HOT Summer Market Continues with Rising Prices of Single Family Homes
· HOT Summer Market Continues with Rising Prices of Single Family Homes
· The low housing inventory of the Sacramento area combined with the high buyer demand continues to increase the median price. In January 2012, the median price bottomed out at $160,000. Since then the price has continued to increase to the now $184,825 median price.
· Buyer demand remains high with most properties having multiple offers and selling above list prices. That is happening when the home is marketed well, shows well and is listed at a competitive price.
· Cash buyers made up 33.1% of the sales in August. Many investors were waiting for the market to “bottom out” and now they are trying to pick up rental properties as fast as possible. This is making it difficult for first time home buyers that need financing to compete with the cash offers.
· Inventory remains extremely low at 0.9 months!! A “normal” or “balanced” market is between 4 and 5 months.
· While interest rates remain low and home inventory stays low, expect more of the same in the months ahead with high buyer demand and the prices continuing to inch up for single family homes.
· Remember, real estate is a Local Issue. What is happening in other markets in the state and country is not necessarily going on in the Sacramento Area.
· One strange occurrence in August: the median price of Condos dropped 9.4%. Going from $85,000 to $77,000.