End of Year Report: Sacramento, CA New Construction Median Sale Price Per Square Foot Analysis (2023)

End of Year Report: Sacramento, CA New Construction Median Sale Price Per Square Foot Analysis (2023)

Executive Summary:
The real estate market for newly built houses in Sacramento, CA witnessed fluctuations throughout 2023. Analyzing the median sale price per square foot data provided by Zillow from January to November 2023, we observed both highs and lows, indicating a dynamic market. This report aims to delve into the trends, relationships, and fluctuations in the market, providing insights for stakeholders and potential homebuyers or sellers. Additionally, we’ll advise clients on whether 2023 was favorable for buying or selling new homes and present predictions for the 2024 market.

Monthly Median Sale Price Per SF in US$ (Jan-Nov 2023):

Analysis:

Trends and Relationships:

• Overall, there is a fluctuating pattern in the median sale price per square foot throughout the year, indicating market volatility.
• The highest median sale price was observed in July at $318.89 per square foot, while the lowest was in November at $293.95 per square foot.
• From January to March, there’s a slight increase, followed by a significant spike in April. However, from May onwards, the prices fluctuate with no distinct upward or downward trend.

Monthly Percentage Changes:

Annual Average: $303.77 per square foot.

Quarterly Averages:

• Q1 (January-March): $293.57 per square foot.
• Q2 (April-June): $308.60 per square foot.
• Q3 (July-September): $311.10 per square foot.
• Q4 (October-November): $302.12 per square foot.

Closing and Ending Figures:

• Opening Price (January): $295.42 per square foot.
• Closing Price (November): $293.95 per square foot.

Market Analysis and Prediction:
Based on the data analyzed, 2023 presented a mixed scenario for both buyers and sellers. The market witnessed significant fluctuations, with some months showing substantial increases while others experienced declines. Overall, the annual average remained relatively stable, indicating a moderate market.

For buyers:

• 2023 presented opportunities for buyers, especially during months with price dips such as January, February, August, and November.
• However, buyers needed to be cautious as prices fluctuated, requiring careful timing and negotiation strategies.

For sellers:

• Sellers could capitalize on the market during months with higher prices, particularly April, June, and July.
• However, it was essential for sellers to stay updated on market trends and adjust pricing strategies accordingly.

Prediction for 2024:

• The market is expected to remain moderately stable with slight fluctuations.
• Economic factors and local developments may influence the market dynamics.
• Buyers and sellers should closely monitor market trends and seek professional advice to make informed decisions.