Without a doubt one of the more surprising things I’ve experienced in my better than 3 decades as a Real Estate Professional, is just how quickly markets can change direction, after what has been a prolonged downturn. I saw it occur in the early 1980s, and then again in the 1990s.
This more recent brisk housing turn in the Greater Sacramento region, is a testament that it’s happening once again.
I have followed home listing and sale statistics for years. In fact, I often create the little graphs, which I post here on my blog. If you want to know the difference a year can make in Sacramento housing, try wrapping your arms around the idea that there were approximately 10,000 homes on the market at the peak of the recent Buyer’s Market; BUT with this current Seller’s Market we are experiencing a significant shortage of available homes for sale – approximately 1200.
The lesson learned from housing and other economic cycles, is just that! They are mere cycles! It takes time for markets to find their equilibrium when a shift has occurred.
The especially good news emerging recently is home prices in the region rose approximately 7% in 2012, with a prediction of about 12% increase for this year. More homeowners are finding themselves in a more positive equity position, with fewer being underwater.
Real Estate Professionals, who once were predominantly performing short-sales, now report more activity spent on traditional listings and sales. And, that is certainly a good thing!
I’m not known for making predictions, because it’s far too easy for unknown events and factors to shake up the marketplace. However, I suspect the shortage of available homes listed for sale will improve somewhat, as homebuilders continue to wake from their long slumber to create habitats for us all. What do you think?