Median Sales price Rises!
The law of supply and demand are beginning to take effect in the Sacramento Area Real Estate Market. For months and months I’ve been sharing how there is extremely low inventory and huge buyer demand, multiple offers and bidding wars on well-priced houses. February 2012 is showing that in the numbers now. The median sales price increase by 1.9% from January to a new median of $163,000. For over a year, the median price has been in the 160 range, showing a sign of flattening/bottoming in our area. The inventory is at its lowest level in the history of Sacramento Real Estate. 1.6 months is considered a sellers’ market as 6 months is the bench mark for a “Balanced Market.” I am continuing to call it a “Price sensitive seller’s market.” If a home is priced right, shows well and is marketed well then it is selling with multiple offers in a few days and in most cases for above the listing price.
The amount of sales for February 2012 are 8.1% higher than January and 16.1% higher than one year ago. The balance of types of sales continues at 33%. 1/3 bank owned sales, 1/3 short sales and 1/3 equity sales. I expect the trend of low inventory, high sales and a flattened sales price to continue through the year as the median price starts to climb its way back up a little bit by the end of the year.