Sacramento Real Estate Market Update – April 2024

Let’s talk about the Sacramento Real Estate market for April 2024. The market is still moving solidly up in spite of fluctuating interest rates. I know you’ve heard me say it, but if you’re ready, willing and able to buy a home now is the time. You’ve already lost out on putting $49,000 in equity in your pocket in waiting until today versus January.

Let’s get into the details.

New Home Sales

There were 604 new homes sold in March which was nearly identical to February. While this was the slowest March in the past 4 years, it’s still more than 200 homes over the historical average for March. The vast majority of new homes are being sold in the $500,000 to $750,000 range. Sacramento saw the largest portion of new homes sold with 300 sales and Placer County was right behind it with 204.

[Average Home Price]

Based on data from Trendgraphix, the average home price for April was $621,000. That’s another increase of 1.6% compared to last month and an increase of 4% from April of ‘23.

[Average Price Per Square Foot]

The average price per square foot in Sacramento was $326, an increase of 1.6% compared to March and up 3.8% from this same period last year.

[Number of Homes Sold]

In April, a total of 2,501 homes were sold, an increase of 5.9% from March and up 6% from this time last year. Pending sales continue to increase this year and are up 9.8% from March.  This is up over 6.2% from this period last year.

[Months of Inventory]

We currently have 1.9 months of inventory. This is up slightly from last month and up nearly 35% from last year. The trend line is heading up slightly which is expected as more homes hit the market this time of year. Which is helping buyers finally find homes. It’s still a strong Sellers market, but buyers are being very savvy and are not willing to overpay for homes. If you’re a Seller and your home is sitting on the market for more than 60-days the problem might not be your agent, it might be you and your expectation of sales price.

[Mortgage Rate Stats]

Rates are in the high 6% to low 7% range. The hope of rates dropping soon is gone. I would expect to stay in this range until after the election. There’s just too much pressure on the Fed to keep the rates where they are both politically and the solid jobs market and continued inflation running amok.

[Opinion]

Demand continues at a strong pace in Sacramento and will continue to be for the foreseeable future given the continued population growth in the region and the limited inventory. If you’re one of the people waiting for rates to drop to buy a home right now, that strategy has already worked against you financially.

As I mentioned at the start of the video you’ve already lost out on $49,000 in equity in the past 4 months. That’s like making an extra $12,250 per month! That’s how you build real wealth. Sitting on the sidelines waiting to save on your interest rate is just throwing money away right now.

If you’re ready, willing and able to purchase a home, NOW is the time to do that.

[Closing]

We’re in your corner. Whether that’s buying or selling a home today, our job is to help improve your life. If you’re an agent looking to grow their business, I want to talk to you and see how we can help do that with you.

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!