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Sacramento Housing Market November 2018 Report
The Sacramento Housing Market November 2018 report is not surprising to me. Our inventory is up 25% over last year at this time. That is a huge uptick in inventory, even though it dropped slightly from last month. But an uptick in inventory over last year is not necessarily a good thing because it has resulted in lower closed sales.
Comparing November of 2017 to this past month, we’ve seen a drop of 12.6% in closed sales. Bad news for many Sacramento real estate agents whose income may drop, but good news for buyers.
Our median sales price in Sacramento is up to $365,000. Prices are still rising, inventory is falling, closed sales are down and pending sales are also down. Some of this is seasonal, but the upshot is buyers have far more choices now than, say, last spring.
Some properties are taking longer to sell as well. On average, our day on market has risen to 41 days in Sacramento Housing Market November 2018. Although I can say from own my production, I recently listed 5 new homes and 4 of those 5 plus another listing have sold within a few days. But they were priced right. If listings are not priced for the market, they might not sell because buyers are not crazy anymore.
No, no, no, buyers are much more cautious. Some want to “sleep on the decision” and, of course, those are the guys who regret that decision. But taking their time is often OK. They might be up against only one other offer, not 5 or 10. At least they are smart enough to want to act now. Because they see prices rising and interest rates going up. If they plan to buy a house, now is the time.
Plenty of houses available. Not as much competition from other buyers this time of year. If you’d like more information or want to discuss the Sacramento Housing Market November 2018 report, please call Elizabeth Weintraub at Lyon RE, 916.233.6759.
What Types of Hardwood Do High End Sacramento Buyers Prefer?
Today, I have a guest blogger who’s an expert when it comes to flooring, especially when we’re talking about what types of hardwood do high end Sacramento buyers prefer. Debbie Gartner aka The Flooring Girl is from the NYC metro area, and she is up on all the latest trends for hardwood flooring. Here, on the West Coast and in Sacramento, we are showing the same trends and preferences.
For those of you preparing your home for sale, you already know that hardwood flooring is all the rage these days. It’s the preferred flooring type among Sacramento home buyers, especially those looking for higher end homes. Hardwood looks great and feels great as it simultaneously gives you warmth, luxury and authenticity. And, of course, we all know that hardwood flooring improves the value of your home.
Hardwood floors are timeless, and they usually last more than a century. They are a natural product and part of their inherent beauty is their natural graining and color variation. They are much cleaner and easier to maintain vs other flooring surfaces, and as a result, they also improve the indoor air quality of your home. Hardwood floors are here to stay.
What types of hardwood do high end Sacramento buyers prefer in luxury homes?
1. Dark hardwood floors
Yes, dark hardwood flooring is the most popular these days, especially among higher end home owners. The preference keeps growing. Dark is chic and elegant and goes so well with gray painted walls (gray is the most popular paint color now…even more popular than white).
Right now, cool shades are more stylish, so this combo of dark floors and gray walls work great together. Be sure to avoid red undertones in the stain color you choose (as red is dated and polarizing). So for those looking for dark hardwood floors, I usually recommend a 50/50 ebony/dark walnut or ebony/jacobean blend. They are dark and stunning (and they drown out the red undertones). If you want to go even darker, try ebony or even true black. (Duraseal would be the stain brand I’d recommend).
If you want dark floors, but want to go a bit lighter, then try dark walnut (by itself), antique brown or coffee brown. These are still dark, but they are a bit lighter, so they don’t show the dirt quite as much.
The darker you go, the less you will see the wood’s graining; when you are in the mid range, the more you will notice the wood’s graining. It just depends on your preference, but now I’m seeing more people prefer to camouflage the graining as it looks more contemporary and less busy in the room.
Dark isn’t for everyone, nor does it work in all home styles. It’s a great option if you have a lot of light, but it’s not always the best for very small homes or apartments that aren’t well lit. (Note: if the color of the wall usually has more impact on the room’s lighting than the floor does. After all, there are 4 walls and only 1 floor). Also, note that most people add area rugs and this will help lighten up the space, too.
2. Light hardwood floors
Light is the second most popular type of flooring. So, yes, both extremes are in. You can read more about the pros and cons of dark vs light hardwood flooring in this article. It’s one of the most common questions I get.
When people are going light, they are going very light … usually natural (i.e. no stain). Now, here’s the tricky part with light hardwood floors. The yellows and oranges are very dated. If you use an oil based polyurethane, your floors will be yellow, and they will continue to amberize over time due to the natural light and oxidation. So, they will be yellow and get more yellow over time.
But, there’s an easy way to solve this, and that is to use a water borne polyurethane. I highly recommend Bona Traffic HD above all the other choices (it’s the best….you can read more here: What are the best brands of polyurethane)? This will make your floors look lighter and they won’t look yellow. It will give you a more contemporary as well as neutral feel to your home. And, this polyurethane smells less and dries faster (and it’s better for the environment).
