Sacramento: A Bay Area Alternative
Lately I’ve had a couple clients who have turned their attention to Sacramento. It’s not hard to see why. The Bay Area is, simply, expensive, and our state’s capital is an attractive alternative. Sacramento is just two hours’ drive away, and is in a significant growth cycle right now.
To help my clients, I’ve been referring them to my colleague Gabriel Gendron (DRE 01735220) of Lyon Real Estate. Gabriel has graciously provided a snapshot of the Sacramento real estate market as of 2/3/2020, in case you also are interested in checking it out. Commentary in italics is mine. It’s worth noting that these reports are for the entirety of Sacramento County and for all property types. If you want a more specific lens into certain areas or property types, let me know and I’ll connect you to Gabriel.
The Market Report offers insight into residential real estate sales activity and regional trends. It complements our Property Detail Report, giving you a broader look at the real estate market. The market summary below lets you see sales activity for the prior month and year, along with current and past year-to-date statistics. The graphs cover several different aspects of the real estate market. Note how some of the graphs break out trends by price increments.
YOY Month-to-Date and Year-to-Date Stats
New Properties
Number of New Properties Listed for Sale During the Month
dpaul: What’s interesting here to me is how different the cycles are versus San Francisco. Here in SF, we have strong selling seasons in spring and fall, with doldrums in summer and around the winter holidays. Sacramento peaks in summer, which is a more typical pattern in other parts of the country. One of the reasons for this is that where you live doesn’t necessarily impact where your kids go to public school, unlike most communities.
Average Sales Price
Average Price for Sold Properties (6-Month Moving Average)
dpaul: This is clearly why San Franciscans are paying attention to Sacramento, with home prices going significantly below our current median rate of $1.575M. (See the February Market Report for more context.) It doesn't mean there are not higher-priced, premium properties, but on average the prices are significantly lower. That said, they are clearly on the rise, as illustrated here.
Average Sales/List Price
Average list price compared to average sold price of properties sold each month (6-Month Moving Average)
dpaul: This is another compelling factor. In San Francisco, competition has historically led to multiple offers and overbidding. This chart shows that homes on average tend to go close to list price.
Average Asking/Sold/Unsold Price
Unsold Price | the average active list price
Asking Price | the average asking price of sold properties
Sold Price | the average selling price
Properties for Sale
Number of properties currently listed for sale by price range
dpaul: Here we see that the bulk of properties are in the $300-499K, a far cry from San Francisco’s median house and condo sales prices of $1.6M and $1.2M+ respectively.
Average Sales per Square Foot
Average Sales Price per SqFt for previous two years
dpaul: Again, we see the value proposition for Sacramento versus San Francisco, where price per square foot routinely tops $1,000. Simply, you get more bang for your buck in Sacramento.
Monthly Supply of Inventory
Properties for sale divided by number of properties sold
Average Sales Price and Average Days on Market
Average Sales Price | Average sales price for all properties sold.
Average Days on Market | Average days on market for all properties sold.
Months Supply of Inventory
Months Supply of Inventory | Properties for sale divided by number of properties sold.
Units Listed | Number of properties listed for sale at the end of month.
Units Sold | Number of properties sold.
Interested in learning more about Sacramento? Contact me, and I’ll connect you with Gabriel.