Sacramento County Real Estate Statistics – April 2012

·         The Median Price has increased 3 straight months.

160,000  to  163,000  to  165,900  to 169,000

·         The Inventory has reached a new all-time low of 0.9 months in Sacramento.

If no new homes came on the market, we would run out of homes for sale in 0.9 months at the current pace.

A “balanced” or “normal” market is between 4 or 5 months.

·         Of the 1,633 sales in April: 32% was Cash,  Conventional financing was 32.4%, FHA was 27.1% and VA 3.1%.

The simple economics of supply and demand continue to drive the Sacramento Market on an upward trend.  For the foreseeable future, as long as interest rates remain low, the demand shall continue to be high.  The “price sensitive sellers’ market” is still in effect. The properties that come on the market much higher than true market value and do not show well are sitting.  But the homes that show well and come of the market at a good price are being sold within a few days, at or above list price with multiple offers.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

Sacramento County Real Estate Video Update April - May 2012

Doug Reynolds, a Sacramento Area Realtor, discusses the latest real estate data for March 2012 in Sacramento County Real Estate. Due to low inventory and high buyer demand, the market has shifted to a sellers market where properties are selling quickly with multiple offers.  The median sales prices has now increased for two straight months, indicating the bottom of the market has passed.  Also discussed, is the "Perfect Storm" currently going on in the Sacramento area.  It's both a great time to sell and also a great time buy due to low prices and low interest rates (it's just tough to get an accepted offer right now due to the buyer competition.)

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

Sacramento County Housing Statistics for March 2012

Prices Rise for Second Straight Month – Bottom of the Market has Passed

In the Sacramento Area, the median sales price of single family homes has rose for the second straight month.  The median price for March 2012 was $165,900.  Up from $160,000 in January 2012.  The increase in price is due to the economics of Supply and Demand.

Low Supply: Currently, the amount of homes for sale on the market (inventory) is at 1.1 months.  That means at the current rate of sales, if no new homes came on the market, we would sell out of homes in only 1.1 months.  That is lowest amount of inventory EVER on record in the Sacramento Area.  A “normal” or “balanced” market is considered to be around 5 months of inventory.  The peak of the inventory was in September 2007 with 14.2 months of inventory.  Since then, the banks have been more cautious about putting too many homes on the market at one time, short sales have been succeeding at a higher rate, many investors began purchasing properties at auction before they had a chance to come on the market and now some banks are even beginning to rent properties out and also sale in bulk to large investors where 500 homes are purchased at one time and never make it to the open market.

High Demand: Many investors and potential buyers have been sitting on the sidelines while prices where in a free fall a few years ago.  Once interest rates reached the 4% range, many first time buyers got into the game and began purchasing.  The investors saw the activity increasing and realized the bottom of the market was coming and are now writing all cash offers on many properties to either flip or hold and rent as investments for the long term.  Currently, due to the low supply and high demand, most homes that hit the market are receiving multiple offers, all cash offers and offers above the list price.  The demand has not been this high for the past 7 years.  Because of that, many sellers are choosing now as a great time to put there house on the market as the Sacramento Market has shifted to a “Seller’s Market.”

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

Sacramento County Housing Statistics for February 2012

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.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com

Sacramento County Real Estate Update December-January 2011-2012

Doug Reynolds, a Sacramento Realtor, provides an analysis of the local market statistics from November. This month discussing how Sacramento area sales were strong in November in spite of the expected dip in winter months. National low interest rates and in Sacramento we are seeing cash buyers and multiple offers. More information can be found at his website, www.BuyWithDoug.com, as well as his blog and Facebook page (Doug Reynolds Real Estate). Become a fan of his YouTube page and Facebook pages.

clear skies,

Doug Reynolds

 

www.BHGshortsales.com