April 2020 Housing Statistics for Sacramento County shows the trends are mighty clear, says Josh Amolsch. This is an exciting blog post from Josh, enjoy his read below. –JaCi Wallace
We are in a completely different place right now than we were at this point last year. Do you all remember the glorious days of April 2019 when Sacramento County single-family home inventory was 26% higher? When the median home price was $15K less than it was last month? I sure do remember, and all my wonderful buyer clients do, too.
Sellers in April 2020 were enjoying getting 100% of getting their asking price. However, if they are buying replacement property, they are staring down the barrel of having to be in the buyer’s shoes as they move on to their replacement home purchase. With homes selling in 20 days in April 2020, which by the way is 43% faster than March 2020, you pretty much may have to take what you can get in this market.
I actually talked to a new potential buyer client today about the market. I had to show him the reality that his idea of getting a beautiful home in Stonelake, Elk Grove, wasn’t going to work. He wanted to offer $70,000 under asking price, and this is a dream that he needs to wake up from. He cited a Covid19 previous report about patience and Covid19; his take was a market price-drop. His assumption was that people suddenly want to give their homes away. Nope. Kinda need a shelter to shelter-in-place.
Some of you may have seen my teaser post on social media about the “Cumulative Days On Market,” reaching 20 days for April 2020. Well, here it is in all of its shocking glory. It is taking twenty (20) days on average for single-family homes to sell as of April 2020. We have not seen homes selling this quickly in Sacramento since July 2017, when we hit 19 days. That appears as a hot summer market in Sacramento’s real estate, even with a global pandemic.
Think about this, going back as far as Trendgraphix allows, I did not find a time when homes were selling this quickly. So, if you are putting your home on the market, start packing and writing offers on replacement homes, because if this trend continues, you will be loading up that UHAUL before you can get to Costo to load up on apocalypse amounts of toilet paper.
The good news with the April 2020 housing statistics for Sacramento County show a positive change. Although we are down from April 2019 in inventory, sales, pending, and new listings, the inventory is up 15.5% in April 2020 over March 2020. The pendings are also up 4.3%. The uptick in new listings in March gave us more inventory in April, and buyers got back to writing offers. With this step forward, the median home price stayed strong at $400K for the second month in a row.
Another metric I am seeing is real-time stats comparing 4.1.2020 – 4.7.2020 vs. 5.1.2020 – 5.7.2020. We are already seeing 59% more pendings and 4% more new listings. Due to low inventory, sales are down 40%, but inventory is increasing by 14.7%. I predict we will continue to see a tight market, increased median home prices, homes selling quickly and, for most, if not more than what sellers are asking. Mortgage Rates Daily shows rates at 3.25% today, and these historically low rates are largely expected to keep driving the market.
Hang in there. Weintraub & Wallace Realtors with RE/MAX Gold is well-versed in competitive markets and can help you whether you are buying or selling. Give us a call, text, or email anytime. We can be reached at 916-233-6759.
— Josh Amolsch
Is Martin Luther King Day a Realtor holiday? This day began like any other day, hustle and bustle. We have a new Carmichael listing coming soon and we were busy getting the agreement signed. There are some legal overlays, so an attorney had to review. Both sellers have to sign it. We should be in MLS on market status by Friday. What a beautiful property, and be sure to read that post in a Coming Soon listing blog promotion. We should have photos next week.
Also, we received an offer on our Oak Park listing on 48th today, so we responded right away with a seller counter offer. Our escrows needed updating as they are in process. With appraisals due next week, we have our handyman getting them ready with smoke detectors and CO2 detectors.
My nephew is home shopping and so is my niece Adina, so it has been busy searching high and low online for a property because we are plagued with very low inventory.
It was like any other workday, except title company and lenders were closed for business so the phones were a bit quieter than usual. Is Martin Luther King Day a Realtor Holiday? The answer to this is NO, there is no Realtor holiday when there is work to do.
If you would like to have a Realtor working for you who works on all federal and national holidays, call Weintraub & Wallace Realtors, with RE/MAX Gold. We can be reached seven days per week at 916-233-6759.
— JaCi Wallace
To be a successful Sacramento home buyer’s Realtor is a very important job. Because many agents sell homes, it does not mean they are excellent at their job. Selling homes takes two agents: a listing agent and a buyer’s agent. Often the stronger agent will get the job done for both sides. How can a seller’s agent help a buyer’s agent? Great question.
As a listing agent, we make sure the time frames and contracts are completed, along with all the disclosures and reports. We can explain in detail how and why we are taking action. We make sure we have a 100% complete file and stellar record of all communications. Even if the buyer’s agent doesn’t know what she or he is doing, we will get the transaction completed, regardless. They can’t miss an important milestone, as we won’t let them.
Another great question along this same theme is a post written by my partner, Elizabeth Weintraub, in September 2012: What it’s like to be a Sacramento home buyer? An excerpt is in italics below.
It’s up to real estate agents to explain to potential home buyers what the market is like in Sacramento. Tell them what they can expect. I tell it to them straight. I figure it’s better that they be prepared than shocked. Don’t need anybody having a heart attack and dropping dead at my feet.
Because, maybe this is NOT the time for them to buy a home. I know I would NOT want to be a home buyer in Sacramento today. That’s the truth. Because there is tremendous competition for the same homes. It’s an extreme seller’s market. Many buyers, little inventory. Many all cash buyers who will outbid an FHA or VA buyer. Multiple offers are normal right now. This is a sizzling hot market! — Elizabeth Weintraub
To be a Sacramento home buyer’s Realtor is a lot more than writing contracts. It is about knowing the inventory and knowing the numbers. If your agent doesn’t know the amount of inventory, the pending sales and days on the market, how can the agent possibly guide you effectively through the process and write successful offers? Our buyer’s agents are seasoned pros and they study the market daily.
I received an offer yesterday and it was 10% low on a property that is priced for a quick sale. No letter of explanation nothing. I asked the agent his strategy about why he wrote such a below-market offer? The answer, oh that’s what the buyers wanted to offer. This means the buyer’s agent didn’t inform the client that the inventory is 35% low compared to last year. The listed properties are selling for 97% of list price throughout Sacramento. Had this agent educated her client they might be looking at acceptance in-lieu-of rejection.
— JaCi Wallace
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.
In this Sacramento real estate market, it doesn’t matter how many offers the seller has received. Yet, agents continue to call and ask that question. Why doesn’t it matter? Because any well priced home will be sold within hours if not within days of hitting the market. If a listing agent doesn’t have an offer when the buyer’s agent calls, you can bet an offer is on its way. Maybe 10 or 20 offers are in the works. It just doesn’t matter.
What does matter is how strong is your purchase offer? How well written is your offer? Have you included any special conditions to make your offer stand out among other offers?
I have empathy for buyer’s agents in this market. It’s very tough. A buyer’s agent is but one of many pigeons in the park scrambling for tossed bread crumbs. Sacramento is a seller’s market. Limited inventory. — Elizabeth Weintraub
— JaCi Wallace
Repair requests between Sacramento Realtors are how the process starts. A buyer’s agent starts the inspection reports for the buyer. Then the reports are reviewed by the buyer and the buyer’s agent. They create what I call a hit list but it is formally called a request for repairs. This request can be as little as smoke detectors to be installed to asking the seller to fix everything in the home inspection request.
The request is sent to the Seller’s agent. It is then reviewed by the seller. The seller is under no obligation to repair anything. In a seller’s market, a buyer would be wise to ask for very little. The negotiations now begin. Repair requests between Sacramento Realtors can make or break an escrow.
— JaCi Wallace