Real Estate News

Some ‘likely being priced out’ of tight housing market in Sacramento County

Low inventory and relatively strong buyer demand for those homes that are available pushed Sacramento County home prices higher in April.

Wednesday’s report by Irvine-based real estate market tracker CoreLogic said the median sales price among countywide sales of all dwellings –including new and resale houses and condominiums – in April was $317,000, up from $311,000 in March and a 7.5 increase from $295,000 in April 2016.

The median sales price among last month’s resale transactions in Sacramento County was $315,000, up from $310,000 in March and a gain of nearly 7 percent over $295,000 in April last year.

CoreLogic analyst Andrew LePage said both April medians were the highest since July 2007.

Sacramento County resale home prices still remain well short of the record median of $374,000 from August 2005.

Meanwhile, the number of homes sold dipped year-over-year.

April resales of existing homes in Sacramento County totaled 1,742, down 4.4 percent from 1,822 in the year-ago period. Countywide sales of all homes totaled 2,136, down 3.6 percent from 2,216 in April 2016.

Sales of new homes in Sacramento County last month totaled 223, down from 250 in March but an 18 percent gain from 189 in April last year. The median price among new homes purchased in April was $409,750, up nearly 3 percent from $399,000 last year.

Sacramento region home price trends April 2017 by ZIP code 

LePage said a combination of low inventory, job growth, low mortgage rates and strong consumer confidence was keeping pressure on home prices, “and some people are likely being priced out of the market.”

Just last week, Lyon Real Estate reported that only 1,101 properties priced less than $400,000 were available in Sacramento, Placer, El Dorado and Yolo counties at the end of April. Lyon said that represented less than one month of inventory.

However, LePage added Tuesday that Sacramento County’s sales numbers “are not that bad.” He said April’s 2,136 sales of all homes countywide was only 1.3 percent below the historical average for April dating back to 1988.

CoreLogic said home sales declined amid rising prices in other major metro markets in California last month.

In the nine-county Bay Area, 6,943 new and resale houses and condominiums sold in April, down 5.1 percent from 7,315 in March and down 9.2 percent from 7,644 in April last year. The median sales price for all homes sold in the Bay Area in April was $750,000, which CoreLogic said was a new high for the region.

LePage said “waning affordability and a still-tight inventory of homes” produced the “slowest April home sales in six years” in the Bay Area.

In the six-county Southern California region, 20,244 dwellings sold in April, down 8.4 percent from 22,094 in March and a decline of nearly 5 percent over 21,274 in April 2016. CoreLogic said it was the lowest sales total for an April in three years. The median price paid for all Southern California homes sold in March was $485,000, the highest since August 2007, when it was $500,000.

Mark Glover: 916-321-1184, @markhglover

Related stories from Sacramento Bee