How's the Sacramento real estate market during the pandemic?

How's the Sacramento real estate market during the pandemic? I answer this question every day. In short: the market is crazy. Multiple offers abound, homes selling for more than listing price, prices increasing. I know: this is contrary to what you were probably thinking. But if you dig into the dynamics and data it makes a lot of sense.

Inventory is scarce. The graph above is a brilliant visual illustration of what is happening currently in the market. We have far fewer homes actively for sale than are currently pending sale (in contract with buyers) and that have closed escrow (sold). This is a HUGE change from last year, and candidly, all of my last 15 years as a realtor. I think as the pandemic has unfolded there are many people who had planned to sell their homes who have hunkered down, deciding not to sell yet. I personally have several would-be seller clients who were ready to list their homes before COVID19 hit who are staying put for now. I am still listing plenty of properties -- folks still need to move, whether relocating out of state, or moving to different school districts, or  moving closer to work, or upsizing to have a home office, or downsizing after the kids move out, or selling an empty home in an estate, etc. But many are holding off to see what happens.

With that though, literally none of my buyer clients have suspended their home searches. And thus we have an imbalance of supply and demand. And prices are increasing.

From the conversations I am having with my buyer clients, for those unaffected by job loss or furlough, MANY people are motivated to purchase homes right now. Some have told me that because we now must spend so much time at home, it has caused them to re-evaluate what is important in their home. Renters are very much wanting to buy. And I am working with several bay area buyers -- which itself is not new -- but several who have been told by their employers that they will now be permanently working from home so they are choosing to buy in Sacramento where they can afford a nicer home. The median home price in Sacramento County, which in June 2020 was $415,000, is SUBSTANTIALLY LESS than bay area counties where the median home price can be well over $1,000,000. Let's not forget that interest rates are also insanely low: One of my clients just locked a 30-year fixed conventional loan under 3%.

So as my good friend Ryan Lundquist always says: the market is always moving.

New Listing - 8481 Whispering Oak Lane, Orangevale, CA 95662

Stunning Orangevale 4 bedroom, 3.5 bathroom 2,725sf home with unmatched style and features! You will love the light and bright layout. Grand living room with high ceiling overlooks a fun wet bar for entertaining, and a fabulously remodeled kitchen with a pantry, stainless appliances, granite counters, built-in wine fridge, and center island. Eat-in nook and formal dining room. Enviable downstairs master suite with dual walk-in closets, remodeled master bathroom with dual sinks, separate tub and shower. Upstairs find a sizable loft area, perfect for a home office. Three spacious bedrooms upstairs including a junior master with ensuite remodeled bathroom. Recessed lighting, newer flooring, and Allen & Roth window shades! Huge laundry room with sink. 3-car garage. Backyard is an outdoor oasis with lots of sunny space to play! Entertain guests around your built-in pool/spa! Quiet gated street with close proximity to shopping, schools, parks and more. Don't wait! Offered at $649,900. MLS# 20032136. For a virtual 3D walk-through and more photos, please visit 8481 Whispering Oak Lane, Orangevale, CA 95662.

New Listing - 3498-3950A-3950B Sherman Way, Sacramento, CA 95817

Amazing renovated 3-unit / triplex investment property opportunity near UC Davis Medical Center! You will appreciate the attention to detail and recent renovation. Front unit (3948) is a spacious 2/1 with a sunny front porch, light and bright with lots of windows, built-ins, updated kitchen with a Wedgewood stove, updated bathroom bathroom. Rear unit (3950A) is an adorable 3/1 with a downstairs bedroom and bath, and 2 fun attic bedrooms with skylights and cool nooks and crannies! Also features a quarter basement, updated kitchen with new quartz counters. ADU unit (3950B) is an efficient 1/1 that is newly built and has lots bells and whistles, including new kitchen with stainless appliance, new bathroom, a minisplit a/c, breezy rear deck. All units have new dual pane windows, refinished or new flooring, fresh interior/exterior paint, new light fixtures. Landscaped yard and planter boxes. Disclosures, income/expense statements available. 5.8% estimated Cap Rate, 13.14 estimated Gross Rent Multiplier. Offered at $875,000. MLS# 20031999. 3D Virtual walk-through and more photos and detail available at 3498-3950A-3950B Sherman Way, Sacramento, CA 95817.

