Stepping on the real estate scale (at the right time of day)

Values are starting to decline. The market is sliding. Price reductions are increasing. This is exactly what we start to hear around August as the market has transitioned from spring to summer. But is the market really crashing? It could be, but sometimes the issue is simple in that we’re not weighing the market in the right context. Today let’s look at a helpful scale analogy and then unpack the Sacramento market in depth (for those interested). Any thoughts?

42512389 - white scale on a wooden table top view, fitness and weight loss concept

A Scale Analogy: Imagine being on a diet and stepping on a scale in the morning before breakfast and then again at night after eating all day. What would happen? Well, it’s going to look like you gained some weight during the day because the body is light and empty in the morning and naturally heavier at night after a day of eating. Unless you want to punish yourself with thoughts of weight gain, the key for using a scale would be to weigh yourself every day around the same time so you are comparing the same context each day. Otherwise when comparing one context (morning) with a different context (night), it might look like you gained weight when you might have actually lost some.

The Big Point: In real estate we have to consider what it looks like to weigh the market. Often at this time of year we start hearing things like, “Values are starting to tank”, when in reality the market may simply be softening for the season. The problem is we don’t see the softening though because we’re stepping on the scale at the wrong time of day so to speak. For example, if we compare stats from June to July, it looks like the market is declining in value since stats have sagged. Yet if we step back and weigh the market in context by comparing June/July 2016 data vs June/July 2015 data, we see stats also sagged last year. Bingo! This helps us see it’s normal for the market to soften up at this time of year (of course it could be declining, but that’s a different post). In short, if we want to get better at seeing the market it’s critical to compare the latest month of data with the same month last year. Otherwise it’s very easy to start making market claims when the truth is we just might be misreading the trend. If you want to use bigger chunks of data like quarters, that’s fine too. Just compare the past quarter today with the same time period last year. You can also look at many years of data to get an even better sense of seasonal trends.

—-—–—– And here’s my big monthly market update  ———–—–

Big monthly market update post - sacramento appraisal blog - image purchased from 123rfTwo ways to read the BIG POST:

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

DOWNLOAD 62 graphs HERE: Please download all graphs in this post (and more) here as a zip file. Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share (please don’t copy verbatim). Thanks.

Slowing Market (Quick Summary): The hot spring season is definitely transitioning to a slower market. What do I mean? It’s taking slightly longer to sell today compared to last month, the median price and average sales price declined from the previous month, inventory saw a 20% increase from June (it’s still really low though), and price reductions have been more common. Yet at the same time the market is actually stronger this year as it was taking 4 days longer to sell last year and price metrics are a good 7-10% higher this year too. Overall the market feels fairly “hot” under $300,000, but there has been notable price resistance at higher price levels. These days well-priced properties are going quickly, but otherwise buyers can smell a high price from a mile away – and they’re not biting. It’s easy to think the market is starting to turn or tank, but it’s normal for the market to soften at this time of year. Unless we begin to see otherwise, right now it looks like we are seeing what seems like the start of a typical seasonal downtrend.

Presidential Election & the Market: We’re hearing lots of talk about how the market is strong because it’s a presidential year, but let’s remember the market is doing what it is doing as a result of years of unfolding trends. The presidential election doesn’t all of a sudden trump (no pun intended) the factors that have been driving the market for years and have caused the market to be where it is today. For context, values in Sacramento were increasing rapidly in 2004, utterly tanking in despair in 2008, recovering in 2012 (due to cash investors and 4% rates), and now the market is figuring out how to be normal after modest value increases this spring. Sure, there could be some impact because it’s a presidential year, but let’s defuse the hype and not overstate it. Take a look at the stats and graphs below and see if you can discern any real difference because this year is a presidential year.

Sacramento County:

  1. The median price is 100% higher than it was in early 2012.
  2. There were only 4 sales under $100K last month (single family detached).
  3. Sales volume has been about the same this year compared to last year.
  4. FHA volume is down about 8% this year compared to 2015.
  5. FHA sales were 26% of all sales last month.
  6. Cash sales were only 12% of all sales last month.
  7. It took an average of 27 days to sell a home last month, which is 2 days more than the previous month (and 4 less days compared to last year).
  8. REOs were only 2% of all sales last month and short sales were 2.7%.
  9. There is only 1.69 months of housing supply in Sacramento County, which is 11% lower than it was last year at the same time.
  10. The median price declined by 2.7% last month and the average sales price also declined, though both are 10% higher than they were last year at the same time.

