• Skip to primary navigation
  • Skip to main content
  • Skip to primary sidebar

Sacramento Appraisal Blog | Real Estate Appraiser

Real estate appraisals for divorce, estate settlement, loans, property tax appeal, pre-listing and more. We cover Sacramento, Placer and Yolo County. We're professional, courteous and timely.

  • About
  • Appraisals
  • Order
  • Ask Ryan
  • Areas
  • Classes
  • Press
  • Trends
  • Share
  • Contact

Packing a market punch in Sacramento

July 15, 2015 By Ryan Lundquist 8 Comments

It’s easy to say things like, “The market is on fire” or “Buyers are hungry out there”. Yet I find vague statements don’t pack much of a punch. It’s far more powerful when we get specific. For instance, did you know sales volume is up almost 10% this year so far? Or FHA buyers were 28% of all sales this past quarter in Sacramento County? Those stats carry some weight and bring me pause.

sacramento appraisal blog - image purchased and used with permission from 123rf dot com

Goal of the Big Monthly Post: The goal of this big market update is to help highlight what the market is doing and help us describe it a bit better. If you’re local, absorb what is here and share some of the talking points below with your contacts. If you’re out of town, I’d love to hear about your market also. Email subscribers, I recommend reading this post on the blog instead of email.

Two ways to read this post:

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

One Paragraph to Describe the Sacramento Market: The first half of 2015 is now over, and all year buyers have expressed a huge appetite for the market. Sales volume is up about 10% in the region, and pendings have routinely been 20%+ higher each month this whole year. Sales volume in June was actually higher than it’s been in about three years. More sales has led to inventory declining, though it’s important to note more listings have definitely been hitting the market (and there have been more price reductions too). While many properties are generating multiple offers and selling very quickly, buyers are also finicky about pulling the trigger on anything that is not well-priced or with an adverse location or condition. Some sellers are severely overpricing their homes too. The median price stayed about the same last month compared to the previous month. One of the biggest factors shaping this market is the power of FHA buyers who now represent 23% of all sales in 2015 in the Sacramento region (and 27.5% of all sales last month in Sacramento County). The byproduct of more FHA buyers is stiff competition at the lower end and higher offers too (this makes overall 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 64 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 County Market Trends for June 2015:

  1. The median price at $290,500 is 7.5% higher than one year ago (June 2014).
  2. It took an average of 30 days to sell a house last month (35 in May).
  3. Cash sales were 16% of all sales during Q2 2015 (31% in 2013).
  4. Short sales were only 5.1% of all sales in Q2 2015.
  5. REOs were only 5.3% of all sales in Q2 2015.
  6. FHA sales were 27.9% of all sales in Sacramento County in Q2 2015.
  7. Sales volume is 17.5% higher this June compared to last June.
  8. There is 1.6 months of housing inventory (2.1 months last June).
  9. The average price per sq ft is 186 (8% higher than last June).
  10. The average sales price is $323,082 (9.8% higher than last year).

price metrics since 2014 in sacramento county

inventory - June 2015 - by home appraiser blog

REOs and short sales in sacramento county - by sacramento appraisal blog

CDOM in Sacramento County - by Sacramento Appraisal Blog

cash sales - sacramento appraisal blog

cash and fha under since 2009 - sacramento appraisal blog

sales volume in Sacramento County

Median price and inventory since 2011 by sacramento appraisal blog

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

  1. Sales volume was up 17% in June 2015 compared to June 2014.
  2. Sales volume for the year is up 9.6% compared with 2014.
  3. The median price at $332,250 is 7.1% higher than one year ago (June 2014).
  4. FHA sales are up 31% this year so far.
  5. Cash sales were roughly 16% of all sales last month.
  6. It took an average of 33 days to sell a house last month (37 days in May).
  7. FHA sales were 23.7% of all sales in the region last month.
  8. There is 1.85 months of housing inventory (1.92 months in May 2015).
  9. The average sales price is $370,013 (7.9% higher than last year).
  10. It took 4 less days to sell a house this June compared to June 2014.

median price and inventory 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

median price and inventory in sacramento regional market

interest rates inventory median price in sacramento regional market by sacramento appraisal blog

Placer County Market Trends for June 2015:

  1. The median price in Placer County is $401,000.
  2. The median price is 5.5% higher than one year ago (June 2014).
  3. It took 36 days on average to sell a house last month.
  4. Cash sales were 14% of all sales last month.
  5. FHA sales were 17.8% of all sales in Placer County last month.
  6. Sales volume was 31% higher this May compared to last May.
  7. Sales volume is up 18% in 2015 compared to last year.
  8. There is 1.88 months of housing inventory (2.76 months last June).
  9. The average price per sq ft is is 200 (up from 184 last June).
  10. The average sales price is $454,643 (8% higher than June 2014).

Placer County sales volume - by sacramento appraisal blog

months of housing inventory in placer county by sacramento appraisal blog

days on market in placer county by sacramento appraisal bloginterest rates inventory median price in placer county by sacramento appraisal blog

Placer County median price since 2012 - by home appraiser blog

Placer County median price and inventory - by home appraiser blog

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

DOWNLOAD 64 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.

Home Office Progress: I’ve been sharing some progress on my new home office. It’s been so much fun to build and now customize. Last week I finished some cork boards and hung crown moulding. Yes, I know I need to upgrade my chair (coming soon) and have multiple monitors (coming soon).

my home office

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.