Required for all listings: COVID19 Prevention Plan for In-Person Property Showings...

Typically when one thinks about real estate regulation, the first agencies that comes to mind are not CalOSHA, nor California Department of Public Health. But here we are in 2020, and the murder hornets are coming to get us, and we live in a new world of trying to maintain social distance and sanitary conditions all around us.

As such, it seems only fitting that OSHA and CDPH dip their toes into real estate, yes? Enter the "COVID19 Prevention Plan for In-Person Property Showings".

A prevention plan is required to be posted at the entry of each listing. And available publicly for each listing online. And anyone entering the property is required to review and sign a copy. Did I mention the property must be disinfected between showings too? And open houses are not allowed?

Good times.

I have come up with a pretty organized system for dealing with these new requirements to minimize hassle and to maintain as safe of an environment as possible. So, we roll through this and hope that the alien invasion that is undoubtedly ahead of us in the fall won't be too bad. Perhaps by then NASA will issue some new real estate regulations too.

New Listing - 4938 Kipling Drive, Carmichael, CA 95608

Lovingly maintained by the same family for over 3 decades, this impeccable 4 bedroom, 2 bathroom, 2,001sf Del Dayo Carmichael home is ready to be somebody's new beginning, and is the perfect blank canvas for your personal touches. You will love the spacious layout. The sizable kitchen is open to the family room and offers lots of counter and storage space. The family room has a cozy gas fireplace and overlooks the lush landscaped backyard. Separate formal living room and adjacent formal dining room. Master suite has lots of windows, door to the backyard, and walk-in closet. Inside utility room with extra storage, and 3-car attached garage. HUGE, .29ac park-like backyard with lots of sunny space to garden or play, planter beds, a patio shaded by tree canopy, and a built-in swimming pool. All this located near award-winning k-12 schools, parks, shopping, the American River Parkway & more. Don't wait! MLS# 20027978. Offered at $599,900. 3D tour and more photos and detail available at 4938 Kipling Drive, Carmichael, CA 95608.

New Listing - 6725 Swenson Way, Sacramento, CA 95831

Stunning 3 bedroom, 2 bathroom, 1,632sf South Land Park Hills home! Ideally located on quiet cul-de-sac, you will love the spacious layout. The remodeled kitchen has quartz counters, apron sink, double oven, breakfast nook, and lots of counter/storage space. The formal living room has a fireplace and sunny dual pane windows overlooking the manicured backyard. Separate family room offers a fireplace and access to backyard. Large hallway bedrooms. Master suite has dual closets, and a remodeled master bathroom. Wood floors, composition roof, central HVAC, lots of storage space, 2-car attached garage. Storage shed, AND a 2nd shed with finished/drywalled interior currently used as a home office, perfect for hobbies or crafts! HUGE .31ac lot, park-like backyard, lots of sunny space to garden or play, planter beds, covered patio, manicured gardens. Backs to undeveloped city-owned property! All this located near award-winning k-12 schools, parks, shopping & more. Don't wait! Offered at $569,900. MLS# 20026715. 3D Virtual Tour available. For more photos and detail please visit 6725 Swenson Way, Sacramento, CA 95831.

Listing, AND SAFELY SHOWING, property during the Coronavirus pandemic....

Last week, the Sacramento County Public Health Director modified the our local directive to allow the showing of occupied property. Many of my seller clients rejoiced! And then, after that initial "yay, I can finally sell my house!" excitement, literally all of them had the same realization: "Oh, now I actually have to have a parade of other people in my home."