Some of my Favorite Graphs this Month:

Median price since 2013 in sacramento county

price metrics since 2015 in sacramento county - look at all

inventory - July 2016 - by home appraiser blog

CDOM in Sacramento County - by Sacramento Regional Appraisal Blog

Bottom of the Market in Sacramento

inventory in sacramento county Since 2011 - by sacramento appraisal blog

seasonal market in sacramento county sales volume 6

Interest Rates Since 2001 layers of the market in sacramento county - by sacramento appraisal blog

SACRAMENTO REGIONAL MARKET:

  1. The median price is 97% higher than it was in early 2012.
  2. It took 1 day longer to sell last month compared to June (but 4 less days compared to July 2015).
  3. Sales volume is about the same as it was last year at the same time.
  4. Cash sales were 14% of all sales last month.
  5. Cash sales volume is 6% lower this year than last year.
  6. FHA sales were 22% of all sales last month.
  7. FHA sales volume is down nearly 8% this year so far.
  8. There is 1.96 months of housing supply in the region right now, which is just about the same as last year during this time.
  9. The median price, average sales price, and avg price per sq ft all declined last month from June, though they’re all up 7-8% from last year.
  10. REOs were only 2% of all sales last month and short sales were the same.

Some of my Favorite Regional Graphs:

days on market in placer sac el dorado yolo county by sacramento appraisal blog interest rates inventory median price in sacramento regional market by sacramento appraisal blog - market median price and inventory in sacramento regional market 2013 median price sacramento placer yolo el dorado county Regional Inventory - by Sacramento regional appraisal blog Regional market median price - by home appraiser blog sacramento region volume - FHA and conventional - by appraiser blog

PLACER COUNTY:

  1. Today’s median price is 72% higher than it was in early 2012.
  2. It took 3 more days to sell a house last month than the previous month (but 4 less days than last year at the same time).
  3. Sales volume was down about 11% in July 2016 compared to last July and is down slightly for the year about 3%.
  4. Both FHA sales and cash sales were each 15% of all sales last month.
  5. There is 2.25 months of housing supply in Placer County right now, which is up very slightly from last year at the same time (but up 30% from last month).
  6. The median price increased about 1% from the previous month, but for a better context it’s up 10% from last year at the same time.
  7. The average price per sq ft was $216 last month (was $202 last year at the same time).
  8. The average sales price was $480K last month (up about 11% from last year).
  9. Bank owned sales were only 1% of all sales last month.
  10. Short sales were 0.07% of sales last month.

Some of my Favorite Placer County Graphs:

days on market in placer county by sacramento appraisal blog interest rates inventory median price in placer county by sacramento appraisal blog months of housing inventory in placer county by sacramento appraisal blog number of listings in PLACER county - 2016 Placer County housing inventory - by home appraiser blog Placer County price and inventory - by sacramento appraisal blog Placer County sales volume - by sacramento appraisal blog

DOWNLOAD 62 graphs HERE: Please download all graphs in this post (and more) here as a zip file. Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share (please don’t copy verbatim). Thanks.

Question: Did I miss anything? Any other market insight you’d like to add? I’d love to hear your take.

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

Paying attention to the mood of the market

The other day a home owner was upset because he thought his appraisal came in too low. Yes, he was hung up on price per sq ft, which was a big issue, but most of all he believed the home should have been worth way more since there were almost no other homes listed for sale on the market. His thought was, “There’s no inventory, so I’m going to command top dollar.” After all, isn’t real estate about supply and demand? Well, yes. But there’s so much more.

the mood of the market sacramento appraisal blog - image purchased and used with permission by 123rf

The Market’s Mood: The truth is there are many factors that make value move in a market, and supply and demand is only one cog in the system (or “layer of the cake” as I like to say). Granted, it’s one of the more important metrics, but at the end of the day we can’t forget to ask how buyers and sellers are feeling about the market. Or in other words, what is the mood? For example, in early 2013 housing inventory in Sacramento was incredibly low, and buyers were pretty much willing to offer at list price or above on anything that hit MLS. In fact, if something didn’t have multiple offers, I wondered what was wrong with the property. At the time there was a real desperate mood, yet despite inventory still being low today, buyers are exhibiting more discretion by not pulling the trigger unless the price is right. Like the owner above thinks, this seems irrational because there aren’t many homes for sale. But the mood has changed. Likewise, if a house backs a busy street or has some adverse issue, buyers are tending to wait rather than offer. Again, this seems illogical because on paper it looks like buyers should be making offers all day long because of how low inventory is. Lastly, it’s worth mentioning the owner above did not realize his home valued toward the higher end of the neighborhood range was simply not experiencing the same demand as the lower end of the price spectrum in the neighborhood. Thus the mood at the top was different than the bottom.

