2014 Sacramento Real Estate Market Update

There are many great Roseville and Sacramento area homes for sale. Click here to perform a full home search, or if you're thinking of selling your home, click here for a FREE Home Price Evaluation so you know what buyers will pay for your home in today's market. You may also call me at (916) 529-5342 for a FREE home buying or selling consultation to answer any of your real estate questions.

What is the Current Market Like

Hello, I'm back with you again to provide a real estate market update for the Sacramento area. Before I go in-depth, I'd like to remind you that we offer free resources such as free home searches as well as a free home evaluation. Please feel free to use these free resources - they're here for your usage.

With that being said, 2013 functioned largely as a stabilizing year, and 2014 looks to build on this activity.

• Last year at this time Placer County had a 1.2 month inventory which was extremely low, but a year later we are now looking at 3.2 months of inventory.

• At this time last year Sacramento County had a 1.1 month supply of homes, and this year there is a 2.6 month supply. We're esentially seeing three times the amount of properties.

• This low inventory is great news for home sellers because it will force buyers to compete with one another, and this will probably bring much higher prices for homes.

• For home buyers, this means that there are more options out there for you. You will likely still see multiple offers on properties, but nothing like what occurred last year.

• Single story homes are also getting unbelievable prices right now, so if you're on the market with a single-story home, please come and see me because I can help you get an unbelievable price for it.

• Later on this year you can expect interest rates to rise. So if you plan on buying this year, do it as soon as possible to avoid larger monthly payments.

Bottom line is, sellers will reap the benefits of inventories that are still relatively low, and buyers will have a little more to work with but should be aware that interest rates are rising.

Once again, if you need any assistance buying or selling a home, let me know and I would be glad to help you out. I can be reached at (916) 960-4529 or you can email me at thomas@thomasmarch.com

Do You Remember What a Crazy Year it Was?

What a wild ride it has been this year! When we began 2013, we had seen less than a months’ supply of homes, multiple offer scenarios and a bit of recovery in the market. Boy, did things change during the first quarter! We saw home prices appreciate 15-20% and by the end of the quarter, we saw pricing structures similar to 2004-05. In fact, we sold two homes last year that were priced higher than they were in 2005. Needless to say, there has been amazing recovery in the market and things seem to remain strong.

There are still also droves of buyers flocking to the market and not nearly enough properties for all of them. However, inventory levels are increasing and we are starting to see less and less of the bidding wars we saw in the second quarter of 2013. Prices are starting to rollback and sellers aren’t able to ask whatever they want for a property and get away with it. I can see this trend continue through 2014 and inventory rising in the spring. This may cause price reductions in the second quarter of 2014 which means that could be the best time to sell your home in the coming years.

My prediction is that we will see a 5-15% drop in pricing towards the end of the year as interest rates are predicted to rise to as much as 5.5%. This is how the market keeps itself balanced. For every percent that the interest rates go up, a 10% drop in pricing must occur; in other words, this is to keep the monthly payment the same.

Our prediction for 2014 is a strong first quarter followed by a slowing in the second and third quarters with serious price reductions closing out 2014 as interest rates go up. This means the beginning of the year is a great time to sell your home and if you’re thinking about buying, you want to do so before interest rates go up. Waiting will not be on your side in 2014!

I want to wish you the best in 2014 and if you need anything, don’t hesitate to call. Make it a great day!


Buyers click here to search all area homes for sale.

Sellers click here to find out what your home is worth.

11 Reasons Why You Should Continue to List Through the Holidays!

One of the things we constantly get asked around this time is whether or not you should keep your home on the market during the holidays. Without a doubt, more than any other year, you should be keeping your home on the market. With prices trending downward and the possibility of interest rates going up next spring, it’s definitely to keep your home on the market and get it sold now while prices are still high. Even if interest rates rise 1%, it would mean a 10% price drop in homes.

Below are eleven reasons why you should continue to list during the holidays:

11. By selling now, you may have an opportunity to be a non-contingent buyer during the spring, when many more houses are on the market for less money! This will allow you to sell high and buy low.

10. You can sell now for more money and we will provide for a delayed closing or extended occupancy until early next year.

9. Even though your house will be on the market, you still have the option to restrict showings during the six or seven days around the Holidays.

8. January is traditionally the month for employees to begin new jobs. Since transfers cannot wait until spring to buy, you need to be on the market during the Holidays to capture the market.

7. Some people must buy before the end of the year for tax reasons.

6. Buyers have more time to look for a home during the Holidays than they do during a work week.

5. Buyers are more emotional during the Holidays, so they are more likely to pay your price.

4. Houses show better when decorated for the Holidays.

3. Since the supply of listings will dramatically increase in January, there will be less demand for your particular home. Less demand means more money for you.

2. Serious buyers have fewer houses to choose from during the Holidays and less competition means more money for you.
And the number one reason why your seller should list during the Holidays …

1. People who look for homes during the Holidays are more serious buyers!

The bottom line is that you should keep your home on the market during the holidays. We look forward to speaking with you soon! Have a great day.