Welcome back and here's your latest Sacramento housing market update in a Span of just 1 month new home sales in The region went from the highest levels Since 2005 to the lowest levels in about 3 years so very big changes happening Right now in Sacramento also talk about What's happening right now regarding Existing home sales as well so let's First share this article I shared with You guys about one month ago um posted On March 13th this is from the uh North State building industry Association they Basically track um new home sales in the Greater Sacramento area so for February That report I shared with you guys back In mid March they announced here that Sacramento area new home sales continued At a fast pace in February as area home Builders recorded the Region's highest February sales totals since 200 in five February sales were up 31% from January And up a whopping 37% from February of 2023 so huge increase of sales for brand New home construction now look at this Article just posted um on uh April 10th For the month of March vastly different Uh scenario here it says here that new Home sales remain strong in March However to look at this though because Here's a look at new home sales for each March going back to the year of 2014 so for this March uh there was 604
New home sales this is a three-year low For a March the lowest levels since uh 2020 um but we're still um fairly higher Compared to uh pre-pandemic levels so For example back in 2019 uh 477 New home sales now there's 604 but again Much different compared to a last Month's article stting here that new Home sales absolutely surged the highest Level since at least 2005 um pretty astonishing though as Well is that back in February 762 sales but this March um only 604 so Pretty crazy to see that um during a Time when you ten toee more home sales Which is in March Mar April and May the Spring home buying season we actually Had far fewer sales this March compared To February in any case they also break Us down by each of the Cities as well so The most new home sales this March Occurred in Roseville 144 followed by Elk grve fulam rental Cordova and Lincoln the vast majority of these home Sales were in the range of 500,000 to 750,000 what I really wish they would do In this uh monthly article from uh this Uh Association is I really wish they Provide some insights regarding um how Many Builders are offering incentives to Home buyers because overall based on um Home tours I do with clients in the Sacramento area the vast majority of
Home builders are offering at least a $110,000 closing cost Credit in other Words your out- of- pocket expenses in Buying a brand new house was would be Decreased by about $110,000 on top of that some Builders Are offering that or a 15,000 credit and Offering a lower rate as well because of Course rates have been spiking as of Late um as of Friday um April 12th the Average 30-year fix for people with Great credit according to the mortgage News Daily is around 7.3% uh we saw a huge increase on Wednesday any case but because um rates Are at very um elevated levels right now A lot of home builders are offering all These incentives a closing cost credit Free builderup upgrades and also Offering to pay down your rates to Entice you to buy a house so just so you Know the figures when talking about any Um sale for brand new home construction What we really don't know is what are The incentives that were offered to Those home buyers and that couple the Fact we have a relatively low level of Existing houses compared to preo is one Of the main reasons why we're seeing This uptick in um sales compared to Pre-pandemic levels they also shared This as well here's the um share of Houses that sold by each of these price Ranges so for houses that sold for over
$1 million that were brand new houses There's only 27 of the uh 602 or 604 sales this March The vast majority were sales in the Range of 550 to 600,000 around 151 Houses sold after that was in the range Of 650 to 700,000 at 9 four houses sold This March all right let's change gears Slightly here and talk about existing Home sales excluding brand new home Construction in entirely different Markets so in any case according to Redin for existing home sales for the Month of February the most recent stats We have from them the median so price 475,000 only up by 1.1% compared to February of 2023 as you can see here Over the past 5 years we're at 47 $ 5,000 um back at the peak which was set Back in April of 2022 the peak was at 530,000 so even Though we're up 1.1% year-over-year We're still down compared to the peak That was set back in 20122 in regards to The number of closed home sales these Are finalized transactions you can see Especially compar the past 3 years the Level of sales going more or less down Here and right now there was uh 280 Houses that sold in Sacramento for the Month of February and that's down by 7.99% on a year viewer basis uh this is Also down big time compared to the peak Which was in June of 2021 when at that
Time there was 694 existing close home sales so overall Um home prices are up slightly up by 1% Yet close home sales are down by about 8% and have been going down for quite Some time um on top of that um days in The market this is a time frame when you List your house for sale until you Accept an offer from home buyer that's Days in the market that's at 12 days This February which is 23 days faster Compared to a year ago back then days in The market was at 35 days so price is up Sales are down and also house is selling Much faster compared to February of 2023 Also how hot is a Sacramento housing Market according to redin it is very Competitive many houses are getting Multiple offers some with waved Contingencies the average house sell for Sells for about 1% above uh the asking Price and goes pending in other words The seller accepts an offer in 14 days Hot homes can sell for about 4% above The list price and go pending in about Six days so it really depends on um the Condition and the asking price of the House I'm seeing a lot of houses that Are in move and ready condition highly Remodeled they're Priced Right and they Sell within a week less than a week they Sell way over the asking price even Though we have rates at about 7% or over 7% right now but in contrast houses that
Are overpriced and especially those that Need a lot of work um they're just Sitting in the market so it really Depends on um on those two factors any Case when looking at the averages though For February the average sale price to Final list price ratio is 10.2% which means on average houses sold For. 2% above the sellers list price This ratio by the way is slightly above A preco levels so back in February of 2019 that ratio was at 98.8% which means that houses on average Sold for about 1% below the sellers Asking price now they're selling right Around the housing price also for the Month of February this year Approximately 48.9% of houses sold above the sell's List price this means of course that Approximately what 51% sold at or below The sellers list price but at 48.9% this is much lower compared to the Peak that was set back in the spring Month of 2022 when at that time the vast majority Of houses were selling for over the Asking price in fact that percent Percentage was at 76.7% however when looking at February Of 2019 that ratio was only 35.8% so right now this is basically What kind of my takeaway we have a Competitive housing market it's not as
Crazy as uh 2022 or uh 2021 at this time uh when at That time that ratio was at 63% but it's still um hotter compared to Um the pre-pandemic norm Ms because February 2019 at 36% now it's at 49% Selling above the sellers list price Also in regards to the number of offers In general I'm seeing approximately one To three offers per property some Properties are getting many more offers But back in the spring month of 2022 um I would say the probably average Was around six offers per house so it is A competitive market but not nearly as Crazy as the past several years let's Also take a look at the percent of price Drops this February that's at uh nearly 27% right now which is much lower Compared to the peak back in August of 2022 when the share price drops was at 54% uh let's look at February 2019 back Then the share was at 23.2% so the ratio of price drops at Approximately 27% is slightly higher compared to um Preco levels in regards to um Rec to Migration and relocation Trends um I Actually found this be really Interesting here this is for January This year through March so it says 30% Of Sacramento home buyers search to move Out of Sacramento while 7% look to stay Within our area Across the Nation 2% of
Home buyers search to move into Sacramento from outside metros what they Basically look at is that redin tracks Your IP address and looks at what is Where are you living and where are you Searching in order to gauge migration Patterns so it says that San Francisco Home buyers search to move into Sacramento more than any other Metro Fall by Los Angeles and vicilia so we We're getting the most searches for People living outside of Sacramento We're seeing those searches more often Than not in San Francisco followed by Los Angeles and vicilia in regards to People moving out of Sacramento Las Vegas was the most popular Destin ation Among Sacramento home buyers people Located here followed by Nashville and Boise Idaho and with that said if you Guys are looking to buy or sell house in The greater Sacramento area please email Me at Jasonjason walter.com or if you want to Move out of Sacramento then um please Check out my website which is real Estate TEF finder.com hope you guys have An awesome day look forward to seeing You on the next video [Music]
