2016 Sacramento Area Real Estate Year in Review
* The median price ended the year at $315,000. A 6.1% increase from the year before!
* 18,082 homes sold in 2016. That is 2.9% higher than the 17,578 sold in 2015.
* The available housing inventory has remained historically low. Currently there is 1 month worth of inventory. I expect that number to increase more as we approach the spring/summer seasons but not drastically. A “normal” or “balanced market” is considered around 2.5— 3 months.
* The homes that are priced right, show well and have a high quality marketing plan are 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. I’m calling it a “price sensitive sellers market.”
* 2017 is looking like it should be very similar to 2016 with close to the same amount of homes sold, low inventory, and modest price increases/appreciation.
* A few wild cards to make this years crystal ball a bit cloudy: rising interest rates, new president in office and potential inflation.