Starting 2024: Dip in Sales Volume and Median Sales Price in Sacramento Real Estate Market

The real estate landscape in January 2024 offers a mix of trends for buyers, sellers, and investors alike. As we dive into the latest market data, it's clear that both sales volume and median sales prices have seen adjustments, while inventory levels and days on market present new dynamics. Let’s break down the key findings and understand what this means for the Sacramento real estate market.

Sales Volume Takes a Dip

January 2024 closed with 610 sales, marking a 13% decrease from December's 701 sales. Despite this month-over-month drop, the sales volume has actually increased by 6.6% compared to January 2023, which saw 572 sales. This suggests that while there may be seasonal fluctuations, the overall market activity remains robust compared to the previous year.

Interestingly, conventional financing continues to dominate the market, accounting for 62.5% of January's sales. Cash purchases and FHA financing were also significant contributors, representing 13.3% and 17.2% of sales, respectively. This diversity in financing options highlights the range of buyers active in the market.

Median Sales Price Experiences Slight Decline

The median sales price in January decreased by 3.7% to $515,000 from December’s $535,000. Despite this slight decline, it's encouraging to note a 3.2% increase from January 2023’s median sales price of $499,000. The median sales price serves as a critical barometer, indicating that half of the homes sold for more than $515,000 and half for less, providing a snapshot of the market's overall affordability.

Inventory Dynamics

The listing inventory saw a modest increase of 2.7% from December to January, growing from 1,084 units to 1,113 units. However, when compared to January 2023, which boasted an inventory of 1,300 units, there's a noticeable 14.4% decrease. This reduction in inventory year-over-year could signal tighter market conditions, making it more competitive for buyers seeking their ideal home.

Moreover, the Months of Inventory metric rose slightly to 1.8 months, up from 1.5 months. This measure indicates how long it would take to sell through the current inventory at the current sales rate, providing insight into market balance between supply and demand.

Days on Market Extend

Homes are spending a bit more time on the market, with the median Days on Market (DOM) increasing to 21 days, up from 19. However, this is still notably lower than the 29 days observed in January 2023. A majority of the sales (61%) were on the market for 30 days or less, with 81.7% selling within 60 days, indicating that well-priced and well-presented properties continue to move quickly.

Summary and Outlook

As we begin 2024, the Sacramento real estate market shows signs of adjustment with a dip in sales volume and median sales price. However, the increase in inventory and slightly longer days on market suggest a market that is becoming more balanced. This could present opportunities for both buyers and sellers to achieve their real estate goals, particularly as we navigate through the rest of the year.

For buyers, the slight increase in inventory and the diversity in financing options offer a range of opportunities to find homes that fit their needs and budget. Sellers, on the other hand, can benefit from understanding market dynamics to price and present their homes attractively, capitalizing on the strong demand for properties in desirable locations.

As always, navigating the real estate market requires a nuanced understanding of various factors. Whether you're looking to buy, sell, or invest, staying informed about market trends is key to making informed decisions. Sacramento’s real estate market, with its current conditions, continues to offer potential for growth and investment.

DOWNLOADABLE MARKET SNAPSHOT 

For a quick view of the Sacramento real estate market's performance in January 2024, download my comprehensive Market Snapshot. This valuable resource provides an in-depth analysis of current market trends, including sales volumes, pricing data, inventory levels, and much more. Whether you're a buyer, seller, or investor, our Market Snapshot offers the insights you need to navigate the market confidently. Click here to access your free download and stay ahead with the latest market intelligence.

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