3. Gray hardwood floors
Gray is so hot and trendy now (yes, I know it’s a cool tone). This cooler color has been on the rise for 5 or 6 years, and it’s especially popular among higher end home buyers. Gray is more challenging is and expensive to achieve, and if you’re going to go gray with existing flooring, definitely hire a professional who knows how to refinish with gray.
Further, read this article on how to refinish hardwood floors gray..the right way). Many of the calls from across the country I get are from homeowners with a contractor who can’t seem to get the color right. Be sure that your contractor uses Bona Traffic HD for the polyurethane. This is super important both for looks and longevity. Most other polyurethanes will turn the floors yellow (including some of the other water borne polyurethanes).
If you are buying a home and love gray, I say go for it. But, if you are selling a home, please recognize that while gray is trendy, it’s still niche and polarizing to many. Going very dark (or very light) is probably a better option if you’re planning to sell in the next couple of years.
4. Wide plank flooring
Wide plank flooring is more stylish and it makes the room look larger. At a minimum, go with a plank that is at least 3 1/4″ wide. (The standard 2 1/4″ narrow strips just don’t look as impressive). This of course assumes you are adding new hardwood. If you have existing hardwood, I’d generally recommend that you keep what you have.
Of course, if you can go wider with a 4″ or 5″ plank, that’s even better as it’s more contemporary and will make your space look even larger. Please note that if you are installing 5″ or wider solid hardwood, you need to both nail and glue it, so this will cost a bit more for labor. That’s because planks expand and contract more. This is a common mistake made by general contractors (as they are not flooring specialists). Unfortunately, I see it too often and it’s impossible to fix (unless you completely rip up the floors).
5. Solid hardwood
I always recommend solid hardwood over engineered hardwood flooring, when you have the option. Solid will last MUCH longer. There is no question about it. Here in New York, virtually all mid and higher end homes have solid hardwood flooring, and I would guess it’s very similar in Sacramento.
Solid hardwood will last well over a century (in fact, we’ve refinished solid hardwood from the 1800s and even several homes from the 1700s). Solid hardwood also gives the option to refinish in the future (i.e. if they get scratched/worn down, if you have a flood or even if you just want to change the color and decor of your home).
6. Hardwood in the kitchen
Today, most homeowners prefer to have hardwood in all of the main living areas, including the kitchen. It’s easier on your feet (vs. tile) and easier to clean. And, importantly, having hardwood in the kitchen makes your home look larger and more cohesive. The fewer flooring changes you make from room to room, the larger your space looks.
If you check out the pictures of kitchens on Pinterest and Houzz, you’ll see how popular hardwood in the kitchen (especially dark hardwood with white cabinets). Now, we are even seeing hardwood flooring in powder rooms and entryways.
7. Satin and matte finishes
Shiny finishes are out! Shiny finishes are dated, look cheap and are impractical as they show scratches, dents and dirt more. Remember, avoid glossy and semi-gloss finishes. Go for satin or even matte finishes as they are more up to date and will last longer.
8. White oak over red oak (if you are adding new hardwood)
Many customers don’t realize that there are multiple species of oak. In fact, there are many. The two most common oak species are red oak and white oak.
While red oak is more abundant in the US (and therefore more common on floors), white oak is growing in popularity. I recently wrote an article on the 7 advantages of white oak hardwood floors.
The main advantages of white oak (over red oak) is that white oak is a bit more contemporary looking, it gives you more staining options (better for dark stains and gray), it’s a bit harder and it’s more resilient to water.
So, if you’re looking to install new hardwood floors, I would consider white oak flooring. If you are matching existing floors, then match to the existing species you already have.
Conclusion on Types of Hardwood Do High End Sacramento Buyers Prefer?
Hardwood floors are an important element of Sacramento homes, and they play an important role in your home’s decor. If you are buying a new home, the world is your oyster and you can choose whichever type of flooring your prefer; if you’re planning to sell your Sacramento house soon, I’d encourage to follow the trends and preferences among the higher end home owners and make sure they shades work with the style of your house. It’s also helpful to consult your real estate agent (or a stager) to get their perspective on what is most popular for your area and house style.
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10 Years of Sacramento Real Estate Trends
Ten years of Sacramento real estate trends by quarter from 2005 to 2015.
There seems to be an abnormal amount of buyers who are canceling escrow lately in Sacramento. Some of them don’t even make it into escrow by the time they cancel. Whenever I spot something weird going on in Sacramento real estate, I look at Sacramento real estate trends to see if I can find an answer in the numbers. Well, that, and I have an abnormal fascination for math and its relationship to our ordinary, everyday lives. Plus, I’ve been in real estate for so long that I can actually recall what happened 10 years ago and 30 years before that.
