Looking at the Roseville and Sacramento Metro area
Roseville, Calif.- I continue to be asked, “Is the market going to crash?” The housing market I am writing about to answer this question is for Sacramento, Placer and El Dorado counties.
I have reviewed the statistics for each county and here is my update on what the market is doing.
There are only slightly over 1,100 listings on the market. Pending listing total 1,639 and over 1,400 have recently closed. The driving forces for our market are low interest rates, high demand, and low supply. We are now seeing interest rates up, but they are still historically great.
Most experts believe the will continue to rise during the rest of the year. The fallout from the pandemic may be the reason we have high demand and low inventory. Now that many of us can work from home, we are seeing buyers from the Bay Area moving to the greater Sacramento area where prices are lower.
In addition, we are seeing families wanting to have bigger homes to provide space for work and study stations. At the same time as demand has grown, the number of sellers has declined. Often the reason being sellers do not want people in their homes and maybe because if they sell, they must find another place to live in a difficult buyers’ market.
We currently only have less than one month of inventory. Anything under three months is a seller’s market, four to five months is considered balanced, and anything over five months is a buyer’s market. Our market is currently dominated by sellers.
Based on my experience, what is going on in the market and what experts are saying about the economy, I am not predicting a crash, but it is going to be a long time to see our housing market slow down and move toward being balanced.
If you have any questions about buying or selling a home in the current market, feel free to reach out to me at the MagnumOne Realty Office in Roseville at (916) 899-6571 by email to [email protected]. I would be happy to answer your questions.
We specialize serving the needs of buyers and sellers of homes in the Sacramento area including Sacramento, Placer, El Dorado, Sutter and Yuba counties.