Sacramento Real Estate Market Update – October 2023

Title: Sacramento Real Estate Market Update – October 2023

Hello everyone! Welcome back to our Next Real Estate Group. Today, we have your monthly Sacramento real estate market update for October 2023. As we enter into the holiday season, what’s going on with the market?

First up, let’s talk about the average home price in Sacramento.

[Average Home Price]

Based on the data we’ve gathered, the average home price for this month is $608,000. That’s an increase of 3.4% compared to last month and an increase of 5.3% from this same period last year.

[Average Price Per Square Foot]

“The average price per square foot in Sacramento is $319, a decrease of 0.9% compared to September and up 2.9% from this same time last year.

[Number of Homes Sold]

“In October, a total of 2,356 homes were sold, a decrease of 7.3% from September and down 13.4% from this time last year. The normal seasonal slowdown is in full effect and is a little lower than normal due to the spike in interest rates in September and October.

[Months of Inventory]

We currently have 2.1 months of inventory. This is down from 2.5 months in October last year but up from the 1.9 months last month. We’re still solidly in a statistical Seller’s Market. It just doesn’t quite feel like one because the overall sale pace is down due to higher rates.

[New Home Market Stats]

So what’s going on in the new home market?

New Homes continue to pick up the inventory gap in Sacramento. In September there were 485 new home sales in the region. That figure is 24% above the average September sales figure of 392 and 75% above the 279 sales reported in September 2022 as the market slowly recovered from the shock of higher mortgage interest rates last year. On a weekly basis, sales were higher than in August – 121 to 115.

The most sales during the month were again reported in Sacramento County communities, with Placer County coming in a strong second. At the city level, Roseville as always reported the most sales, but Elk Grove and Rancho Cordova saw higher sales than in recent months while Folsom and Sacramento saw lower-than-normal sales.

[Mortgage Rate Stats]

Rates have started to come off their peak of 8% in the past few weeks as the Fed indicated they are stopping interest rate hikes for the time being.

According to our friends at Peak Residential rates for a Conventional loan are around 7.25%, Jumbo is at 7.125% and FHA is at 6.5% which are all down over .5% from last month

[Opinion]

OK, that’s a lot of numbers. What does it mean for you?

Prices are still rising and homes are still selling but it’s definitely a challenging market for both Seller’s and Buyer’s. New homes is the place to be if you’re a buyer or a Realtor in the market right now. Builders are offering rate buy-downs on inventory homes which makes purchasing very attainable, and who doesn’t love that new home smell?

Rates are on everyone’s mind right now, but finally heading in the right direction after over a year of increases. Sacramento is still under supplied for the current demand. Rates have tempered demand, but that helps the market catch its breath. A majority of the largest analyst are expecting prices to continue to increase in ’24 but at a very slow pace.

[Closing]

Our job is to help improve your life. Whether that’s buying or selling a home today, we’re in your corner.

Please make sure to like this video, subscribe, and hit the notification bell so you never miss a market update. I’m Christopher Brown with NEXT Real Estate Group and Next New Homes Group. See you next month!