The chart above shows you 10 years of Sacramento real estate trends by average list prices versus average sold prices. There is always a gap between the average list price and the average sold price, and the two lines don’t necessarily relate to each other unless there is an unusually high number of homes for sale in Sacramento, like there was during 2005 to 2007. In fact, zeroing in on 2007, which was only 8 years ago as far as Sacramento real estate trends go, there are astonishing differences between that year and today.
For example, to gain a better understanding of Sacramento real estate trends, look at the statistics comparing quarters of October 2007 to October 2015 below:
Quarter Oct 2007 Quarter Oct 2015
For sale 31,322 For sale 8,354
Sold 2,476 Sold 4,684
Mo. inventory 12.7 Mo. inventory 1.8
Absorption rate 7.9 Absorption rate 56.1
Av. CDOM 98 Av. CDOM 36
Median 318,000 Median 289,000
What this tells you is we have 73% fewer homes for sale in 2015 than in 2007, but we are selling more than twice as many in one-third the number of cumulative days on market at about the same sales prices. That’s pretty astonishing. It’s a tight market. Buyers can’t afford to be squirrelly about it. If you need advice about Sacramento real estate trends, call your Sacramento Realtor, Elizabeth Weintraub, at 916.233.6759. I’ll be happy to help you sell or buy a home in the Sacramento area.
Chart: Trendgraphix, used with permission
Predictive Analysis for Sacramento Real Estate in 2014
When it comes to the Sacramento real estate market for 2014 and NAR’s new focus group for Predictive Analysis, I say Predictive Analysis, my schmalysis. For starters, it’s sort of an oxymoron. For enders, it’s supposed to “solve complex problems in the housing industry,” among other remarkable features and benefits. It promises to help us all make better data-driven decisions.
If you want to know where the real estate market in Sacramento is going, you really don’t need to look any further than Trendgraphix and your own front steps, providing your home is for sale. As a consumer, you can read what the top-producing agents in the industry have to say about their business. Because I sell more homes than a good real estate agent on an average day, I see an abnormally high number of real estate transactions in Sacramento. We are the people media turn to when they want to know what’s happening in Sacramento because we have our fingers emerged in real estate every single day.
I use my knowledge to help my clients make decisions. I can pretty much accurately predict where the market is moving because I note trends. The secret is what happened yesterday is fairly certain to happen today, to more or less the same degree. And what happens today is more or less certain to happen tomorrow.
A spike is unpredictable.
To help our clients, what a Sacramento real estate agent (and agents everywhere in America) need to do to is a) listen to them, b) provide them with information to make educated decisions, and then c) make it happen. Just like we’ve always done.
But if NAR wants to call it Predictive Analysis and sell snake oil to us off the back of a truck, though, I’m predicting we’ll buy it.
Sacramento Sellers With Equity a New Trend!
You know how sometimes when your phone rings, and you either hear the phone number repeated in your ear, because you’re wearing a Bluetooth device, or you look at your phone and either way think to yourself: Oh, rats, nothing good can come from this, but you answer your phone anyway? OK, maybe you’re not in real estate then nor a Sacramento real estate agent like me. But I admit that I have, on occasion, fostered preconceived notions about who is calling me because so often I am correct about the fresh hell. There are times I do regret answering my phone and then there are other times that I am pleasantly surprised. It’s the trade-off for being proactive in this business.
Lately, what I’m finding is I am talking to more and more sellers with equity who want to sell their home in the Sacramento area. That’s a very good sign that our market is beginning to rebound and could be a new trend. I love working with sellers with equity. I would not say our Sacramento real estate market is recovering in leaps and bounds and you can get all crazy and ask whatever price you want for your home — because it’s not and you can’t — but the market is definitely turning the corner and the upward trend points to equity sellers. For the past 7 years, about 80% of my listings have been short sales. In 2012 alone I closed around 165 sides of which 129 sides were short sales. That still works out to about 1 out of every 5 is an equity sale, a seller who is not upside down.
I am predicting that if things continue on the same path I see now, my listing percentages for 2013 will be 1 out of every 3 sellers will be sellers with equity. I’d like to see at least half, you know, 50 / 50, but I suspect we have a ways to go on that. Who would have thought 7 years ago that a listing agent today would be so saturated with short sales that she’d almost forget what it was like to do a regular transaction? The pure joy?
I’ve learned so much about listing and selling homes in Sacramento from selling short sales that I can’t begin to tell you what an education it has been. I’ve learned a lot over the almost 40 years I’ve been in this business, no grass grows under my feet, but my extensive short sale experience has definitely made me a stronger and better real estate agent. If I can sell a short sale, I can sell anything. I can sell that empty cup from Starbucks you’re clutching. You need a home sold in Sacramento? You call this Sacramento real estate agent: Elizabeth Weintraub at 916.233.6759. I answer my phone. Even if I regret it at times.
