Hyper-competitive market eclipses record high prices
Roseville, CA- Most real estate analysts agree COVID-19 assisted the current rush of buyers looking to leave the Bay Area and move to the Sacramento-Roseville metro area where it is cheaper to live and they can get more space while working from home.
With the pandemic starting last year, home sales in California, including the Sacramento area, took off. The market recorded the largest month-to-month sale increase in 40-years during June and July and set a record high median home prices.
The pandemic increased demand from buyers but also dampened homeowner enthusiasm to list their property. While demand has increased the supply of available homes for sale has declined to record low levels.
Supply and Demand
High demand and low supply have not only pushed prices up but has created a housing market where sellers expect to be paid more than they are asking, demand buyers pay more of the closing costs and remove contingencies such as inspections and appraisal.
The hyper-competitive market has eliminated those buyers who do not have resources to cover costs including appraisal shortfalls and free seller rentbacks.
We represent a fair number of Veterans and military active-duty families and many of them do not have the cash reserves to pay the amount of closing costs sellers are asking for and who cannot afford to buy a house worth less than the appraised value. Until we have more balance in the marketplace and sellers who are willing to negotiate, these buyers must sit on the sideline and wait.
Julie Jalone – Magnum One Realty
If you have questions about the current market or a homeowner considering selling and have questions, please feel free to contact me. I would be happy to share my experience and can be reached at the MagnumOne Realty office in Roseville (916) 899-6571 or by email to email@example.com (DRE# 01418097)