Real Estate Update
ó In May 2014, the median price increased from $267,000 to $275,000. The median is 14.6% higher than one year ago.
ó The available housing inventory is 1.8 months. I expect to see that number slowly increase as we go through the year. A “normal” or “balanced market” is between 4 to 5 months.
ó The homes that are priced right, show well and have a high quality marketing plan are still getting sold quickly still. However, the properties that are over priced are beginning to sit 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 beginning to find a balance and seller’s power of the past 2 years is slowly shifting to be more equal this year.