August 2018 Market Update for Placer and Sacramento Counties

Thes best way to study the market is to observe trends over a 12 month period. So I looked at some key statistics comparing the current quarter of this year with the same quarter last years.

Inventory

Placer  County   up 6%,  Sacramento County up 22%

Solds

Placer  County   down  6%,  Sacramento County down 3%

Price

Placer  County   up 7%,  Sacramento County up 7 %

 

Is the market changing?  Maybe……

The largest factor I believe that is affecting the market is interest rates.  In the last 12 months, interest rates on residential loans have risen .5-.75 of a point.  The affect on purchasing power is significant.  A buyer who last month could only afford a $400k home, now can only afford a $360K home.

The immediate impact on the market is marketing time.  In the last 12 months, days to get a home under contract have risen from 30 to 60 days.

If you have any questions on real estate, please call/text 916-257-0893 or email frank@frankvalente.com