In light of the current real estate market's uncertainty, it's important to examine the data and analyze the trends that may indicate where the market is heading. Today we’ll look at the real estate market trends in Placer, Sacramento, and El Dorado counties based on the latest available data.

Inventory

The chart at 0:25 in the video shows the inventory, and it's clear that the light green section experienced a second consecutive month of decline. In fact, the homes for sale decreased by 18% from 2,468 in December to 2,008 in January. The dark green section represents the sold properties, which also experienced a significant decline, from 1,226 in December to 826 in January.

However, these numbers should not be a cause for panic. Historically, inventory and sales usually pick up after the Super Bowl. The red section in the chart represents the pending sales, which saw an increase of 293 homes from December's 908 pending homes to 1,201 in January. This increase is likely due to sellers reducing their prices to get buyers into contracts.

"The outlook for the real estate market in Placer, Sacramento, and El Dorado counties is optimistic."

Price per Square Foot

The chart at 1:26 in the video shows the price per square foot trend, which indicates a decline from $312 per square foot in December to $308 per square foot in January. This trend is expected, as home values in the region have taken a hit in recent months.

List-to-Sold Ratio

The chart at 1:46 in the video shows the list-to-sold ratio, which increased from 93% in December to 94% in January. This increase is likely due to sellers becoming more realistic about pricing due to market adjustments.

Average Days on the Market

The orange section of the chart at 2:07 in the video represents the average days on the market, which increased by six days from December to January, taking homes an average of 54 days to sell.

Months of Inventory

The chart at 2:23 in the video shows months of inventory, which increased from two months in December to 2.4 months in January. This chart illustrates how long it would take to sell the existing inventory.

What Do These Trends Mean for Buyers and Sellers?

For buyers, the current low inventory may limit options, but sellers are becoming more willing to negotiate and adjust their pricing to the current market trends. Interest rates have also come down slightly, hovering around the 5% range, which could lead to more buyers entering the market.

For sellers, although multiple offers may not be as common as in previous years, it is still a good time to sell, as interest rates have decreased, and more buyers are entering the market. Additionally, many homeowners may still have a good amount of equity in their homes, despite negative real estate market forecasts.

Although it may take some time to adjust to the new normal, the outlook for the real estate market in Placer, Sacramento, and El Dorado counties is optimistic. If you're considering buying or selling a property in these areas, it's important to keep track of the latest market trends to make informed decisions.

At the end of the day, working with a trusted and experienced real estate agent can be immensely helpful in achieving your real estate goals. If you're thinking about buying or selling, please feel free to give us a call. We've helped over 7,500 families over 35 years in the greater Sacramento area, and we would love the opportunity to assist you with your real estate goals. Reach out to us by phone or email. We look forward to hearing from you.