Housing Market Update for Sacramento, Placer, Yolo and El Dorado County

Housing Market Update for Sacramento, Placer, Yolo & El Dorado County

Home sales slowing, inventory down 50% from 2022

The table above displays data of all sales within Sacramento, Yolo, Placer, and El Dorado counties. Current inventory is down 25% from the prior 12-month period, and over 50% from peak conditions in 2022. Housing market trends were directly impacted by steady increases in interest rates and the resulting economic uncertainty. Sales volume also declined by 12% in the 4th quarter from the prior year.

Median sales pricing for Sacramento, Placer, Yolo, and El Dorado County.

Median pricing stable over the second half of 2023

Median pricing reached its peak in late Spring of 2022, with a subsequent decline over the second half of the year. December 2022 marked the lowest point since the start of the Pandemic. Pricing increased over the first half of 2023, stabilizing in the 3rd quarter with some softening in the 4th. Despite the atypical low inventory and higher interest rates, the last 12 months is reflective of normal seasonal fluctuations seen in prior market cycles. Median sales price in December was $570,000, 7.5% higher than the previous December ($530,000) and 1% higher than last month ($565,000).

Marketing time remained stable with slight increase

The average days on market hit its lowest point in Spring of 2022, when median pricing was at its highest. Marketing time steadily increased over the second half of 2022 in response to rising interest rates, declining in early 2023 and stabilizing over the last half of the year. Data shows an modest increase in DOM for December, which is typical for seasonal fluctuations. Sales price to list price % show a relatively stable trend line with modest seasonal fluctuations.

Is it really a seller’s market?

Many data metrics consider inventory under three months to be a seller’s market. With price sensitive buyers it may not seem like a typical seller’s market, but historically low inventory and solid demand are keeping home prices elevated despite current interest rates. There is a plethora of speculation from news analysts and economists regarding the eagerly anticipated decline in interest rates for 2024. United Wholesale Mortgage, the largest wholesale lender in the nation, has allegedly increased its hiring by 8% in anticipation of a refi boom. Only time will tell what 2024 has in store.