El Dorado Hills Real Estate Trends
2022 – A Year In Charts
2022 was the year the marketed shifted out of overdrive and into neutral. The difference between the first half of the year and the second half was the reverse of boom the market experienced during the Covid pandemic.
It wasn’t that the number of buyers dropped off, though they did. And it wasn’t that sellers disappeared, though they did. It was the unusual circumstance of both buyers and sellers stepping to the sideline that made the second half of 2022 so unusual.
We all know that that when demand softens, buyers gain the upper hand. An inversely, when supply gets short, sellers have more influence in the market.
What happens when buyers and sellers step to the sideline at the same time?
In the case of the El Dorado Hills real estate market, we got a more equally balanced market between buyers and sellers – albeit one with far fewer transaction.
Home sales fell by 1/3 from 2021 and fell to the lowest level we’ve seen in years
In a balanced market where neither the buyer nor the seller has the upper hand, prices tend to find equilibrium. That’s exactly what has been happening in El Dorado Hills.
The average sales price was almost half-again higher in 2022 than it was just 3 years ago. After all that heady price growth, the gain slowed dramatically in 2022, particularly in the second half of the year.
El Dorado Hills homeowners should be quite pleased with the increase in equity they’ve gained in the past few years
Averages can sometimes be misleading since the very high end of the market can pull average prices up with it – and that certainly has happened in El Dorado Hills. A few years ago a sale above $2 million was unusual. Now we see them ever month!
The media price tends to move more slowly since it measures the middle of the of the market, the price where half of the sales above and below a given price. The media price was also up in 2022 and has experienced a similar climb to average prices since 2019 -,though not quite as big.
The median home sales price in El Dorado Hills is up 39% since 2019
The average price per square foot hit a record high in 2022. Though price per foot will vary by home, by neighborhood, etc., it is a good barometer for the direction of the market in general.
The average price per foot in El Dorado Hills continues to represent a great value for buyers coming from the Bay Area and many other areas around the state and country
The biggest change that sellers are facing as the market has shifted is the length of time it is taking to sell a home.
On average it took a month to sell a home in El Dorado Hills last year. I know that feels like an eternity after watching homes sell in a matter of days for the past year or so. In actuality, it wasn’t too long ago that homes took an average of 2 months to sell!
Buyers are being picky meaning sellers need to be patient
Mirroring the overall market, the luxury home segment in El Dorado Hills saw a significant drop in sales volume last year. This confirms that the market shift does not appear to be demographically or socio-economically isolated.
That said, El Dorado Hills sales over $1.5 million were double the number of 2020 and more than triple the number of 2019.
Luxury homes have become a significant market segment in El Dorado Hills over the past two years
The monthly trend reports shows that luxury home sales in El Dorado Hills started to take off at the end of 2020 and from the Spring of 2021 through the early Summer of 2022 luxury homes sold at an unprecedented rate. Q4 2022 saw luxury sales slow to grind.
Though still to early call a shift, there are more sales over $1.5M already in January than there were in December. This bares watching in the coming months.
2021 and most of 2022 saw the luxury home market take off in El Dorado Hills like never before
What did we miss?
What can we answer for you about the local market or about your home or neighborhood specifically?
Whether you are selling or buying, there are tactics and strategies that will help you to be successful in ANY market conditions – they’re just not the same ones this year as they were last! We’d love to share how YOU can come out ahead in this market!
- 3907 Park Dr Ste 220El Dorado HillsCA95762
- (916) 941-6566
- theyoffies@yoffierealestate.com
