By looking at the real estate marketing trends for El Dorado County it does appear that things are beginning to level off for the season. This may be due to several factors that have an effect on the real estate market. Some of those factors could be the employment rate (but who can make sense of that data), political elections, cost of money, oil prices and much more.
Without going into all the details of how those things impact the real estate market, I am just going to focus on the trend that is present in El Dorado County. Here is what I see; year over year (from July 2015 to July 2016) the total number of listings is down by 11%, from 921 homes on the market in July 2015 to 820 in July of 2016. That means fewer homes to look at by any potential buyer actively in the market placing an upward pressure on prices and an increase possibility in multiple offers. The data would support the upward movement in prices for example in July 2015 the average price per square foot was $196 (keep in mind this is county wide and includes EHD as well as Pollock Pines). Whereas the current average is $204, which is about 4% increase in value county wide. This is good if you are selling not so great if you are buying.
We also sold fewer homes, most likely due to less inventory (homes for sale) on the market. Last year in the month of July 293 homes were sold in El Dorado County, this year only 250 homes sold in the month of July representing almost a 15% drop in home sales in this county. That’s a big deal!
Here is the really interesting part of this equation though; Pending Sales (homes in escrow) are higher than last year. In July of 2016 there were 239 Pending Sales and this year there are 299 a 20% increase in the number of homes in escrow. So, that would lead one to think that more homes are falling out of escrow for some reason. One reason could be that the lack of inventory and the demand for homes is allowing some home sellers to neglect needed repairs and when they are discovered by the buyer they in turn renegotiate or back out of the transaction.
No matter how you look at the data it is clear that inventory for this county is historically low and we are in a seller’s market. Buyers are being very choosy when it comes to which homes they will purchase and are not afraid to back out if it doesn’t feel right.
If you would like more information or know of someone that is looking to buy or sell real estate send them my way, I would be glad to help them. Thanks.