Sacramento County Real Estate Update, Jan. 2021

By
Real Estate Agent with eXp Realty of California, Inc. (lic. #01878277) DRE# 00949880

Ryan Lundquist, appraiser and blog author at The Sacramento Appraisel Blog just reviewed the Sacramento region for us at our Sacramento Association of Realtors. His presentations are two hours long and filled with an incredible amount of information so I am just going to touch on a couple of things that I thought were particularly interesting.

We have an ultra low inventory, less than half of what we had last year and last year was low. We are seeing multiple offers (63% of homes had multiple offers in Dec) and, in some cases, offers going way over list price.  This can seem very daunting to those looking to buy a home, but look at this chart.

Sales price vs list price

Yes, a full 56% of homes are selling above list price, but there are also almost 44% of the homes selling at or below list price and 83% of the homes were sold at no more than 5% over list price.  Buyers do have to decide quickly and be decisive, but buyers do not have to make offers way over list price, if the property has been priced correctly.

There are a lot of Californians leaving the state so where are they headed.

Graph showing States Californians are moving to

No surprise to see so many going to Texas.  I was surprised more people were not heading to Idaho.  Three of my recent clients have all moved to Idaho.  There is also a number of people moving to California so where are they coming from?

Where are new California residents coming from?

Interestingly, a lot of people are coming all the way across the country from New York.  One of my recent clients moved from Connecticut.  As you can see, Connecticut did not make it into the top 13. Our Sacramento market is also seeing a lot of Bay Area home sellers moving here.

Is cash king in our market?

  • 11.4% of homes sold are for cash which is way down from 2013
  • 14.1% of homes sold are using FHA loans.  The lowest percentage in 10 years
  • 5.9% of homes sold are using VA loans, about the same as last year.
  • 66% of homes sold are using conventional loans.  This percentage is as high as it has ever been.

About 89% of the market is using financing of some kind.  It is so important to choose your lender wisely.

It is a difficult market for buyers, for sure.  Ryan says we have weeks worth of sellers and months worth of buyers.  The pandemic has made sellers reluctant to list and the ultra low interest rates have increased demand.  Where should real estate agents focus?  Here are some of Ryan's tips.

Trends for 2021 in real estate

I think Ryan's list is very comprehensive.  I might add to the list, accessory dwelling units.  Due to our extremely low level of housing supply, CA politicians are making it easier (but not eay) to add ADU's to residential properties.  I think these units have the portential to create a lot of opportunites for both home buyers and home sellers.

What do you think?  I'd love to hear what trends you think will be big this year.

All pictures and information is courtesy of Ryan Lundquist.  My picture taking skills do not reflect his great looking presentation.  If you were going to follow one person in the Sacramento region, it should be Ryan.  I have followed him since the great Recession and his information has always been spot on.

Full Market Update by Ryan Lundquist-The Housing Market Nobody Predicted.

 

Posted by

             eXp Realty of California, Inc

Raymond Henson, SRES, GRI, e-Pro

Past Client Testimonials   

3412 Babson Drive

Elk Grove, CA 95758

RayRHenson@gmail.com

916-698-8415

 

 

Comments (22)

Brian England
Arizona Focus Realty - Gilbert, AZ
MBA, GRI, REALTOR® Real Estate in East Valley AZ

I like that you have a picture of my boy Elon in your post, perhaps that is a ploy to get me to reblog it?

Jan 25, 2021 05:13 AM
Nina Hollander, Broker
Coldwell Banker Realty - Charlotte, NC
Your Greater Charlotte Realtor

Good morning, Ray... interesting statistics... especially the ones showing how much above or below asking price homes are selling now versus a year ago. 

Jan 25, 2021 05:27 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

You crack me up, Brian England.  There are certainly enough ploys out there to get you to reblog.  I feel like it is not the ploys that get you to reblog. It is your good and sharing nature.  Thank you for dropping by this morning and have a great week!

Jan 25, 2021 06:01 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Good morning, Nina Hollander.  Statistics like that brought me to Ryan Lundquist.  He sees things from a different angle and is very interesting, something that is difficult to do when it is a market update.  I find myself falling asleep in many presentations these days.  That does not happen with Ryan.  Have a great day!

Jan 25, 2021 06:04 AM
Rocky Dickerson
Realty One Group - Las Vegas, NV
Superior Service!

Good morning Raymond Henson, SRES, GRI great market report. Being in Las Vegas, we do see a lot of folks leaving California.

Jan 25, 2021 06:57 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

A lot of people are targeting your fair area, Rocky Dickerson.  It is a smart strategy.  If I run into any Californians heading your way, I will share your name with them for sure.

Jan 25, 2021 07:53 AM
Roy Kelley
Realty Group Referrals - Gaithersburg, MD

Families on the move will appreciate your local real estate reports.

Take care, be safe and have an outstanding week.

Jan 25, 2021 08:37 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Roy Kelley, I appreciate all of your positive comments.  I wish the best for you and your wife in 2021!

Jan 25, 2021 09:07 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Raymond, great information to share on the Sacramento County real estate market.   A REALTOR friend and I were talking, and would be interesting if we could access what the appraisal came in, so we can see how much cash buyers had to bring to closing.   

Jan 25, 2021 12:18 PM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Wouldn't that be great, Joan Cox.  We have to be so open about everything else.  It seems like we should know that appraisal information too.

Jan 25, 2021 04:45 PM
Lise Howe
Keller Williams Capital Properties - Washington, DC
Assoc. Broker in DC, MD, VA and attorney in DC

another very nice market report - you certainly showcase these communities well! 

Jan 30, 2021 07:16 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thank you, Lise Howe.  I really appreciate your support.  Have a great weekend!

Jan 30, 2021 07:39 AM
Will Hamm
Hamm Homes - Aurora, CO
"Where There's a Will, There's a Way!"

Hello Raymond and great  report to share with us here in the Rain.  Always interesting to see marketing reports.

Jan 31, 2021 08:22 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Thak you for dropping by Will Hamm.  I hope you had a great weekend!

Jan 31, 2021 02:35 PM
Patricia Feager, MBA, CRS, GRI,MRP
DFW FINE PROPERTIES - Flower Mound, TX
Selling Homes Changing Lives

Yes! Yes! Yes! Everyone out west in CA seems to be buying real estate, moving their big businesses, and purchasing land in TX! Hey, I'm a Texan - remember me when you move!

Feb 01, 2021 07:38 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

83k moved to Texas from CA and 37k moved from Texas to CA (in 2019).  We best remember each other!  🙂  I think this pandemic has moved up people's timelines too.  Many people I know have talked about it for a long time.  They are not talking any more.  They are doing it.  3 friends moved to Idaho.  My renters are moving to Idaho as soon as they find a house.  Another friend is moving to Tennessee.  It makes having repeat customers difficult, Patricia Feager, MBA, CRS, GRI,MRP!

Feb 02, 2021 06:44 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Raymond, always good to read how other areas are doing.  Had a two-hour conversation last night with first-time buyers coming in from San Francisco.

Feb 24, 2021 06:59 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

Congratulations on your new clients, Joan Cox.  They have made an excellent choice.

Feb 24, 2021 09:29 AM
Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Raymond, interesting to see many are relocating from Sacramento to Denver.   I have had a couple CA buyers.

Apr 07, 2021 08:14 AM
Raymond Henson, eXp Realty
eXp Realty of California, Inc. (lic. #01878277) - Elk Grove, CA
Realtor

It seems like Californians are heading all over the country.  If I run into one moving to Denver, I know who to call...Joan Cox!

Apr 07, 2021 08:38 AM