What Types of Homes are Selling in Sacramento?
For sellers who wonder what types of homes are selling in Sacramento, I have answers. Sellers whose homes have been on the market for a while seem to still be recalling our spring market, hoping for the best. Our spring market started off with a bang but by May, for example, many of my listings, like many others, endured price reductions. We had been overly aggressive with pricing, and that strategy doesn’t work anymore. Neither does selling a home in its AS IS condition, unless it is a major fixer or a probate. And many probates are fixers homes.
When I go out to meet with sellers, it is sometimes difficult to explain they are not sitting on a “gold mine.” In fact, not only will they NOT get a bunch of multiple offers all exceeding list price, it’s a fixer. To avoid having them glare at me and think evil thoughts behind my back, I do try to explain in the kindest way possible that our market has changed. If a seller’s intent is to sell her home as a fixer, we can do it. Fixer homes are selling. There are always a market for fixer homes. But there is also a steep discount associated with fixer homes.
What are fixer homes? Today’s buyers view these homes as fixers: any home with older carpeting, popcorn ceilings, outdated appliances, tiled counters, vinyl or linoleum floors and older light fixtures. The home can be in excellent shape otherwise, but if those defects are not corrected, it will be hard to sell, if it sells at all. We should get used to 60 or 90 days on market now. It can take a lot longer to sell upper-end homes as well.
This is not a market to put a not-so-nice or non-updated house on the market, you know, like an average house. Because average house are not selling. At any price. To discover which types of home are selling in Sacramento, apart from my own experience, it’s easy to catch that action in MLS. I studied how many homes closed escrow the first half of September in Sacramento, and we’ve had 476 homes close in Sacramento County this month. Pending numbers are 1,076 for single-family homes, and probably a third of those will blow up.
I can also look at the days on market for other homes. Sure enough, if I check the history, I’ll find price reductions. Most houses will sell if the price is right. But that doesn’t mean other types of homes are selling in Sacramento. What I see are homes in tip-top shape, with all the bells and whistles and amenities a buyer wants. These types of homes, flipper homes included, will sell.
But if your home isn’t updated or fixed up, it might not sell without an aggressive discount. Buyers are no longer jumping on every new listing. Some have given up and left the marketplace because affordability has become an issue. Interest rates are rising, conventional at 4.75%. Median price points still stable. Attractive market but not as attractive. Others sit on the sidelines to see how long a seller will keep an overpriced home on the market. Like vultures. Waiting for that price drop.
It’s a new world in Sacramento real estate for listing agents. Adapt, educate, inform and conform. The only other alternative is to get out. And we’re certainly not doing that. Not after 40+ years selling. But some other agents might bail.