Sacramento Real Estate Market Update – June 2024

Let’s talk about the Sacramento Real Estate market for June 2024. The market continues to move steadily up this year and we have some major changes in real estate happening next month. Stick around to the end to see how that is going to affect you.

Let’s get into the details.

Average Home Price

Based on data from Trendgraphix, the average home price for May was $645,000. That’s an increase of 2.2% compared to last month and an increase of 3.9% from June of ‘23.

Average Price Per Square Foot

The average price per square foot in Sacramento was $332, an increase of 0.3% compared to May and up 3.1% from this same period last year.

Number of Homes Sold

In May, a total of 2,717 homes were sold, an decrease of 12.1% from May and down 7.9% from this time last year. Pending sales were down 3.1% compared to last month and are up 7.6% from May of last year.

Months of Inventory

Inventory has been flat for the past several months in the 1.7 month range. It popped up to 2.3 months this month with the typical June slowdown. 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 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 tempered a little are in the 6 5/8% range. 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 is still strong in Sacramento and will continue. Where we are seeing cracks is in the seller’s that think their baby is the prettiest on the block. Yeah, you’ve seen the NetFlix show. The agent tells them all the homes in the area have sold for $605,000 but because they put so much love into it and their kids grew up here their home should be worth at least $800,000! Those are the price reductions we’re seeing in the market right now.

Remember at the beginning of the video I said there are some major changes coming to the real estate market next month. You may have heard all of these lawsuits against realtor organizations. Many of these new rules take effect August 12^th.

The headlines say these are going to help the consumer. In my opinion, I think we will see some long-term negative effects and increased discrimination and more lawsuits from these changes because of the ignorance and short sidedness of the parties involved in these actions – Realtor Associations, Lawyers and the Government.

But, here’s the good news I see coming out of this drama. It’s going to wipe out a bunch of amateur part-time agents because it’s going to make it harder for them to do their job. That’s awesome.

This all happened because the industry has done a terrible job at presenting its value to the consumer. The professionals in industry now get a chance to do just that – BE 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.

I’ll go into more details about the August rule changes in next month’s video.

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!