Upward Prices Appear as Stable Trends in Sacramento Housing Market

Published September 16, 2017 | By Elizabeth Weintraub

Five year appreciation of square foot values in Sacramento housing market.

Wow, the last four months of activity and trends in Sacramento housing market show a somewhat stabilizing chart. Beginning in August of 2012, the square foot values were $120. Today the average square foot cost for August of 2017 is $223. The last four months have ranged between $221 and $223. There are no big leaps like earlier in the year. Whether this will carry into the winter months when seasonly prices tend to dip a little bit, hard to say.

Still, to see that square foot values surged by more than $100 a square foot over the past 60 months is astounding.

I talked with a seller in Elk Grove today who is not quite ready to sell his home. He bought the home in 2013, so he has at least $100,000 of equity. I know that right off the bat just because I sell so many homes in Sacramento County. This guy was considering selling next summer, but summer is not the best time to sell in Sacramento. The very best month is April. He is also planning to buy in the city of Davis. Due to our low inventory and high buyer demand, I suggested he might be better off buying a home in Davis this November or December and then waiting to sell his existing home in April, which he can afford to do. Not everybody can.

15 months of price-per-square-foot housing trends in Sacramento.

Here you can see the trends in Sacramento housing market for the past 15 months. Things appeared somewhat stable in June of 2016, bouncing around between $202 and $205 for 6 months and then, moving into early 2017, the prices escalated. I know you’ve got your naysayers, the guys lurking behind the bushes ready to jump out at you and scream Bubble, but it’s just not happening. Loans are too restrictive today and many home purchases are cash.

15 months of inventory show housing trends in Sacramento.

This looming chart looks like our housing inventory has caught a magnificent surfing wave, but in actuality, it’s only moved by 2 weeks. We went from one month of inventory, based on closed sales, to a month and a half. Our buyer demand exceeds the inventory we have available for sale. We won’t see a buyer’s market until we inch closer to 6 months of inventory. We haven’t seen over 6 months of inventory as trends in Sacramento housing market since 2008.

If you want to know more, call your Sacramento Realtor, Elizabeth Weintraub, at 916.233.6759. I’m more than happy to discuss your pending needs and offer advice. You can rely on my 43 years in the business to guide you.