Is the Market Slowing?
Lots of home buyers are staying on the sideline waiting for the market to slow down, or at least be not quite as insane. As we round the corner past the 4th of July into summer, the Sacramento Valley real estate market feels like it is cooling off a bit.
Ryan Lundquist wrote a detailed blog post on this subject filled with statistics to show that the market isn't quite as hot as it's been. If you are interested in up to date housing market statistics, we highly recommend that you follow Ryan. Ryan is @SacramentoAppraiser on FB.
The stats that Ryan uses look backwards and focus mostly on numbers from June. Here are some thoughts on what we are seeing in July:
- Price Reductions - The market is letting sellers know that there is a cap on how high homes can be priced and we are seeing quite a few price reductions.
- Increased Inventory - While still tight, we are seeing a healthier number of listings on the market. Carmichael, for example, has 76 active listings now compared to 64 at this time last year. This is great to see!
- Less Buyer Competition - While it is still common to compete against multiple offers, our buyer clients are facing a bit less competition.
In summary, the market feels like it has plateaued and become a bit more sane. This, along with interest rates remaining at record lows, is good news for buyers.