Hello Sacramento residents! Eduardo here from the Partners in Real Estate Team with your November 2023 market update. If you’ve been closely monitoring the real estate scene, you know that the activity is still buzzing. Let’s dive into the recent data and shed some light on the exciting opportunities within the current market dynamics.
Check out my video below or continue reading as I share a quick run down on the real estate market in Sacramento for November 2023.
The Rate Rollercoaster
As we ventured into November, we witnessed a bit of a slowdown, partly due to a spike in interest rates. Fortunately, as we step into December, there’s a significant pullback, with rates leaning towards the low-sevens. For those of you waiting for the opportune moment to jump into the market, now might be the time. Rates are showing signs of coming down, and the longer you wait, the more competition you might face.
Act Sooner Rather Than Later
I want to alleviate any concerns and assure you that my goal is to be a fiduciary for my clients and provide insights that empower your decision-making. If 2023 is the year you’re considering buying or need to buy, let’s have a conversation sooner rather than later. This ensures that everything is in place, allowing us to find the right home for you.
Market Comparison: 2023 vs. 2022
To understand why we anticipate continued market aggressiveness, let’s compare this year to the start of the last. The number of homes on the market has seen a nearly 30% decline, primarily because homeowners, enjoying historically low interest rates, have been hesitant to enter the market. With rates showing a downward trend, we anticipate some these homes to hit the market, balancing the scale.
Supply and Demand Dynamics
Despite the decline in inventory, the demand remains strong. In November 2023, we observed only a 20% drop in the number of homes sold compared to the previous year. Active buyers in the market, represented by pending sales, only saw a 1% decrease. This delicate balance between supply and demand is what’s keeping prices steady, and with a limited increase in inventory anticipated, prices are likely to continue their upward trend.
Faster Transactions and Tight Inventory
The data also shows that homes are going into contract 36% faster than the previous year, with the average days on the market dropping from 41 to 26. If you’re waiting for a market bubble to burst, the signs aren’t indicating that. Now is a great time to have a conversation and set yourself up for success in the coming year.
Thank you for tuning in, and I hope this update has provided valuable insights. If you’re considering a real estate move in the upcoming year, let’s chat. Whether it turns out to be the right time or not, having a clear strategy in place will keep you prepared for whenever the perfect moment arrives. Feel free to reach me at 916.507.0493 or at [email protected] and we’ll see you on the next update.