Sacramento Real Estate Market Update – July 2024

Our Broker, Christopher Brown is here to talk about the Sacramento Real Estate market for July 2024. The market is starting to show signs of taking a breath after the big gains seen during the first half of the year.

This week we also have the major changes happening in the real estate industry across the country. Stay tuned to the end to hear more.

Let’s get into the details.

New Home Sales

BIA member builders reported selling 433 homes during July, 6% above the monthly average of 409 recorded during July since 1997. Sales were down 15% from June and down 13% from July 2023. We saw a slowdown in new home traffic and sales this month across most communities. In talking to all my peers in the industry nearly all attributed it to buyer fatigue from the heat.

Let’s talk about the resale market:

Average Home Price

Based on data from Trendgraphix, the average home price for July was $688,000. That’s an decrease of 0.7% compared to last month and an increase of 2.5% from July of ‘23.

Average Price Per Square Foot

The average price per square foot in Sacramento was flat at $348, compared to May and up 3% from this same period last year.

Number of Homes Sold

In July, a total of 1,717 homes were sold, an increase of 5.2% from Jun and up 8.3% from this time last year. Pending sales were up 12.3% compared to last month and are up 18.9% from June of last year.

Months of Inventory

Inventory has been flat for the past two months at 2 months of inventory. This is still a strong seller’s market, but it does give buyer’s a little more strength in making decisions as homes that are priced incorrectly are sitting longer on the market.

With inventories slightly rising, effective marketing and proper pricing strategies are critical right now. If you’re a Seller, make sure you’ve chosen an experienced professional to properly market and sell your home.

If you’re a buyer, the same goes for you. Hiring a professional in this market is more critical than ever, especially when the market is flooded with part-time amateurs.

Mortgage Rate Stats

Rates have dropped this past month with favorable economic outlook into the 6.5% range with certain products in the low 6% range. Builders are offering some amazing rate buy-downs right now. We have a couple of deals on Quick Move-In homes that can get you down to the low 5% range!

Opinion

Sales took a nice jump up this month and with rates taking a surprise drop over the past few weeks, we’ll likely see that trend continue through the end of the year. The good news for buyers is we’re seeing prices tempering in spite of continued strong demand.

Remember at the beginning of the video I said there are some major changes coming to the real estate market this week. All of these new rules take effect August 17^th.

There’s a lot of false headlines from these changes:

• Real estate agents are going away.
• The consumer no longer has to pay commissions.
• Commissions are going to drop dramatically.

Here’s the reality.

The big change that is going to come out of this is a lot of terrible agents are going to get washed out of the business. Many buyers are going to get hurt by misinformed sellers due to poor agents who can’t demonstrate their value.

And then there’s going to be the rest of the market that is going to be well served by professionals in a professional manner. If you are a consumer who is used to dealing with professionals in your daily life seek out these professionals.

My organization is made up of Professional Real Estate Agents. Sacramento has a lot of great Professional Real Estate Agents. They are the ones who are going to represent you in the purchase and sale of one of the most important decisions you will make in your life. Pick the one who does this full-time and has the experience and professionalism just like you would any other professional service provider in your business life.

Closing

Our job is to help improve your life. If you’re a Professional Real Estate agent looking to grow your business, I want to talk to you and see how we can help do that together.

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!