Market correction or fall season slowdown?
Is a change on its way? The data appears to reflect so. Is it the beginning of a market correction or the regular fall season slowdown? I believe it to be the latter as the numbers do not show a dramatic turn.
Sacramento and Placer counties, based on the absorption rate of sold homes, are indicating we are in a seller’s market. El Dorado County has turned neutral with the absorption rate, based on sold properties, rising above three months. The industry uses absorption rate to indicate a buyer’s, seller’s or neutral market. In this month’s report other numbers tell the complete story.
Also, the numbers are a snapshot in time and not to be used as the norm. Then again, I have been in the area for close to thirty years and not sure there is a norm when it comes to the real estate market. And if that is the case then I suppose today is the norm??
To continue with the numbers.
Sacramento and Placer counties are showing their highest inventory of available homes for sale in the past 15 months, while El Dorado County has shown a steady increase the past six months and about the same as last year.
Sacramento County also shows the highest number of properties under contract in the last fifteen months. Placer and El Dorado counties are holding steady.
Price per square foot for sold properties in El Dorado County is appreciating with the other reporting counties indicating flat or neutral.
Sold pricing movement is indicative of the actual market trends. Sac County’s average and median sold prices are flat. In Placer County the average sold price is depreciating, and the median sold price is neutral. El Dorado County shows reversed, the average sold price is flat with the median sold price trending downward.
Seller’s take note; the percentage of the sold price compared to original asking price is down, with El Dorado County having the lowest at 96% sales price to the original asking price. So there is some pressure on what to set for asking price.
Here are the numbers. Glean from them what you will. I don’t see a significant correction other than what is seen seasonally this time of year. Others may view it differently. Remember national numbers are not our concern, only the local activity in the Sacramento area counts.