While home prices are increasing in the Sacramento area housing market, many homeowners continue to wait for prices to go up further before they are willing to list their homes. As a result our inventory levels are being constrained. Combined with our high demand for homes, we are seeing a shortage of available for sale listings.
Homes still not worth what the mortgage balance is causing potential sellers to wait before listing, hoping prices will go up before selling their homes. Negative equity can often delay home owners from selling because they need the down payment from their current home to purchase another or if they have been significantly underwater on the mortgage to value ratio, they don’t want to have to bring a check to the closing table.
With these reluctant homeowners we are seeing a trend of keeping their existing home as rentals and buying without selling.
Right now we are experiencing a very strong seller’s market but many homeowners are not aware and still think it is like last year and difficult to sell. When I talk to potential sellers they are surprised to learn how easy it is to sell right now, especially in the under $400,000 price range.
If you or someone you know is thinking about selling their home and want more information, give me a call at the MagnumOne Realty office in Roseville or send me an email to firstname.lastname@example.org.