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.
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.
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?
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.
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.
Comments (22)Subscribe to CommentsComment