Sacramento County Market Update – August 2018
Sacramento County Continues To Benefit Sellers!
August 2018 is a Seller’s market! The number of for sale listings was up 25.7% from one year earlier and up 10.1% from the previous month. The number of sold listings decreased 8.5% year over year and decreased 2.2% month over month. The number of under contract listings was up 13.9% compared to previous month and up 3.7% compared to previous year. The Months of Inventory based on Closed Sales is 1.9, up 35.8% from the previous year.
The Average Sold Price per Square Footage was down 2.1% compared to previous month and up 4.5% compared to last year. The Median Sold Price increased by 0.3% from last month. The Average Sold Price also decreased by 0.5% from last month. Based on the 6 month trend, the Average Sold Price trend is “Neutral” and the Median Sold Price trend is “Neutral”.
The Average Days on Market showed a neutral trend, an increase of 9.1% compared to previous year. The ratio of Sold Price vs. Original List Price is 98%, a decrease of 1% compared to previous year.
It is a Seller’s Market
Property Sales (Sold)
August property sales were 1568, down 8.5% from 1713 in August of 2017 and 2.2% lower than the 1603 sales last month.
Current Inventory (For Sale)
Versus last year, the total number of properties available this month is higher by 615 units of 25.7%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 10.1% compared to the previous month.
Property Under Contract (Pended)
There was an increase of 13.9% in the pended properties in August, with 1789 properties versus 1570 last month. This month’s pended property sales were 3.7% higher than at this time last year.
The Average Sold Price per Square Footage is Neutral
The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The August 2018 Average Sold Price per Square Footage of $233 was down 2.1% from $238 last month and up 4.5% from $223 in August of last year.
The Days on Market Shows Neutral Trend
The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a move towards more of a Seller’s market. The DOM for August 2018 was 24, up 14.3% from 21 days last month and up 9.1% from 22 days in August of last year.
The Sold/Original List Price Ratio is Falling
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 98% is the same as last month and down from 1% % in August of last year.
The Average For Sale Price is Depreciating
The Average For Sale Price in August was $486,000, down 0.6% from $489,000 in August of 2017 and down 3.4% from $503,000 last month.
The Average Sold Price is Neutral
The Average Sold Price in August was $404,000, up 6.6% from $379,000 in
August of 2017 and down 0.5% from $406,000 last month.
The Median Sold Price is Neutral
The Median Sold Price in August was $370,000, up 6.6% from $347,000 in August of 2017 and up 0.3% from $369,000 last month.
It is a Seller’s Market*
A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers.
*Buyer’s market: more than 6 months of inventory
Seller’s market: less than 3 months of inventory
Neutral market: 3 – 6 months of inventory
Months of Inventory based on Closed Sales
The August 2018 Months of Inventory based on Closed Sales of 1.9 was increased by 35.8% compared to last year and up 11.7% compared to last month.
Months of Inventory based on Pended Sales
The August 2018 Months of Inventory based on Pended Sales of 1.7 was increased by 21.6% compared to last year and the same compared to last month.
All of these figures are pulled directly from MLS.