Big demand and the force of FHA in Sacramento’s housing market

Big demand. Big FHA. Let’s talk the latest housing trends in Sacramento. If you’re local, my goal is to give you 10 quick talking points to share with clients. If you’re not local, what are you seeing in your area?

Two ways to read my big monthly market post:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

star-wars-real-estate-photo-by-sacramento-appraisal-blog-530

One Paragraph to Describe the Sacramento Market: This year the market feels much stronger than it did last year at the same time. Values have not skyrocketed like they did a few years ago, but there has been somewhat of a desperation among buyers to get into contract before interest rates and/or values rise much more. This has made for an environment where multiple offers have been commonplace (at least for properties that are priced correctly and in average condition). Housing inventory did increase slightly last month, and we are starting to see slightly more price reductions, but demand is still “off the charts” in that pendings are a good 20% higher than one year ago. Regional prices have seen an uptick these past few months, and sales volume is 7% higher so far this year compared to last year. We all know low interest rates and sparse inventory have been driving the market, but having such a huge percentage of escrows going FHA has also boosted sales figures. Remember that many FHA buyers are not putting much “skin in the game” so to speak, and at times they tend to offer more than anyone else to get a contract accepted. Being that 25% of all sales in the Sacramento region were FHA last month (and 29% in Sacramento County), this definitely creates more competition at certain price ranges and makes housing stats look more impressive. As housing inventory presumably begins to increase over the next few months (as it did last year), watch out for price reductions, unrealistic expectations from sellers, and buyers gaining more power.

DOWNLOAD 51 graphs HERE (zip file): Please download all graphs in this post (and more) here as a zip file (or send me an email). Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share.

Sacramento Regional Trends for May 2015 (Sac, Placer, Yolo, El Dorado):

  1. The median price in the Sacramento Region is $333,250.
  2. The median price is 7.5% higher than one year ago (May 2014).
  3. Sales volume is up 7.3% so far in 2015 compared to the beginning of 2014 (January through May).
  4. It took an average of 38 days to sell a house last month (44 days in April).
  5. Cash sales were 15.6% of all sales last month.
  6. FHA sales were 25.4% of all sales in the region last month.
  7. Sales volume was 7% higher this May compared to last May.
  8. There is 1.9 months of housing inventory (2.2 months in May 2014).
  9. The average sales price is $368,525 (7.5% higher than last year).
  10. It took 14 less days to sell a house this May compared to May 2014.

median price and inventory in sacramento placer yolo el dorado county

fha and other sales in sacramento placer yolo el dorado county

volume cash and conventional in region by sacramento appraisal blog

months of housing inventory in region by sacramento appraisal blog

days on market in placer sac el dorado yolo county by sacramento appraisal blog

Sacramento County Market Trends for May 2015:

  1. The median price in Sacramento County is $289,950.
  2. The median price is 7% higher than one year ago (May 2014).
  3. It took an average of 35 days to sell a house last month (42 in April).
  4. Cash sales were only 15% of all sales last month.
  5. FHA sales were 29% of all sales in Sacramento County last month.
  6. Sales volume is 5.7% higher this May compared to last May.
  7. There is 1.7 months of housing inventory (2.0 months last May).
  8. The average price per sq ft is 183 (13% higher than last May).
  9. The average sales price is $317,000 (7.5% higher than last year).
  10. It took 12 days shorter to sell a house this May compared to May 2014.

Median price and inventory since 2011 by sacramento appraisal blog - with median figures

price metrics since 2014 in sacramento county

months of housing inventory by sacramento appraisal blog

CDOM in Sacramento County - by Sacramento Appraisal Blog

sales volume in May in Sacramento County since 2008 Interest Rates Since 2008

Placer County Market Trends for May 2015:

  1. The median price in Placer County is $400,000.
  2. The median price is 5.3% higher than one year ago (May 2014).
  3. It took 38 days on average to sell a house last month.
  4. Cash sales were 15.8% of all sales last month.
  5. FHA sales were 21.5% of all sales in Placer County last month.
  6. Sales volume was 9.8% higher this May compared to last May.
  7. There is 2.1 months of housing inventory (2.5 months last May).
  8. The average price per sq ft is 201.
  9. The average sales price is $445,218 (5.7% higher than May 2014).
  10. It took 16 days shorter to sell a house this May compared to last.

Placer County median price since 2012 - by home appraiser blog

months of housing inventory in placer county by sacramento appraisal blog

days on market in placer county by sacramento appraisal blog

number of listings in PLACER county - May 2015 - by home appraiser blog

Placer County sales volume - by sacramento appraisal blog

interest rates inventory median price in placer county by sacramento appraisal blog

I hope this was helpful. Thank you so much for being here.

DOWNLOAD 51 graphs HERE (zip file): Please download all graphs in this post (and more) here as a zip file (or send me an email). Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share.

My New Office & the Desk I Built: By the way, I wanted to share some exciting news. I’m in the process of building a new home office since I recently moved to Carmichael. By this time next week my office should theoretically be finished, but for now here is a desk I built out of reclaimed wood last week. It’s a beastly 12′ long, and it’s designed for two work stations.

The desk I built

Questions: How do you think sellers and buyers are feeling about the market right now? What are you seeing out there?

If you liked this post, subscribe by email (or RSS). Thanks for being here.

Comments

  1. says

    Looks like the real estate market in Sacramento feels the same as my market. Love the desk, it just needs a treadmill and at 12′, it needs eight monitors to fill all that space.

  2. says

    Ryan, you always provide awesome data for your local market. With information like this agents can price homes based on what’s going on in the market rather than the emotion of the seller. Great job.

    • says

      Thanks so much Tom. Markets change so quickly, and there are so many layers that impact value. It’s good to be in tune with how values are moving (and why they are moving). I always appreciate your kind words and your blog too.

  3. says

    Great information Ryan as usual! I’d like to figure out how you created your graph for the month’s of Inventory by Price Range so I can make one for El Dorado Hills specifically.

Leave a Reply

Your email address will not be published. Required fields are marked *


*