A recently released survey indicated 72 percent of agents described the current market as a “good time to sell.” This is down from 86 percent from the previous survey conducted in the second quarter. Agents describing this as a “good time to buy” increased from 46 to 55 percent during the same time period.
In addition the survey indicated limited inventory and bidding wars were the biggest challenges for buyers. As reported by 62 percent of the respondents indicated sellers have unrealistic expectations about the value of their homes and 30 percent saying sellers are having problems getting their home to appraise for the contract price.
Although this is a national survey, it mirrors our recent experience here in the greater Sacramento real estate market. Earlier in the year, buyers had to make extraordinary offers to get a home in contract, especially those which were in good locations and showed well. Almost all of those homes were going for over asking price with multiple offers. Sellers were putting an emphasis on all cash offers or those where the buyer took the appraisal risk.
More recently with the edging up of interest rates and home prices up, the Sacramento market appears moving towards a balance between buyers and sellers. We believe there is still a pent up demand for housing but until some of the uncertainty of the current environment is corrected we are not going to see any significant increases in listings and sales.
The survey reported 70 percent of the agents believe home prices will rise in the coming months, versus 97 percent in the first quarter. Only five percent expect home prices to “rise a lot,” down from 44 percent in the first quarter.
Current California Housing (August 2013):
- Median home price: $441,330
- Highest median home price by region/county August 2013: San Mateo, $980,000
- Lowest median home price by region/county August 2013: Del Norte, $100,000
If you or someone you know is considering buying or selling a home and has questions about if this is the best time to move forward, please give me a call at the MagnumOne Realty office in Roseville (916-899-6571) or send an email to JulieJ@Jalone.com.