Market Watch | Low Inventory Still Impacting Northern California
Sparse housing inventory continues to affect the Northern California market. The California Association of Realtors’ latest report indicates that the San Francisco Bay Area endured a large drop in pending sales due to the lack of available housing. In fact, it dipped 11.5 percent since last July. The report also indicates that San Francisco and San Mateo counties were both down double-digits, 11.0 percent and 21.4 percent, respectively. For homeowners on the fence about selling, the lack of inventory makes it a great time to list because many patient home buyers are prepared to come in with solid offers. Read more about what’s happening from our Northern California offices:
Placer County – Tahoe offices had an increase in interest, especially with summer vacationers checking out the area. A slight increase in inventory over the past couple of months coupled with favorable mortgage interest rates encouraged buyers to start house hunting and created a strong market for sellers to list and sell their homes quickly. In the luxury market, sales on properties priced above $1 million is down 20 percent compared to 2016. There has been an increase of just over 1 percent in average sales price of luxury homes at $2,277,113 as opposed to the 2016 average of $2,248,678.
Sacramento County – Folsom’s inventory increased, encouraging buyers to stay in the market. This has created a great opportunity for buyers and more properties to choose from. The luxury market is still strong, but sellers must ensure to price their homes competitively.
Sacramento Fair Oaks experienced the seasonal inventory climb, increasing by 10 percent compared to the previous month. Although in a year-over-year analysis, inventory is still down by 12 percent, the uptick in listings gave prospective buyers some much-needed relief. On average, the region has seen an increase in listings as the summer winds down with steady sales. Properties are still affordable and square footage prices are significantly less than the Bay Area average. The luxury market is experiencing a stronger buyer’s market and a larger amount of inventory.
Sierra Oaks had an increase in both listings and sales, with multiple offers on entry-level homes. The luxury market experienced an increase in activity with both listings and purchases.
El Dorado County – Although El Dorado Hills continued to see low levels of inventory, there was a slight increase in days-on-market before a close. Inventory priced under $500,000 had fewer multiple offers. With fall and the end of the year upon us, many prospective buyers are looking to close on a new property. The luxury market also saw low inventory prompting buyers to make their strongest offer.