El Dorado County Housing Market Trend for May 2007

Now that Spring is finally here (and summer's just around the corner), more families are beginning to consider making a move.  Mortgage rates are still in a state of flux but are tending to steadily increase in the long run due to concerns about inflation.  The high-appreciation period that we experienced over the last few years has ended and we're now looking at a more normal 2 - 3% per year.  There are still some overpriced homes on the market, but if the sellers are serious about making a move, they'll need to finally realize the boom market is over and they need to adjust their price accordingly.  Housing inventories are still very high meaning there are quite a few homes on the market from which to choose.  This makes it easier on buyers because they can make a decision based on comparison and they're not rushed into that decision by the mutlitple offers we were seeing over the last couple years.  Remember that the value of a home is decided by the market as the price an educated buyer is willing to pay and an educated seller is willing to accept when neither is forced into a decision.