February 2021 Sacramento Area Housing Market Update

Published March 10, 2021 | By JaCi Wallace

February 2021 Sacramento Area Housing Market Update is a powerful overview of the market written by our own Josh Amolsch. Buyers should understand they need to listen to their real estate professional to win. — Enjoy, JaCi Wallace. Well, here we go again, a new episode of the Sacramento area housing update. The horror show is the modern buyer’s life and what keeps homeowners awake at night. At least the February 2021 Sacramento area housing market update numbers show some promise. New listings are up 2.4% from January but down 16.4% from February 2020. Inventory rose for the first time since October 2020, but only 7.7% from January, and was still not enough to replace the homes that went into escrow. I think March will see another down-tick in inventory, which means another record for median home prices.

Speaking of median home prices, check out the chart above from the February 2021 Sacramento area housing market update. If the Sacramento area was a mutual fund, you probably wish you would have jumped in back in December 2019? Well, I probably shouldn’t show you the chart going back to 2011. 2011/2012. It was probably the once-in-a-generation time to buy at the bottom of the market while also getting the lowest rates we had seen until the summer of 2020. Rates were great last year and still are, but the median price in Sacramento County was $160,000 in December of 2011. That puts your deal in 2021 into perspective, doesn’t it?

I’m not trying to discourage anyone from buying real estate, trust me. But it’s only inevitable. Rates can’t stay this low forever, and when they start inching up, the 15-20% annual gains will slow way down. Remember that the average appreciation for homes is right around 5%. But we could see a sharper correction when rates start to climb, and the feds begin to regulate inflation with their various tools. My opinion is that more listings will come available soon. Everyone’s attention is on the lack of listings, and many entities are starting to ramp up efforts to break loose some inventory. Simultaneously, the housing crisis is being addressed in more substantial ways by local and state governments. When all hands are on deck, things start to happen. Look how quickly our country was locked down. Anything is possible.

For clear guidance on your real estate planning, call Weintraub & Wallace with RE/MAX Gold at 916-233-6759. We have been helping people for decades.

Josh Amolsch | Realtor

Weintraub & Wallace Team

Posted in Buying Sacramento Home, real estate, Real Estate Tips, Real Estate Trends | Tagged February 2021 Sacramento Area Housing Market Update, Housing trends Sacramentoo