Placer County Price Category Trends

31 Mar Placer County Price Category Trends

As 2016 has begun, interest rates have done the opposite of what experts were warning and trended downward. I have experienced a very busy 2016 so far as spring fever seemingly began in January. Below is a breakdown of each price category in Placer County. I hope you find the data useful.
(All data as of 3/20/2016)

Price range $299,000 and below:

There is a shortage of homes available with only 35 homes available in all of placer county with currently 81 pending sales. Demand is high with the average days on market (Dom) for most sales less than 30 days.

What to watch?
Buyers getting caught in bidding wars and over paying. I have come across some contracts where the contract price is bid up far higher than any closed or pending comps to support.

Price range $300,000 to $399,000:
This market seems to have a light shortage of homes with 126 active listings and currently 204 pending sales. The average days on market has hovered in the 30-40 day range for most homes this year.

What to watch?
With few homes available below $300,000, this price range will likely have high buyer demand this spring.

Price range $400,000 to $599,000:
This market seems balanced overall with 213 active listings and 210 pending sales. The days on market in this price range is slightly higher with an average DOM ranging 40-60 days.

What to watch?
With rates trending downward, the affordability and lower mortgage payment has allowed buyers to buy more house. When rates trend back up to the low 4% mark, this segmented market will likely begin to slow somewhat and pricing will be more critical.

Price range $600,000 to $1,000,000:
This price range has currently 199 Active listings and 117 pending sales. There looks to be an over supply of homes available in this price range. The average days on market for sales in 2016 is 60-90 days for most sales which is seemingly good for homes in this higher price range.

What to watch?
This higher end market always tend to have more listings vs. pool of buyers. Pricing is always critical in this price range.

Final thoughts:
As we enter spring, I anticipate demand to continue increasing in Placer County due to the typical seasonal up tick and those who have already gone through the buying process will be thankful to have avoided increased buyer competition.

Disclaimer: All information deemed reliable but not guaranteed. The information is meant entirely for educational purposes and casual reading only and is NOT intended for any other use.  This information is NOT intended to support an opinion of value for your appraisal needs or any sort of value conclusion for a loan, litigation, tax appeal or other potential real estate or non real estate purpose. This appraiser is NOT a qualified home inspector and any tips are for informative purposes only. If you’d like to obtain and order an appraisal for your specific needs, please contact Bryan at 530-878-1688 for more information.