Real estate activity increasing in Placer County
Placer County’s real estate market started out fast at the beginning of the year and has now settled into an annual slowdown that coincides with local schools reconvening, according to a Rocklin real estate broker.
“The market from the end of last year to the beginning of the year was hot. Homes were selling much faster with less inventory available,” said Kevin McDonald, a Prato Real Estate broker and the Placer County Association of Realtors president. “However, slowing occurred over the summer with homes sitting longer, more inventory sitting on the market longer and more reductions made.”
However, McDonald said, activity is expected to pick up again after Thanksgiving.
“It is somewhat normal this time of year, with back to school, that things slow down,” McDonald said. “The inventory should decrease over the next few months and many sellers will pull their homes through the holidays. We expect to see neutral to slight decrease of pricing with current trends.
“Interest rates rising is playing a big part in the affordability of homes in this market,” McDonald added. “Depending on other markets that affect real estate, we will see where things go.”
McDonald has noticed a trend of increased inventory of homes in the first six months of the year.
“From January to July, we’ve noticed, there are almost double the amount of homes available with a higher median price overall,” McDonald said. “However, sellers are realizing prices are too high with the lack of showings and offers being made.”
May has been the busiest month this year and last year for home sales in Placer County, with 635 homes sold in May and 672 homes sold in May 2017, according to information from the Placer County Association of REALTORS. As of June, there were 1,106 homes for sale in Placer County, a steady increase from January.
New listings peaked in April with 877, the highest number of new listings in the past year, according to the Realtors association.
Permitting in Placer County, for the past 12 months, showed increased activity in September 2017 and March of this year, according to information from the North State Building Industry Association.
A total of 214 building permits were pulled in March, the same number pulled in September 2017, which is a stark contrast to February, which saw 100 fewer permits applied for, according to the North State Building Industry Association.
“New home production trends are in line with last year, and July was one of the best months of 2018 so far and is outpacing July of 2017,” said Morgan Davis, the North State Building Industry Association marketing director.