Cooler mornings and evenings in Sacramento usually means a transition to a cooler real estate market as well. Sacramento typically experiences a “seasonal real estate market.” The market over the spring and summer was one of limited inventory and high buyer competition. The homes that were priced correctly, showed well and were marketed by an expert received offers in a few days, sometimes over the list price. The shift in the weather also brings a slight shift in the market as well. Yes, homes are selling but the subtle changes are homes taking a little longer to sell, some price reductions happening for the ones a little overpriced and buyer competition not as fierce as earlier in the year. Interest rates have increased and that has buyers a bit skittish. They will still proceed with an offer but it has to be the right house at the right price. Nothing unusual for this time of year. The odd occurrence though is this seasonal adjustment happening at a time of still very low inventory due to many homeowners not wanting to sell for fear of going from a 3% mortgage to a 7%. It’s a very unique time. Some houses selling, some sitting, not a lot available but also not a large buyer pool as well. Interest rates are the reason. If we see rates move down into the 6% and 5% range, then expect the market to really heat up again. If not, then the market will keep moving along as a mixed bag for both buyers and sellers.
