More homes for sale in Sacramento
Bucking the national trend, Sacramento has more homes on the market this year than the city did last year.
Online real estate website Zillow tracked the number of homes on the market in the nation’s 35 largest metro areas — 19 cities saw a decrease in the number of homes listed for sale. Nationwide, the number of homes for sale fell 6.5 percent.
But in Sacramento, it’s a different story. Zillow reports home inventory in the Sacramento area is up nearly 17 percent, compared to June of last year. More homes on the market means less competition for buyers.
Zillow also looked at the average home value in the country’s top 35 metro areas. Their report shows the average Sacramento home value at just under $340,000 — that is up nearly 6 percent from the same time last year.
Residential real estate’s peak seasons continues to show signs of strength, with one industry tracker showing a 22-percent gain in pending home sales in June.
Trendgraphix also showed 2,578 closed escrows last month, the highest figure in the Sacramento region since August 2012.
The figures go beyond labeling it a normal summer for homebuying. I would say it’s an overachieving summer, when last year I felt the numbers were consistently above average even then.
Fifty-five percent of the homes sold in April through June were for $350,000 or less. Shea said for the quarter, the move-up market of $350,000 to $750,000 had a 29 percent increase in open escrows and closed sales versus 2014 figures.
Taken in total, he said, the numbers suggest growing strength in homebuying stemming from low interest rates and better economic numbers. Even the relatively short supply, at 1.8 months, is gradually increasing.
Shea said the market also is seeing more potential sales fall out, which he thinks is often from buyers willing to walk away because they think they can get something else.
The steady improvements in the market seem likely to last, Shea said. Any uptick in interest rates is likely to be small, while locally, a new surge of construction both in downtown Sacramento and in new subdivisions pushes job growth.
“I think we’ll see both with resale and new housing, we’re seeing a moderate pace of growth,” he said. Though some forecasters have said 2016 could see a dramatic upsurge in housing, Shea said, he doesn’t expect supply to take off in the near future.
Even so, there are emerging buyer classes in first-time buyers seeing better economic times, former buyers now returning to the market after a foreclosure or short sale, and spillover Bay Area buyers, Shea said.