Sacramento Real Estate Market Update | September 2023

Hey Sacramento!

As the crisp breeze of September rolls in and we start stocking up on those Pumpkin Spice flavors, it's the perfect time to cozy up and chat about what's been happening here in Sacramento’s housing market.

Whether you're daydreaming of that white picket fence or you're gearing up for a move, here's the inside scoop.

2,751 homes. That's the number of properties in our beloved city that switched hands this August.

Now, I get it, it sounds like a big number, but if you're the kind of person who's thinking, "Give me some context," Rewind to this time last year, and we saw 3,422 happy new homeowners settling in.

That's a noticeable change, isn’t it? That’s a 20% drop in home sales. The big problem is that there are lots of people wanting to buy homes but not enough homes on the market, which is of course leading to increased competition.

But shifting our gaze to just last month, there's been a 3.3% uptick in sales. This could just be seasonality, or it could be the market’s normal up and down…And speaking about not enough homes, let’s look at the number of properties on the market…This  August, our housing inventory saw a drop, with 38.1% fewer properties available compared to this time last year. However, in a promising turn, the number of available homes increased by 2.7% from just the previous month.

If you’re a prospective buyer, that 2.7% is reason for hope because remember, if you need to move, you need to move. It doesn’t matter what the market is like, for a lot of people this market is the reality.

Now let’s talk about prices…The average home in August sported a tag of $610,000. A gentle climb from the $604,000 of last year and just a tad beneath July's $612,000. What you can see is that the market is still super competitive, keeping prices up, and yet as we enter the slower season of the market, home prices are having to come down to find the right buyers…Understanding the difference between a house's asking price and its final sold price is key. Why? Because this info gives us a real sense of how the housing market is behaving. If houses are selling close to their asking price, it tells us we are in a market where sellers have the power.

If sellers have to come down from their price, this indicates that we are in a buyers market where buyers are in control of the negotiation. This usually happens when there are lots of homes to choose from and less buyers. However, this is not the case in Sacramento…In  Sacramento, the recent data says that homes are selling for about 98% of their original asking price. Put simply, if someone wanted $100,000 for their home, they probably got around $98,000.This is good to know! If you're planning to buy, it suggests that sellers aren't budging much on their price. And if you're looking to sell, it's promising news – you can expect to get close to the amount you list for.

Right now, the market is holding steady, which means a fair deal for
most folks. Peering ahead, the air is thick with anticipation. The market might lean slightly towards those selling, but there are always listings out there, you just have to know where to look…As we wrap this up, let's take a quick trip down memory lane and use past trends to peek into October's crystal ball. Historically, Sacramento's October has been a fascinating month for real estate. Autumn often
brings a slight slowdown after the summer rush, with many families settling in before the new school year.

Going by the patterns of the past few years, we can anticipate a modest dip in sales. However, with the current tight inventory, it's possible that prices might stay relatively stable if not inch upwards due to
sustained demand.

For sellers, it might mean slightly fewer showings, but those who are looking are serious buyers, often hoping to settle in before the holidays. For buyers, while the competition might ease off a touch, it's crucial to remain vigilant and prepared to act swiftly. With a market as dynamic as Sacramento's, you never quite know when that dream property will pop up! Thank you so much for watching, Sacramento, and we’ll see you in the next market update.