bobby-and-afton

Sacramento Market Update December 2022

Wed, 07 Dec 2022 00:23:09 GMT

Sorry to say, it’ll get worse before it gets better. The reality is we are in the midst of change and there is a rough patch ahead. But the market will figure this out! We can’t control what the market does, but we can control our response to the market.

Based of the current Market Trends pulled directly from the Multiple Listing Service (MLS) as well as the ever-awesome intel from the almighty local appraiser/guru Ryan Lundquist, we've gathered the latest and greatest information on what we're seeing in the Sacramento Region real estate market right now.

Remember: The Market Isn't The Same Everywhere

You can't compare the housing market apples to apple s across the country or even within local markets. Here are two images from John Burns Real Estate Consulting to show what we mean. Read their original post here.

Prices In Sacramento Are Dipping

Here’s a look at the preliminary median price for November 2022 in the Sacramento region. The median price this year (black line) is officially below last year (orange line), and 40% of pandemic price gains have been wiped away over the past six months. This is exactly what sellers need to hear right now! This median is not a perfect metric as it doesn’t rigidly translate to every price range and location.

Getting Worse Before It Gets Better

As of now, it looks like we’re going to have the worst November in over two decades in the Sacramento region. November volume looks like it’ll be down about 43% from the pre-pandemic average, and down 49% from last year (Sacramento County is 46% and 50%). Nearly half the market is missing, or we could say half the market is happening. We are still of a positive mindset and here to help you all through this ever-changing market!

Current Mortgage Rates

Side By Side Comparison of Your Mortgage Rate Payment: Six Months Ago vs. Now

What Does This All Mean to Me?

This might be helpful as you plan ahead for the spring market. We still anticipate seasonal volume changes even in a downward market. We are hearing buyers choosing to wait for better inventory in the spring, and some sellers choosing to wait to list in the new year instead of December.

Waiting is not the answer for everyone!! There is a lot of unknown, and here is what we know. The interest rate is at the highest it's been over this last year, but that can change or even increase in the next few months. We have resources out there for buyers to partner with lenders who offer grant programs or other creative financing options that can help make your mortgage payment more affordable even with the higher interest rates. For sellers, it is still technically a seller's market because we have less than 6 months of inventory. It's just about finding the right strategy; making your house the best-looking and the best-priced so it stands out against all competition.

Thanks for tuning in! If you have any real estate needs or questions please reach out! We want to be a resource whether that’s giving you information on improving your home, renting it out, investing, buying or selling and we have recently partnered with a loan company and can help you with any refinance or lending questions.

Talk to you soon, and Happy Holidays!!

Afton Peterson DRE LIC#01880424 (916)613-2977 | Bobby Peterson DRE LIC# 0975523 (916)420-6508
Janelle Williams DRE LIC#02072535 *916)524-1459 | Heather Wingate DRE LIC#02100142 (916)517-2307

Market Update January 2022

Tue, 25 Jan 2022 18:59:22 GMT

Happy 2022!

We hope your year is off to a great start! As we closed out 2021, there is much to be reflected on! We'd like to start off by saying we are truly grateful for all of the opportunities we've had to help so many people in the past year.

A quick recap of our year:

- We welcomed 2 new team members- Heather Wingate and Vannie Opstal
- We made top 1% of real estate agents/teams in the Northern CA and Hawaii Region
- Our office hosted a golf tournament that raised over $5k for the Children's Receiving Home of Sacramento
- We sold $50,701,189 in volume with Average price point just below $500k
- We hosted 6 client and community events

Virtual Paint Night
Shred Day
Ice Cream Social
Trunk or Treat
Pie Drive
Photos with Santa

And the BIG ONE... our team had the honor of helping 103 FAMILIES meet their real estate goals!

Thank you for all of your support to make our year a success despite all of the challenges the year has brought us all!

It is hard not to notice the crazy growth we've experienced in the market over the past year. In the Sacramento Region alone, median prices increased almost 20% with the largest ever annual median price increase at $90,000. Beginning in late 2020 and continuing all throughout 2021, low inventory has remained steady at less than 1 month of housing supply (which in our opinion is one of the key contributing factors driving up the price point), a true testament to the laws of supply and demand! We also saw interest rates fall below 3% (another historical low) which propelled more motivated buyers to enter into the market. April through July we witnessed some of the most insane amounts of multiple offer situations on homes (you may recall reading or seeing a local news report where one listing in Citrus Heights received over 122 offers last Spring). And days on market also hit historical lows with homes selling on average in just 17 days. All in all, 2021 was most certainly a Seller's Market!

