A snapshot of the Sacramento region real estate market, spring 2015.

As summertime rolls around once again in the Sacramento region, we find ourselves busier than ever, with proms and graduations, family gatherings and vacation planning, and plenty of fun activities like outdoor concerts, sports, and festivals. In between it all, many of us will look to sell our house and/or buy another one before school starts in the fall or before the winter holidays. So what can you expect to find in the Sacramento area real estate markets these days?

 

Overall, our real estate market can be characterized as very healthy, with a huge buyer demand, but there are some key differences from pre-recession white-hot markets that were over-inflated. For instance, even though our demand has never been higher, inventory is down 6.4%, and far less Sacramento homeowners are underwater on their mortgages or in danger of foreclosure, we’ve seen normalized home appreciation rates, around 9.5% over the last year.

Many experts predict that will continue in the right direction even with the expected interest rate increase in the summer and fall, with our homes appreciating about a 6.6% to next year.

Here is the most recent data on real estate in Sacramento County, Placer County, and the combined four-county area, released for April of 2015. Remember that these figures compare April to April the year before, and often deal with median numbers, not averages.

So if you’d like an accurate market analysis of your home’s worth or to find out what homes are for sale in your price range in a certain area, feel free to contact us.

Sacramento County:

The median list price in Sacramento County is $281,000

That median price is 5.6% higher than one year ago, in April of 2014.

It took 42 days to sell a house in April, 2015.

Cash sales were only 16.5% of all sales.

FHA sales were 27% of all sales in Sacramento County.

Sales volume was 9.2% higher this April compared to one year ago.

We now have 1.5 months of housing inventory compared to 1.8 months the same time last year.

The average price per square foot is 182, which is 7% higher than April of 2014.

The average sales price in April of 2015 was $310,000, 5.7% higher than last year.

It took 3 days longer to sell a house this April compared to last.

Placer County:

The median price in Placer County was $391,500 in April of 2015.

That median price is 6.9% higher than one year ago, in April of 2014.

It took 41 days to sell a house in April.

Cash sales were 17% of all sales that month.

FHA sales were 20% of all sales in Placer County in April.

Sales volume was 27.5% higher this April compared to last April.

There is now 1.9 months of housing inventory, compared to 2.5 months in April of 2014.

The average price per square foot is 200, which is 3% higher than April of 2014.

The average sales price in April of 2015 was $441,163, which is 3.8% higher than April of the previous year.

It took 10 days shorter to sell a house this April compared to last.

Regional Market Trends for Sacramento, Placer, Yolo, and El Dorado counties:  

The median price in the Sacramento Region was $325,000 in April of 2015.

That median price is 9.4% higher than one year ago, in April of 2014.

It took 44 days to sell a house in April of 2015.

Cash sales were 16.9% of all sales that month.

FHA sales were 23.7% of all sales in Sacramento County in April of 2015.

Sales volume was 10.5% higher in April of 2015 compared to April of 2014.

We now have 1.7 months of housing inventory, compared to 2.1 months last April.

The average price per square foot was 192 in April of 2015, 7.2% higher than April of 2014.

The average sales price in April of 2015 was $360,351, which is 6.9% higher than April of the previous year.

It took the same amount of time to sell in April 2015 compared to April 2014.

7 Reasons to buy a home during the holiday season.

The holidays are almost here, time to string up the lights, put up the tree, and make your house cozy for your family to enjoy.  It’s definitely not the time to be out looking to buy a home, driving all over town in the cold and the rain when everyone else is drinking eggnog in front of the fire.  Or is it? 

Are December and January, the holiday season, a good time to buy a house?  Conventional wisdom says that everyone sort of shuts it down during those months.  Sellers don’t want to show their home to strangers, vacate for open houses, and they definitely don’t want to pack up and move during that time of year.  There are less new listings on the market.  And even many buyers take a time out until well after the first of the year.  But those are the exact reasons why serious buyers – who are willing to sacrifice and put in the hard work – find amazing offers during December.

There is far less inventory on the market during December into January, as some sellers pull their listings until the new year, and far fewer new listings hit the market.

But there are also far fewer buyers out looking for homes during the holidays, so the supply/demand actually works out in the buyer’s favor.  The sellers who are still on the market tend to be extremely motivated to make a deal and get their homes sold, resulting in better deals, lower prices, and more amicable terms for buyers.

Here are 7 reasons to buy during the holidays:

Motivated sellers.

Think about it – if you have your house for sale during the holidays it’s very likely because you HAVE to sell it, not just because you want to.  Relocations, job loss, divorce, downsizing, and a distressed sale are all reasons why a seller would be super motivated and list their home during the holidays.  The few buyers who are still out there usually find great deals with much better terms.

Lower prices.

That lower competition means lower prices, as sellers have few (or no) offers to consider, but still feel the pressure to sell.  As any successful real estate investor will tell you, the best time to buy is when it’s NOT popular, because that’s when the best deals can be found.  Buying during the holidays is taking advantage of the natural lull in market cycles.

Taxes.

There is a tax incentive, as well – prepaid mortgage interest and maybe even some closing costs may be tax deductible.  By closing on the home before the end of year, the buyer may benefit from those deductions on their next tax return (in April.)  Consult your CPA or tax professional to learn more about the tax component of buying or selling a home.

Better loans.

Even mortgage lenders are motivated to lend money during the holidays season, as their volume slows, too, but they still need to hit certain performance numbers.  Due to this, mortgage interest rates commonly drop every December through January as they try to attract buyers, and the terms and ease of closing these loans is usually favorable, too.

Speedy closings.

Title companies, realtors, banks, and escrow offices all have a lower workload during the holidays, meaning it’s usually possible to close your real estate transaction within a shorter time period and with better service.  Everyone is motivated to get the deal closed before the end of the year, so it counts on that year’s books.

Investors delight.

People who are the most motivated to sell because of a distressed sale (short sale, probate, divorce, etc.) often yield the best deals for investors, who can pick and choose from inventory, make favorable offers with little competition, and even negotiate great terms, like rent backs or funds for repairs, that sweeten their investment. 

Give yourself the greatest gift.
Instead of running around to deal with long lines in stores and spending money online, how about giving your family the best gift - a new home?  A holiday season spent finding and buying a new home will be one of the most special, rewarding experiences you can have.  You'll be able to move in and fix it up during the winter and spring just as you like it, and be ready to show it off and have fun by summer - the time when most others are just starting their home buying push! 

***
If you’re serious about buying a home and want to get a fantastic deal, you’ll want to consider working with the Alfano Group real estate to go out and brave those dark, cold conditions to find them.  Don’t wait until next year when all of the other buyers get back in the market and the prices and interest rates rise.  You’ll end up with the best deal on a great home and make a motivated seller very happy.  Heck, you might even get them to throw in the washer and dryer as a Christmas present to you!