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Annual Market Price Cycle

Real Estate markets constantly change. They go up, they go down! Mostly they go up.

But how much do they change over time. It the picture above you can see the Sacrament County median sold price broken out by month. It shows the price change from month to month for each month compared to the previous month; January to February, February to March, etc. These monthly % changes are then averaged together for the years 2012 to 2023.

What is depicted in the chart is the average % change from the previous month, and the outlier % change, highest and lowest, for that month over the 12 year period.

Interesting things about Sacramento County’s seasonality are easily seen.

      1. January has the biggest negative price change from December. No surprise, buyer’s offer and pay less during the holidays.

      1. February sees the biggest % price jump. Not only recovery from January slump, but price growth with buyer demand.

      1. Prices increase month to month through June.

      1. July begins the period of price stability (near 0%) through the rest of the year.

      1. The difference from 12 year high to lows can be spreads between 6-8%.

    Generally the market follows the average, and the cycle does not change much. Yet sometimes, you can have a very interesting year.

    2000 and 2222 were 2 such years. You can see how they varied from the norm.

    Each city across the U.S. has it’s cycle, and they are not all alike. And can vary substantially depending on their weather and human activity. This is an example of just one market.

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