Sacramento Real Estate Market Update – November 2023

Title: Sacramento Real Estate Market Update – November 2023

Hello everyone! Welcome back to Next Real Estate Group. Today, we have your monthly Sacramento real estate market update for November 2023. As we enter into the holiday season, what’s going on with the market?

First up, let’s talk about the average home price in Sacramento.

[Average Home Price]

Based on the data we’ve gathered, the average home price for this month is $590,000. That’s an decrease of 1.7% compared to last month and an increase of 5.0% from this same period last year.

[Average Price Per Square Foot]

The average price per square foot in Sacramento is $315, a decrease of 0.9% compared to September and up 5% from this same time last year.

[Number of Homes Sold]

In November, a total of 1,856 homes were sold, a decrease of 22.8% from October and down 19.1% from this time last year. Sales volume is continuing to drop as we wrap up an unusual year.

[Months of Inventory]

We currently have 2.6 months of inventory. This is up 24% from the previous month, but the same as this time last year. We’re still solidly in a Seller’s Market. It just doesn’t quite feel like one because the overall sale pace and buyer urgency is down.

[New Home Market Stats]

So, what’s going on in the new home market?

November New Home Sales Nearly Double from 2022. There were 501 new homes sold in the region by BIA members during the month. That was up 13% from October, due in part because November was a five-week month. Year over year, sales were up 96% from November 2022 and a full 43% above the monthly average of 350. For the year, sales have eclipsed the 6,000 mark and 2023 will be the best non-pandemic year since 2005.

The most sales during the month were recorded in Roseville, Elk Grove, Sacramento and Folsom, and the majority of sales were between $500,000 and $750,000.

[Mortgage Rate Stats]

Rates have started to come off their peak of 8% in October as the Fed finally indicated they are stopping interest rate hikes for the time being. There also seems to be strengthening pressure for them to start bringing rates back down in 2024.

According to our friends at Cross Country Mortgage rates for a Conventional loan are approaching the low 6’s, Jumbo is the mid 6’s and FHA is breaking below 6%.

[Opinion]

OK, that’s a lot of numbers. What does it mean for you?

As we wrap up a bizarre year in Sacramento Real Estate, what does 2024 bring us? Prices will continue to rise in most of the area, but at a very slow pace. There will definitely be headlines about price reductions in Sacramento. Why? Because there are a bunch of homes out there that were priced above the market because the owners thought they’d try to get the make me move price or just thought their baby was the cutest. Yeah, you know who you are. Those are not price reductions like the media would like to scare you with. Those are resets to actual market value.

With downward pressure on rates through most of ’24 that means that many more people can reenter the market. Increasing demand in a market already short on supply. That same downward pressure might start to break the logjam of homeowners choosing not to sell over the past several year because they were locked in a ridiculously low rates. Many of those people still have a fundamental need to move – whether for location, up-sizing or down-sizing.

New homes is still the place to be if you’re a buyer or a Realtor in the market right now. Builders are offering rate buy-downs on inventory homes which makes purchasing very attainable, and who doesn’t love that new home smell?

Overall ’24 is going to be a much better year than ’23.

[Closing]

Our job is to help improve your life. Whether that’s buying or selling a home today, we’re in your corner.

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!