A Look at Average Days on Market in Sacramento Real Estate
The average days on market in Sacramento are edging up as we move further into our slower season of the year. I see it in my own listings. Homes that would have flown into escrow a year ago are taking much longer to sell, especially in the $750K to one-million market in Sacramento.
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.