Sacramento Market has changed! Look at the Red Line!

By
Real Estate Broker/Owner with Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento

 

It may not be the bottom - but it is a bottom.

 

It is not just my word, but in actual numbers.  Buyer's have come out in larger numbers since December 1st, 2011.  The result been a drop in the number of available listings.  Look at the red line,  Sacramento County is down to just over one month of available inventory at the end of February.    This is a drop from 4.3 months inventory in December 2010.    If the red line held steady, the green bar would be starting it's natural spring increase.    Not happening this year.  Buyer's are realizing that the combination of values and interest rates have made this a great time to consider entering the market.   

Sacramento has turned very competitive in the last 60 days.    After seven long years, we may be seeing a bottom in our local market.  Good news for long suffering home owners and great news for buyer that want to buy into a more confident market.    Buyer's need to make sure they have a good Realtor working with them to stay on top of the changes.    When the right home comes along in Sacramento county, you may want to act quickly.    It appears that Dollar Days in Sacramento Real Estate may be over for the time being.

 

 

 

Comments (6)

John McCormack, CRS
Albuquerque Homes Realty - Albuquerque, NM
Honesty, Integrity, Results, Experienced. HIRE Me!

Cathy - Great Sacramento market report my friend!  I see that red line going UP - Awesome now is the time to buy a home for sure!

Mar 15, 2012 01:36 AM
Dan Mincher, CCIM
The Vollman Company, Inc. - Sacramento, CA
Sacramento Commercial Real Estate

I agree that this is very good news and am quite glad to see it.  What's hidden in the numbers, and this is good, I think, is that without new foreclosures coming on the market, the inventory of available homes would be far less and we'd see a sustainable confidence from buyers that values are less apt to decline.  That would be huge, and we are on the right track.  For me, two of the most essential elements to sustain recovery are clearly low interest rates, and jobs.  If we can get more people working, gas prices are much more tolerable. 

Mar 15, 2012 06:56 AM
Cathy McAlister
Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA
Sacramento DRE#00648507

John:  You are right.... it really is a good time.  How much better does it have to get.    And... besides.... you only find the bottom when you have already turned the corner.

 

Dan:    If these numbers continue for a few more months, I believe we are seeing the seeds of renewed confidence in our market.  In the near term we may have an quick uptick while pent up demand works through the system and then level off again.  I don't want it to take off like a rocket, just slow and steady will be fine.     We could possibly recover a portion of 2011 losses during this little rebound.  To go further, I absolutely agree we will need some help from the jobs market.    And, as to jobs, have you happened to notice just how many construction jobs are now underway in our city?   From little to medium size, the look of our City is beginning to change.

Mar 15, 2012 07:24 AM
Maureen McCabe
HER Realtors - Columbus, OH
Columbus Ohio Real Estate

Look at the light green line.  That inventory is shrinking. 

I worry about using the red line when I use this graph.  My market I think the reporting of "in contracts" or pending sales has been shoddy.  I usually do not include the red line.  I did in 2010 because of the national home buyers tax credit because I wanted to show that wave of closings that was happening after the end of the time buyers were eligible.  I think our red line is usually low (unreported in contracts) but that means our light green bar is too high too.... we are making strides in better reporting though.

Your market is looking good... I am green with envy over that beautiful graph. 

Mar 15, 2012 09:01 PM
Cathy McAlister
Cathy Ashley McAlister, GRI CDPE - Broker / Sacramento - Sacramento, CA
Sacramento DRE#00648507

Maureen:  So True and I noticed that as well.  If the red line continued at normal levels the green bar would have gone up January and February.  We have less inventory than last winter, but obviously have many more buyers - that is the real news in this.  As news of buyers goes out - we may see some more traditional buyers come out to our market or more short sale sellers finally make the decision to go forward.  All in all ... a much more interesting year.   Thank you for stopping by. 

Mar 16, 2012 06:52 AM
Sharon Lee
Sharon Lee's Virtual Assistance - Jonesborough, TN
Retired and loving life

Cathy-It is great to see a bottom that is still going up. Sure beats the other way around

Jul 05, 2012 07:40 AM