Understanding the Current Real Estate Market: A Deep Dive into October's Sales and Price Trends
As we navigate through the ever-changing real estate landscape, it's crucial to stay informed about the latest market trends. The month of October has brought some interesting shifts in sales volume, pricing, and inventory. Let's take a closer look at these trends and what they mean for buyers, sellers, and investors.
Sales Volume in October
- Monthly Comparison: October closed with 837 sales, marking a 4.9% decrease from September's 880 sales. This signifies a slight seasonal decline in the property market.
- Yearly Comparison: There's a notable 7.8% decrease in sales compared to October last year, which had 908 sales.
- Sales Breakdown: The majority of sales, 60%, were made through Conventional Financing. Cash sales comprised 19.1%, and FHA financing accounted for 13.5%.
Sales Price Analysis
- Monthly Growth: The median sales price experienced a modest increase, rising 6% from $545,000 in September to $548,000 in October.
- Yearly Increase: A more significant growth is seen year-to-year, with a 7.5% increase from the October 2022 median price of $510,000.
- Price Dynamics: The median sales price is a valuable indicator, showing that half of the sales are priced above this figure, and half are below.
Listing Inventory Insights
- Month-to-Month: Inventory saw a 5% increase from September, climbing from 1,368 units to 1,437 units.
- Yearly Comparison: Compared to October 2022, there's a substantial 34.7% decrease in inventory (from 2,199 units).
- Months of Inventory: This metric slightly increased from 1.6 to 1.7 months, indicating the time needed to deplete the current listing inventory at the current sales rate.
Days on Market (DOM)
- Current Trend: The median DOM increased from 10 to 12 days, significantly lower than the 21 days seen in October last year.
- Sales Efficiency: A majority of the properties (77.9%) were sold in 30 days or less, and 91.3% in 60 days or less, showing a relatively quick turnover in the market.
Conclusion: Market Overview and Outlook
- Sales Volume: There's a seasonal decline in sales volume, yet the numbers remain robust.
- Steady Prices: Despite the drop in volume, prices are holding steady, indicating a stable market.
- Inventory Dynamics: The increase in inventory month-over-month suggests a slight shift in market demand.
- Market Efficiency: The average Price/SqFt currently stands at $347, reflecting the market's overall health and efficiency.
As we move forward, it's important for stakeholders in the real estate market to keep an eye on these trends for better decision-making. Whether you're buying, selling, or investing, understanding these dynamics can help you navigate the market more effectively.
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.