Action Step: At the end of the day, let’s not forget to talk with clients about the mood of the market. We can do this by sharing the latest numbers, thinking about what is driving some of the numbers (the mood), reading articles from several local and national publications, and having conversations as often as possible with others in the real estate trenches (not just with people in your office or field). Also, since market moods are constantly changing, we have the opportunity to continually say something different about the local market.

Any thoughts? I’d love to hear your take below.

—————– For those interested, here is my big market update  —————–

Big monthly market update post - sacramento appraisal blog - image purchased from 123rfTwo ways to read the BIG POST:

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

DOWNLOAD 73 graphs HERE:
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 (please don’t copy verbatim). Thanks.

Quick Sacramento Market Summary: The market in January was fairly normal. It took 3 days longer to sell a house than the previous month. That’s normal. The median price and other price metrics generally declined from December. Yep, that’s normal too for the time of year. Sales volume declined by 39% from December to January, but that’s common since sales volume ALWAYS declines from December to January (yes, I said always). Actually, the real trend is January 2016 had a 2.5% higher sales volume than January 2015. Housing inventory increased, which is also normal. Okay, I apologize because I’m repeating one word too often here. But do you catch my drift? However, I will say the bottom of the market and “entry-level” neighborhoods have felt a little more aggressive in terms of values, number of offers, and demand. In short, some neighborhoods have seemed to have more of a feel of a budding spring real estate market, while others have been cruising along waiting for the spring season to further ripen. As I said last month, if I had to sum up the market in 2015 I would say: Modest value appreciation, but aggressive demand. Yes, demand is very aggressive out there, but sellers really need to price realistically unless they want to sit on the market. One last thing, there is a big difference in the mood among buyers when mortgage interest rates are closer to 3.5% compared to even 4.0%, so watch rates and the market closely.

SACRAMENTO COUNTY:

  1. It took 3 more days to sell a house last month than December.
  2. It took 14 less days to sell this January compared to last January.
  3. Sales volume was 2.5% higher in January 2016 compared to last January.
  4. FHA sales were 26.8% of all sales last month.
  5. FHA sales under $200,000 were 29% of all sales last month.
  6. Housing inventory is 30% lower than it was last year at the same time.
  7. The median price declined by 5.3% last month.
  8. The median price is 9.4% higher than the same time last year.
  9. The avg price per sq ft declined by about 1% last month.
  10. The avg price per sq ft is almost 11% higher than the same time last year.

Some of my Favorite Graphs this Month:

inventory - January 2016 - by home appraiser blog

median price and inventory since jan 2013 - by sacramento appraisal blog

January market in Sacramento real estate - by sac appraisal blog - since 2008

sales volume in January

inventory in sacramento county Since 2011 - by sacramento appraisal blog

price metrics since 2014 in sacramento county

SACRAMENTO REGIONAL MARKET:

  1. It took 2 more days to sell a house last month than December.
  2. It took 15 less days to sell this January compared to last January.
  3. Sales volume was 7.9% higher in January 2016 compared to last January.
  4. FHA sales were 23.6% of all sales last month.
  5. Short sales were 3% and REOs were 3.5% of sales last month.
  6. Housing inventory is 28% lower than it was last year at the same time.
  7. The median price declined by 1.3% last month.
  8. The median price is 10.8% higher than the same time last year.
  9. The avg price per sq ft increased 2% last month.
  10. The avg price per sq ft is 11.6% higher than the same time last year.

