Sacramento Housing Market Report
The December 2018 Sacramento Housing Market is not pretty from a seller’s point of view, but from a buyer’s point of view, it is beautiful. This is not to say that sellers should not be selling because if a seller owns a gorgeous home in a fantastic location, it will quickly sell. The others, not so much unless they are priced accordingly, and that is a struggle.
Because you don’t work in the Sacramento real estate business for as long as I have without knowing that almost every seller thinks they have a gorgeous home in a fantastic location. So that means I have my job cut out for me in 2019, because it will be a lot tougher for us Sacramento listing agents.
The Sacramento Housing Market November 2018 report is not surprising to me. Our inventory is up 25% over last year at this time. That is a huge uptick in inventory, even though it dropped slightly from last month. But an uptick in inventory over last year is not necessarily a good thing because it has resulted in lower closed sales.
Comparing November of 2017 to this past month, we’ve seen a drop of 12.6% in closed sales. Bad news for many Sacramento real estate agents whose income may drop, but good news for buyers.
Our Sacramento County housing report for October 2018 shows not only a seasonal dip but also a large gap between inventory and closed sales. About half of the homes for sale in Sacramento are selling, which is typical this time of year. However, it is also indicative of a market shifting to a buyer’s market.
The average square foot cost for our Sacramento County housing report for October 2018 shows stability. These numbers include all single family homes and attached houses in the county. However, what the numbers do not show is a 3% dip between original list price and final sales price.
Next, in our Sacramento County housing report for October 2018, let’s look at the average days on market in Sacramento. Or, not. You can see it shows an overall average of 35 days on market, which is an increase of 25% from a year ago. That is not bad at all, though. In normal real estate markets, homes can take 2 to 3 months to sell, so even 35 days is OK.
The median sales price reflected in our Sacramento County housing report for October 2018 shows a dip to $350,000. A bit of softening in prices is good news for buyers. More good news for Sacramento homebuyers is the fact the Feds left the rate unchanged this month. Although 4.875% is about average at the moment, it’s still a good time to buy a home. Call the Elizabeth Weintraub Team to gather more information or to become a valued client at 916.233.6759.
My thoughts in examining that particular segment is it is the luxury market. This segment seemed to do better last year. Further, our average state workers in Sacramento, including first-time home buyers, are often reluctant to spend that amount of money for a home.
I took a look at the last 30 days in the $750K to one-million price ranges in Sacramento County. This is how it breaks down:
Activity $750K to 1 Million over the last 30 Days in Sacramento County:
- 270 homes for sale
- 174 Active
- 52 Pending
- 44 Sold
The average days on market in Sacramento for the sold homes in our luxury market show 52% sold at slightly more than 100% of list price within 30 days. My professional opinion is those homes were either priced under market or they were renovated. The other 48% sold between 60 days and 120+, dropping off list price by about 1% for each month on the market.
Now, in contrast, the under $500K market in Sacramento is a different story. Here are the statistics I extracted from MLS:
- Number of homes: 5,067
- Active 2,378
- Pending 1,488
- Sold 1,201
Since so many pending sales blow up lately, I don’t put a lot of credence in the pending numbers. Too nefarious. Prefer the hard cold stats of sold. However, the average days on market in Sacramento for the under $500K market is 60% sold within 30 days at an average of 99.62% of sales price. Another 23% sold within 60 days.
What all of this means is sellers need to be priced right at inception. Don’t put homes on the market to see what kind of activity you will get because it’s a waste of time if it’s not priced right. To sell, you may need to be under market or renovated.
Even though the average days on market in Sacramento may be growing, it also gives plenty of ammunition for buyers to use. We have enough inventory that everything is not selling. In the under $500K market about 1 in 4 homes sold. In the luxury market about 1 in 6 homes sold.
Buyers will be hard pressed to find a better market as we move forward into the new year. Prices are still moving up, interest rates are going up, too. When homes do not sell, eventually sellers will take them off the market, and when inventory drops, there will be fewer choices.
Generally, in a true seller’s market, we have the following character attributes:
- Single-digit days on market
- Over list price offers
- Multiple offers
- No seller repairs or credits
- Few price reductions
- Rising prices
Except for highly desirable properties or under-market pricing, those characteristics are not really inherent in our present day Sacramento housing trends for September 2018. Our market is fairly stable and moving toward a buyer’s market.
Surprisingly, here are the characteristics inherent in our present Sacramento real estate market:
- Longer days on market
- Under list price offers
- Single purchase offers
- Seller credits and repairs
- Many price reductions
- Stable prices
However, it doesn’t mean the sky is falling or that the market is collapsing. Just means fewer closed sales, fewer pendings. For example, when I looked at my listing inventory, I have only one pending sale for this month. That is low for me. So I checked out the pending sales for a few other top producers, and we’re all pretty much the same. Some top producers show zero pending sales. It’s unusual for me to enjoy any breathing room.
In our present Sacramento housing trends for September 2018, we’ve got sellers clamoring for information. Everybody wants to know what they can do differently to quickly move a property and few, really, want to lower their prices where they may need to be. Our median sales price in Sacramento County is $360,000, identical to last June. In contrast, our inventory has doubled from January of this year.
What does this mean? It means it’s an excellent time to buy a home in Sacramento. High inventory means more choices. More choices means better chances to negotiate benefits such as repairs or closing cost credits. Not to mention, buying this year means lower interest rates. Next year, buyers will pay more for financing. Call your Sacramento Realtor Elizabeth Weintraub at 916.233.6759 and put 40 years of experience to work for you.