January 2018 real estate sales data reflects a seller’s market.
The January 2018 real estate sales data for the Sacramento three-county area is now available. The charts below reflects data from Sacramento, Placer, and El Dorado Counties.
The area is still in a seller’s market with no change in sight.
All three counties show accelerated increases in pending sales from the previous month, however, down year-over-year.
Inventories are down and home price increases for the same time last year came in around 10%. The average days on market is in a neutral trend.
A couple of trends may be at work.
The first is rising interest rates within the last 30 days. Buyers may feel pressed to secure a loan mortgage as rates have increased above 4%, with Freddie Mac average as of today 4.32%. We are still a long ways from normalized interest rates of the 6% range.
The second trend comes to us via the Bay Area. As cost of housing continues their lofty levels in that area we are seeing a migration to the valley where home pricing is more reasonable in comparison. This would especially be true of retirees looking to pad their retirement savings while having the financial where-with-all to purchase a home in a desirable area of the Sacramento Valley.
I guess I am making the point that there is no change in sight to the current state of the real estate market in the greater Sacramento area. Great for those committed to the decision of selling sooner rather than later. The long term market is nothing more than a guess at this time. That won’t stop pundits from trying.
If you have decided to sell contact me so that we may discuss what it is you want to achieve moving forward.