March 2021 Sacramento Area Housing Market Update
March 2021 Sacramento area housing market update is another interesting blog, written by Josh Amolsch; these are his views and agree or disagree the data always tells a story. Remember, these are merely opinions as none of us have a crystal ball on the real estate market; at best we are guessing about the future. Sacramento is a much different market compared to many other cities in the US, due to the proximity of migration here from the bay area and how Covid-19 fundamentally changed the workplace to home offices from brick and mortar. The record-low interest rates and how long they last perhaps will have the greatest impact on the current housing demand. Enjoy–JaCi Wallace.
Diving right into the meat of what everyone wants to know about the March 2021 Sacramento area housing market update, we see that the Median single-family home price spiked yet again. We are now at $485,000 in March, about a $39,000 increase just since January. When was the last time you made almost $40K in two months? As the affluent people reading this chuckle to themselves, just wait when the dips start occurring. While no seasoned professional sees a 2008 style crash coming, there most certainly should be a correction. My guess is within the next 12 months. I wonder if anyone is tracking where these small amounts of Sacramento area sellers are going once they sell. Yeah, it is great to make a pile of cash on your home in this epic, once-in-a-generation seller’s market, but then they step into buyer hell of trying to find a decent home in a decent neighborhood for a decent price. Aha, decency in California must be eroding just as fast as affordability. I crack myself up.
The graph above shows an average of 14 days on the market for single-family homes in Sacramento County. But man, let me tell you, the real number is probably 4-5 for homes most buyers are chasing. It is the “new normal” to pay over 10% above asking in some cases for a home that is decent. Gather those gift funds and get ready to swing a hammer. Sacramento has changed forever. New money is here and that sweet smell of trickle-down inadequacy from the state, county, and city planning will be with us for years to come. I have said it before and I will say it again, let the builders build. Incentivize the builders so that we can gain a supply of homes. Encourage vocational learning, build up the skilled worker stock. What, are we going to be expected to call a hipster software programmer to fix a leaky pipe in the future? It would be foolish to fix a flat tire by hammering another nail into it.
Weintraub & Wallace Realtors