The latest data about our shifting market and what it means for you.

Is the market changing? We’ve seen a red-hot market these past couple of years, but that might be starting to shift. Today let’s look at the most recent data for Sacramento, Placer, and El Dorado counties and figure out what’s happening in our market.

As of July 12, our area had 3,940 homes available for purchase. For reference, we only had 1,100 homes for sale back in December. Before the market crash in 2006, we had around 18,000 homes available daily.

In the last six months, we have been closing 2,142 homes on average each month. That means we have around 1.83 months of supply. It is still a seller’s market for now, but we will start seeing more supply soon. When we have about four months, we will be in a neutral market, and if it passes six months’ worth of homes, we’ll be in a buyer’s market.

“No matter how you look at it, the recent home price growth is unsustainable.”

In June, the average price per square foot of a home in our area was $352. That number is up by 14% from a year ago and up by 42.5% from three years ago. No matter how you look at it, that growth is unsustainable. In the last two months, we’ve seen this number drop by 2%, so we’re starting to see a noticeable change.

This is great news if you’re a buyer because you can choose from more homes. If you’re a seller, it is still a decent time to sell your house, but don’t expect to get tons of offers for way over your list price. 

If you have any questions about our changing market or real estate in general, feel free to call or email me. I would love to help.