Sacramento Real Estate Market Update – May 2024

Let’s talk about the Sacramento Real Estate market for May 2024 and stick around to the end to find out why it’s so important to have Professional representation in today’s market.

Sacramento continues to move on a steady upward trend with some hints of a slight summer slowdown.

Let’s get into the details.

New Home Sales

There were 666 new homes sold in May which was the highest May sales rate since 2005. This is also 200 sales higher than the average number sold during the month according to Tim Murphy, the new CEO of the North State BIA.

The vast majority of new homes are being sold in the $500,000 to $750,000 range. Sacramento County saw the largest portion of new homes sold with 375 sales and Placer County was right behind it with 191.

Average Home Price

Based on data from Trendgraphix, the average home price for May was $633,000. That’s an increase of 2.1% compared to last month and an increase of 4.5% from May of ‘23.

Average Price Per Square Foot

The average price per square foot in Sacramento was $331, an increase of 1.5% compared to April and up 4.4% from this same period last year.

Number of Homes Sold

In May, a total of 2,914 homes were sold, an increase of 5.5% from April but down 6.3% from this time last year. Pending sales continue to increase this year and are up 10.3% from April.  This is up over 8.8% from this period last year.

Months of Inventory

We currently have 1.9 months of inventory. This is up 11.7% from last month and up 58.4% from last year. The trend line is continuing to head up as more inventory is reaching the market and more people are finally choosing to move. This 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.

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 amatures.

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.

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!