As the summer
home buying
season in our area continues and gets ready for fall, it's nice to see that the median home price is holding
firm. Again last month, we saw the
Sacramento County median home price increase ever so slightly to $272,000 - an increase of 0.7%. As I have said this year, It's nice to continue to see a healthy leveling-off of
home prices with
modest value appreciation. If you look at this graph, during the same time period as last year the market dynamic looked much the same -- bumping along with a couple percent increase. You'll notice as winter approaches, the prices decrease a little but bounce back in the spring...I anticipate some similar activity as we go through fall and winter. These would be seasonal norms -- based on many
buyers suspending their
home searches, going into hybernation mode during the holidays and then reinvigorating their
home searches again in the spring. All good stuff...no crazy spikes, just nice, normal, and mellow. Doesn't that feel nice? Ahhhh....
While we have more inventory (
homes on the market) right now than we saw in
Sacramento this time last year, this level of
available homes for sale is still really LOW. We have about 2.6 months of
inventory in Sacramento County in August. This is not a lot. A market with
buyer/
seller
equilibrium is 5-6 months of inventory. Homes are taking an average of
39 days to sell as of August. I'm seeing more price reductions in the market...it
seems that some
sellers want to test the market and they are trying to
get a lot more for their home than the last
comparable sale. BUT, as you can see,
statistically that's just not happening in our
Sacramento home market right now. With prices holding steady,
sellers need to price homes realistically.
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