Dramatic Changes in the Sacramento Housing Market
Just as we have been reporting we have seen a dramatic change in the last few months in terms of available buyers due to higher inventory, increased interest rates, and extremely reduced investor activity.
A recent article in the Sacramento Bee cites real estate data and trends from DataQuick and confirms what we have been reporting that we have been seeing in the market and with regard to our listings.
Sacramento Home Price Increases Flatten
The drastic price increases that we have seen over the last couple of years and last year in particular have halted and prices have now flat lined. DataQuick reports that prices in Sacramento County have been flat for four consecutive months and basically price increases hit a wall mid-summer.
Sacramento Investor Activity Plummets
Investor activity plummeted rapidly to the lowest level in the four-county region in three years from 45% of buyers who were investors in January 2013 to just 29% in October. Cash buyers, who are also typically investors, also fell rapidly to their lowest level in 5 years; from 43% in February 2013 to just 25% in October.
If Interest Rates Rise and/or Inventory Increases Prices are likely to Decrease Again
If interest rates continue to creep up or even spike as experts predict they will, or as inventory continues to increase if there is not the buyer demand (since investors are out) prices will naturally start to decline again and short sales and foreclosures will once again rise which will continue to put downward pressure on prices.
Now May Be the Time to Sell; Contact a Sacramento Realtor and Sacramento Real Estate Attorney
This article and the data it cites confirms what we have been telling our clients. That is if you are already still upside down despite the price increases, it isn’t going to get any better in the near future and you aren’t likely to have equity.