Usually, the market heats up when the weather does, and this time it's the other way around, the weather is finally catching up to this HOT HOT market! I’m sure most of you have heard some sort of buzz about our local real estate market, some of it may be true, some maybe not, so we're going to set the record straight! One of our favorite and most reliable resources that we follow and collect data from is Ryan Lundquist, the most well-known appraiser in our area. He has provided us with some market stats that we will share here to hopefully set the record straight and give you some clarity with what is ACTUALLY happening in today’s market!



Let's start with looking at the sales stats in the region from May. While it is no doubt a sellers market currently and very little inventory going around and while most homes are selling above what they were listed for, not EVERYTHING is selling outrageously over the asking price. In May 2021, 5.7% of homes in the Sacramento regions actually sold BELOW their asking price and almost 17% of homes (16.8% to be exact) sold right AT their asking price! That accounts for a little over ⅕ (20%) of our total inventory. So for those buyers or potential buyers who are thinking this market is just not for them because they don’t think they can get an offer accepted or don’t want to enter into the so called “bidding wars” they are hearing about, that may not necessarily be the case. Our next bracket of stats pulls us to this: 22.4% of home sales sold anywhere from $1-$25k over the asking price, which is not too uncommon in any market with a really desirable property, unique features, special neighborhood etc. Knowing this statistic, one small tip is if you are a buyer in this market with a max budget identified, we recommend looking for homes that are $15-$25k under your maximum price range, so that you have the wiggle room to offer over the asking price, which can ease some of the buyer frustration with falling in love with a home that is already priced at your max, knowing that it will likely sell over the asking price.

Now let's jump to the next bracket of recent stats, which is the one that seems to be getting the most buzz! Of all home sales in May, 25.4% closed for $50-$100k above the asking price! In other markets this statistic isn’t surprising at all, in fact it is quite common. For our region however, this trend is quite new and uncommon and likely the reason for all of the “buzz.” Which brings me to the point that not EVERYTHING is selling for $100k over asking, though it can truly feel that way, especially when you’re in the thick of it (being an agent, buyer or seller for that matter). And only 6.3% of properties sold for $100k or more over asking (.77% for $200k or more over asking), more common in a luxury market or price range ($1 million and above). Ryan sums it up by pointing out that in a “normal market” usually around 40-45% of sales typically sell at or below the list price, where today is closer to 22%. 

So what's driving the market right now? Why are things so crazy now, when just last year we saw the market plateau for a short time?

A few key reasons: Low interest rates are driving people to invest and take advantage when they may have chosen to wait, since interest rates make such a significant impact on what monthly payments will be, at times more significant than the price you pay. And then there is what Ryan calls “The Pandemic X-Factor” where many buyers are willing to pay extra for something unique, such as stellar views, backyard amenities etc., since people have been spending more time at home than possibly ever before. In addition, with all of the pandemic shut downs of schools, work and extra-curriculars, people and families instantly outgrew their homes, needing home offices, study areas for the kids, larger yards and just generally more space overall. Not to mention workplaces allowing tele-commuting indefinitely, many people are relocating to more affordable regions with a lower cost of living and a higher price point, driving demand for more housing even higher.

Though this market may be completely new to most of us, we are not alone! This craze is being felt across the country, coast to coast. Home prices in the Sacramento region are up 15-20% since just last year alone, causing many sellers to sell when they hadn’t even considered it prior. More and more demand and not enough inventory to accommodate the housing shortage California has been faced with for years now, we are finally feeling the effects and another factor that is driving prices.

In conclusion, this article isn’t meant to convince people to sell, or scare buyers away, it’s merely sharing information for what is ACTUALLY happening. So if you or someone you know is considering making any sort of move with real estate, please reach out to us for the most up to date information and any questions you may have. We are here to be your go to resource for all things real estate, so that you can make the most informed decisions! We are always here to help.



Until next time, have a fabulous month!

From Left to Right: Afton Peterson, Bobby Peterson, Heather Wingate, & Janelle Williams 

Taken at the Keller Williams Annual RED Day Event this past May. We participated in a Charity Golf Tournament raising over $5000 for the Children's Receiving Home of Sacramento.