Some of my Favorite Regional Graphs:

sales volume 2015 vs 2016 in sacramento placer yolo el dorado county

sacramento region volume - FHA and conventional - by appraiser 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 2013

number of listings in sacramento regional market

PLACER COUNTY:

  1. It took 4 less days to sell a house last month than December.
  2. It took 16 less days to sell this January compared to last January.
  3. Sales volume was 13.8% higher in January 2016 compared to last January.
  4. FHA sales were 16.7% of all sales last month.
  5. Cash sales were 19% of all sales last month.
  6. Housing inventory is 28% lower than it was last year at the same time.
  7. Sales volume is over 13% higher these past 12 months compared to the previous one year.
  8. The median price, average price per sq ft, and average sales price increased last month, but Placer County data seems to fluctuate quite a bit since there are fewer sales, so I don’t recommend putting too much emphasis on these increases unless they become prolonged over time.

Some of my Favorite Placer County Graphs:

Placer County price and inventory - by sacramento appraisal blog

number of listings in PLACER county - January 2016

months of housing inventory in placer county by sacramento appraisal blog

days on market in placer county by sacramento appraisal blog

Placer County sales volume - by sacramento appraisal blog - January volume

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

I hope this was helpful and interesting.

DOWNLOAD 73 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 (please don’t copy verbatim). Thanks.

Questions: How would you recommend for someone to find the mood of the market? Are there certain metrics you think best show the mood? Also, what stands out to you about the latest stats in Sacramento? I’d love to hear your take and what you are seeing in the trenches.

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

The slowing, competitive, & price-sensitive market in Sacramento

Slowing down. Competitive. Price sensitive. Still more aggressive than last year. These are all ways I would describe today’s housing market in Sacramento. Let’s unpack the latest trends today to really see the market so we can better understand it and explain it to clients.

slow but competitive market in sacramento - image purchased and used with permission from 123rf - sacramento appraisal blog

4 Hours to write this post: This post usually takes easily 4-5 hours to write each month. Keep in mind I create 50-60 graphs and then break down the trends into bite-sized talking points. I honestly LOVE doing this, and the goal is to be able to use the information for life and business. Why am I mentioning this? I just wanted to let you know how much I value helping us stay in tune with the market. New readers, the three other monthly posts are short, sweet, and general, but this one is long and hyper-local.

Two ways to read THE BIG MONTHLY POST:

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

DOWNLOAD 54 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 (please don’t copy verbatim). Thanks.

One Paragraph to Describe the Sacramento Market: Last month I talked about how the market has been slowing down. Sometimes when we say “slow”, it can really freak people out. But it’s actually very normal for real estate to soften during the later summer and fall after a more aggressive buying season in the spring. Moreover, when the market does change, it’s simply an opportunity to price more efficiently and explain the changing market to clients. The danger is when we say the same thing about the market all year long despite the trends really not being the same. What are some of the signs of slowing? It took 4 days longer to sell a home last month than the previous month in the Sacramento region. Housing inventory increased slightly in the surrounding four counties last month. The sales to list price ratio decreased by 1% last month. The median price in Sacramento County has been the same for four months in a row. The median price in the Sacramento region has declined by 1% over the past few months. I could go on and on. Of course let’s remember that sales volume is up by a whopping 10.9% so far this year in the region, and housing inventory is actually 22% lower right now in the region compared to the same time last year. Ultimately it’s still very competitive out there as buyers are hungry to get into contract before interest rates rise too much or while they feel like they can still afford the market (that’s so 2004). All year the market has been remarkably price sensitive too, which means buyers have been hesitant to write offers on overpriced homes. As housing supply presumably continues to increase over the next few months, watch out for price reductions to continue to increase, unrealistic expectations from sellers, and buyers gaining more power.

Sacramento County Market Trends for August 2015:

  1. The median price has been hovering at $290,000 for 120 days.
  2. It took an average of 34 days to sell a house last month (up 3 days from July).
  3. Last year at this time it was taking an average of 40 days to sell a house.
  4. FHA sales were nearly 27% of all sales in Sacramento County last month.
  5. Sales volume is 9.7% higher so far in 2015 compared to last year.
  6. Sales volume was 15% higher in August 2015 compared to August 2014.
  7. There is a 1.76 month supply of homes for sale (slightly lower than July).
  8. Housing inventory is nearly 27% lower right now compared to August 2014.
  9. The average price per sq ft is 185 (5.5% higher than last August).
  10. The average sales price is $319,636 (slightly lower than past two months).

