According to MLS data, the median sale price in the Sacramento tri-county region (Sacramento, Placer and El Dorado counties) through October (most recent figures) was up 8 percent in 2015 from last year to reach $314,000, according to local MLS data analyzed by Coldwell Banker.

Strong buyer demand, a vibrant local economy and a continuing decline in the inventory of homes on the market combined to make 2015 another seller’s market throughout Northern California. Healthy job growth, especially in the technology sector, the biotech industry, and financial services, fueled demand for homes – everything from entry-level properties to million-dollar estates.

Another factor that helped bolster the housing market was a continuation of attractive mortgage interest rates, which remained near historic lows this year and continued to help make homes more affordable.

According to Freddie Mac, the average 30-year fixed rate mortgage in the U.S. as of mid-November stood at 3.98 percent. Although the Federal Reserve is considering a rate hike this month, the California Association of REALTORS® (CAR®) believes that any boost in rates will be relatively small and will increase gradually in the coming year.

One of the biggest challenges to the housing market in 2015 was that there were just not enough listings to meet buyer demand. The number of homes for sale year in the Sacramento tri-county region was down 24 percent in October from last year, when inventory was already lower than normal.

The shortage of listings led to competition between buyers for the best properties, and even multiple offers and some bids over the asking price for certain homes.

The limited inventory kept sales in the greater Sacramento region down in October with 9 percent fewer homes changing hands compared to a year ago. But year-to-date, sales were still up 10 percent compared to last year at the same time.

Statewide, CAR® expects 2015 existing, single-family home sales to reach 407,500 by yearend, up 6.3 percent from the 383,300 transactions in 2014. CAR® also projects that the median sale price statewide will finish the year at $476,300, up 6.5 percent from last year.

CAR® Vice President and Chief Economist Leslie Appleton-Young said several key factors came together to create a healthy housing market in 2015, and she expects that will continue in the coming year. “The foundation for California’s housing market remains strong, with moderating home prices, signs of credit easing, and the state continuing to lead the nation in economic and job growth,” she noted.

If you’ve been thinking about selling your home, now may be a good time to take advantage of the current seller’s market. There just are not enough good homes on the market right now.

I know you may have questions about making a move, what your home might be worth, and what’s involved in putting a home up for sale. I’m happy to walk you though the process and answer any questions you may have. Please give me a call or e-mail me today and we’ll get started!