2016 Sacramento Real Estate Market recap

As we are getting close to leaving 2016 behind and usher 2017, it will be helpful to look at our November numbers and stats to understand where we are heading and what the new year will have in store for us. These numbers deal only with Sacramento county, but if you need stats for other counties, please feel free to click on Ryan Lundquist’s excellent blog that I quoted below.

1. The median price is the same as it was in August 2007.
2. Housing inventory is 22% lower than the same time last year (there is only a 1.36 month housing supply).
3. Sales volume was 17% higher this November compared to November 2015.
4. There were only 36 short sales and 34 REOs in the county last month.
5. Cash sales are down 11% this year.
6. The median price is $325,000 and is down 2% from the height of summer and 12% higher than last year.
7. The  average sales price at $349,659.

2017 Real Estate Outlook

 

So with these stats in mind, I know that you want to receive the answer to the what I call the crystal ball question: “So how will our real estate market be next year?”

My answer is evasive and honest at the same time. “We never know exactly what the new year will bring, but according to economists and Realtor.com, we will see a 7% increase in value.”

This might be exciting news, but as Ryan Lundquist astutely pointed out in his wonderfully written and researched blog http://www.sacramentoappraisalblog.com, this is what our market has been doing for the last two years, which means that Sacramento will continue on the same steady path. Additionally, even though the Sacramento Bee called Sacramento the 4th hottest real estate market in the country, just because median prices went up 7%, it doesn’t mean that actual values increased by that much.

Getting a Loan and 2017 Interest Rates

 

These are some of our predictions for 2017 together with the fact that interest rates will go up by about half a point, but they are still super affordable. Today I have also had the pleasure and honor to talk about this on Real Life Lending 105.5 FM radio show hosted by Eric Elovski McKay who is one of my preferred lenders due to his extensive knowledge of the lending industry, his hard work, dedication, and professionalism. To apply for a loan with Eric, just go to his website http://www.ericwillclose.com.

Another important report that helps us real estate professionals is presented by our California Association of Realtors. According their forecast the California median homes price, this is not just Sacramento, is forecast to increase 4.3 percent in 2017, representing the slowest rate of price appreciation in six years. C.A.R president Pat Zicarelli also predicts that “San Francisco Bay Area will experience a decline as home buyers migrate to peripheral cities with more affordable options.”

Overall, we all need to be excited and positive about the new year, and let’s prepare our Champagne glasses for a prosperous, better, and brighter 2017.

For more info on running and real estate, whether buying or selling, please e-mail me at carmenmicsa@yahoo.com, or call me at 916-342-2446. Running for real estate with joy!