If you’ve heard anyone talk about the Sacramento real estate market or about selling a home in Roseville lately then you know that things are HOT! Many homes are receiving multiple offers, selling over the list price, or both! It’s a great time to take advantage of the market as a seller. I’ll break down the statistics for the market and discuss some sub markets and certain price ranges.
Overall homes are moving well and selling quickly. Home buyers under approximately $750,000 are experiencing a high level of competition, and often entering into bidding wars. The price range under $350,000 is the most competitive since it appeals to both entry buyers and investors. These homes move quickly and almost always sell for full price or more. That being said, some home sellers are overly optimistic about how “hot” the market is and ask outrageous prices. Those homes tend to sit longer and eventually get reduced down to a reasonable price. Appraisals have been another challenge for sellers. As buyer’s bid higher and higher on homes it becomes harder for appraisers to justify the price increases without recent sales comps. As always, a clean and competitive offer is the best chance to get a home in today’s real estate market.
At the other end of the market the luxury homes in Sacramento tend to sit just a little longer. Many are still moving, and moving quickly. However, buyer’s are very value sensitive. Dated homes, or homes with some aspect of external obsolescence (busy streets, power lines, unusable lots, etc) tend to sit on the market for months before negotiating a more reasonable price. For buyers and sellers of million dollar homes in Granite Bay and surrounding areas, market knowledge is key. Two homes may appear very similar at a glance, however, understanding construction quality and grade of the finish work is very important when deciding on a sales price. What is the quality of the finish work and the design? As trends change, so does desirability. As the area moves toward a desire for brighter, more modern feel, demand tends to slightly diminish for the Tuscan and Mediterranean feel of the last decade. While still desirable, we’re seeing a local shift and increased demand for clean, cool, contemporary/modern designs. Costs for new construction vs cost to purchase a resale home are still challenging for builders and high net worth buyers. Often it can be hard to re-create beautiful well built homes for the same price as the resale market. This is creating pressure on new home builders in Granite Bay and Roseville areas.
As mortgage interest rates continue to see a moderate rate of increase the market should see some slowing effects over the next year. As new home builders continue to bring new product to the market the available supply should start to soften the market appreciation. Bay Area buyers will continue to relocate to Granite Bay and the Sacramento region seeking more attractive home prices and a great quality of life. Cashing out of the unbelievable Bay Area home prices allows for very attractive offers with large down payments. Their demand will continue to keep the move up sector and the high end real estate sector moving.
See below for more detailed statistics.
In the Greater Sacramento region comprised of Placer, Sacramento, El Dorado, and Yolo home of all price ranges are selling in an average of 31 days for 99% of list price. This represents a 13.9% reduction in average time on market. The number of homes available on the market is down almost 19%. The median home price has increased 7.1% from $350,000 to $375,000. This can be felt out in the open market as extreme demand due to low supply. Overall our local real estate market has been hovering at around 1.5 months worth of inventory for at least the last 12 months.
Placer County statistics show a trend similar to the overall region. Homes are selling in 35 days at an average of 98% of list price. Available inventory is down 19.6% over the last 12 months, and median home price has jumped 7.5% from $428,000 to $460,000. Average Sold price in Placer County has increased 8.2% in the last 12 months.
Luxury real estate in Granite Bay and surrounding areas is actually seeing a very slight decrease in average sales price of about 1.1% over the last 2 years. This could be attributed to the amount of inventory that has been placed on the market over $1 million, and the fact that much of the real estate in Granite Bay is somewhat dated and in need of major updating. The high end market is running at approximately 12 months of inventory on average.
In the Greater Sacramento area (4 county) about 30-45 $1 million+ homes are selling each month. This represents only about 10% of the total available high end inventory. Only the best valued homes are moving in the current market, and luxury home sellers in Sacramento must be prepared to be extremely competitive to stand out against the numerous listings in the area.
Overall anyone entering the real estate market must be very informed, and be sure that they have the right guidance in such a tumultuous market. Buyers must be sure not to overpay for homes, and sellers must consider their competition in order to maximize price and time. We’ve got much more room to expand and prices are showing no signs of slowing!