first time home buyers
October 2020 Sacramento area housing market update is a wake-up call for buyers. Another great blog is written by our very own Josh Amolsch. Enjoy — JaCi Wallace.
If you bought a Sacramento County home in October 2019, you likely have 15% more equity today than you did the day you bought it. Crazy, right? That is highly above normal. The October 2020 Sacramento area housing market update also shows the median home price increase from Oct 2019 to Oct 2020 in Yolo and Placer counties clocking in at 8.6% and 8.7%, respectively. Sure, the first few years of monthly mortgage payments are interest heavy, with less than half of the payment going towards the principal loan amount, but you still chip away at the loan amount. The heavy lifting this last year was in appreciation. The average annual appreciation, according to the California Association of Realtors, is usually 4-6%. Appreciation for 2020 is projected to be a little over 8%.
The Sacramento County Housing Report for January 2020 includes Sacramento County single-family homes. No other criteria are included in this particular report so that we can get a broad understanding of what is happening in our area. If you want to get updates for a specific area, even down to a ZIP code or multiple ZIP codes, or multi-family properties or land, sign up for Sacramento Home Sale Reports by ZIP Code.
One of the most important metrics in the Sacramento County Housing Report for January 2020 is that single-family homes are selling faster. The graph below shows 39 days is the average time on the market. Homes are selling close to the seller’s asking price. The green line below shows homes are selling at 98% of asking price, which is also higher than they were in January 2019. Are you writing offers? Are they in line with what sellers are asking?
Valentine’s Day in Sacramento real estate, $weet for $ellers or buyers? February is a month when we think about Valentine’s Day. Typically, we see sellers preparing to put homes on the upcoming spring market. Buyers are generally slower to start a re-entry in the home buying search. After reading the January 2020 Sacramento Housing Report, the buyers are out home shopping in full force. They are rapidly buying up the available inventory of homes. Many sellers are receiving multiple offers, and selling very close to list price or over list price, across the board.
When a buyer cancels on home the day after writing an offer this is always very disappointing for a seller. There are many reasons this can happen. Sometimes buyers are afraid they acted too quickly. Or they feel they settled for something they weren’t really all that happy with as they were tired of looking.
Sometimes its because the buyer’s agent didn’t share the information readily available. On my probate and trust listings, I always have pest and roof reports available and the disclosures and reports are attached to the listing. The buyer can then review the information while in the honeymoon phase, not 17 days later and then they ask for the moon and the stars.
Lately, when home buyers need to sign loan documents, this action has become an all too familiar problem. When buyers write an offer to purchase a home, shouldn’t somebody explain that they need to be available to sign loan documents? How about asking a simple question such as are you leaving town in the next 30 days? How about a friendly reminder such as you need to make yourself available to sign your loan documents and disclosures during our 30-day escrow.
We had an escrow ready to close, and I was informed by the buyer’s agent, on the day of signing (no less), that the buyer had to leave the state for a work conference and would have to sign the following week. This is nuts.