Sacramento Real Estate Market
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.
One thing to get straight right up front about what home buyers can now expect in Sacramento real estate is the market is not crashing. Our market is definitely not a bubble waiting to burst. Too many owners have too much equity and a higher number of sales have no loan at all. The scary no-doc loans given to any person with a pulse is absolutely not happening. However, what home buyers can now expect in our housing market is softer pricing. There are no smart sellers hoping for “my way or the highway” anymore.
Instead, smart sellers are viewing the competition with an eagle-eye lens. They are making their homes better priced and more attractive than the competition in hopes their home will sell faster. Oh, there are a few sellers still looking for that needle in the haystack, that unicorn buyer, but I definitely see that sort of attitude quickly changing.
What home buyers can now expect in Sacramento real estate is more negotiation. Prices are no longer firm. Many sellers are willing to help pay closing costs, too. There are not as many multiple offers for median priced homes, so buyers aren’t always getting beat out by cash buyers.
Another nice benefit for buyers is sellers are putting more work into getting their homes ready for market. Except for the flipper homes, for the most part, buyers can expect new paint, maybe new flooring and newer appliances. If a home isn’t up to their standards, they have 5 more that fit their dream list. And really, how many homes does a buyer need to buy, but one?
Typically, moving into Thanksgiving, our real estate market in Sacramento slows down for the winter. We are not likely to see a change in activity until probably March. This means home buyers have an excellent window of opportunity to find the home of their dreams, that perfect home in Sacramento. Interest rates are predicted to land in the 5.5 region next year, but for right now, they are hovering around 5%. Everything points to the best time to buy a home in Sacramento is over the next few months.
You can call the Elizabeth Weintraub Team at 916.233.6759. We’d love to help you find a home.
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.
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.
In looking through the statistics, what jumps out at me is the big uptick in inventory. However, pending sale numbers are surpassing closed sales for last month, which means August should be a good month for closed sales. Also, although the inventory is up, the new listings are down. Yet the average price per square foot is the highest it has been over the past 15 months, coming in at $237. Our median price is about the same in the July 2018 Sacramento housing report.
Basically, our closed sales are down 4.1% over this time last year. Our inventory is up by 22.1%. When inventory goes up and sales go down, we should see a little bit of cooling in the market. It will be interesting to note when we move into our spring market next year if this trend continues. However, the real number I see is the median sales price which has been fairly stable over the past 3 months, moving from $359K to $360K and back to $359K.
Below are the supporting statistics for the July 2018 Sacramento housing report.
charts: Trendgraphix, used with permission from Lyon Real Estate.