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Trendgraphix Report for November 2019
The Sacramento Trendgraphix Report for November 2019 includes Sacramento County single-family homes. No other criteria are included so that we can get a broad understanding of what is happening. If you want to get updates for a specific area, even down to a ZIP code or multiple ZIP codes, or multi-family properties or land, sign up for Sacramento Home Sale Reports by ZIP Code.
The following blog was written entirely by our team member, Josh Amolsch. It is an excellent overview of the November market. This data is published a month behind to ensure all the information is available. We are so proud to have Josh as a member of our team. He works very hard to provide information to his buyers so they are educated about the hyper-local target market when they make offers. — JaCi Wallace
The number of single-family homes for sale (inventory) in Sacramento County fell 15.4% in November 2019, compared to the month prior and is down 37.5% from November 2018 according to the latest Sacramento Trendgraphix Report for November 2019. While it is a seasonal norm to have inventory and buying activity slow in the winter, pending transactions in November 2019 are up 17.9% from November 2018. That means that buyers are buying more than they were last year at this time. That doesn’t sound like a recession to me.
We have also seen Average Cumulative Days on the report drop to 33 days from 34 days in October 2019. This is telling as this number usually goes up during the winter months. Pendings are up, inventory is down and the average days on market is dropping. The new listings are way down, per the Sacramento Trendgraphix Report for November 2019.
This means higher prices for the foreseeable future, but not necessarily the top of the market you may hope for. People have been singing that tune for probably two years now. It’s not the top of the market just because one might feel like it is. There are many other factors that affect the housing market. Supply and demand are just about the biggest drivers in the market.
Sellers are also getting on average 98% of their asking price in November 2019, up 1% from October 2019. This doesn’t feel like a seasonal slow down to me! The buyers we represent end up owning a home because they understand the reality of the market. Buyers believe in a particular neighborhood, so this data proves useful to buyers when making a buying decision.
The median home price is holding steady at $385,000 for October and November. It is up 5.5% over November 2018. Interest rates are phenomenal and buyers are out in full force. We can just call it spring this December, as we are barely getting rain anyway.
If you want an edge in this extremely competitive market, call Wallace & Weintraub Realtors with RE/MAX Gold at 916-233-6759.
A Look at Average Days on Market in Sacramento Real Estate
The average days on market in Sacramento are edging up as we move further into our slower season of the year. I see it in my own listings. Homes that would have flown into escrow a year ago are taking much longer to sell, especially in the $750K to one-million market in Sacramento.
My thoughts in examining that particular segment is it is the luxury market. This segment seemed to do better last year. Further, our average state workers in Sacramento, including first-time home buyers, are often reluctant to spend that amount of money for a home.
I took a look at the last 30 days in the $750K to one-million price ranges in Sacramento County. This is how it breaks down:
Activity $750K to 1 Million over the last 30 Days in Sacramento County:
- 270 homes for sale
- 174 Active
- 52 Pending
- 44 Sold
The average days on market in Sacramento for the sold homes in our luxury market show 52% sold at slightly more than 100% of list price within 30 days. My professional opinion is those homes were either priced under market or they were renovated. The other 48% sold between 60 days and 120+, dropping off list price by about 1% for each month on the market.
Now, in contrast, the under $500K market in Sacramento is a different story. Here are the statistics I extracted from MLS:
- Number of homes: 5,067
- Active 2,378
- Pending 1,488
- Sold 1,201
Since so many pending sales blow up lately, I don’t put a lot of credence in the pending numbers. Too nefarious. Prefer the hard cold stats of sold. However, the average days on market in Sacramento for the under $500K market is 60% sold within 30 days at an average of 99.62% of sales price. Another 23% sold within 60 days.
What all of this means is sellers need to be priced right at inception. Don’t put homes on the market to see what kind of activity you will get because it’s a waste of time if it’s not priced right. To sell, you may need to be under market or renovated.
Even though the average days on market in Sacramento may be growing, it also gives plenty of ammunition for buyers to use. We have enough inventory that everything is not selling. In the under $500K market about 1 in 4 homes sold. In the luxury market about 1 in 6 homes sold.
Buyers will be hard pressed to find a better market as we move forward into the new year. Prices are still moving up, interest rates are going up, too. When homes do not sell, eventually sellers will take them off the market, and when inventory drops, there will be fewer choices.
