Your Local Update on the El Dorado Hills Real Estate Market
What will the Spring El Dorado Hills Real Estate Market Bring?
One thing we can assure you, it will not be a repeat of Spring 2018!
The El Dorado Hills real estate market continues to shift away from the heavily tilted sellers’ market we experienced last year towards a more balanced market.
By no means is the sky falling. Adjust expectations appropriately and buyers and sellers will continue to reap the benefits of a healthy real estate market.
The year is starting off with very healthy sales, particularly at the upper end of the market for homes that are well-prepared and correctly priced. January saw sales of homes over $1M match 2018 numbers with 5 closed sales and the number of $1M+ homes that went into contract in January jumped to 9, 200% above January 2018.
Inventory at the high end also jumped. January saw 40 $1M+ homes on the market. The higher sales balanced out the higher inventory leaving us with the same 8 months of inventory as in January 2018.
The good news is that well-prepared, well-priced, well-marketed homes are at the higher end are moving. The tougher news is that if you are a seller in that segment, you can expect there to be more competition this year. It’s imperative that luxury homes shine if they are going to sell quickly!
Below $1M is where we start to evidence of shifting market.
January sales below $1M were off by 25% with 33 sales compared to 2018’s 44. Pending sales faired better, down only 6.3% with 43 homes going into contract in January. At the same time inventory in the under $1M segment increased by 7.3%.
A year ago there was 1.9 months of inventory under $1M, January say that number spike 50% to 2.7 months. This is the highest level of inventory we’ve seen since 2017.
On the flip side, buyers are in a stronger position than in quite some time. With increasing inventory and increasing competition among sellers it is in buyers’ interest to get shopping!
What a Difference a Year Makes!
A year ago we were still wondering if the strength building in the lower price points in El Dorado Hills was going to transfer into the higher end of the market. We had just begun to see signs that it would. At the same time anything priced under $650,000 had buyers lining up
A year later the higher end of the market is the driver while the lower end has slowed considerably.
For one thing, the stock market did. A year ago the Dow Jones Industrial Index was enjoying an annual gain of about 30% and was sitting at 26,150. Wild swings down, up, then down again since then have the Dow at 24,065 as of this writing. Up off the lowest point and still unpredictable. Many lower-end buyers were feeling flush and optimistic while the market was booming and are considerably more concerned as when bounces up and down.
For another, mortgage rates are up from about 4% to about 4.4%. While incredibly low historically and lower than they were much of the second half of 2018, the 10% increase is significant for buyers at the lower end of the market.
Current events also can’t be discounted when evaluating why more folks, especially at the lower end, are being cautious. When people are unsure what the future holds they tend to sit on their hands waiting for stability.
So what now?
We are continuing to see strong activity in the higher end, from $1,000,000 to about $1,600,000. Sales above $1,000,000 were up 267% in December compared to December a year ago.
A well-prepared, well-priced, well-marketed home is going to generate interest. However, don’t count on setting a price record for your neighborhood. Price per foot in this segment was off 17% in December.
We expect to see a healthy Spring real estate market, one that is more balanced between buyers and sellers than last year. Barring changes, we don’t expect to see the same number of multiple bids on lower priced homes as we had last year. Buyers are looking for turnkey properties that match the values they are seeing for comparable homes.
We are advising sellers to get their home in tip-top shape and price where recent sales can justify the purchase. Last year we advised getting your home on the market before the Spring rush and we are advising the same this year with perhaps a bit less urgency.
We are advising buyers that this is as a good a time to buy as we’ve seen in quite some time. Mortgage rates have backed down and competition among buyers is less fierce than it was a year ago.
While we can’t predict what the coming days, weeks and months will bring or where prices go from here. We have seen nothing that indicates we’re looking at a market crash. The balanced market we’re seeing is a healthy market for buyers and sellers.
Questions? Want to talk further? Let us know!
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The NEW El Dorado Hills Real Estate Market is Here
The real estate market we experienced last Spring where every home listed had buyers waiting is over. The difference between the market last March and today is glaring.
We have entered a new real estate market in El Dorado Hills
Last March the market could not be any hotter. Sales were up 43% compared to the previous March and pending sales were up 25%. Sellers were getting multiple offers and many were getting offers above asking price. A great time to be a seller. Perhaps not as good a time to be a buyer.
November numbers show a completely different market. Now we see year over year sales and pending sales dropping in El Dorado Hills.
Where the lower priced home segment was driving the market last Spring, it is now the slower part of the market.
Home sales between $700,000 and $1 million while starting to slip are showing strength in comparison to lower priced homes.
In the $1 million+ luxury segment, which was lagging a year ago, we now see the greatest strength. Though the unit numbers are small, sales and pending sales were both strong in November.
If you are considering buying or selling real estate in 2019, we’re sure these El Dorado Hills real estate trends will raise questions. We’d happy to talk to you about your specific needs and how you can use the changing market to your advantage! Call or text us any time! 916.941.6566
Can the national media really tell you what’s going with El Dorado Hills real estate?
Does the Sacramento Bee really dig into El Dorado Hills real estate trends and data?
Since, as the saying goes, all real estate is local, we keep you updated on the El Dorado Hills real estate trends.
Below is our most recent update from November, 2018.
Curious about trends in your neighborhood?
Want an idea of your home’s current market value?
While tools like Zillow are great for aggregating data, they really aren’t very good at getting to granular data on a street-by-street or home-by-home level. That’s where we come in!
Our local market knowledge allows us to share with you sales trends for your neighborhood and even your block. We also can evaluate the condition and amenities of your home in comparison with homes that have recently sold. With this data, we can provide you with a much more specific market valuation that you can get from one of the data aggregation sites.
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