Placer County Market Update – August 2018
It’s a Seller’s Market in Placer County
The number of for sale listings was up 10.6% from one year earlier and up 5.9% from the previous month. The number of sold listings decreased 17.2% year over year and increased 1.5% month over month. The number of under contract listings was up 4.3% compared to previous month and down 8% compared to previous year. The Months of Inventory based on Closed Sales is 2.1, up 31.1% from the previous year.
The Average Sold Price per Square Footage was the same as compared to previous month and up 6.1% compared to last year. The Median Sold Price decreased by 4% from last month. The Average Sold Price also decreased by 4.1% from last month. Based on the 6 month trend, the Average Sold Price trend is “Depreciating” and the Median Sold Price trend is “Neutral”.
The Average Days on Market showed a upward trend, an increase of 19.2% compared to previous year. The ratio of Sold Price vs. Original List Price is 97%, a decrease of 1% compared to previous year.
It is a Seller’s Market
Property Sales (Sold)
August property sales were 545, down 17.2% from 658 in August of 2017 and 1.5% higher than the 537 sales last month.
Current Inventory (For Sale)
Versus last year, the total number of properties available this month is higher by 112 units of 10.6%. This year’s bigger inventory means that buyers who waited to buy may have bigger selection to choose from. The number of current inventory is up 5.9% compared to the previous month.
Property Under Contract (Pended)
There was an increase of 4.3% in the pended properties in August, with 554 properties versus 531 last month. This month’s pended property sales were 8% lower than at this time last year.
The Average Sold Price per Square Footage is Appreciating*
The Average Sold Price per Square Footage is a great indicator for the direction of property values. Since Median Sold Price and Average Sold Price can be impacted by the ‘mix’ of high or low end properties in the market, the Average Sold Price per Square Footage is a more normalized indicator on the direction of property values. The August 2018 Average Sold Price per Square Footage of $245 was the same as last month and up 6.1% from $231 in August of last year.
The Days on Market Shows Upward Trend
The average Days on Market (DOM) shows how many days the average property is on the market before it sells. An upward trend in DOM trends to indicate a move towards more of a Buyer’s market, a downward trend indicates a
move towards more of a Seller’s market. The DOM for August 2018 was 31, up 6.9% from 29 days last month and up 19.2% from 26 days in August of last year.
The Sold/Original List Price Ratio is Falling
The Sold Price vs. Original List Price reveals the average amount that sellers are agreeing to come down from their original list price. The lower the ratio is below 100% the more of a Buyer’s market exists, a ratio at or above 100% indicates more of a Seller’s market. This month Sold Price vs. Original List Price of 97% is the same as last month and down from 1% % in August of last year.
The Average For Sale Price is Neutral
The Average For Sale Price in August was $739,000, up 5.4% from $701,000 in August of 2017 and down 0.3% from $741,000 last month.
The Average Sold Price is Depreciating
The Average Sold Price in August was $534,000, up 4.3% from $512,000 in August of 2017 and down 4.1% from $557,000 last month.
The Median Sold Price is Neutral
The Median Sold Price in August was $475,000, up 2.2% from $465,000 in August of 2017 and down 4% from $495,000 last month.
It is a Seller’s Market*
A comparatively lower Months of Inventory is more beneficial for sellers while a higher months of inventory is better for buyers.
*Buyer’s market: more than 6 months of inventory
Seller’s market: less than 3 months of inventory
Neutral market: 3 – 6 months of inventory
Months of Inventory based on Closed Sales
The August 2018 Months of Inventory based on Closed Sales of 2.1 was increased by 31.1% compared to last year and the same compared to last month. August 2018 is Seller’s market.
Months of Inventory based on Pended Sales
The August 2018 Months of Inventory based on Pended Sales of 2.1 was increased by 17.1% compared to last year and the same compared to last month. August 2018 is Seller’s market
Please Note: All of these figures are pulled directly from MLS.