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Sacramento Real Estate Market Update for Spring 2014
I would like to give you a little update on what we have seen in the first quarter from our Sacramento market. There have been a lot of conflicting reports about the state of the market, and not all of them are correct. I would hate to see any of my clients rely on inaccurate information and then suffer real-life consequences because of it. In this update I will be using data from Elk Grove (a popular area for first-time buyers), Folsom, and the Roseville-Rocklin area.
For homes that were $300K or less in Elk Grove:
Since December, the volume of homes in this area and price range have decreased by nearly 50%. In contrast to this, the number of pending sales has actually increased by 50%. This leaves only 1 month of inventory in Elk Grove, and it will spur an extreme buyers market.
For homes that were $300K-500K in Elk Grove:
The volume of homes went down by 10%, but the pending sales are up by 67%. Inventory is at 2.4 months, and the average days on market is 45 days.
For homes that were above $500K in Elk Grove:
Volume has increased slightly, pending sales have increased by 100%, and there is actually another 6 months worth of inventory on the market. Average days on market is about 60 days. This echoes a trend I've noticed where higher priced properties stay on the market longer.
For homes that were $300K or less in Folsom:
There are only 31 properties available in this range in Folsom, and there are only 2 months worth of inventory. Sales have remained strong despite some potential overpricing.
For homes that were $300K-500K in Folsom:
Inventory is at 1.4 months, and pricing is beginning to fall slightly. The average days on market is 42 days.
For homes that were above $500K in Folsom:
Average days on market is 35 days, and inventory is right around 3.8 months. Sellers are also reducing their list prices by around 4-5%.
For homes that were $300K or less in Roseville-Rocklin:
There is only 1 month of inventory, and the pending sales have gone up by 50% while inventory has decreased by 50%. Once again we're seeing a very favorable market for sellers in this price range.
For homes that were $300K-500K in Roseville-Rocklin:
There is still only 1.7 months of inventory, but pending sales have been spiking. Prices are actually up 2-3%, and once again we're seeing a very strong market for sellers and a competitive one for buyers.
For homes that were above $500K in Roseville-Rocklin:
Pending sales are actually up by 100% and inventory has increased by 50% and sits at 3.8 months.
I would just like to caution both buyers and sellers that what the newspaper is reporting is not totally correct. Different niches within our Sacramento market are performing differently than the market as a whole, so don't rely on these broad market forecasts for your own real estate endeavors.
If you're selling you still need to price your home appropriately and market it well. If you're buying you need to be very careful about how long you're waiting to make a decision. This Sacramento market is moving extremely quickly, so make sure you're pre-approved and know exactly what you want.
My next video will touch on the cost of waiting, because interest rates are only getting higher as we approach 2015. Waiting to buy could really cost you a lot of money.
I know this was a lot of information at once, so if you have any questions feel free to reach out to me via phone or email and I would be glad to clear these things up for you.
