Here are three obvious signs that the market is starting to shift.
Everyone has been asking me, “Is our market starting to shift?” It is, but don’t worry; it’s a good thing. Here are three reasons why we know this is happening:
1. Inventory is growing. Between June and July in Sacramento and the surrounding counties, we saw an increase in inventory of over 22% and a 9% decrease in sales. This means there are more homes on the market for buyers to choose from, and that should help quell some demand.
2. The average days on market is increasing. The average days it takes a home to sell is slowly creeping up. The average is up to 19 days, and homes that aren’t properly prepared are taking longer than that.
“Prices are expected to rise another 4% to 5% this year.”
3. Increased price reductions. We’re seeing price reductions of up to $20,000 right now. Generally speaking, as the wave of price increases went on last year, everybody felt that their home was worth more than the next one, and many of them were right. Now we’re seeing slower turnover and more homes on the market, so pricing is much more competitive and an important factor in selling your home for top dollar. We’re still getting offers over asking price, but it isn’t the mad fire drill that it was a few months back. Prices are expected to go up 4% to 5% this year, which is a much more healthy rate of appreciation than we have been seeing.
In conclusion, there’s no big reason to expect our market is going to crash even though things are starting to shift. It’s just changing slightly from a hot seller’s market to one that’s a bit more balanced, and that’s good for everyone.
If you have any questions about buying, selling, or real estate in general, don’t hesitate to reach out via phone or email. I look forward to hearing from you soon.
