Home Price Increases Stall and Investors Pull Out of Sacramento Market

By
Real Estate Broker/Owner with StoneCrest 01704912, Cal Bar 242498

sacramento realtorDramatic 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.

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Experienced Sacramento Real Estate Attorney and Sacramento Realtor

Sarah Litchney is a licensed California Attorney, and Sacramento Realtor with StoneCrest Realty. StoneCrest Realty is a full service residential and commercial real estate brokerage.  Click the link to view the StoneCrest Realty blog.

Her practice centers on transactional real estate work. She represents developers, investors, and individual buyers and sellers and their funds in a wide range of matters including acquisitions, dispositions, development, leasing, financing, short sales, general real estate transactions and foreclosures. Her clients range from individuals, investors, corporations, and institutions across all asset classes of real estate, including residential, multi-family and commercial.

Contact Sarah Litchney by calling 916.378.5760.
Attorney, broker at StoneCrest Realty. DRE License # 01704912.
 

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