These are blog posts that address real estate statistics updates for Placer County and the surrounding area.

Home prices in Placer County reached their most recent peak in April/May of 2022.

Prices then fell between 17% and 19% from that point until January of 2023.

Prices have changed direction again and have risen between January and May by 10% and 13%.

Why have prices risen, while interest rates have remained higher?

The primary reason is that many prospective home sellers have decided to sit on the sidelines and not list their homes.

Per a recent Inman article, 62% of homeowners have interest rates below 4%.

https://www.inman.com/2023/06/14/nearly-92-of-all-us-homeowners-now-have-a-mortgage-rate-below-6/

With rates hovering between 6 and 6.5% recently, many home sellers who will become home buyers themselves have decided it makes more…

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The changes in the weather have been crazy this year, but so have the changes in the real estate market.

We went from a red-hot market a year ago, firmly in home sellers’ hands, to a market at the end of 2022 that had rising inventory and buyers capable of negotiating price reductions and credits from home sellers.

Those changes lasted for a few months, but now we face a new type of market.

Demand from home buyers is now lower than last year due to their purchasing power being diminished by higher rates, but we also have had an equal if not greater decline in supply due to fewer listings being added to the market compared to last year, possibly due to the same increase in interest rates.

There were 42% fewer new listings added to the market…

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We have seen some large changes in the real estate market here in Placer County since the beginning of the year.

As of today, we have 597 homes for sale and 447 homes pending sale.

Those two numbers combined, leave us with 1. 3 months of inventory, which is down considerably from the 3 months of inventory that we averaged during the 4th quarter of 2022.

This is due to multiple factors, including, but not limited to:

1) Interest rates peaked in October and trending lower since then.

2) Sellers of the existing listing inventory were willing to price at or reduce their price to the market rate and then were willing to negotiate for discounts and closing cost credits.

3) Buyer demand building up during the second half of the year before…

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The real estate market here in Placer County has been a roller coaster in 2022.

During the first third of the year, the vast majority of homes were sold in weeks, rather than months, their asking prices were bid up, multiple offers were the norm, and home buyers were forced to accept terms that often left them with no appraisal contingency, no opportunity to request that items be repaired after inspections, and no control on how the process unfolded.

Many buyers that had homes to sell of their own, or that had unconventional or less appealing finance requirements, were often unable to compete on the most sought-after homes and in many cases were left without a home after many, many offers.

The middle third of the year was a period where the ball…

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1) The median price for Placer County homes has remained stable over the past 3 months starting at $649,000 in August and then staying at $645,000 for both September and October, which is actually the same median price as October of last year.

2) The number of new listings added to the market and the number of homes sold over the past 3 months have been offsetting each other by both falling, which has had the effect of keeping the inventory level stable at around 2.5 months. Had either of those stats risen or fallen without the other, we would have seen a change in that number and a change in market conditions.

3) Interest rates dropped last week due to better than expected inflation numbers after rising consistently for months. The Federal Reserve…

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