Share:

  • Click to share on Twitter (Opens in new window)
  • Click to share on Facebook (Opens in new window)
  • Click to share on LinkedIn (Opens in new window)

Related

Filed Under: Market Trends Tagged With: Appraisal, appraisers, average price, FHA, high sales volume, home appraisers, housing inventory, less cash investors, market trends in Sacramento, Median Price, more FHA buyers, Placer County real estate, REOs, Sacramento Real Estate Market, sacramento regional market, Short Sales, trend graphs

Reader Interactions

Comments

  1. Mark Anderson says

    July 15, 2015 at 8:51 AM

    It will be interesting to see how interest rates will affect the market. In 05/13 climbing interest rates flattened sale prices.

    Reply
    • Ryan Lundquist says

      July 15, 2015 at 9:13 AM

      Very true Mark. Thank you. The same thing happened in the Sacramento market around that time. In addition to interest rates climbing, cash investors were also exiting the market at the time, and that increased inventory. The market is very sensitive to increases in both interest rates and housing inventory. It seems too when rates get below 4%, buyers go on a rampage.

      Reply
  2. Gary Kristensen says

    July 16, 2015 at 12:07 AM

    I’ve heard the buzz Ryan, the Sacramento market is really SMOKING HOT right now! It is such a FABULOUS and STRATEGIC time to sell with GROUND BREAKING and LEGENDARY statistics in this ROBUST time. 😀 Sorry Ryan, I enjoyed the buzzwords at the start and had to join in. Great job following the market with quantifiable data. After reading your blog, sometimes I think I know the Sacramento market better than home.

    Reply
    • Ryan Lundquist says

      July 16, 2015 at 4:20 AM

      That made me laugh. Great comment. Thanks Gary.

      Reply
  3. Gary Kristensen says

    July 16, 2015 at 12:08 AM

    BTW, I noticed the reference directed at me with the monitors 😉

    Reply
    • Ryan Lundquist says

      July 16, 2015 at 4:21 AM

      Yes, it was directed at you. 🙂 It’s on my short list. It’ll be a problem solved shortly here.

      Reply
  4. Matt The Mortgage Guy says

    July 20, 2015 at 11:50 AM

    Great info as always Ryan. No surprise to see the low numbers for days on market in the $200K-$300K price point. Working with first time buyers I have seen first hand how fast these properties move.

    Reply
    • Ryan Lundquist says

      July 20, 2015 at 12:01 PM

      Thanks so much, Matt. Yes, the market seems more aggressive in that price range in light of low inventory and a high volume of FHA offers too. It’s always interesting out there. The market overall started to heat up about a month before it normally does, and my guess is it will feel “hot” for slightly longer since inventory and rates are still relatively low. However, we do see that change where rates are up and more listings are hitting the market. In coming time the conversation will be more and more about an overpriced market (as some listings are definitely already overpriced).

      Reply

Leave a Reply Cancel reply

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

Primary Sidebar

Connect with Ryan

 Facebook Twitter LinkedIn YouTube Instagram

Subscribe to Weekly Post

* indicates required

Search this site

Blog Categories

  • Appraisal Stuff (407)
  • Bankruptcy (3)
  • Divorce (4)
  • Estate Settlement (6)
  • FHA Appraisal Articles (56)
  • Internet (53)
  • Market Trends (481)
  • Photos from the Field (126)
  • Property Taxes (70)
  • Random Stuff (231)
  • Resources (566)
  • Videos (161)

Blog Archives: 2009 – 2021

Lundquist Appraisal Links

  • Appraisal Order Form
  • Appraisal Website
  • Rancho Cordova Appraiser Website
  • Sacramento Appraisal Blog Sitemap
  • Sacramento Real Estate Appraiser Facebook Page
  • Twitter: Sacramento Appraiser (@SacAppraiser)
  • YouTube: Sacramento Appraiser Channel

Most Recent Posts

  • How long can this market keep going?
  • What is your housing persona?
  • Rapid price growth & the Gilmore Girls next door
  • Are first-time buyers targeting 2-4 unit properties?
  • Stale real estate headlines & buyers flocking to El Dorado County
  • My new sewer line adds huge value, right?
  • The housing market nobody predicted
  • Real estate trends to watch in 2021
  • You carried me & a spreadsheet for Christmas
  • Real estate drama (and a market update)

Disclaimer

First off, thank you for being here. Now let's get into the fine print. The material and information contained on this website is the copyrighted property of Ryan Lundquist and Lundquist Appraisal Company. Content on this website may not be reproduced or republished without prior written permission from Ryan Lundquist.

Please see my Sharing Policy on the navigation bar if you are interested in sharing portions of any content on this blog.

The information on this website is meant entirely for educational purposes and is not intended in any way to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or any other potential real estate or non-real estate purpose. The material found on this website is meant for casual reading only and is not intended for use in a court of law or any other legal use. Ryan will not appear in court in any capacity based on any information posted here. For more detailed market analysis to be used for an appraisal report or any appraisal-related purpose or valuation consulting, please contact Ryan at 916-595-3735 for more information.

There are no affiliate links on this blog, but there are three advertisements. Please do your homework before doing business with any advertisers as advertisements are not affiliated with this blog in any way. Two ads are located on the sidebar and one is at the bottom of each post. The ads earn a minor amount of revenue and are a simple reward for providing consistent original content to readers. If you think the ads interfere with your blog experience or the integrity of the blog somehow, let me know. I'm always open to feedback. Thank you again for being here.

Copyright © 2021 Sacramento Appraisal Blog