2020 Q1: The Market, Working from Home & What’s to Come!
As we near the end of the first quarter (Q1) of 2020, we can’t help but notice this year has shown the entire country some unique challenges.
The Corona Virus has demanded attention on a global stage and has many people wondering what’s to come. Aside from social distancing, gloves and masks, a good portion of the country, California included, is being told to shelter in place. Social media has allowed us get a glimpse into the “quarantines” of family, friends and celebrities all around the world. Before we dive into the market, I wanted to share with you an article that has a lot of great tips for surviving the lock down! At the bottom of the page, I’ve linked Taryn Whiteaker’s “Tips for Quarantining”. She shares her ideas (aka survival methods) to help the whole family make it through this interesting time.
The Market
One of the scariest aspects of the Corona Virus is the uncertainty. In real estate, much success comes from calculated projection. When you throw in a pandemic, it can make things a little more challenging.
We recently sat down as a company to use our collective brain power to determine how we’re going to beat this virus, and we think thing are more positive than they appear at first glance visit https://themarketingheaven.com/.
Supply V. Demand –
The demand for homes is surpassing what’s available and homes are selling quicker!
Home For Sale in February 2020: 1198 units.
| • | Down 2.8% compared to last month |
| • | Down 41.3% compared to last year |
Home Closed in February 2020: 956 units.
| • | Up 1.1% compared to last month |
| • | Down 5.9% compared to last year |
Home Placed under Contract in February 2020: 1372 units.
| • | Up 21.8% compared to last month |
| • | Up 14% compared to last year |
Months of Inventory: As a rule of thumb, an inventory level of less than three indicates a strong seller market while an inventory level greater than six indicates a buyer’s market.
We are in a strong Seller’s Market!
Months of Inventory based on Closed Sales in February 2020: 1.3
| • | 0% compared to last month |
| • | Down 34.9% compared to last year |
Value –
Price per square foot is continuing to rise in the Sacramento region.
Average Sold Price per Square Footage in February 2020: $246
| • | Up 1.7% compared to last month |
| • | Up 7.9% compared to last year |
Show me the $ –
The average sold and sale prices are remaining neutral from January to February but have notably increased since this time last year.
Average For Sale Price (in thousand) in February 2020: $593
| • | Up 1.5% compared to last month |
| • | Up 20% compared to last year |
Average Sold Price (in thousand) in February 2020: $427
| • | Up 3.4% compared to last month |
| • | Up 9.2% compared to last year |
All of the stats shared on this page were pulled directly from MLS.
Check out Taryn Whiteaker’s “My Tips for Quarantining”