First, A Looking Back at 2017 – What a Year!
2017 was another strong year for the El Dorado Hills real estate market, with the average sold home price up 10% in December 2017 versus December 2016. Shortage of inventory — a reality across the country — also impacted El Dorado Hills real estate all year, with inventory down 7% compared to December 2016. (Watch out for comparisons using one month to the prior month – the seasonality of the real estate market drives some pretty big fluctuations. I always like to compare to the same month a year ago to note the trends year-over-year). We cannot thank all of you enough for all your support in 2017. We made new friends, worked with old friends, and greatly appreciate the introductions and referrals you made to your friends who were, and are, looking for help with their real estate needs. Our sincere gratitude.
As We Predicted a Couple Months Ago, The Top End of the El Dorado Hills Real Estate Market is Finally Heating Up!
The 4th quarter saw Homes Sales in the $1+ million range jumped 90% over 2016! Pending Home Sales in the same price range were up a 50% in Q4!! (Pending sales are homes in contract and yet to close)
Sold Prices in the $1+ Million segment in December were up 28% over December 2016 prices! Asking prices are moving even faster, up 34.1%. We caution sellers to price carefully to avoid overshooting the market. You can see below the widening gap between For Sale and Sold prices.
Q4 Inventory at the high end dropped by more than half (53.2%) from a year ago
Average days on the market for homes that sold at the high-end is the lowest we’ve seen in well over a year!
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Looking Into Our 2018 Crystal Ball…(FWIW)
We expect the Spring rush will arrive early this year for the El Dorado Hills real estate market. There are a number of factors we see that will help buyers and sellers this year:
- Sellers who have been waiting bring their homes on the market are starting to come off the sidelines.
- One of the best years ever in the stock market, up 25% for the year, has brought consumer confidence to a 17-year high.
- Sacramento is California’s fastest growing big city. No longer an after-thought or a drive-by city for Bay Area folks on the way to Tahoe, Sacramento is becoming a destination unto itself where real estate supply has failed to keep up with demand.
- A good number of companies that Sacramento is supporting are poised to create jobs in agriculture, renewable energy, healthcare, transportation (remember the rails), and other industries that can create jobs for both the working class and the middle.
These factors create an environment where buyers can shake off the fears wrought by the massive downturn in local housing values from last decade and sellers can capitalize on trends that make their homes more sell-able than they might have been in the recent past. We don’t expect sellers to wait until the traditional Spring season to start bringing homes to market to take advantage of this market. It is also our opinion that, because there is so much pent-up buyer demand, there is a first-mover advantage for sellers who beat the rush and get their homes ready and on the market early.
Need more info? Ready to talk about buying or selling El Dorado Hills real estate? We’re here to answer your questions! You can reach us via email, email@example.com, or phone/text: 916.941.6566.
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**All market data courtesy of and copyright by BAREIS MLS and TrendGraphix**