Your Sacramento February 2017 Market Update

I’m back with your February 2017 edition of the Sacrament Area Market Minute to give you a look at what’s happening with real estate.

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Today I’m bringing you the latest real estate news with the Sacramento Area Market Minute. I’ll go over some national news and let you know what’s going on in our local market as well. 

Let’s start with some national news. Both home values and mortgage rates are on the rise. All of the sources I checked out predicted a 3.6% to 5.3% increase in home values over the next 12 months. It’s also unanimously predicted that interest rates will rise during 2017, ending the year between 4.3% to 4.8%. 

What does this news mean for homebuyers? 

Hurry. If the projections hold true, waiting will not only mean a higher price on homes, but also higher interest rates on your mortgage. In some cases, it could mean paying up to $261 more a month for the same exact house if you wait until the end of the year to buy a new home. 

Although we can all agree that national averages and trends are important when looking at the market, the local markets do most of the influencing. 

Home values are far more driven by local supply and demand, and supply and demand are influenced by local economic strength. That said, let’s move on to some local market news. 

It’s unanimously predicted that interest rates and home values are going to rise in 2017.

Sacramento real estate prices are forecasted to be in the fourth fastest appreciating market in the United States. The number of pending sales, or the number of sellers that have accepted offers from buyers, was up 16.4% month over month and up 5.6% from last year. However, that number is 32.5% lower than it was five years ago.

The number of days on the market has gone up just a little from 45 to 47 this past month, but it’s down from 51 at this time last year. The big statistic here is that the average days on market is down 48.9% from five years ago.

This means if you’re even thinking about putting your house on the market, get it done! We need inventory. Over the past few years, there has never been a time when a seller had this kind of leverage in the market. However, buyers can still be successful in this market. On average, the first offer we submit for your buyers is accepted. 

 If you’re looking to take advantage of this market, either as a buyer or a seller, please feel free to give me a call or send me an email. I look forward to hearing from you!

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