normal real estate market in sacramento
You might wonder why about 50% of the homes are selling in Sacramento this spring and the other 50% of homes are not selling — especially when you read that we are experiencing a seller’s market for 2014 — and, as usual, this real estate agent has an explanation for our Sacramento housing market phenomena. For starters, this is not really a seller’s market for all Sacramento housing, because it doesn’t fit all of the criteria for a seller’s market. To have a seller’s market, you’ve got to have buyers, and we don’t have as many as buyers as we probably should for the amount of inventory available.
This means if a tree falls in the forest does it make it a sound?
Yes, our inventory is very low as compared to previous years but I don’t see as many buyers out and about our town. I’m not receiving as many multiple offers as I used to a few years ago, it takes longer to get an offer, and the days on market seem a bit longer as well. So, that would make for a pretty balanced market, wouldn’t you agree? Plus, let’s not forget, prices are up! You can probably get $100,000 more for that home than you could have a few years ago. It’s a great time to sell. Rates are low, so it’s still a good time to buy.
If you need to sell and buy a home, the good news is contingent offers are back! Little signals a normal Sacramento real estate market than contingent offers.
It’s also a Sacramento housing market in which some homes in Sacramento will sell very quickly because there is a high demand for that particular type of home, location, price range — or a combination of those factors. Other homes will take longer to sell. Especially those homes that are overpriced. I realize some sellers are exuberantly enthusiastic, let’s say, and optimistic to the point that they’ve priced themselves out of the market, but by golly, they sure do have that sign in the front yard.
I closed a home in Roseville earlier this week in the West Park neighborhood for sellers who are moving to the Midwest. If they had waited another month, they probably would have received the price they wanted, but since it didn’t sell within 2 weeks, they elected to reduce the price a bit to entice an offer. Bam. Flew into escrow with that price reduction. Of course, then they worried that they sold too low — that’s human nature — but they didn’t. They sold at market value, and we negotiated with the buyers to let them stay for a few weeks free of charge.
So, it all boils to if you’re planning to sell, you need to think about which side of the fence you want to be on. Do you want to be on the side of the fence that is receiving offers, going into escrow and closing? Or do you want to sit on the other side that, well, sits. Because only about half of our inventory is selling right now. But low inventory with low numbers of buyers is still a somewhat balanced market. Could this be the new normal for Sacramento real estate?