Sacramento Residential Real Estate Market Appears Stable

The Multiple Listing Service statistics were recently published for the month of October and the figures show a very stable residential real estate market. There were 1,716 closed sales for October contrasted with the 1,631 sales that closed in September, a 5.2% increase.  Of the October closed sales, 713 (41.6%) were bank owned (REO), 356 (20.7%) short sales and 647 (37.7%) conventional sales.  The bank owned sales continue a steady decline since the first of the year and the short sales and conventional sales continue to increase as a percentage of the total. 

The median home price increased in October to $185,000 from the September median of $183,000.  Over the past six months the median home price has been in the range of $180,000 to $190,000.  This is continued evidence as to the stability of our current market. 

The last two months of the year should be interesting in terms of sales volume.  Now that the tax credit has been extended to April 30, with a 60-day extension if a binding contact is in place prior to the April deadline, the immediate pressure has been taken off of prospective home buyers to enter into a contract and get it closed the prior deadline of November 30th.  Will prospective buyers take a breather and perhaps take more time in the home selection process?  Only time will answer that question.  With low interest rates and low home prices, now is certainly a great time to purchase a home.

 Richard

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