Here’s a quick update on the Sacramento market in February 2021.
It’s no surprise to anybody that inventory is very tight in our real estate market. However, I thought it was really interesting to look at how fast homes are actually selling.
In the past month, 84% of home sales in Sacramento sold in under 30 days, with an average days on market of 17 and the vast majority of homes selling within seven days. That’s an incredible pace.
Homes are not only selling quickly due to limited inventory, but home price appreciation is also on the move. Last month, the average home in Sacramento sold for $445,000, a nearly 20% increase year over year.
The last data point I’d like to share with you is exactly how homebuyers are purchasing their homes. Did you know that 90% of homebuyers are using some type of financing, and nearly 70% are using a conventional loan with at least 5% down? That leaves just 10% of all transactions using cash.
Now that we’ve covered the data, I’d like to answer the two most frequently asked questions I hear daily:
1. When will inventory increase? I would expect it to increase as more certainty returns to the market and our lives on a daily basis. As more and more people get vaccinated and COVID numbers continue to recede, we should see more inventory.
2. Should I wait to buy or sell? Be careful about waiting. The more inventory that comes to the market, the more competition you’ll have. You’ll still sell for a fair price, but right now you can sell for even more than that. With limited inventory and high demand, buyers are ready and willing to make a purchase. Many are willing to spend over asking price. Speaking of buyers, waiting might end up making homes and financing a little more expensive for you if you do.
If you have questions for me about your situation or real estate in general, don’t hesitate to reach out in any way that’s convenient to you. I’d love to hear from you.
Here is what I learned from helping 48 clients buy and sell during the pandemic.
We here at the Vierra Group are proud to have safely served 48 clients during the pandemic. COVID-19 has impacted so many aspects of daily life and our economy, and all sorts of new trends have emerged. The first thing we’ve noticed in our clients’ behavior is their increased focus. Whether they had a real estate goal of selling their current home, purchasing a new one, or both, people were more determined than ever to achieve that goal in 2020.
Second, clients sought to be more informed than ever before. Given the severity and scale of the current health crisis, people took it upon themselves to find out exactly how businesses—real estate included—have shifted their practices to maximize safety. Once buyers and sellers alike found out that making a move in the 2020 market was possible, the question then became, “What is your strategy for helping us accomplish our ultimate goal amid the uncertainty of COVID-19?”
The third—and most profound—shift we observed is how people in 2020 broadly redefined 'home.' That word means a lot more now than it has in the recent past; our homes are our refuge. For many, home is also now their office space or gym. In addition to being their primary locale for relaxation, it’s also where their children are schooled, and where their families gather to make memories—even in difficult times. It’s no wonder that so many of us are on the hunt for space in the market as we continue to adapt to the new definition of home.
The bottom line is that the short- and long-term effects of the pandemic are our shared reality moving forward, whether we want to accept it or not. So if you want to know how your buying or selling plans square with the pandemic, please feel free to reach out to me via phone or email. I’d love to hear about your particular circumstances and work with you to come up with an actionable plan that makes sense for you and your family.
Here are the top four reasons to buy a property this year.
As many of us are spending more time at home, we’re reevaluating what our space means to us. Here are the top four reasons people are buying homes in 2021:
1. Record-low interest rates. In 2020, mortgage rates fell below their all-time low 16 different times. Today they’re consistently below 3%, and the access to cheap money has fueled demand from homebuyers.
2. Working from home. As more and more people continue to work virtually, they realize they can relocate from the big cities and still maintain their employment. More space for less money is a very attractive option to many these days.
3. More outdoor space. This is especially important to buyers who are coming from more densely populated areas. Those living in townhomes and apartments will be looking for space both inside and outside of their home.
4. Avoid renovations. Many homeowners would rather buy a new home than fix up the one they have. In fact, according to the National Association of Realtors, 44% of homeowners would rather buy a new home than run into problems making repairs to their current home.
The bottom line is that homeownership needs are changing. As a result, many of us will be moving this year.
If you’re trying to figure out if it’s the right time or you want to buy or sell a home, feel free to reach out via phone or email. I’d love to hear from you and answer any questions you might have.
We’re seeing low supply and high demand in our winter market.
What’s the latest news from our Sacramento winter real estate market as we close out 2020?
Before I answer that, I want to thank you for following our video blog this year. We’ve had a tremendous year, and we couldn’t have done it without your support. More than half of our business comes from past clients and referrals, so thank you for being a part of that.
Now, if you’ve been following real estate for any period, you know that one of the main features of this market is low inventory. In fact, we find ourselves with the lowest level of inventory Sacramento’s ever seen: 0.6 months. If no new homes came on the market, we’d run out of available homes in just a couple of weeks.
This has put a lot of pressure on buyers, as demand remains very high due to low interest rates. We have clients securing rates at or below 3% quite often. Another reason for the high demand is the accelerated migration pattern. This pattern has taken hold across the country, but it’s especially prevalent in Sacramento given the fact that we’re a secondary market for residents in the Bay Area and Greater Los Angeles. To them, our area is very affordable and a great place to live.
With such low supply and high demand, homes are taking just seven to 14 days to sell. Roughly 87% of all homes in the Sacramento area are taking less than 30 days to sell, which is quite remarkable. The result of all of this is price appreciation: Our median home price is $440,000, which is a 14% increase year over year.
This isn’t to say that everything’s perfect in our market. As I’ve discussed in previous videos, there are a few things that could cause everything to reverse course, but people remain optimistic about 2021 due to the above-mentioned factors.
If you have questions about the Sacramento market or have any buying or selling concerns, feel free to reach out to me in any way that’s convenient. I’d love to speak with you.