Something happening here. Is it real?
With the release of the January 2020 real estate market data, it appears, at least to me, that something is happening here. Is it real?
The numbers that jumped out to me is pending sales for January 2020. I see a significant jump in this data point, anywhere from 20% and up to 50% in El Dorado County compared to last month.
Pending sales compared to last year this same time is 9% higher in Sacramento County, slightly less in Placer County, and up 47% in El Dorado County.
If history provides a looking glass for us, then I would expect a robust selling season is ahead for us.
I say that as January data points seem to signal the low of the market. This time of year begins accelerated sales, inventory, and price increases.
I expect actual sold pricing will be soft to neutral, but this will not deter the seller’s optimistic pricing strategy.
Consider January, going into February as a basis for the direction of our local real estate market.
To sellers–there’s not a lot of competition. If you are considering selling your current home, now is a great time.
To buyers–interest rates are the lowest in 3 years, according to FreddieMac’s national average survey. Not too long ago, mortgage rates were above 4%. If you qualify for a $400,000 home with today’s rates, waiting could result in only qualifying for a $375,000 home tomorrow should the interest rate rise to 4%.
The average interest rate for a 15-year mortgage is below 3%.
One other note of interest. Millennials are now the most significant buying block for home purchases. Studies show that this group has saved and now ready to purchase. Baby boomers are becoming less of a factor on the buy-side. We are starting to show a little wear and tear.
The one thing I have noticed, when representing millennials, they are picky about the condition and not crazy about dark colors.
Sellers, recondition your home before you place it on the market. If that means painting your dark wood kitchen cabinets white, do it. Or price the property accordingly.
Have a glorious day!
Any questions, direct them my way.