Here at The Aitchison & Adams Real Estate Blogsquad, we have found ourselves overly excited and passionate about breaking down the monthly numbers of the Placer Country real estate market in order to provide our community with an accurate snapshot of what we’re seeing on a monthly basis here in our local region. Since very few people enjoy analyzing statistics, our amazing group has committed to being the top educational real estate team in the area when it comes to giving consistent knowledge of how the market is performing in our local areas of interest. Are you ready for your monthly market update for what’s going on with placer country real estate? Let’s dive in!
1. REAL ESTATE FOR SALE vs. SOLD – One area we always pay attention to when analyzing the placer county real estate market is the absorption rate which refers to the amount of homes that hit the market, go pending, and eventually end up selling each month.
As you can see above, we’re pulling out of, what I like to call the “holiday hangover”, moving closer to the second quarter. With inventory levels rising and the larger hedge fund buyers (cash purchases) pulling out, placer county real estate seems to be stabilizing back to what many economists are calling a traditional market. More homes are starting to hit the market as we head into the hotter months of real estate, and as you can see, the pending line is trending upwards. It will be interesting to see if the SOLD sales numbers trend upwards as well, or if we see buyers start to get more selective and back out on deals when having more housing options to choose from.
2. Inventory Supply – Another great indicator we assess when analyzing the placer county real estate market is the inventory supply. By understanding a basic supply (houses for sale) and demand (buyers wanting to purchase) curve, we can assess the current market and predict where it is potentially headed.
Aside from the short dip we saw during the “holiday hangover”, which is standard for that time of year, we have continuously watched inventory levels rise with a major jump since the beginning of 2014. We expect this to continue trending upwards as we head into the spring and summer months. It will be interesting to see if the buyer demand can keep up with the increasing housing supply. This will be a key factor in determining if the placer county real estate market will stabilize, or if it will shift back to a buyers market.
WHAT DOES THIS MEAN FOR YOU:
BUYERS – As inventory levels continue to rise, buyers will have more options to choose from which will enable more room for negotiating when making offers on properties for purchase. Having a seasoned agent who understands how to properly negotiate on your behalf when offering on a house could mean the difference between getting closing costs covered, repair concessions thrown in, and walking into a house with more equity. If inventory supply outweighs the buyer demand, consumers will be in the drivers seat when it comes to negotiating the terms of your purchase. Be sure to take advantage of the low interest rates that are still available.
SELLERS – What we know and are experiencing right now in the placer county real estate market is that listings are still selling within a reasonable amount of time. As you can see in the graph above, the number of homes that have gone pending in 2014 is trending upwards even with inventory levels on the rise. It’s imperative to keep a close eye on inventory levels when selling. As you see more “For Sale” signs hit the market, your house faces more competition. If you’re serious about selling, make sure you have interviewed more than one agent, to confirm you are receiving the best realtor to aggressively market and negotiate your home in order to ensure you net top dollar during your sale.
We’d love for you to take a moment and let us know what you’re experiencing or seeing out there by dropping a line below in our comments section. We always love getting different perspectives on what others are experiencing/seeing in the placer county real estate market. If you have any questions, please contact us here or call (916)760-0402.
Until next time,
Matt Aitchison / Director of Investments / (916)221-5844 / firstname.lastname@example.org