Placer County’s real estate market is ‘crazy.’ Here’s what to expect in 2021

It’s a seller’s market in Placer County. And it isn’t showing any signs of letting up in 2021.

Stretched across the Sierra Nevada foothills and within easy driving distance of Lake Tahoe, Napa wine country and San Francisco, Placer County boasts some of the most desirable real estate in the region. Homes in Placer average 500 square feet more than homes in neighboring Sacramento County.

Last year, prices in Placer County rose by 6%, drawing buyers interested in bigger homes, built-in pools and sprawling acreage during coronavirus stay-at-home orders.

“Placer and El Dorado (counties) are really why we’ve had regional growth,” said Ryan Lundquist, a certified residential appraiser who covers the Sacramento region. “These are the reasons why our numbers are a little more glowing this year.”

Lundquist said half of all Placer County homes listed for sale last year sold in 12 days or fewer. In Rocklin and Roseville, some of the most competitive cities in the region, homes were selling in nine days or fewer.

The market is so hot, people are buying homes that are months away from being built.

Ashley Haney, a realtor and president of the Placer County Association of Realtors, said she recently had a client buy a home from a developer that won’t be completed until September. And that’s not all that uncommon.

“Placer County’s real estate market has been crazy,” she said.

A low inventory of available homes on the market is adding to the frenzy. Last year, Placer County had nearly 50% fewer homes on the market, meaning homes that were for sale were often selling after just a few days and with multiple offers.

And according to market data provided by the association, the average sale price was $652,000 in December, up a whopping 20% from 2019.

Haney and Lundquist said there’s been a shifted focus on larger homes during the pandemic. Buyers are reflecting on where they really want to live, and are making moves to homes that have more space for the demands of life during a pandemic.

“They just want a place where they can quarantine and work from home,” Haney said. “People need that extra bedroom for homeschooling, working from home. Kids can’t do sports so if you can play catch in your backyard, or go to the park around the corner, you can’t put a value on that.”

While Placer County’s housing market remains largely dominated by Roseville, Rocklin, and Granite Bay, the small town of Loomis has also entered the fray, seeing the largest increase in pricing. In 2020, the town that is home to nearly 7,000 people had a 20% increase in prices. It is important to note, Lundquist said, that the statistic was generated by fewer than 200 sales.

Spanning between the northern edge of Folsom Lake and with easy access to Interstate 80, Loomis also has a number of luxury properties, homes selling in the millions.

Haney said the market for luxury properties and second homes is also booming. In October, she said she sold a home for $4 million with multiple offers.

Low interest rates are contributing to the high demand for properties and the ensuing competitive market, but people are also interested in quarantining in style, Lundquist said.

And it’s not just Bay Area residents moving to the area that is creating the competition.

“The county that moves the most to Placer is Sacramento,” Lundquist said. “This fact sometimes gets lost. . . the Bay Area influence is alive but we can’t discount the power of local buyers. It’s just not San Francisco.”

This story was originally published January 11, 2021 at 10:48 AM.