Market Update as Spring Approaches

The latest California Housing Market Report for January 2024 shows notable changes in home sales and prices. According to the California Association of Realtors (C.A.R.), single-family home sales experienced a significant surge, totaling 256,160. This represents a substantial 14.4% increase from December’s figures and a 5.9% rise compared to January 2023.

 

Despite potential ups and downs in the coming months, C.A.R. President Melanie Barker anticipates a more favorable lending environment in 2024, translating into increased pent-up demand, which translates into sales.

 

C.A.R. Senior Vice President and Chief Economist Jordan Levine highlighted the increase in new active listings and noted that while mortgage rate fluctuations might influence potential sellers, rates are expected to decline later in the year, potentially improving inventory.

 

In Granite Bay, we are also seeing fluctuations as spring approaches. In February, there were 38 homes for sale (compared to 43 in February 2023), 15 homes sold (compared to 21 in February 2023. Higher demand and low inventory are decreasing days on market, which decreased from 63 days in February 2023 to 47 days in February 2024.

 

Another indicator of the health and state of the real estate market is known as “Months of Inventory,” or MOI. MOI is the relationship of sales pace to the number of properties currently on the market if no additional homes were added to the supply. MOI is calculated by determining the number of homes sold per month and dividing it by the total number of properties for sale on the last day of the month.

 

A general rule of thumb is that it is considered a seller’s market if there are 4 months of inventory or less. A balanced market, where there is considered to be an equal number of buyers and sellers, traditionally has 5 to 7 months of supply. If a market exceeds this level, then it is considered a buyer’s market, meaning there is excess supply, and the buyer has the advantage. 

 

In Granite Bay, the MOI for February was 2.5 (compared to 2.0 in February 2023). So the market is still considered a seller’s market in our area.

 

Debbie Austin is a realtor associate with Keller Williams, Roseville and has been helping clients buy and sell property in the area for 19 years. If you have a specific real estate question you wish to see addressed, contact Debbie at (916) 223-8144 or visit debbieaustinrealty.com.