Back in August I pointed to a report issued by HousingTracker and indicated it was the start of the seasonal decline in the number of homes available for sale. The very next week the numbers started to climb again and have until this week. As of September 10 the number of homes on the market was down 334 or 1.8 percent in the past week. HousingTracker monitors the number of homes for sale and asking prices in the Sacramento area. The week did include a the Labor Day holiday so this could be another false start in the anticipated decline in what has been a summer of record breaking highs in homes on the market.
The overwhelming number of homes for sale in our market combined with fewer buyers has had a dramatic impact on asking prices. Not every seller can sit tight on their asking price and wait for that one special buyer. Most have had to make multiple price cuts to get showings. According to HousingTracker the median asking price for all homes on the market in our area stands at $370,260. During the past week there was a drop of 1.3 percent from the $375,000 median asking price shown for the past two weeks. Over t he past month we have seen a decline of 2.6 percent and a three month drop of 7 percent. For the full year the decline has been 13.4 percent so it is obvious the decline in asking price is accelerating.
What will happen in the next month? Will the increase in foreclosure and “short sales” continue to drive the inventory of homes for sale even higher? I do believe the Labor Day holiday weekend had some impact on the decline reported by HousingTracker on September 10 but I am anticipating we will have fewer homes on the market by the end of the month. As that happens we should see a firming up of asking prices.
When I look at my business and talk to some of my colleagues it is clear most of us have more clients who are sellers. In the past two months I have had three sets of potential buyers each of whom was moving to our area from another location. They all needed to sell their home where they were living. Two of these families have now pulled their homes off the market. One family has made a decision not to make the move the Sacramento area and the other has rented an apartment so Dad, can take his new job and commute home on weekends. They will try to sell their Redding home again next year. The third family is currently living in Indiana and has had their home on the market for over a year. I am just one agent, how many others have similar clients. Real estate is a local business but clearly tied to what is happening in other parts of the country.
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