After having to "Stay at Home" in Sacramento County for nearly 7 weeks, and having limited contact with other people outside of the household, for many sellers this is a scary proposition.

So I have been having the same conversation over and over again lately -- how do I safely show my home? And I thought it might be helpful to post how my seller clients and I are approaching listing and safely (as possible) showing homes.

Given our unique public health circumstances, it is probably pretty important not to let just anyone who wants to see your house inside for a showing. In consultation with my sellers, I came up with a few different types showing options for them to consider.

Again, this is something every Sacramento home seller must contemplate and implement per their own comfort level. As agents we can make no guarantees that these strategies will prevent the risk of getting sick, but sellers may wish to take as many precautions as they believe are necessary.

I listed an occupied property late last week and the method we used to control showings seemed to work pretty well. Most importantly, we limited the flow of people through the property to only serious buyers, AND we didn't impede our ability to show and get offers on it. Basically we required buyers and their agents to jump through some hoops before a showing appointment was granted.

First, the buyers were directed to thoroughly review all marketing photos, 3D tours, inspection reports, and disclosures available in MLS in advance. Then if they had significant interest in the property they had to sign a document called a PEAD (Coronavirus Property Entry Advisory and Declaration) where they swear that they have not been exposed to Coronavirus, have not had symptoms, etc and that they will follow best practices for viewing another property (wear personal protective gear, not touch anything, etc).

Second, they had to prove they were either pre-approved or had enough cash to purchase the home for at least the listing price.

Third, they had to sign and submit all showing instructions documents 24 hours in advance of scheduling a showing.

This seemed to do a pretty good job of vetting the looky-loos and we ended up with serious buyers only. A sample of the showing instructions is pictured above.

I drafted three alternate "showing instructions" scenarios for them to consider. These are of varying rigidity and can be modified based on a seller's comfort level.

Option A is what this most recent seller opted to do. It seemed to work well and seemed to successfully screen the looky-loos out while offering a little flexibility to buyers and agents to request showing days/times.

Option B is a bit more rigid -- I replaced the bullet points with spots for buyers to initial (which should ideally convey certain concepts more strongly). I added a section where the buyers/agent can indicate which showing day/time(s) they prefer, where in Option A we allow the buyers/agents to request times. I also added a requirement that the buyers are not making an offer contingent on the sale of another property -- which you may or may not wish to limit, as that will eliminate some showings/buyers.

Option C is very rigid and requires that the buyer actually makes an offer (relying on the virtual tour, photos, and reports) in order to schedule a showing...it also provides fewer appointment time options to see the home.

Of course all of these can be adapted for specific situations.

The California Association of Realtors published some COVID19 Best Practices that you may find useful as well.

While Option A is pictured in this post, if you would like the verbiage from Options B and C, I am happy to share via email. Shoot me a request at erin@erinstumpf.com. And of course if you are thinking about selling your Sacramento home, I am happy to discuss this and welcome your call to see if we are a good fit to work together.

New Listing - 7848 Meadowriver Way, Citrus Heights, CA 95610

Lovingly maintained by the current owner for nearly 3 decades, this impeccable 3 bedroom, 2 bathroom, 1630sf Citrus Heights home is ready to be somebody's new beginning. You will love the spacious layout. The sizable kitchen is open to the family room and offers lots of counter and storage space. Eat in nook and separate formal dining room. The family room has a cozy fireplace and overlooks the manicured backyard. Separate formal living room. Large hallway bedrooms. Master suite has lots of windows, door to the backyard, and a full wall of closets. Composition roof, central HVAC, inside laundry room with extra cabinets, and 2-car attached garage. HUGE, park-like backyard .28ac lot with lots of sunny space to garden or play, planter beds, a deck shaded by tree canopy, and a large shed. All this located near award-winning k-12 schools, parks, shopping & more. Don't wait! MLS# 20024415. Offered at $369,900. 3D tour and for more information please visit 7848 Meadowriver Way, Citrus Heights, CA 95610.