The market so far in 2022 has shared many of the same trends. Though we are only a few days shy of two weeks into the new year, we can see that inventory is still low and this will in turn continue to make the market competitive for all buyers. The crazy multiple offer scenarios we experienced through Spring and Summer are likely not to be as drastic, though we're still noticing between 2-5 multiple offers on each listing which is still quite notable. And with interest rates expected to rise and many sellers now becoming more serious about cashing out on their equity, we may see a small shift in the market, possibly slowing a bit. We of course don't have that crystal ball on exaclty when, so time will tell. As things progress throughout the months, we'll continue to provide additional insight as we see the next few chapters unfold. Stay tuned for our next market recap in February. As always, if you or anyone you know have any questions about the market or any needs as well, consider us as your resource. Call/text/email! We're here for you!

Thank you for being a HUGE part of our success in 2021. Our team is looking forward to connecting with you all in the year ahead! To share, we are shooting for the stars with a goal to help 120 families/individuals this year achieve their real estate dreams! So tell us, what are your real estate goals for this year and how can we help you achieve them? If you or someone you know is looking to buy,sell, or invest, we'd love to help! Let us interview for the job!

Afton Peterson DRE LIC#01880424 (916)613-2977 | Bobby Peterson DRE LIC# 0975523 (916)420-6508
Janelle Williams DRE LIC#02072535 *916)524-1459 | Heather Wingate DRE LIC#02100142 (916)517-2307

June Market Update

Wed, 16 Jun 2021 22:51:40 GMT

Everything Is Selling In Sacramento $100k Over the List Price

(Not Really)

Hi Everyone and HAPPY SUMMER!!!

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.

Bobby Peterson DRE#01975523 | (916)420-6508
Afton Peterson DRE#01880424 | (916)613-2977

WWW.BOBBYANDAFTON.COM

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UPCOMING EVENTS

Father's Day is just around the corner....

Spring Season Is Upon Us

Mon, 10 May 2021 19:55:52 GMT

BELOW ARE A FEW VISUALS OF WHAT'S GOING IN TODAY'S MARKET FOR THE SACRAMENTO REGION

HOME PRICES HAVE INCREASED OVER 17% YEAR OVER YEAR

INVENTORY IS DOWN ALMOST 57% COMPARED TO THIS TIME LAST YEAR. WE CURRENTLY HAVE LESS THAN A MONTHS SUPPLY OF HOMES FOR SALE.

IT'S AN AGRESSIVE AND HIGHLY COMPETITIVE MARKET. March is upon us and we have continued to see some crazy numbers and growth already. With Spring just around the corner and with the ease of pandemic restrictions, we may see an increase of homes on the market as sellers grow more comfortable with listing their homes. Time will tell.

The Sacramento Real Estate Market Is Insane

Mon, 10 May 2021 19:19:52 GMT

Check out the visuals below for local market statistics.

RAPID PRICE GROWTH

The chart above helps show the median price rhythm from January 2016 to January 2021. Typically we'll see the prices go up and then come back down toward the fall and winter months. When we take a look at 2020 (the teal line), there is a huge price dip in April toward the beginning of the pandemic and then prices continued to rise in the fall completely defying the trend from years prior. At the start of 2020 the median price was $415,000 and now at the start of 2021 we have skyrocketed to $485,000. Buyers have to be ultra competitive and we're seeing crazy offers as much as $50k over asking if not higher! Incredible!

NOT ENOUGH HOMES ON THE MARKET

Based on the image above, we are looking at less than a months worth of inventory. We are up 41% compared to last month and down 55% compared to last year. This ties directly into the rapid rise in price as depicted in the previous chart. A overwhelming amount of buyers and nowhere near enough homes for sale.

DAYS ON MARKET ARE LOW

The average days on market has remained steady since last October. We are currently at 23 days on market which is slightly up from the previous month but down 53% compared to this time last year. Many of our own listings are pending in less than a week! In most cases we go LIVE on a Thursday, we have showings over the weekend, review offers on Monday, and are in contract that same day! It's a "you blink and it's gone" kind of feeling.

Though the market is competitive due to low inventory and prices are on the rise, interest rates are still the lowest they've been in years. It is both a good time to sell as well as buy. Though we do not have a crystal ball, and there is still uncertainty around where our economy is headed with slow progress around the pandemic, the real estate market continues to thrive.

Our 2020 Year in Review

Mon, 10 May 2021 17:54:01 GMT

WE MERGED OUR BUSINESSES AND BECAME

THE BOBBY AND AFTON REAL ESTATE GROUP

WE ADJUSTED TO CHANGE

WE HELPED 52 BUYERS FIND THEIR NEW HOME

WE HELPED 51 SELLERS SAFELY SELL

WE HOSTED 2 CLIENT EVENTS

WE BECAME A FAMILY

WE HELPED OVER 100 FAMILIES IN OUR COMMUNITY REACH THEIR REAL ESTATE GOALS

Thank you for allowing us to be part of your journey. Our goal is to reach the same success in 2021 and help another 100 families with their real estate needs. How can we help you reach your goals in 2021?