Is Sacramento's Housing Market Cooling Off? Unpacking June 2023 Stats

As we step into the summer heat, let's dive into the June 2023 Sacramento housing market report, which primarily covers single-family homes. This month's real estate climate presents a few twists and turns, revealing a deceleration in sales volume, a slight dip in the median sales price, and an upward adjustment in listing inventory. These fluctuations suggest a possible softening of the market's previously feverish pace.

Starting with sales volume, June recorded a total of 974 closed sales – a 10.1% downtick compared to May's 1,084 sales. When set against the same month last year, there's a substantial 25.6% reduction from the 1,310 sales reported in June 2022. Looking at financing options, Conventional Financing dominated, accounting for 64.1% of this month's sales. Cash and FHA financing trailed behind, each securing 15.4% and 13.3% of the pie, respectively.

Next, let's consider the median sales price, a benchmark indicating that half of the monthly sales were above this price and half were below. June saw a minor decrease of 1.1% in the median sales price, falling from $536,000 to $530,000. This reduction represents a 5.4% decline from June 2022's median of $560,000.

Turning our attention to listing inventory, it seems more homeowners are putting their houses on the market. We saw a 9.2% increase in listing inventory from May to June, with the total units on the market growing from 1,157 to 1,263. However, this figure still lags 43.5% behind June 2022's inventory of 2,237 units.

The Months of Inventory, a useful indicator of market temperature, increased from 1.1 to 1.3 Months. This figure represents the estimated duration (in months) it would take for the current rate of sales to deplete the total active listing inventory.

Lastly, the median DOM (days on market) trended downward, with properties spending an average of 7 days on the market, compared to 8 days in both the previous month and June 2022. Of the 974 properties sold in June, a striking 85.9% (837 units) found new owners in 30 days or less, while an impressive 94.9% (925 units) closed in 60 days or less.

In summary, while the sales volume and sales price may have encountered slight headwinds in June, homes continue to sell rapidly, spending less time on the market. The market saw 42% of homes sold fall within the $400k - $549k price range, translating to 406 units. This snapshot reveals a market experiencing subtle shifts as it adjusts to the ongoing demand and evolving economic conditions. Stay tuned to Agent Kee for continued updates and insights into the Sacramento real estate landscape!

Stats courtesy of the Sacramento Association of REALTORS®, a professional association representing over 7,300 real estate professionals doing business in the greater Sacramento metropolitan area. All SAR statistics reports compiled by Tony Vicari, SAR Director of Communications. Statistics are derived from the MetroList® MLS database for Sacramento County and the City of West Sacramento. †Other financing includes 1031 exchange, CalVet, Farm Home Loan, Owner Financing, Contract of Sale or any combination of one or more.

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