context for median price - by sacramento appraisal blog

CDOM in Sacramento County - by Sacramento Appraisal Blog

inventory in sacramento county Since 2013 - part 2 - by sacramento appraisal blog

inventory - August 2015 - by home appraiser blog

price metrics since 2014 in sacramento county

number of listings in sacramento - August 2015 - by home appraiser blog

sales volume in Sacramento County

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

  1. Sales volume was up 12.8% in August 2015 compared to August 2014.
  2. Sales volume for the year is up 10.9% compared with 2014.
  3. The median price at $328,825 is up 6% from last year, but down 1% from the past two months.
  4. It took an average of 39 days to sell a house last month (4 days longer than last month).
  5. FHA sales were 23% of all sales in the region last month.
  6. There is 2.05 months of housing inventory (up from 1.98 last month).
  7. The average sales price is $367,545 (4.2% higher than last year, but down slightly from two months ago at $370K).
  8. It took 3 less days to sell a house this August compared to August 2014.
  9. FHA sales volume has increased by 30% in 2015 compared with 2014.
  10. Housing inventory is nearly 22% lower right now compared to August 2014.

sales volume 2015 vs 2014 in sacramento placer yolo el dorado county

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

breakdown of sales fha and everything else in sacramento placer yolo el dorado county

months of housing inventory in region by sacramento appraisal blog

breakdown of sales in sacramento placer yolo el dorado county

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

Placer County Market Trends for August 2015:

  1. Sales volume was up 11.7% in August 2015 compared to August 2014.
  2. Sales volume for the year is up 17% compared with 2014.
  3. The median price in Placer County is $402,900 (increased from last month, but it’s been hovering from $390-400K generally).
  4. Cash sales were 18.5% of all sales last month (very normal level).
  5. It took 46 days on average to sell a house last month (6 more days than July).
  6. Last year at this time it took 1 day longer to sell a house.
  7. FHA sales were 19% of all sales in Placer County last month.
  8. There is 2.35 months of housing inventory (up from 2.17 months in July).
  9. The average price per sq ft is 201.8 (been hovering around this level for a few months).
  10. REOs were less than 2% of all sales and short sales were roughly 2.5% of all sales last month.

days on market in placer county by sacramento appraisal blog

Placer County sales volume - by sacramento appraisal blog

months of housing inventory in placer county by sacramento appraisal blog

Placer County median price and inventory - by home appraiser blog

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

Regional market median price - by home appraiser blog

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

Quick Pricing Advice:

  1. Remember it is normal for the market to cool off during the latter part of the year. Knowing seasonal cycles and communicating them is key.
  2. Price according to the most recent listings that are getting into contract rather than the highest sales from the spring. Remember, it’s normal for housing inventory to increase during the fall, so this will only allow buyers to be more picky.
  3. The market is still very price sensitive, which means buyers are not biting on overpriced listings despite inventory and interest rates being relatively low.
  4. Price according to the neighborhood market rather than county-wide trends since your neighborhood might be more or less aggressive compared to the entire county.

DOWNLOAD 54 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 (please don’t copy verbatim). Thanks.

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.

Seeing the signs of a slowing market in Sacramento

I’ve been saying things like, “How did you get so big?” lately to my kids. Sometimes I look at them and just wonder where the time has gone, and how it’s even possible that my oldest is starting to look more like a teenager every day. It’s both sobering and exciting. The truth though is it’s taken 12 years for all this change to happen in my son, but I don’t always see the growth every single day until all of the sudden he looks bigger or older. Can you relate?

slower market - image purchased from 123rf and used with permission by sacramento appraisal blog

No way, the market isn’t slowing: The same thing happens with real estate. It’s easy to plug away and use all the normal cliches to describe the market, but when we pause to really take a closer look, we begin to notice things are different. Let’s take a deeper look into the numbers below. If you’re local, absorb what is here and feel free to share some of the talking points with your contacts. If you’re out of town, I’d love to hear about your market. Email subscribers, I recommend reading this big monthly post on the blog instead of email.

Two ways to read THE BIG MONTHLY POST:

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

One Paragraph to Describe the Sacramento Market: The housing market has had an aggressive feel for most of the year. Pending sales have been a good 10-15%+ higher than normal, sales volume in the Sacramento region is up 10% this year, and values have seen a modest seasonal uptick too. Overall the market is still quite competitive in some price ranges because inventory and interest rates are still low, but there have been some subtle changes lately that help us see the market is beginning to slow down. Remember, it is normal for markets to slow, and the past two years have seen a very definitive seasonal market where the Spring is hot and the Fall is soft. For instance, it took 2 days longer to sell a home last month compared with the previous month, price reductions are growing in number, the median price in Sacramento County has been hovering at the same level for 90 days, interest rates have seen a minor increase, and housing inventory has seen a slight uptick. As housing supply presumably continues to increase over the next few months, watch out for more price reductions, unrealistic expectations from sellers, and buyers gaining more power.

