sacramento real estate market
A tip for getting the edge when buying homes in Sacramento. The italics below feature an excerpt from a blog Elizabeth wrote several years ago. It is the same thing happening today. Agents call and ask if we have offers. We say not yet, but expecting offers any moment. Offers are often sent in poorly written, missing information and without proof of funds. Why would an agent ever send in anything less than picture-perfect offers?
Sometimes the offers never even make it in to us. We follow up with every agent and help in any way we can. Make sure you have discussions about your offers before they are sent to the listing agent. This will help with some of the smaller issues. Enjoy.
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.
Just because you and I may love tackling home improvement projects does not mean everybody shares our point of view. Especially not first-time home buyers in Sacramento or, for that matter, even move-up buyers. Today’s home buyers want move-in ready homes. They do not want to make repairs. Gone are the days of buying a resale home in average condition. There are two instances under which a buyer would purchase a home in average condition. Either the home is priced way below market value, making it an absolute steal, or wait . . . there is no second reason.
Trying to sell your home without making repairs is like inviting guests for dinner and expecting them to bring their own food and cook it, too.
I was thinking about this as I drove yesterday to Rosemont. The traffic on Highway 50 is always a bit rough on that stretch of freeway between downtown and Watt, but yesterday I spotted a hearse. When I saw it, the first thought in my head was not party-time! Nor did I wonder how many people we can stuff into it. Hearses were very popular as a vehicle for private citizens when I was a kid. We painted them psychedelic colors and drove them around like they were a limo. People lived in them, too, and held wild parties. But no, this hearse made me feel respectful of the cargo it may have carried. A different point of view than my initial instincts.
Also, the hearse was in the lane next to the fast lane. I guess there was no reason for it to be in the fast lane. Who is in such a rush in a hearse? Nobody, that’s who. In fact, I would feel rather uneasy watching a hearse exceed the speed limit in the fast lane. Wouldn’t you?
Sometimes sellers are in a big rush, too. They can’t wait to put their home on the market, even though it might need work. If it needs work or updates, then sellers should complete those tasks before putting their home on the market. You will not get top dollar for a home that needs work. I talked with sellers last night who said a bath might need work, but they want to let the buyers use their own vision for that job. I had to explain that buyers are not looking for home improvement projects. Buyers would rather pass on a property and will buy another home that doesn’t need any work.
The mindset today seems to be they just want the work done. They will pay a bit more for a remodeled house but they want it to be perfect. No major flaws or defects. No home improvement projects.
In fact, I visited with several sellers this past week. Two of them are not sellers. They think they are selling their homes, but they aren’t. I can tell just by chatting with people. I’ll be visiting new sets of sellers next week and helping them to fix up their homes prior to selling. If you’re thinking about it, give me a jingle at 916.233.6759. Put 40 years of experience to work for you.
Another reason you cannot sell your house in our seller’s market might be due to improvements. Your home might be over improved for the neighborhood or under improved. If it is over improved, a price adjustment or outright patience will move that listing. Buyers want fixed-up, turnkey properties. If it is under improved, it might not sell at all at the price a seller wants.
Unless, of course, if it is a major fixer. Major fixers always have plenty of buyers fighting for the right to turn their lives upside down by trying to become a flipper. I’ve noticed hard-money lenders sourcing get-rich-quick seminars, trying to educate would-be flippers on how to do an incredibly difficult job fairly poorly. These same lenders also pull in investors to fund hard-money loans to their flipper audience. What a racket.
Sometimes sellers try to be helpful; they want to share tips they just pulled out of thin air to their Sacramento Realtor. Agents need to show compassion. Sellers don’t see where they might be disrespectful. Once a seller asked if I could put up 3×5 cards at a laundromat. Because they are not in the business, they do not realize all effective marketing is online. It’s not in that magazine at the beauty salon. It’s on the internet.
Another seller asked why aren’t visitors to Zillow clicking on his listing. What was wrong? When your marketing verbiage is excellent and the photos superb, it is probably because buyers aren’t looking for homes on Zillow. Or, there is not a big market for your house. Maybe too much competition in a particular neighborhood. Not to mention, interest rates are increasing, thereby reducing buyers’ purchasing power.
One of the things I do when I take a listing is look at how long it took to sell that particular home the last few times. Doesn’t matter when. I’ve got 4 decades in the real estate business, and I remember all of our markets. If I see a home sold near its original price in a super hot market with really long days on market, it’s a problem property. Odds are it may sell over a similar time frame again.
But do not ever be afraid to talk to your Sacramento Realtor about why you cannot sell your house. If you have a competent listing agent, I can promise you this, it is not your agent. That is not the reason. Also, anything will sell if it is priced right.
Please be aware that I predict we are moving away from a seller’s market in Sacramento. Time-tested strategies that have worked for the past 6 years are no longer applicable to today’s real estate market. Is your agent aware of the shift? Buyers are saying enough is enough. Besides, markets change all the time. Get ready, Sacramento! Change is on the horizon. I can feel it.
January has barely left us, and the snapshot of the Sacramento housing market for January 2018 mirrors pretty much what I have been experiencing. Some of you know, of course, that I spent the months of December and January working from my house in Hawaii. Not on Hawaii real estate as some incorrectly assume. I am not licensed to sell real estate in Hawaii. No, no, no, I am a Sacramento Realtor, and I work on Sacramento real estate from our vacation house.
I do such a bang-up job of it that I placed as the #1 Agent at Lyon Real Estate for January, and I wasn’t even in town. To put this into perspective, we have around 1,000 agents at Lyon.
Our Sacramento housing market for January 2018 is still red hot. One of the ways I can tell is buyer’s agents are calling me to ask if I will share details of upcoming listings. Complete strangers out of the blue. Most of these agents I don’t even know, but they know who I am. They also know I answer my phone, and I’m always working. I tend to sell a couple of homes a week. And last week I completed 5 listing appointments. I have others in the pipeline waiting to go live in MLS. Buyers are out there.
I’ll put it to you this way. When I have a pending listing that is a bit difficult to sell and we also hold a back-up offer on that listing, it’s a hot market. It’s a hot market for sellers because, get this, we are still getting showings for that home. Why, you might task? Because that happens to be in the best interest of my sellers.
We had a slight uptick of inventory in the Sacramento housing market for January 2018 as compared to the same time last year. However, that surplus was wiped out almost double that amount by the pending sales. Our inventory for all residential properties in Sacramento County increased 9.4%; yet our pending sales in year-over-year comparisons jumped by 18.1%. The closed sales, which resulted from pending sales over November and December remained at seasonal numbers, about par.
If you’re wondering about the Sacramento housing market for January 2018 and whether this is a good time to sell, it doesn’t get much better than this. Well, it will be more frantic in April, I predict. But if you own a home that you want to sell which has any kind of drawback, put it on the market now! Today! Buyers will overlook bad locations, defects, even high prices . . . if only, if only they could buy a home today.
Call Elizabeth Weintraub at 916.233.6759. Put 44 years of experience to work for you.