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June 2020 Sacramento Housing, Just Another Year Same Old Routine.
June 2020 Sacramento housing, just another year, same old routine. Well, if the Sacramento housing market was a person, she may be saying those things. Since achieving my real estate license and subsequent membership with the Sacramento Association of Realtors in 2012, the Sacramento housing market has outpaced itself every year.
This year has been no different. The Pandemic no doubt affected real estate, but it has been quite the opposite of what everyone was thinking. Well, not the opposite of what the smart, experienced Realtors were saying. Sure, there were and still, are, some price adjustments happening, but look at the numbers below. Numbers never lie.
Let’s do some quick math. What does -17 + 31.4 equal? If you actually did that in your head just now, you deserve a reward. But I will tell you that if you chose 14.4, you are wrong. The answer is $415,000. $415,000 is the new historical record for Sacramento median home price and we reached that with inventory down 17% and new escrows up 31.4% for June 2020. Inventory is also down 37.4% from June 2019 while new listings for June 2020 crept up a measly 1.4%. June 2020 Sacramento housing, just another year same old routine.
June did see a slow down in how long it was taking for homes to go into escrow. We went from 21 days in May to 25 in June. But sellers are still getting 99% of what they are asking, on average. Deals are still being had, but it is seller and property specific. We are on track for another increase in days on the market as we are at 27 days for July so far. July is usually one of the strongest months of the year. It will be very interesting to see what the numbers look like for July 2020 when they come out early August.
If it’s possible, keep your head down but your chin up. Lol. As long as you have a great Realtor team and excellent local lender, you will get a great home. The Weintraub & Wallace Team keeps closing transactions left and right, just another year, the same old routine. If you need a winning team who is passionate about the success they bring to their clients, you are halfway there by just reading this blog.
Reach out to us anytime for all of your real estate needs. Call Weintraub & Wallace Realtors with RE/MAX Gold. We can be reached at 916-233-6759. Another fabulous blog, on the Sacramento housing report, written by our very own fantastic team Realtor, Josh Amolsch!
— Josh Amolsch
May 2019 Homes Sold in Sacramento Spell Competition
The number of May 2019 homes sold in Sacramento could spell heavy competition between buyers. This is your Market Update: If a picture paints a thousand words, this photo says it all. The pendings have met the active listings, and this has not happened in the last 15 months. This is huge for the greater Sacramento County and could spell out even fewer homes to buy. It is a seller’s market, and buyers do not kid yourself; write your highest and best offers and throw in the kitchen sink too . . ..
The low inventory of homes is slim pickings and, in some areas, it is a deficient number of homes for sale. Look at the March pendings vs. April, the light green, then the red line, the pendings. This shows that even with a slight increase in homes available, this increase was absorbed by the buyers.
The pending sales in Sacramento have steadily increased since December 2019. This is a crossroads we face. Inventory based on prior years should, by history, increase starting in February; however, our inventory decreased in February and March of this year. We had a slight uptick in April, but it all sold.
May 2019 homes sold in Sacramento is the highest number in 15 months. Here are some tips you can use when you are buying a home.
- Write: short inspection time periods such as 10 days to complete your inspections.
- Shorter loan approval time frames make your lenders hustle.
- Shorter appraisal days, pay for a rush.
- Split title, escrow and transfer taxes fees.
- Pay for your own home inspection.
- Tell the seller in the offer you will not ask for repairs.
- Provide loan preapprovals, proof of funds and other relevant information.
- Close escrow quickly.
- Offer a seller rent-back at no cost.
What does all this mean for buyers? In short, buyers stop thinking you are going to get a deal; as reflected in this May 2019 homes sold in Sacramento report, you could face months and months of letdowns. You must write competitive offers. Think out of the box. Use great lenders like our preferred lender with Guild Mortgage, Dan Tharp.
If you want to hire agents who think out of the box, call Weintraub & Wallace at RE/MAX Gold, 916-233-6759.
— JaCi Wallace
Low Inventory Backfires on the Sacramento Housing Market
With such low inventory in the Sacramento housing market this spring, buyers may face multiple offers.
Low inventory in the Sacramento housing market tends to generate multiple offers for the super desirable homes but there can be unintended consequences for sellers. Now, even homes that are not super desirable or maybe have some sort of drawback that makes potential home buyers pass it by are receiving more than one offer, as compared to the slower activity in the 4th quarter of 2015. But this year’s start on the Sacramento housing market is very different from last year’s. What is making the difference in the low inventory this year is the low number of comparable sales available for an appraisal.
Of course, this is dependent upon area and the individual micro markets but if an agent, for example, bases sales on the last 6 months, predicting an upward swing will carry the momentum, an appraiser will use only the last 3 months. That means a February appraisal will use comps from November, December and January. Our January inventory is 27% less than our inventory from January 2015, which was mind-blowing low to start with. Low inventory can drive higher prices as buyers outbid each other. However, not every home will appraise if the number of comps available in that neighborhood are very low.
You can already see this formula at work in the median sales price in our Sacramento Housing Market, which has now dropped to $282,000. It has basically held steady from last May, around $290,000, jumping to $296,000 in December, but our January median home price has plunged by 5%. Our pending sales are rising due to the low inventory but will those homes appraise at value? What happens when pending sales outnumber the homes for sale?
Sellers sometimes don’t realize that February sales will be based on Nov-Jan comparables, and if those numbers don’t add up, it doesn’t matter which way the market is moving or how much a buyer will pay if the home won’t appraise. You can’t go to Zillow, pluck random sales and hope an appraiser will use those same numbers because they are probably too old.
Now, more than ever, you need an experienced Sacramento Realtor to help you navigate the market and to determine an appropriate course of action for you. There is a profit for sellers in a Sacramento housing market with low inventory, but it is all dependent on marketing strategy, negotiation skills and the last 3 months of comparable sales. You probably won’t find a more experienced agent than Elizabeth Weintraub. Call today at 916.233.6759.
