A quick real estate market update based on the latest data available.

Is the market going to crash? Are we in a bubble right now? These are just a couple of the questions I'm asked regarding our market’s future. We recently received the latest stats for Sacramento, Placer, and El Dorado counties, so today I'll share what the market is currently doing.

The chart showing the number of available, sold, and pending homes can be seen at 0:27 in the video. There are only 1,109 available homes right now, 1,639 pending homes, and 1,443 homes have been recently sold. Low interest rates have been driving this high-octane market. However, they’re starting to rise. On an FHA loan, interest rates have gone up to 3.37%. On a conventional loan, they're 3.75%. Those are still great interest rates in the grand scheme of things, but they’re slated to go up throughout the year.

The chart showing the average price per square foot can be seen at 1:29 in the video. The average price per square foot is currently $329. That price has gradually gone up over the past year but has also continued to increase over the past 11 years. This has been the longest run-up that we've ever seen. They’re now going up at a sustainable 4% to 5% appreciation.

The chart illustrating the list-to-close ratio and the average days on market can be seen at 2:11 in the video. Homes are currently selling for 100% of their list prices on average. Any home that is priced right will get multiple offers and start a small bidding war, but they won’t be like the ones we saw last year. The average days on market is currently 25 days, which is pretty brisk.

"We’re not seeing a bubble or expecting a crash anytime soon."

The chart showing the months of available inventory can be seen at 3:05 in the video. We currently only have 0.8 months of inventory. Anything under three months is a seller's market, four to five months is a neutral market, and anything over five months is a buyer's market. Based on these stats and on what economists are sharing, we’re not seeing a bubble or expecting a crash anytime soon. It's going to take a long time to slow down this market.

If you're a seller, now is a great time to cash in on your equity. If you're a buyer, interest rates are still great, so now is the time to act. If you have any questions, reach out to me by phone or email. I look forward to hearing from you.