Multiple Offers Return on Tight Supply
Roseville, CA- The Sacramento-Roseville area is one of the most competitive housing markets in the country. This is being caused by an imbalance in the supply and demand. At the present time, the number of listings on the market is below the demand. In other words, there are more buyers than sellers.
What does this mean in terms of the day-to-day buying and selling?
- Most homes are getting multiple offers, often with contingencies such as investigation and appraisal waived. The under $400,000 price range is most competitive and exceedingly difficult for buyers who are commonly competing with more than 10 other offers.
- Homes are selling for more than the asking price and go pending with in 4 to 5 days. Our experience indicates sellers are receiving a 3 percent premium.
- Listings in the under $400,000 range which show well and have good locations are getting over asking price offers more than 5 percent above list.
Sacramento-Roseville is one of California’s hottest housing markets and will continue to be in 2021. The forecasts from various sources is stronger than many other metro areas. The tight supply and strong demand are putting upward pressure on prices. We are also seeing Bay Area residents, who can now work from home, coming to the Sacramento area. What this means for home buyers is greater competition to buy a home.
The Sacramento area has about 1-month of supply of homes for sale. This is significantly lower than the national average and a much lower than would be considered a balanced market, 6-months. This is the reason why home values will continue to rise, even with the pandemic.
Market WILL Change
The one rule of our housing market is it will change. There is a natural pull with supply and demand to move towards balance. Homeowners who are reluctant to have people come through their homes will see neighbors sell at higher prices than they thought possible and this will, over time bring more listings on the market. On the demand side, we are already seeing buyers get frustrated after making several unsuccessful offers decide to drop out.
Magnum Realty – Julie Jalone
If you have questions about the current market or a homeowner considering selling and have questions, please feel free to contact me. I can be reached at the MagnumOne Realty office in Roseville (916) 899-6571 or by email to email@example.com (DRE# 01418097)