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Wednesday, July 23, 2014

Sacramento Real Estate Prediction - 2nd half of 2014



Doug’s Crystal Ball
(AKA - Educated Guess):

I am asked almost daily by both buyers and sellers on where this market is headed.  And while I don’t have a crystal ball, I can still provide my opinion/guess.  There is an interesting dynamic to the market right now.  The homes that are priced right/show well/marketed great are getting sold in a short period of time with a lot of buyer activity.  On the other end, the houses that miss one of those aspects are sitting and having little/no activity until the prices are reduced to get more attention.  Bottom line, the buyers have become more picky because the inventory has increased and the amount of investors/cash offers has slowed down. History shows that Sacramento has always been a very cyclical real estate market, most of the sales happen in the spring/summer and taper offer in the fall. 

SO, Here’s my personal opinion: If you’re considering selling your house in the next few months, I would suggest getting it on now before the buying season continues to slow down.  IF you’re a buyer out there: figure out exactly what you are looking for and get preapproved with an excellent lender.  Look over the properties that have been sitting on the market with your agent, if something catches your eye see if you can negotiate the price down.  And lastly, be ready to jump all over the perfect property that comes on the market any day now because those are still selling fast, at or above list price. 
By the end of the year, i see the inventory increased to probably around 4 months (we are currently at 2.2 months), the median will probably decline a little bit from the $270k we are at and i think buyer's will have a little more power in the transaction compared to the last few years.  I think these will all be subtle shifts but noticeable.

Only time will tell if I’m right but that is what I’m currently seeing in the market….



Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.


clear skies,

Doug Reynolds

Realtor

916-494-8441



         

Wednesday, July 16, 2014

Sacramento Real Estate Video Market Update July - August 2014



Doug Reynolds, a Sacramento Area Realtor, discusses the latest statistics and what's going on with the market as the summer market progresses.

This month Doug discusses the drop in the median price and the increase in inventory.  The market appears to be bouncing around at a balance right now.  Things are very "Price Sensitive."  Either homes are selling right away or sitting for a very long time in the Sacramento Real Estate Market right now.

Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.


clear skies,

Doug Reynolds

Realtor

916-494-8441



         

Monday, July 14, 2014

Sacramento Real Estate Market update - July 2014

Sacramento
Real Estate Update


July  2014


 ó In June 2014, the median price decreased from $275,000 to $270,000.  The median is still 9.8% higher than one year ago.
ó The available housing inventory is 2.2 months.  I expect to see that number slowly increase as we continue through the year.  A “normal” or “balanced market” is around 4 months.
ó The homes that are priced right, show well and have a high quality marketing plan are still getting sold quickly.  However, the properties that are over priced are sitting with little activity until the list price is in line with the true market value.  The overpriced properties are having price reductions to try and get more attention.  The current market is approaching the most “normal/balanced” market we have seen in the Sacramento area in over 10 years.
ó High Demand and Low Supply/Inventory had driven the market prices up in 2013.  The market is finally at a balance and seller’s power of the past 2 years is now equal with the buyers.


Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.


clear skies,

Doug Reynolds

Realtor

916-494-8441



         



Friday, July 11, 2014

College-Glen Real Estate VIDEO update Q2 2014



The market picked up for the second quarter as the spring/summer season is in full swing.  There were 28 sales in the second quarter, up from the previous quarter(21) and same as one year ago(28). The average sales price($282,759) is up considerably from last quarter($262,123) and from one year ago($257,805).  Average Days on the market(18) decreased significantly as spring/summer market heated up.

The supply/inventory and demand is more in balance as more homes have come on the market.  However, the summer selling season is still going strong in College-Glen.  A few recent homes have gone into escrow in a short period of time, some with multiple offers.  For the homes that are priced right and show well, the sellers are having good success. The overpriced listings are sitting on the market without a buyer. I expect the third quarter to look very similar to the second quarter.

 College-Glen Real Estate - Doug Reynolds

Wednesday, July 2, 2014

Cash Sales continue to decrease in Sacramento Real Estate


By now, we all know the stories of the major hedge-fund investors (cough, cough, Blackstone, cough) coming into the Sacramento Real Estate market and basically buying up everything they could at the end of 2012 and beginning of 2013.  Since the third quarter of 2013, the amount of cash sales has begun to decrease nearly each month and is slowly returning to "normal" levels.

From my calculations, the amount of cash sales in Sacramento County for June 2014 is about 17.7% of all the sales.  Last month they were around 20.5%.

So what does this mean??

It's good news for the first time home buyer.  As inventory has slowly been increasing this year, the level of cash buyer competition has been decreasing.  That makes it a little easier for FHA buyers and just buyers that need to use financing in general.  Why are there less cash buyers???  Well, prices have gone up significantly since the beginning of 2012.  With higher prices brings lower returns on their investments.  There are still areas that are having heavy cash investor influences still (Most homes in Elk Grove below $300k are still getting multiple cash offers) but for the most part, the cash buyers are sprinkled throughout the market.

I expect the overall volume of cash purchase to continue to decrease as we go through 2014 and probably reach a level of about 10% of sales at some point.


Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.


clear skies,

Doug Reynolds

Realtor

916-494-8441



         

Tuesday, June 24, 2014

Brown lawns in Sacramento for a reason


As Sacramento is currently experiencing a drought, it's time to be conserving water.  The City of Sacramento has reduced water of lawns to only 2 days per week:

Even numbered houses ( addresses ending in 0,2,4,6 or 8) can water their lawns on Wednesdays and Sundays.

Odd numbered houses (addresses ending in 1,3,5,7 or 9) can water their lawns on Tuesdays and Saturdays.

There is no watering allowed on Mondays, Thursdays and Fridays.
Watering can only occur between 7pm at night and 10am in the morning. No watering during the day.

You can wash your car on your specific watering days as long as you have a auto shut off nozzle on the end of your hose OR are using a bucket.

You are encouraged to report water waste in the city of Sacramento via calling 311 or using the city's mobile app.


Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.


clear skies,

Doug Reynolds

Realtor

916-494-8441



         

Tuesday, June 17, 2014

Sacramento Real Estate Video Market Update June - July 2014





Doug Reynolds, a Sacramento Area Realtor, discusses the latest statistics and what's going on with the market as the spring market is in full swing.

This month Doug discusses for the first time in over 10 years, the Sacramento Real Estate market is "normal" or "balanced."  There are houses to choose from, there's a little bit of everything out there for first time home buyers, move up buyers, and investors.  Some houses are sitting on the market with price reductions and others that are priced right, show well and marketed well are selling quickly.

Connect with Doug Reynolds Real Estate via FacebookYouTube, and Follow his Blog.


clear skies,

Doug Reynolds

Realtor

916-494-8441