Competition and upward pressure on prices
Roseville, CA- There is dramatic shortage of available homes “For Sale” and it is forcing buyers to face strong competition. This is particularly true in the under $400,000 price range. Just this week one of my buyer’s offer was one of twenty-four. Active listings inventory is down almost 50 percent from a year ago. This is not just a Sacramento issue; it is happening across the country. Yesterday, an agent in Southern California told me an offer they made was one of forty-five!
With so much competition among buyers there is upward pressure on prices. Home values are rising in our region despite the coronavirus disruption of the economy. The median price in the Sacramento area is up 10.4 percent from August 2019. In Sacramento county the median price was up to $425,000.
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Buyers are frustrated that they are not getting their offers accepted. Real estate agent feels like they are “spinning their wheels.” Showing and writing offers which are not accepted does not pay the bills and hard emotionally because you want to help clients achieve their objective of buying a house.
The offers we are making are strong. Offers made in the past month in the under $400,000 price range have been over asking by as much as 6 percent. In addition, we are asking our buyers to pay more of the closing costs than has been typical.
The housing market is always changing, and I am confident, over time the market will move towards a balance between sellers and buyers.
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 firstname.lastname@example.org (DRE# 01418097)