Happy New Year!
Let’s talk about what we’re seeing in the Sacramento Real Estate market. First off, it’s still a Seller’s Market because there’s more buyers than houses for sale. Interest rates have gone up slightly and there’s talk of another 3 rate hikes coming later this year, possibly 4 which will put some downward pressure on pricing.
Hot and Trending
- Suburban Residential (Best-priced receiving multiple offers)
- East Sacramento Residential
- Mid-Town Residential
- Investment properties
- Residential under $350k (first time home-buyers, downsizing)
Here’s what you need to know about December 2016:
- The inventory of homes for sale was down all around. Down 13.7% from 2015 and down 22% from November 2016.
- The number of sold listings decreased 7.3% from 2015 and decreased 1.4% from November 2016.
- The number of listings under contract was down 19.5% from 2015 and down 12% from November 2016.
- The months of inventory based on closed sales is at a new low of 1.2 months of inventory, down 7.5% from 2015.
So even though inventory is down, we still experienced some softening of prices. The median sold price across the Sacramento region decreased 2.3% from November while the average price per square foot appreciated 8.4% over 2015. It also took longer to sell homes. In December, it took on average, 38 days to sell a home up from 34 days in November 2016 and down from 41 days in December 2015.
Bottom line. The market still favors sellers. Prices are still trending up, but it’s looking like the exuberant pricing of homes has exceeded what buyers are willing to pay so if you’ve noticed some price reductions, that’s a lot of what we’re seeing in the market right now.
Continuing trends for 2017:
- Buyers coming in from the Bay Area
- Millennials buying
- Rental properties selling and converting from rental to owner occupied causing more renters to seek a stable monthly payment as rent continues to increase.
- Downsizing and upsizing
- Renters who were previously impacted by short sales and foreclosures are also coming back to the market
The market sleeps this time of year with many people taking their homes off the market during December because of the holidays. So, if you’re a buyer, take heart. There will be more homes popping up soon! I am constantly calling around the neighborhoods where buyers are searching and a lot of homeowners are talking about selling. If you’re a homeowner and have been considering selling in the next few months, a great first step is to get a free comparative market analysis to see what your home would sell for in the current market. It doesn’t obligate you to anything further and it gives you information that allows you to make an informed decision. Please feel free to reach out by phone, email, or carrier pigeon and we can set up a time to meet! 😉
Enjoy the freshness of the new year! I hope that this year brings you health, happiness, and prosperity!