The summer is in full swing and things are starting to calm down a bit, so it's the perfect time for yet another Sacramento market update!

It's been a very strong year so far. We've seen an increase in average prices between 7%-9%. The increases have been stronger in the lower and middle price ranges, and there is still a strong intolerance for overpriced homes, especially in the higher price ranges. Generally, you need to be careful about overpricing if you are selling in our current market.

<p">We've seen a significant increase in the number of FHA home buyers, as there are 27.5% more in the month of June alone. This has effectively resulted in a rise in offers over list price, which is great news for sellers. The average time on market is up a bit from 2012 and 2013, but homes are still moving quickly at only 30 days. This may have to do with the fact that inventory is under two months right now, which is the sign of an extreme seller's market!

The Sacramento Market has had a very good year

<p">Despite current low levels on available homes, we have seen a slight increase in listings, as people love to list their homes in June and July. The good news is sales are starting to slow a bit too, which should result in a larger selection of homes for the buyers still looking.

There is more good news for our market. The average price per square foot is up 8% since a year ago at this time and the volume of short sales and REO's is down. This isn't great news for buyers looking to get a great deal, as these homes are down to about 5% of the market each, meaning 90% of available homes aren't distressed sales. As a result, the number of cash transactions has also decreased, as they made up only 16% of all transactions.

If you have any questions about current market conditions, or if you need real estate assistance of any kind, give us a call or shoot us an email. We would love to hear from you!