Hello everyone and welcome to another Smokey Day in Sacramento.
Looking through the haze we see a trend that is firming up in the Real Estate Market. For the last few weeks we have seen a constant rise in the number of listings going onto the Sacramento Multiple Listing Service (MLS), it is well over 300 properties a day, sometimes averaging almost 400 new homes listed for sale. The number of sold homes that are leaving the market average between 200 and 275 a day. This leaves a significant amount of properties on the market available to home buyers, which because of the continued COVID lock down is a limited pool.
Basic economics tells us that if supply greatly increases while demand stays about the same, the price of a good drops accordingly. The number of price reductions in the MLS are now beginning to increase daily and we are seeing price softening and reductions starting in some neighborhoods throughout Sacramento.
This is great news if you are one of the few buyer’s who still has a job and wants to buy a home trying to get that sweet under 3% interest 30 year fixed rate loan. It is not so good news if you are a seller hoping for that big sale score.
So, if you need to sell, or have to sell, my advice is not to wait as we slowly fade into the Fall Real Estate market and get closer to the upcoming presidential election with all of its uncertainty. We may be witnessing a slowly building housing contraction- As that old rule of thumb real estate saying goes, “In Fall prices fall.”
Like all economic forecasting our crystal balls always have significant levels of uncertainty, just like the market itself. Play safe.