Our market is red-hot, and here are the numbers to prove it.
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What’s the latest news from our Sacramento real estate market?
As many of you know, our market is red-hot.
We’re seeing a lot of Bay Area buyers move this direction, and many of them are millennials. When I think of millennials, I think of investment portfolios (if they’re diversified). By this, I mean they have a lot of money, and they’re moving here because they want more space.
That’s why I’m filming today’s video at one of my beautiful listings. It’s priced at $1.4 million, and it’s exactly the type of property these Bay Area buyers are purchasing. They’re buying with cash, and we’re seeing bidding wars erupt.
According to the latest stats, inventory in September (1,926 homes for sale) was about half of where it was last year, and there were roughly 2,613 closings. Why is inventory so low? For one thing, a lot of people took their homes off the market once the pandemic hit. Also, interest rates are extremely low (2.25% to 2.75%) and buyer activity is high. Builders have struggled to keep pace with demand, so the number of new construction homes is low.
"While the millennial buyers are moving into our area, many baby boomers are moving out of state."
Month over month, the average price per square foot has risen steadily since the beginning of the year, and now it stands at $266. Home values are rising steadily at a rate of 1% per month as well. The list-to-sale price ratio for homes is at 100%, and they’re spending an average of just 27 days on the market—another historically low mark.
It shouldn’t be surprising, then, that we have just 0.7 month’s worth of inventory. Remember, anything below three months constitutes a seller’s market, while a three- to four-month supply constitutes a neutral market, and anything above that is a buyer’s market.
Lastly, while the millennial buyers are moving into our area,
many baby boomers are moving out of state to places like Texas, Idaho, Nevada, Arizona, etc.
If you’d like to know how these developments affect your buying or selling plans or would like to talk more about our Sacramento market, don’t hesitate to reach out to me. I’d love to speak with you.
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