What’s Going On In The Market?
Everyone has an opinion:
Buyers aren’t buying There is not enough home’s on the market
Prices are too high Interest rates have gone up
The market is cold Housing market is slowing down Buyers won’t make solid offers
What should we believe?
Too help with some of the answers we have included a snap shot of today's market below:
Greater Sacramento Area
Number of homes for sale increased by about 1200 homes over the last 15 months
Number of sales have stayed steady for about the last 6 months
Months of inventory has gone from 1.4 to 2.6
Average sold price - 280K to 309K
Average Dollars per square foot - $162 to $178
Days on market 23-33
(Of course this a very from area to area, if you want specific information please call either of us at 916-544-2066 or 916 425-1100)
Unquestionably, we have more homes on the market which means homes are staying on the market a longer period of time. Homes sold have stayed about the same because of a couple of things higher home prices, tighter restrictions on what buyers are qualified to buy , world events, kids are back in school, and the holidays. Months of inventory is still showing in a seller’s market range, but we do see some sellers reducing prices, or willing to pay some of the closing costs.
What Do We Think?
Our feeling is it is still a good time to buy or sell based on the advantages to buyers and sellers:
Interest rates are still low (4% and below) Market is holding steady on price
More choices of homes More buyers qualify before rates go up
Less chance of competition on homes Buy your new home at low rates
Most homes still in buyers price range Inventory still says seller’s market
Close now for this year’s tax credit Homes still selling in reasonable time
Be in a new home for the holidays frames
Expected price increases in 2015
Still more cost effective than renting
Fannie Mae and Freddie Mac are both in the process of considering loosening rules for buyers which will help both buyers and sellers.
Buying a home is just the opposite of playing the stock market, it is very hard to sell high and buy low. So homeowners best bet is to buy while the interest rates are low as the savings over the span of a loan will probably be much larger than what you may gain by waiting 6-8 months for prices to go up. Plus the home you want to buy will probably be higher. This is a good time to downsize, upsize, or move to a different neighborhood. There are more homes to pick from (including all the new building going on) and interest rates are still low.
We are seeing a healthy leveling-off of home price’s, the market is showing a nice normal stabilizing effect after the bumpy road behind us.