Good News and Bad News 

for Home Buyers

Inventory jumps 24 percent versus April.

Good news appeared last month for local re-sale home buyers throughout Greater Sacramento as 2,618 homes were left available in standing inventory at the end of May. That was the highest level posted since June of 2020 and also represented a 24 percent jump when compared to April 30. Steady buyer demand, however, tempered any thoughts of panic as there still remained slightly more than one month of housing supply based upon the current rate of sales.

New listings arriving to market provided a nice lift for home buyers over the past three months but still fell 2 percent shy of those posted over the same period in 2021. New listings posted during the month of May alone fell 2 percent short of April’s and now at mid-June, 15 percent fewer new offerings have hit the market versus mid-May.

Buyer activity bounced back a bit during the month of May as the new open escrows posted were 6 percent higher than April’s though 14 percent lower than the red-hot May of last year. Due to fewer open escrows in the past few months however, closed sales landed 10 percent fewer than April and 16 percent lower than May of 2021.

The average sales price for the month of May registered at $717,000 with the median at $625,000. Both were new records once again with the average sales price a 3 percent increase and the median a 1 percent bump versus April.  The running three-month average for sales price and the median are both approximately 14 percent higher than last year for the same period.

Homes that closed escrow during the month of May were on the market an average of only 13 days versus the record low of 12 last May. Due to multiple offer situations still occurring on many properties, sellers averaged 103 percent of their original list price, down only 1 percent versus May of 2021.

“New pending sales and actual closed sales year-to-date at mid-June are just 10 percent lower than those recognized last year at this time during what was arguably the hottest housing market in history,” says Pat Shea, CEO of Lyon Real Estate.

“The good news for home buyers is that there is finally a little more inventory available to consider,” says Shea. “The bad news is that home prices continue to rise and now interest rates are creeping up, both making their purchases more costly. Even though the impacts of inflation are pushing cool breezes through the market, standing inventory and the number of new listings entering the market remain limited. The low number of days on the market at 13 for closed sales combined with sellers receiving an average of 103 percent of original list price both indicate the market remains vibrant. The truth is that with respect to the Greater Sacramento housing market, there remains a great deal of opportunity for both sellers and buyers alike.”

This market information was presented by Lyon Real Estate based upon data provided by Trendgraphix Inc., a Sacramento-based reporting company.

March Home Sales Quicken The Pace - Why Now May Be A Great Time To Make A Move!

 Last year at this time, home sales throughout the Greater Sacramento region started off on a red-hot pace that never eased up until year-end. That extraordinary market momentum ultimately produced record-setting sales figures and price appreciation in spite of conservative mortgage loan programs and financing guidelines.

“This year could very well be off to the same start,” says Pat Shea, President and CEO of Lyon Real Estate.

Specifically, 5,345 homes closed escrow in the first quarter, which was only 4 percent fewer than in 2021. New open escrows for the quarter fell within 2 percent of last year’s reported numbers. Despite news of persistent buyer demand, year-to-date new listings entering the market are still somewhat subdued and tracking 3 percent lower than 2021. These combined sales metrics have once again left a paltry 15 days of inventory currently available on the open market.

The average sales price for homes that closed in the first quarter rested at $661,000. This metric was up more than 16 percent year over year and naturally, set another market high. Sellers received approximately 102 percent of original list price and were on the market an average of only 20 days.

“These numbers are extreme for Greater Sacramento and are due to the endless number of buyers ready, willing and able to compete in an environment where multiple offers remain pervasive,” says Shea.

“The vital signs for continued market momentum are clear and undeniable if you look at March alone,” adds Shea. “Closed sales were up 28 percent and new open escrows up 32 percent for the month when compared to February. New listings entering the market however, jumped only 16 percent, and there lies the challenge.”

Shea offers that: “Most market analysts expect that home sales will remain very strong this year throughout Greater Sacramento with typical seasonality likely to surface again at year-end. Many prospective sellers have been reluctant to take action until they find a way to purchase prior to listing their home.  A reputable real estate professional can present both equity bridge solutions and financing bridge solutions to help solve that problem. It would be a very good path to explore before rates climb too much higher."

