Find the answer in the charts.
Has the Sacramento real estate market changed its tune in June? Let’s look at the numbers to find the answer.
It appears to me that June is a replay of May. Sacramento and Placer counties are still in a seller’s market with El Dorado County’s market considered neutral.
The reason for this description stems from inventory levels. El Dorado County has four months worth of inventory. Sacramento and Placer counties level is around 1.5 months as of the end of June. Inventory levels below three means a seller’s market, three to six months defines a neutral market, and when inventory levels exceed six, a buyer’s market
Pricing is steady with the slightest uptick from last month’s data.
There is not a clear indication that market conditions will change anytime soon. More new homes are needed. Inventory will continue tight, which maintains pricing power.
Buyers are showing constraint, which is somewhat surprising as interest rates continue to behave, maintaining a below four percent average.
As a side note, as rents in the valley continue to escalate, eventually this will force more buyers into the market place.