Land Park, East Sacramento
and Curtis Park Specialist

SACRAMENTO’S REAL ESTATE MARKET – A SWITCH WAS FLIPPED

SACRAMENTO’S REAL ESTATE MARKET – A SWITCH WAS FLIPPED

Diane and Bill are going out to their favorite Sacramento restaurant to celebrate. Months ago they made the exciting and scary decision to purchase their first home. They researched the process for purchasing in the Sacramento real estate market and discovered that first, they had to get prequalified to be certain they could qualify for that perfect home and could give a letter reflecting this to the seller when they made their offer. Then, after talking to friends and family, they interviewed several Realtors, settling on one that they felt they could trust and, at the same time, one that they thought would make the process a smooth and enjoyable one. They were ready.Then, someone flipped a switch and the Sacramento real estate market changed. No longer was there a plethora of homes to view. Homes in their price range started selling before they even had a chance to view them. In a strange turn of events, it was no longer a buyers market, even though homes were still very affordable. Simply put, there were too many buyers and not enough homes to buy. This is not a unique story in the Sacramento real estate market, or the California one for that matter. In an industry where a normal inventory is 5-6 months (the amount of time it would take to sell all of the homes on the market at any given moment in time), Sacramento’s inventory is below 1 month. Prices are still competitive, but certainly not dropping any lower. As a local lender put it, interest rates are truly at an all time low.The result of all...