Summer is finally here and the real estate market is hot. As we head into this new season in the Sacramento area, we’re here to show you the latest market statistics. Today’s numbers are for Placer, Sacramento, and El Dorado counties. 

Let’s start with inventory. The number of homes for sale rose from 1,672 in April to 1,833 in May. This shows that even though inventory is still extremely low overall, it does appear to be trending up. The number of sold properties also rose from April to May, moving from 1,315 homes to 1,638. 

Along these lines, the number of pending sales continued to trend up for the fifth month in a row, going from 1,556 pending homes in April to 1,808 in May. This clearly shows us that buyers are back in the market and motivated, even with interest rates being a little bit higher.

"Summer is here and the real estate market is heating up."

Another noteworthy statistic is the changes in the average price per square foot, which rose for the fourth month in a row from $332 in April to $336 in May. Over the past four months, this has increased by $28. Therefore, home values have been increasing substantially. 

Next, we’re talking about the list-to-sales-price ratio, which has continued to climb for the sixth month in a row from 98% in April to 100% in May. This likely relates to the market stabilizing over the past several months. Sellers have become more realistic on pricing and buyers have to compete for the limited inventory that's out there, so this ratio has continued to rise. 

In contrast, the average days on market has dropped 11 days from April to May, and now homes only take an average of 30 days to sell. In addition, the months of inventory have dropped from 1.3 months in April to 1.1 in May. Therefore, there are a few statistics that are going down. 

If you're a seller, know that this lower level of inventory combined with this normally busy time of year means that this is the opportune time to jump in and take advantage of the climbing values in today’s market. Homes that are priced correctly and in good condition are getting multiple offers, which has been driving the sales prices up. There’s also a surplus of cash buyers in the Bay Area looking to relocate to the greater Sacramento area. Therefore, we may already be working with a qualified buyer that would be perfect for your home sale. 

If you're thinking about buying or selling a home, please feel free to call us anytime and set up a free strategy session. We have helped over 7,500 families over the last 35 years in the greater Sacramento area, and we'd love the opportunity to assist you with your real estate goals. Call or email us anytime, and we hope to hear from you soon.