"My team is ready to assist both buyers and sellers navigate through this current market!"                        Rob Baxley- 916-208-3896 - Rob@RobBaxley.com - RobBaxley.com

Renovate Now, Pay When You Sell: Lyon Home Improvement Concierge

 There’s a lot that goes into selling a home, but Lyon Real Estate and your agent Rob Baxley wants to make the process a bit easier for homeowners. A new service helps sellers get their home in move-in ready condition before it hits the market.

The Lyon Home Improvement Concierge is a service for sellers that fronts the costs for all repairs, renovations and staging. Whether it’s a coat of fresh paint, new flooring or a full kitchen remodel, it allows sellers to defer the costs of the project until their home sells, transforming their home into move-in ready condition buyers want, thus maximizing value.

The Lyon Home Improvement Concierge combines pre-sale expertise and local market knowledge to determine which renovations will maximize the home’s value. Best of all, a project manager will oversee the work from beginning to end, thus eliminating some of the stress for sellers.

“Buyers want move-in-ready homes and are willing to pay more for them,” says Pat Shea, President and CEO of Lyon Real Estate. “We are launching this service so that our clients feel at ease from start to finish throughout the listing process and maximize their value when they sell.”

 

An easy-to-use app updates agents and homeowners 24/7 with photos, schedules, and messages from beginning to end. An expert team of design professionals continually curates a catalog of the most popular and current home improvement materials, from flooring and cabinetry to appliances and lighting fixtures, all made of high-quality materials that home buyers love.

Some competitor programs provide interest-free loans, but agents and sellers have to do all the work to get the home prepped. This turnkey program, powered by pre-listing home improvement company Curbio, gets your home in market condition with a hassle-free process. These renovations attract more buyers, reduce the number of days on the market, and increase seller proceeds.

Features of the Lyon Home Improvement Concierge include the following:

• A project manager who oversees the entire renovation, so owners don’t need to make design choices or do the work themselves.
• Deferral of 100 percent of all project costs — no upfront deposits, no loans, no progress payments, no fees, no interest charges and no credit checks.
• An easy-to-use app that gives agents and homeowners full visibility into their project 24/7, including photos, timelines, and messages.
• A wide variety of designer-curated style options from which to choose.
• No minimums or maximums.
• A project budget that can equal up to 80 percent of sellers’ net equity, which is the list price after renovations, less money owed.

Contact Rob to find out more about this new program!   916-208-3896 or email: Rob@RobBaxley.com

Comparative Market Analysis vs. Appraisal: What’s the Difference?

Our Clients may be surprised to find out just how much their homes may be worth in this current sellers' market.  We are in the midst of supplying clients with our PROPERTY REVIEWS which include a CMA--a comparative market analysis. 

Determining the value of your home is one of the most crucial first steps in putting your home on the market. Ask too much, and you limit your potential buyer pool. Ask too little, and you miss out on much-needed cash in your pocket. Numerous factors go into pricing a home and finding the sweet spot requires careful consideration.

Home sellers have two tools at their disposal for establishing the accurate value of a home: a comparative market analysis (CMA) and a home appraisal. Though they share many similarities, there are key differences in how the two approaches ultimately arrive at a home’s listing price.

Comparative Market Analysis

A CMA is conducted by agents using their knowledge of the local market in conjunction with information available to them on the Multiple Listing Service (MLS). The MLS is an online database that contains detailed information on homes for sale as well as market trends. Information gleaned from the MLS can help an agent price a home accurately and strategically, ensuring it is competitive in the current market. It should be noted that the MLS is only accessible to real estate agents, not owners who choose to sell their homes.

In developing a CMA, agents include other factors that influence home prices to arrive at an accurate estimate of a home’s value as well. A CMA compares homes for sale and those that have recently sold in the same area. Comparable homes, known as comps, are homes with similar square footage, lot size, condition and type. A thorough CMA will provide information on selling prices, time on the market, and the difference between a listing price and sold price. They will include a home’s low, median, and high selling price.

