Learn how shifting inventory affects home sales in Sacramento and Placer Counties.
What housing market trends are we seeing in Sacramento and Placer County? As we kick off the new year, both counties are showing signs of shifting conditions with changes in inventory, pricing trends, and buyer activity. For this update, we’ll break down the latest sales data, discuss how higher interest rates impact the market, and share key tips for sellers to stay competitive.
What are the current market conditions in Sacramento County? We saw 641 single-family residential sales in January. The median sale price has dipped about 4%, landing at approximately $507,000. By the end of January, there were 1,246 active listings and 844 pending sales. This brings our inventory to 2.7 months, which is an increase from 2.4 months this time last year. For context, any inventory below four months typically indicates a seller’s market.
The median days on the market increased to 34 days, up from 28 days last year. This tells us that homes are taking a bit longer to sell. We’re also seeing a rise in price reductions, with 5.8% of active listings reducing their prices compared to 4% last year.
Overall, the Sacramento County housing market is shifting with increasing inventory, longer days on the market, and a rise in price reductions while the median sales price has dipped slightly.
This means homebuyers now have more options and negotiating power. For home sellers, strategic pricing and strong marketing are needed to stand out.
What are the current market conditions in Placer County? There were 238 single-family residential sales in January, and the median sale price actually went up by 2.5% to $667,000. We had 633 single-family active listings and 408 pending sales. We ended January with about three and a half months of inventory, which is a slight increase from 3.3 months last year.
The median days on the market was 54 days at the end of January, up from 40 days last year. January also saw a slight increase in price reductions, with 4.6% of active listings reduced, compared to about 3% last year.
Placer County is experiencing a similar shift with rising inventory, longer days on the market, and more price reductions. So, while prices are modestly rising in some areas, both counties are experiencing longer listing times and more price reductions overall.
Sellers should focus on strategic pricing and strong marketing, while buyers may find more opportunities with increased inventory and negotiating leverage.
“With strategic pricing, sellers can still achieve strong results in this market.”
What’s the impact of interest rates on our housing market? As of January, we’re seeing an average FHA interest rate of about 6.29% and a conventional 30-year fixed rate of roughly 6.84% for first-time buyers.
Higher interest rates are affecting buying power, but we did notice an uptick in buyer activity month-over-month in January. This means buyers are still out there, looking for homes.
What does this all mean for sellers? Here are five key tips to gain advantage in today’s low inventory market:
1. Price strategically. Homes priced slightly below market value tend to attract more interest, increasing your chances of multiple offers. Use a data-driven approach using comparative sales and current trends.
2. Highlight value. Emphasize features like low maintenance and energy efficiency, not just the basic details. Professional staging and photography can make a huge difference in your listing.
3. Leverage low inventory. Create demand with a “coming soon” campaign to generate excitement and make your home as accessible as possible for eager buyers.
4. Control the negotiation. Conduct inspections upfront to disclose any known issues to help avoid renegotiations later. Consider buyer incentives and instead of lowering your listing price, offer incentives like closing cost credits or rate buydowns to make it more appealing to homebuyers.
5. Work with an experienced realtor. A skilled agent can help position your home competitively and negotiate better terms on your behalf. They should also keep you updated on market shifts, buyer demand, interest rates, and local inventory so you can plan the best strategy for your home sale.
With the right pricing, preparation, and marketing strategy, sellers can still achieve strong results even in today’s challenging market. If you have any questions about the housing market, feel free to reach out at (916) 547-3615 or paulboudier@KnowledgeRE.com. We’ll keep an eye on these trends so you can make informed real estate decisions.
