Sept. 4, 2018

Cause & Effect of the Changing Market

Good day, Sacramento! Justin Vierra here with the Vierra Group at Keller Williams Realty coming to you with your monthly market update for the Sacramento real estate market update as we do every month delivering you the most valuable and important information in today's market. This month, I want to bring you the two most important features of today's market that are affecting every buyer and seller in this market. So, let's jump right into it! The big, number one thing is inventory. Inventory is up month-over-month 8% and it's up 20% year-over-year. So, that means increased competition amongst sellers for those buyers in the market. That's one of the reasons you're seeing some of those price reductions, homes sitting on the market just a little bit longer than a couple days. Now it might take a couple weeks to sell your home, assuming it's priced and presented very well. So, inventory is a key feature of today's real estate market. I think though, it's probably more of an effect rather than a cause. The cause of the increased inventory is because of feature number two that is very very important for every home buyer and seller, and that's understanding affordability, or the lack thereof, really. There's a lot of pressure on affordability whether it's increased home prices, or on the buyer side, increased cost of purchasing a home, whether it be mortgage financing or the cost of the home itself. So, what you see are home prices going up, sellers recognizing that opportunity, inventory going up because it's a good time to sell. Then, because of the higher cost to acquire the home through the price or the financing there, you see the market expanding in time just a little bit more than it had in the earlier part of the year. That's why you see a little bit of a market slow down here, so I think the cause is affordability and the effect of the increased inventory. What does this mean for you? Well, if you're a seller, you have to remember that you're in a competition. Earlier in the year when there was very little competition, your margin for error was pretty low and with increased competition, your margin becomes much higher. So, it's super important for you to understand that you're entering into a competition and you also want to understand your pricing strategy really, really well, your marketing strategy really well. The number one thing you have to do as a seller is not take any shortcuts: no shortcuts on marketing, preparing your home for sale. Those Investments are really key to standing out amongst competition in your market in order to get your home sold well. Of course, remember, if it's not compelling, it's not selling. For my buyers, now might be one of the best times of the year to buy a home because there are more homes to choose from and the sellers are competing with one another for your offer. So, you have less competition going in amongst other buyers and you have more homes to choose from, which is nice. By more homes, I mean maybe 5 to 10, whereas earlier in the year, I was lucky if I could show you a home or maybe show you one to three homes that really met your criteria and were actual, viable options for you. So those are the two most important features of today's market: inventory and affordability. The keys to success as a seller are preparing your home for sale very well with that marketing strategy and doing all the things that you need to do to clean it up and present it very well. For my buyers, get out there in the market because there are more homes to choose from than there have been in quite a while. I'm Justin Vierra; thanks for tuning in. I really appreciate all the comments and feedback. Last month, I had a lot of phone calls, texts, and emails about the market update, and I'm happy to go further in-depth on any of these topics and support you in your real estate needs. So, thanks a lot for tuning in and your feedback. Much appreciated; see you soon!

Posted in Market Minute
Aug. 29, 2018

Coming Soon - Ironworks Masterpiece!

Posted in Listings
Aug. 15, 2018

200 P Street C15

Lower-level condo within a gated community, featuring a pool, spa, gym, clubhouse, and tennis court. Located in Downtown Sacramento with easy access to I-5, what more could you ask for?

Posted in Listings
Aug. 1, 2018

Market Update w/ Justin Vierra

Today on Market Minute w/ Justin Vierra, we ask and answer the question that everybody wants to know:

IS THE MARKET CHANGING?

The answer? Yes; we are noticing the following changes:

 

  • Seasonally more inventory

 

  • Median home price not increasing like in previous months

 

  • Buyers getting into contract quicker and cheaper

 

  • Overpriced homes are not selling!

 

Tune in to hear more about how this could affect you as a buyer or seller, and how you can use these changes to your advantage!

Posted in Market Minute
July 19, 2018

410 Tailoff Lane

Just listed in the hard-to-come-by community of The Mill on Broadway!

Posted in Listings
July 13, 2018

5903 Oak Avenue - ACTIVE (7/11)

We are so excited to have just listed this beautiful contemporary home in Carmichael, and to be able to use our updated marketing strategy to accomplish our client's goals!

As a team of local real estate experts, we pride ourselves on our knowledge and our capabilities. Reach out to us today to hear more about our tech-savvy Marketing Plan!

Posted in Listings
June 28, 2018

#MarketMinute - Episode 8

WELCOME BACK TO THE #MARKETMINUTE

This month, we cover the three hottest trends in the Sacramento real estate market!

In summary:

#1 Median home prices are up $5,000.

Month over month, the median home price rose from $370,000 to $375,000. This increasing trend in appreciation doesn't seem to be stopping in the near term. 

#2 Interest rates are also climbing...

I called one of my favorite mortgage brokers to see what interest rates were if you were to finance your home today and the numbers are in! Current interest rates range from 4.5-5.0%. 

#3 Inventory is going up!

The Sacramento area's market inventory has risen from 1.3 months to 1.5 months! This is great news for buyers looking to see a larger variety of homes. Sellers need to be aware of increased competition.

What does this mean to you?

Buyers, even though you may have more homes to look at, don't hesitate to make your move! With both prices and interest rates rising, now may be the best time to get into the neighborhood of your choice. Always have backup options as these two factors can affect your purchase price going forward.

Sellers, pay careful attention to marketing and pricing when considering selling your home. As a general rule of thumb, "if it is not compelling, it's not selling".

Thanks for reading this month's Market Minute! Check us out on our social media and keep checking back for more real estate articles.

Posted in Market Minute
June 22, 2018

793 Alloy Ct - SOLD (6/28)

Posted in Listings
June 22, 2018

3401 Franklin Blvd - SOLD (6/26)

We are so excited to have just sold this wonderfully updated craftsman-style home in Curtis Park, and to have been able to use a 2018-style marketing strategy to accomplish our client's goals!

As a team of local real estate experts, we pride ourselves on our knowledge and our capabilities. Reach out to us today to hear more about our tech-savvy Marketing Plan!

Posted in Listings
May 29, 2018

#MarketMinute - Episode 7

Welcome back to this month's #MarketMinute! 

Let's get right into it!

1. Sacramento prices are going UP!

  • The median house value increased $5,000 from last month!

2. Housing inventory is NEUTRAL but don't wait too long.

  • If you are in the $300k-400k price range, you still have many choices in select neighborhoods. 

3. Houses are on the market for an average of 10 DAYS

  • This is a FAST moving market, so long as the houses are at the right price or presented well by the seller.

4. If you are concerned about the condition of your property, as a buyer or seller, let us help you figure out what will be best FOR YOU!

  • Whether it is talking about the best investments you can make on your current home or other concerns, we can answer your all questions!
Posted in Market Minute