Did you know last month saw the lowest number of monthly home sales in about five years in Sacramento County? Check out the graphs below and then a few sentences of play-by-play market commentary.
What’s going on? It’s really not uncommon to see a dip in sales during colder months (dang it’s been cold lately), so it’s not time to sound the alarm or call in the troops because of last month’s sagging numbers. Keep in mind investors making an exit in the market also contributes to a lower level of sales. Ultimately this is just one month of data, which is not enough to establish a clear trend, but it does still bring some pause as something to watch over time since we are entering a different type of market this year. Last year Sacramento real estate was heavily driven by low interest rates, low inventory and cash investors. Now that inventory has more than doubled in the past six months, the real estate market may have to rely a bit more on the health of our local economy. It’ll be key for us to see demand keep a reasonable pace with supply as the market unfolds.
Question: Any thoughts, insight or stories to share? I’d love to hear your take.