the baseball complex at the corner of F Street and Covell Boulevard, with T-ball games played in the grassy areas of Community Park.

The baseball complex at F Street and Covell Boulevard is the heart of the DLL action. Boasting a historic Snack Shack that serves all sorts of traditional baseball goodies, the complex is a great place for families to enjoy baseball and gather on the sidelines, catching up and relaxing on spring evenings and weekends. Along with great facilities, the complex has gorgeous fields, which are some of the best in the region.

DLL enjoys great community support. Everyone from the board members to the Snack Shack workers are parent or community volunteers. Additionally, the Davis business community does their part to support the league by sponsoring teams and providing goodies to players. Colin says, “You need only look at the numerous banners that hang in the outfield to see the support from the business community. Also, all the board members, managers, coaches and various volunteers come from the community. This to me shows how much this community supports DLL, which allows more than 800 boys and girls participate in youth baseball.”

The league works hard to maintain high standards of good sportsmanship and fair play. Coaches and umpires follow guidelines to keep the games fun and fair. According to its website, “DLL does not tolerate foul language or taunting at any level by the players, parents, managers or coaches.” Any individual violating these standards will be warned and could be thrown out and barred from the complex for additional games. The volunteers, coaches and board members give their time so players can benefit from the game. Colin says, “I hope the players get a sense of playing for a team and working together for a common goal, while trying to improve their individual skills.”

More than 35 parent volunteers began around 7:30 in the morning to prepare for opening day. This may have meant some early wake-up calls, especially on a Saturday, but the outcome was worth it. Colin says, “One of the highlights was listening to the national anthem being played, followed by 800 hats going into the air.”

It’s clearly time to play ball.