sacramento real estate market
The 2021 fire season is a timely topic for our weekly blog post, written by our very own Josh Amolsch. Enjoy! — JaCi.
Growing up, I remember four distinct seasons in California: spring, summer, fall and winter. It doesn’t really seem like that any longer. The seasons now just kind of run together, so it is either cold or bloody hot. The Sacramento mega-region housing market seems to be taking cues from the global warming conversation, too. The 2021 fire season is likely going to be just a continuation of the 2020 fire season, 2019 fire season, and so on.
Sacramento real estate and the election are always are high on the list in people’s minds during the fall of an election year. Some people say they will hold out on making a buying or selling decision as they feel the market prices could fall dramatically, depending on who is chosen as the President.
There will always be a high demand for a place to live in the USA. In the greater Sacramento Valley of California, our current real estate environment has not had enough home inventory for years. New homes are the only way to add inventory, and they are slowed down due to covid.
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.