2013 Real Estate Recap Sacramento County

Ryan LundquistCertified AppraiserTEL 916-595-3735

www.SacramentoAppraisalBlog.com

Other 2013 Market Tidbits

• Inventory hovered around one month for half the year.• Money was very cheap to borrow.• Offers became aggressive as inventory dried up.• There were issues with low appraisals.• There were also many properties that were overpriced.• New Construction re-emerged• The market flattened out around July.• Investors began to exit the market after Q2 2013.• The market was driven by investor cash, historically low interest rates and

absurdly low inventory (all these things have changed, so 2014 is poised to be a different market).

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Median Price: $240,000 in January 2014

Median Price Perspective

Inventory: 2.6 months in January 2014

Inventory was under 1.2 months for 15 months straight through May 2013. This helped propel values upward.

Historically low interest rates helped drive values upward.

Interest Rates

The market used to be driven by distressed sales, but that’s not the case any longer.

Foreclosures & Short Sales

Unemployment Rate: 7.7% in Sacramento County

Cash sales have declined by 15% from its peak in 2013. The market is no longer driven by cash.

Cash Investors

FHA sales saw a massive decline in 2012 and 2013, but have since begun to increase again.

FHA Buyers

The layers of the market at work

The Smell of a Seasonal Market

January saw the lowest number of sales in the past six years. BUT January always has a lower sales volume and there are currently 2000 pending listings.

?Questions?Ryan LundquistTEL 916-595-3735ryan@lundquistcompany.comwww.SacramentoAppraisalBlog.com

Thank you for your time today.