The first-quarter data for the Sacramento—Roseville—Arden-Arcade housing market shows a strong sales struggle so far in 2014. Overall closings in the market dropped year-over-year from 10,107 to 8,298. Existing home sales dropped dramatically from 9,458 to 7,772 from 1Q13 to 1Q14. New sales also fell from 649 to 526. The peak for new-home sales in the last four quarters occurred in 2Q13 with 772 new-home closings.
Although sales have declined in the market year-over-year, prices continue to appreciate similarly to the other California markets. The total median closing price for the first-quarter hit $269,500, up from $225,800 in 1Q13. The jump in price, however, was far more significant in the market for new-home prices which rose from $314,600 in 1Q13 to $384,200 in 1Q14. Although existing median prices peaked in third-quarter at a median closing price of $374,000. In addition to rise in median closing price, Sacramento has also experienced a spike in the price per square foot median for both new and existing homes reaching a median $183 per square foot in the first-quarter of 2014. The year-over-year average household age of buying is also increasing with existing homes average at 47 up from 43 and new-home average at 44 from 43.
The Vacant Developed Lot (VDL) inventory in the market has increased from 11,545 in 1Q13 to 12,800 in 1Q14. This increased the overall VDL months supply from 50.7 to 51.8 months, a substantial supply for decreased demand in the first-quarter. Housing supply overall has decreased however, from 7.3 months is 1Q13 to 6.2 months in 1Q14. Housing starts have declined in the market, quarterly from 795 in 1Q13 to 562 in 1Q14. Annual starts went to 2,965 in the first-quarter, down from 3,198 in the fourth-quarter and up from 2,730 in 1Q14.