I’m NOT saying the market is declining. I’m simply saying the strong seasonal market is showing signs of beginning to slow. Those who take notice can make informed real estate decisions and/or help clients price their homes properly (see 3 points below about pricing).

Sacramento County Market Trends for July 2015:

  1. The median price has been hovering at $290,000 for 90 days.
  2. It took an average of 31 days to sell a house last month (30 in June).
  3. Cash sales were 16.7% of all sales in July (very normal level).
  4. Short Sales and REOs were only 4% of sales last month.
  5. FHA sales were 26.5% of all sales in Sacramento County in July.
  6. Sales volume is 8.6% higher so far in 2015 compared to last year.
  7. Sales volume was 12% higher in July 2015 compared to July 2014.
  8. There is a 1.9 month supply of homes for sale (1.6 in June).
  9. The average price per sq ft is 185 (6% higher than last July).
  10. The average sales price is $320,732 (slightly lower than previous month).

price metrics since 2014 in sacramento county

inventory in sacramento county  Since 2013 - part 2 - by sacramento appraisal blog

CDOM in Sacramento County - by Sacramento Appraisal Blog

inventory - July 2015 - by home appraiser blog

sales volume through june 2015 in sacramento county

median price and inventory since jan 2013 - by sacramento appraisal blog

layers of the market sacramento county since 2011 - by sacramento appraisal blog

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

  1. Sales volume was up 14.5% in July 2015 compared to July 2014.
  2. Sales volume for the year is up 10.3% compared with 2014.
  3. The median price at $330,000 is up 6% from last year, but down 1% from the past two months.
  4. Cash sales were 17% of all sales last month (very normal level).
  5. It took an average of 35 days to sell a house last month (33 days in June).
  6. FHA sales were 23.1% of all sales in the region last month.
  7. There is 1.98 months of housing inventory (up from 1.85 in June).
  8. The average sales price is $367,775 (6.8% higher than last year, but down slightly from previous month at $370K).
  9. It took 5 less days to sell a house this July compared to July 2014.
  10. Distressed sales were less than 4% of all sales last month (REOs / Short Sales).

median price and inventory in sacramento placer yolo el dorado county

Regional market median price - by home appraiser blog

days on market in placer sac el dorado yolo county by sacramento appraisal blogmonths of housing inventory in region by sacramento appraisal bloginterest rates inventory median price in sacramento regional market by sacramento appraisal blog

Placer County Market Trends for July 2015:

  1. The median price in Placer County is $395,000 (it’s been hovering between $391,000 to 401,000 over the past few months).
  2. The median price is 4.2% higher than one year ago (July 2014).
  3. It took 40 days on average to sell a house last month (4 more days than June, but 5 less days than last year).
  4. Cash sales were 16% of all sales last month.
  5. FHA sales were 18.8% of all sales in Placer County last month.
  6. Sales volume was 14% higher this July compared to last July.
  7. Sales volume is up 17.8% in 2015 compared to last year.
  8. There is 2.17 months of housing inventory (up from 1.88 months in June).
  9. The average price per sq ft is is 202 (up from 182 last July).
  10. The average sales price is $430,599 (5.4% higher than July 2014, but lower than June).

Placer County median price since 2012 - by home appraiser blogPlacer County sales volume - by sacramento appraisal blogPlacer County median price and inventory - by home appraiser blogmonths of housing inventory in placer county by sacramento appraisal blogdays on market in placer county by sacramento appraisal blognumber of listings in PLACER county - July 2015 - by home appraiser blog

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

Quick Pricing Advice:

  1. Price according to the most recent listings that are getting into contract rather than the highest sales from the Spring.
  2. Remember how price sensitive the market is right now. Despite inventory and interest rates being low, buyers are not biting on overpriced listings.
  3. Price according to the neighborhood market rather than county-wide trends. The county-wide market may show increases or declines, but your neighborhood might be more or less aggressive compared to the entire county.

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.

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

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