Serrano sales tempo improving
The pending sales rate for Serrano homes under $1,000,000 has caught up with the rest of the market in El Dorado Hills. Earlier in the year, Serrano had a surplus of inventory with sales lagging the rest of the local market. Serrano Absorption rates are beginning to swing back into favorable territory which is good news. The bad news is that January sales in El Dorado Hills overall are down 25% year over year.
El Dorado Hills real estate 2019: A mixed bag so far
We have a reasonably balanced market right now based on the current rate of pending sales vs. unsold listings. Buyers are passing by functionally obsolescent and or incorrectly priced homes.
The number of unsold listings in El Dorado Hills was up 7.3% from one year earlier and up 35.4% from the previous month. The number of sold listings decreased 25% year over year and dropped 19.5% month over month. The number of under contract listings was up 34.4% compared to the previous month and down 6.5% compared with last year. The Months of Inventory based on Closed Sales is 2.7, up 42.9% of the prior year.
Bay Area / SoCal real estate sluggish
Outward migration from the Bay Area continues to represent a vital home buyer segment; however, sales there have slowed significantly causing homes to stay on the market longer causing sellers to fine-tune pricing. High priced metro areas in Southern California are also seeing slower sales rates as compared to one year ago as the pool of home buyers that can afford current levels are shrinking. The days of the Bay Area home buyer aggressively bidding on homes in our area has passed.
New builders getting ready for the largest expansion of new homes in a decade
You’ve seen the earth movers all around El Dorado Hills, and framing is already visible in some locations. We have grown accustomed to most of the new construction occurring south of highway 50 however builders are poised to introduce hundreds of new homes in and around established neighborhoods all around El Dorado Hills. New Serrano villages, Hawkview at Bass Lake Hills, Saratoga, Bell Woods are just a few of the new subdivisions that have broken ground. Competition between home builders and a leveling off of demand all have the potential to put pressure on resale pricing. Builders are already offering generous incentives to entice buyers.