Home Appraisal

A home appraisal is an independent evaluation of a property’s value conducted on behalf of a mortgage lender when a buyer applies for a loan. Banks don’t want to loan more money than a home is worth, so an appraisal is necessary to ensure the home’s value and mortgage amount are aligned. Appraisals are also used in the refinancing process.

Unlike a CMA, an appraisal is conducted by a licensed, third-party professional who has no vested interest in the home’s value. Rather, the appraiser inspects the home to assess its condition, location, design and size. It takes into consideration the current market and comparable sales. The goal of an appraiser’s visit is to determine the home’s fair market value. Occasionally, values do come in low; in these cases, buyers will have to come up with the difference out of pocket or renegotiate the transaction.

The main difference between a comparative market analysis and a home appraisal is who’s behind it: An agent is behind a CMA while a lender is behind an appraisal. Both are important tools in a home selling toolbox and can help establish a price based on fair market value, making the process smoother for all parties involved.

The above was written in part by Sandy Dodge, social media content editor at Windermere Real Estate.

Should you wish to receive a current CMA please don't hesitate to contact Rob: 916-208-3896

The Best Farm-to-Table Restaurants in the Sacramento Area

As the nation’s farm-to-fork capital, Sacramento is surrounded by hundreds of farms, ranches, and orchards producing everything from almonds to olives, seafood to dairy — and of course, plenty of fresh fruits and veggies. It’s not surprising that restaurants in the greater Sacramento area take advantage of the bounty at their fingertips by incorporating seasonal, local ingredients into their dishes. There are dozens of farm-to-table restaurants in the Sacramento area, from high-end fine dining establishments to relaxed, laid-back bistros. Following are our picks for experiencing the best farm-to-table food that the Sacramento area has to offer.

CLICK HERE For the entire list of restaurants.  And...ENJOY!!!!!

Quick & Easy Camping Recipes

We are smack dab in the middle of camping season, and thousands of happy campers are descending on our public forests, beaches, mountains and desert to get in touch with nature. More people are opting outside than ever before, and even first-timers are hitting the campgrounds near Sacramento.

While camping is no doubt a memorable activity for both families and friends, it does require a bit of work. Not only does setting up camp take some elbow grease, the planning and organizing on the back end takes some effort as well. One of the most important elements to consider is meal planning. Figuring out what everyone wants to eat (and how to cook it in the woods!) can be challenging. Some campers prefer to go all-out on their camping meals, even going so far as to make their own ice cream or bake their own pizzas.

But for most folks, simple meals are best. After all, who wants to spend time in the [camp] kitchen when there are songs to sing and snipes to hunt? Quick and easy is the way to go, but it can be difficult to figure out what to make, especially for newcomers. Following are some of the best quick and easy camping recipes that are sure to please the entire group.

To view the entire article and access all the recipes CLICK HERE and enjoy some of these even at home!  Happy Summer!  Rob & Barbara.

Summer Makers’ Markets & Pop-Ups in the Greater Sacramento Area

 

Sacramento is known as a city whose residents love the outdoors. A temperate climate (especially warm summer nights) means outdoor dining, movies under the stars, farmers’ markets and open-air concerts happen throughout most of the year.

Another trend has also taken over the greater Sacramento area: pop-up markets! These outdoor events allow local makers to show off their wares in a lively setting, often with music, food and drinks to boot. From jewelry to home décor, gourmet food items to plants, these pop-ups are a great opportunity to support local businesses and pick up some unique, hand-made items. Following are some of the top makers’ markets and pop-ups in and around the greater Sacramento area.

From Thursday Night Markets to Arts & Crafts Markets to a Wide Variety of Events...and more!  Click Here to access information and details for what the Sacramento Region has in store for Summer 2021!  Here's to having a great summer! From Rob & Barbara "The Baxley-Dolder Real Estate Team!"