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increase of value

Aggressive demand but modest value appreciation in Sacramento

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Is it just me, or has the market felt a bit funky? On one hand demand has felt very aggressive, but actual value appreciation has been fairly modest overall. Let’s take a look at the latest trends in the Sacramento housing market below. If you’re local, I hope the 10 quick trends help give you some talking points with clients. If you’re not local, what are you seeing in your area?

the big picture in real estate

One Paragraph on the Market: More listings came on the market last month, but buyers readily absorbed them. Pendings are still a good 20%+ higher than last year in the Sacramento area, and clean and well-priced properties are getting into contract very quickly. As aggressive as demand has felt though, we haven’t seen the rapid appreciation this Spring that we saw in 2013. Values more or less have experienced a normal seasonal increase, though when compared to sales during the Fall of 2014, prices are clearly MUCH higher since there was a lull in the market last Fall. Overall price levels now generally seem to have recovered back to the height of last Summer (or even a bit higher depending on the area). Well-priced listings are getting into contract VERY quickly, and there have been multiple offers. But at the same time buyers are tending to overlook properties that are overpriced and anything with an adverse location or a lack of upgrades. As housing inventory presumably begins to increase over the next few months, keep an eye out for more price reductions, unrealistic expectations from sellers, and buyers gaining more power from sellers. Remember too the market does not behave the same at every price level or in every neighborhood.

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.

DOWNLOAD 52 graphs HERE for free (zip file): Please download all 52 graphs here as a zip file (or send me an email). Use them for study, for your newsletter, or even some on your blog. See my sharing policy for 5 ways to share.

Sacramento County Market Trends for April 2015:

  1. The median price in Sacramento County is $280,000.
  2. The median price is 5.6% higher than one year ago (April 2014).
  3. It took 42 days to sell a house last month.
  4. Cash sales were only 16.5% of all sales last month.
  5. FHA sales were 27% of all sales in Sacramento County last month.
  6. Sales volume was 9.2% higher this April compared to last April.
  7. There is 1.5 months of housing inventory (1.8 months last April).
  8. The average price per sq ft is 182 (7% higher than last April).
  9. The average sales price is $310,000 (5.7% higher than last year).
  10. It took 3 days longer to sell a house this April compared to last.

CDOM in Sacramento County - by Sacramento Appraisal Blog months of housing inventory by sacramento appraisal blogprice metrics since 2014 in sacramento countyinventory during fall and winter 2 - by sacramento appraisal blog

median price and inventory since 2013 - by sacramento appraisal blog

layers of the market in sacramento county - by sacramento appraisal blogPlacer County Market Trends for April 2015:

  1. The median price in Placer County is $391,500.
  2. The median price is 6.9% higher than one year ago (April 2014).
  3. It took 41 days to sell a house last month.
  4. Cash sales were 17% of all sales last month.
  5. FHA sales were 20% of all sales in Sacramento County last month.
  6. Sales volume was 27.5% higher this April compared to last April.
  7. There is 1.9 months of housing inventory (2.5 months last April).
  8. The average price per sq ft is 200 (3% higher than last April).
  9. The average sales price is $441,163 (3.8% higher than last year).
  10. It took 10 days shorter to sell a house this April compared to last.

days on market in placer county by sacramento appraisal blogmonths of housing inventory in placer county by sacramento appraisal blogPlacer County median price and inventory - by home appraiser blogPlacer County sales volume - by sacramento appraisal bloginterest rates inventory median price in placer county by sacramento appraisal blog

Regional Market Trends for April 2015 (Sac, Placer, Yolo, El Dorado):

  1. The median price in the Sacramento Region is $325,000.
  2. The median price is 9.4% higher than one year ago (April 2014).
  3. It took 44 days to sell a house last month.
  4. Cash sales were 16.9% of all sales last month.
  5. FHA sales were 23.7% of all sales in Sacramento County last month.
  6. Sales volume was 10.5% higher this April compared to last April.
  7. There is 1.7 months of housing inventory (2.1 months last April).
  8. The average price per sq ft is 192 (7.2% higher than last April).
  9. The average sales price is $360,351 (6.9% higher than last year).
  10. It took the same amount of time to sell in April 2015 and April 2014.

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

months of housing inventory in region by sacramento appraisal blog

median price and inventory in sacramento placer yolo el dorado county

number of listings in Placer Sacramento Yolo El Dorado county - by home appraiser blog

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

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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Specific ups and downs in Sacramento

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Let’s talk some ups and downs today. Here is some context to help shed light on how the real estate market is moving in Sacramento. Any thoughts?

Median Sales Price in Sacramento - 1986 to 2013 a

History of Median Price: This graph shows year-end median sales price figures from 1986 to 2013 in Sacramento County (and West Sacramento). You can see just how steep the increase was last year – even when compared to the heyday of the previous real estate “bubble” that began to burst in 2005.

fha cash conventional stats for year

Charts Instead of Graphs: Two weeks ago I shared my big market update post, and I showed how FHA is going up, cash is going down and conventional financing is also increasing. Here is a chart to help give some more specific numbers instead of a graph. After all, some of us are visual people and others simply want the numbers.

foreclosures and short sales - by home appraiser in sacramento

Goodbye Distressed Sales: Here are some stats on foreclosures and short sales, and it’s always shocking to see how far the market has progressed in recent years. On another note, keep in mind there have historically been far more distressed sales at lower price levels. This is important to realize because when removing so many foreclosures and short sales at the bottom of the market, it naturally gives the median sales price a huge boost. This should bring pause when we quote the median price as rising 20% last year (it definitely did, but since investors devoured the bottom of the market and there were far fewer sales at the bottom, this padded the median price and essentially means not every single property increased in value by 20%). Check out Don’t put all your eggs in the median price basket if you’d like to freshen up understanding the median price.

bumper sticker sign - from sacramento appraisal blog

A Juiced Market in 2013: Lastly, I’ve been describing the market as no longer being on steroids, and I’ve found it to be a helpful description for clients and contacts. In 2013 values were “juiced” upward by increased investor activity, historically low interest rates and freakishly low inventory. Now the market has tapered off – just as if it had stopped using steroids. It’s simply a different market than it was last year.

Question: What stat stands out to you most? Comments are welcome below.

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