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Home sales are slowing down in Sacramento, but still up nationally.
Local market neared all-time record Prices, volume beginning to slip Has the market peaked?
Following a western trend, Sacramento’s housing market is slowing down. According to the Sacramento Association of Realtors, August saw dips in both volume and median sale price. August totaled 1,567 sales, down 7.4% from July. That’s also 6.5% lower than August 2018. Median price slipped slightly – from $390,000 to $385,000 – but was still 4.1% higher than August 2018’s median price of $369,950. July’s median price neared Sacramento’s all-time record, $392,750 in August 2005. Sacramento homes still are selling relatively fast; the average days on the market
is 25. Nearly three out of four homes sold in less than a month. The Sacramento homes in most demand were priced between $300,000 and $350,000; out of 304 listed in August, 296 sold. Nationally, sales of existing homes were up 1.3% in August, but down 3.4% in the West. Overall, national sales are up 2.6% compared to a year ago. The national median home price in August: $278,200. But the median for the West was considerably higher: $415,900. In the housing market, consumer confidence remains high, says the National Association of Realtors. In its quarterly HOME (Housing Opportunities and Market Experience) survey, 63% said they believed now was a good time to buy a house. “Mortgage rates are at historically low levels, so I see no sign of the optimism about home buying fading,” said Lawrence Yun, NAR’s chief economist. But it’s an even better time for sellers, especially in the West, where more than four out of five respondents said it was “a good time to sell a home.” A shortage of affordable or medianpriced homes is squeezing buyers, says the NAR, as inventory remains low. The Sacramento market, for example, only has 1.6 months of inventory available; meaning it would take 48 days to totally deplete active listings if homes sold at their current rate. The national inventory is 4.1 months. By D e B B i e A r r i n gto n
This column is produced by N&R Publications, a division of News & Review separate from SN&R Editorial. For more information, visit www.nrpubs.com
10.10.19
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