The Sacramento region’s economy will slow but avoid recession in 2019. Residents should expect a slowdown in labor markets, real estate, and the overall regional economy this year.
The outlook for Sacramento County's real estate is troubling, as there is new data that suggests the market is currently plateauing.
Sacramento County total home sales collapsed 22.5% year-over-year in December, the lowest for the month since right before the financial crisis of 2007–2008.
According to new data from CoreLogic, the year-over-year increase in the median sales price for all homes in the county was 4.4%, one of the slowest months in 2018.
For all homes in the county, including condos and new construction, the median price was approximately $355,000.
The most significant drop in year-over-year median sales price for neighborhoods with more than ten homes sold was in Colfax ZIP code 95713. Prices plummeted 24% in that area compared to last December. The median sales price was $254,800, down from $337,000.
Besides Colfax ZIP code 95713, noticeable deterioration was also visible in Meadow Vista ZIP code 95722, Shingle Springs ZIP code 95682, Sacramento ZIP code 95831, Rocklin ZIP code 95677, Davis ZIP code 95616, Fair Oaks ZIP code 95628, and Woodland ZIP code 95776, where median home prices dropped in December.
Of the 57 neighborhoods with at least ten homes sold in December, 41 experienced a slight bump higher in the median sales price compared to December 2017.
Woodland ZIP code 95695 had the highest increase at 26%. With 29 escrows closed in December, the median price of an existing home increased to $380,000 from $302,500 in December 2017.
The second highest increase was in Sacramento ZIP code 95817. The neighborhood, which includes north Oak Park, saw a 25% price increase to $325,000 from $260,000.
The Fair Oaks ZIP code 95628 had the highest sales price in the county in December, a monstrous $3.7 million. Even with that sale, the year-over-year existing home sales price in the neighborhood dropped 5%.
Meanwhile, the lowest median prices for resale homes in the county, among areas with more than ten sales, was in North Sacramento Zip code 95815. That area had 18 home sales with a median price of $210,000.
While residents of the Sacramento area should not hit the panic button just yet, the noticeable slowdown in the region's economy is undoubtedly affecting the real estate market. Sacramento has a history of entering recessions, about 18 months before the nation does.