December 2020 Sacramento Housing Market Update is another amazing blog by our own Josh Amolsch. This is probably the most interesting blog we have posted in the last year. Enjoy, — JaCi.
You should have heard my jaw hit the floor when I first saw the latest numbers from the December 2020 Sacramento housing market update. Maybe I should grow a beard to pad the jaw a little or start wearing a football helmet with a buckled-in chin strap because I sense that the fireworks will continue for the foreseeable future in the Sacramento-Roseville-Elk Grove area. Let’s be real; everyone sees that for the foreseeable future. Please pick up a magazine or click on Google and check it out.
I included two graphs above, one from the last 15 months and one for the last 5 years. December 2020 is down 50% in inventory from December 2019!!! Also, do you see the red line above? How about the light green column? The red line is accepted offers (pending), and the light green column is an inventory (amount of homes for sale). Never, ever in the history of Trendgraphix collection of sales data in Sacramento shows the number of homes going into escrow exceeded that of the homes available for sale. Oh, and we only had 606 homes for sale in December. The good news is that New Listings are up from December 2019, but we are far behind and need a lot to catch up to make a normal, healthy market.
I sense that I am starting to sound like a broken record. I find myself going to Thesaurus.com (it is not a website and dinosaurs) to look up different words to describe how insane this market is. Isn’t that bizarre? Quite preposterous and fatuous, I must declare! Check out the graph above. Homes stayed on the market 17 days before going into escrow. That is faster than the spring market! 2020 was a historical anomaly in many respects, and this housing term has proven to be a stand-out market, maybe of all time. I almost don’t believe that sellers were getting “only” 101% of their asking price in Dec 2020. I wrote an offer for a client recently, and she ended up getting beat out by $25K, which was $40K over asking.
We set another record in December for the Median home price at $443,000. This was, no doubt, the strongest December in recent memory. Think it will stop? I know a lot of people are hoping. Better get in while you can. Sellers are going to make a lot of money this year. Especially those folks who bought in 2011-2012 when rates and prices were at all-time lows. Don’t you wish you could hop in the DeLorean and head back to when the Myans promised the world was going to end? Maybe they meant 2020 or even 2021. That’s a fair mistake, 2012 instead of 2021. It makes you think, eh?