Thursday, December 10, 2020

November 2020 - Sacramento pandemic housing market statistics, inventory, home prices, etc...

We are now nearly 9 months into our COVID-19 pandemic. And just how is the Sacramento real estate market during the pandemic? I answer this question for my clients every day. In short: the market has been crazy. And strong. 

While in December 2020, we are FINALLY seeing something that looks like a normal seasonal slowing typical of the holidays, the combination of really low numbers of homes on the market, really low sub-3% interest rates, and people highly valuing different uses of space has lead to HIGH buyer demand and LOW SUPPLY, and increased prices. In fact, from November 2019 to November 2020, according to Trendgraphix, the median home price in Sacramento county has increased 15.3%, from $385,000 in November 2019 to $444,000 today.

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. I wrote about Sacramento real estate market dynamics in July 2020 and the housing market trajectory in Sacramento has remained the same.

If you look at the number of homes for sale, there are approximately half the number of homes available on the market in Sacramento as there were this time last year. And you will also notice that far more homes in contract or that have sold compared to the same months last year. Referring to the graph, it is a stunning illustration of the supply and demand of the current Sacramento housing market. You will see that in June, July, August, September, October, and just in November there were MORE homes that went into contract (dark green bar) or sales that closed (red lines) than the number of homes available. That is absolutely breathtaking.

Aside from a slight slowing that is normal for this time of year with the holidays, I do not see any signs of slowing buyer enthusiasm. In fact, in the last couple of weeks since Thanksgiving, I have received numerous calls from new home buyers who are proclaiming that 2021 is the year they will buy a home.

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 COVID-19 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, finally getting that home with a pool they always wanted, or upsizing to have a home office, or downsizing after the kids move out, or selling an empty home in a living trust or probate estate, etc. But many sellers are holding off to see what happens.

2021 should be an interesting year. 2020 sure has been! 


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