Sacramento Real Estate Market Update – March 2024

Let’s talk about the Sacramento Real Estate market for March 2024. Over the market is continuing to rise and inventory is dropping. Be sure to watch all the way to the end, I’m going to share with you how people have lost $40k so far this year in a rising market!

Let’s get into the details.

New Home Sales

There were 762 homes sold in March which is up 31% from February and up 37% from the same period last year.

[Average Home Price]

Based on data from TrendVision, the average home price for March was $612,000. That’s an increase of 3.2% compared to last month and an increase of 6.3% from March of ‘23.

[Average Price Per Square Foot]

The average price per square foot in Sacramento was $322, an increase of nearly 1.6% compared to February and up 6.3% from this same period last year.

[Number of Homes Sold]

In March, a total of 2,253 homes were sold, an increase of 8.3% from March but down 15.4% from this time last year. Pending sales continue to increase this year and are up 24.6% from February.  This is up over 9% from this period last year.

[Months of Inventory]

We currently have 1.8 months of inventory. This is up slightly from last month and up nearly 40% from last year. The trend line is heading up slightly which is expected as more homes historically hit the market this time of year.

[Mortgage Rate Stats]

Rates are staying in the mid-to high 6% range. Given the strength of jobs market and continued inflation, I don’t see any big movement in rates until the end of the year.

[Opinion]

Demand is still strong in Sacramento and will continue to be for the foreseeable future given the continued population growth and limited inventory. If you’re waiting for rates to drop to buy or sell a home right now, that strategy will likely work against you financially.

Let me translate to dollars if you chose to wait from early January to know because you wanted to save on your interest rate: If you bought an average home today currently priced at $612,000 you lost out on $40,000 in equity versus buying in January. Rates were slightly less in January and your payment then would have been $3,701 versus buying today your payment is $3,993.

Choosing to wait cost you $40k in equity, but more importantly cost you $3,504 out of pocket every year until you refi or sell!

The cost of waiting really effects your ability to growth wealth. Unless you don’t like money, it might be the right time to buy.

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!