It’s hard to believe it’s already September 2023! Check out my video below or continue reading as I share a quick run down on the real estate market in Sacramento for August 2023.
Before we jump right in, here’s a quick glance at the data for single-family homes in August and how it compares to last year.
- 🏠 There are 1,100 single-family homes listed on the market (last year, there were 2,206)
- 🔑 792 single-family homes have sold (last year, 1,059 homes sold)
- 📜 892 homes are pending (last year, 1,145 homes were pending)
- 💲 The average list price for a single-family home is $751K (last year, it was $668K)
- 💵 The average sold price for a single-family home is $602K (last year, it was $593K)
- 📅 The average days on market is 22 (last year it was 26)
Demand for housing this year has decreased by 20-25% compared to last year. We can see it in the number of houses that are entering into contract. This year, they are down about 200 compared to last year. However, this shows that there is still 75-80% of the demand from last year in the market. One notable difference we’re seeing is the number of homes coming onto the market. This year, there are half as many houses compared to last year. Even though inventory has halved, demand is still strong relative to inventory, which explains why home prices haven’t fallen.
Well presented homes at reasonable prices still attract a lot of attention and continue to receive multiple offers (often 2-5 offers). However, some houses still stay on the market for a considerable time, around 40 days. This may be due to a lack of attention to important details on the part of sellers. In a seller’s market, it is essential that sellers are intentional in the presentation of their properties and that they address any visible issues.
Another important consideration is the cost of money. The cost of home loans has increased significantly in the last year and a half. A year ago, the cost for each $100,000 borrowed was between $500 and $525/month, meaning that a $400K loan would cost you about $2,000-$2,200/month. Today the costs for the same $100K has jumped to almost $825 making that same $400K loan result in a monthly mortgage of $3,400 to $3,500. This has a significant impact on the affordability of homes and the purchasing power of buyers. It is crucial that potential buyers take into account this increase in financial costs and are prepared to buy within their current means. Those who were previously qualified to buy a $600,000 home may be forced to search for more affordable properties in the $400,000 range.
In order to be in the best possible position in this competitive market, it is essential to ensure that your home is well prepared and attracts the necessary attention. Small improvements, like fresh paint and a deep cleaning, can make a big difference.
If you have any questions or need additional advice, please do not hesitate to contact me at 916.507.0493 or at [email protected]. I’m here to help you navigate the Sacramento real estate market.