June 2020 Market Update

Sacramento region's housing market is competitive despite pandemic

The stay-at-home orders issued in March to slow the spread of COVID-19 drastically changed the Sacramento real estate market overnight. For weeks California real estate agents couldn't hold open houses because there were restrictions on showings. This resulted in a small dip in the market, because of the unknown.

As we head into summer things are heating up. The number of pending sales and listings in the Sacramento region is actually increasing, according to this recent article. Over the past six weeks, we've seen sellers and buyers get more comfortable, and so we’ve seen a lot more listings hit the market.


Snapshot of the Local Market:


  • In April 2020, the median list price of homes in Sacramento County was $400,000, trending up 3.9% year-over-year.
  • The average days on the market in April was 16, down from 26 days in the previous month, according to the Sacramento Association of Realtors. 
  • Active Listing Inventory is up 10% over last month, but down -12.9% compared to last year.

Key Takeaways:


The Market is Still Active 


The first couple of weeks after the pandemic hit, the market was affected by a degree of shock factor, with March sales down 8% on the previous month. However, the latest NAR survey has revealed that potential buyers and sellers are not out of the market – they are just delaying their entry point. People still have a great desire to buy, sell, and own a home as demonstrated by May’s numbers.


Lack of Inventory is Still an Issue


There was a housing shortage before the pandemic hit and there is still an acute shortage today. Because of this inventory shortage, it is unlikely that house prices will decline going forward and data shows that there is little expectation by buyers for any big discount. For the year as a whole in 2020, it is anticipated that sales activity will be down about 10% to 15%, which is very acceptable for a bump in a year. Going into 2021, with pent-up demand, it is expected that sales will increase by about 15%, with prices rising 3% to 5%. 


Expect a Busy Summer & Fall


This is an adversity that we will get through. We will come out the other side with more knowledge and better relationships, which is a very good starting point for the upturn that is anticipated to happen later in the year.


If you’re interested in more information on the current housing market, we recommend watching this interview: The Podcast Every Homeowner Needs to Hear- An Interview with Dr Lawrence Yun

About our Team


The Sherri Patterson Team specializes in residential real estate and relocation, with a combined 75+ years of experience serving the Sacramento, El Dorado, Placer and Yolo counties. We work directly with hospitals, physicians and medical professionals. Whether you're looking to buy, sell or relocate to the Greater Sacramento area, we are the premier real estate team of choice. Our office is located at Keller Williams in Folsom, CA

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