Would you currently describe Sacramento as a Seller's Market, Buyer's Market or a Balanced Market?

Asked by Trulia Sacramento, Sacramento, CA Tue Apr 2, 2013

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Eddie Martini’s answer
Eddie Martini, Agent, Auburn, WA
Fri Apr 5, 2013
Sacramento as a WHOLE is in a fast moving Sellers Market. There are still however less desirable pockets that have properties in poor condition and have remained on the market beyond 2 months forcing price reductions in order to get into contract with a buyer. These are the remaining REO or BANK OWNED Homes (occasionally you will have a Short Sale that is in this category) that have been abandoned and vandalized causing them to become distressed properties that have limited financing options or are cash only for offers they can or will accept.
Banks have obviously caught wind of this shift in the market. Jr lien holders are stalling if not completely canceling active Short Sales by only agreeing to 20-30% payoffs on current balance due from the borrower/home owner. Most if not all 1st lien holders will only allow/agree to a $6-10K payoff to a Jr lien holder. They have put in writing time and time again that they will foreclose verses taking a lessor payoff. This will allow for some REO/Bank Owned inventory to come to the market through this year and some may trickle into 2014. In the mean time you will see people taking more pride of ownership and increasing the already higher values and hopefully keep us on a positive market gain for year to come.
Eddie Martini
DRE#01324382
0 votes
Keisha Mathe…, Agent, Elk Grove, CA
Tue Apr 9, 2013
It is definitely a seller's market. The three big sellers: banks/Short Sales, banks/REO, & Traditional Sales (in that order lately overall).

The banks as the "Seller" have control over the final purchase price. In some cases, intentional overpricing by investors is occuring as a practice (Fannie Mae, and now Freddie Mac is following suit). This practice, combined with low inventory and a surplus of buyers have prices on the rise. The trickle down effect has traditional sellers doing a little recovery victory dance as well!

Speaking of recovery, some potential short sale patients, as a result of seeing increasing prices, are moving from ER to the waiting room and may soon be eligible for a traditional sale.

But, be not dismayed buyers. This market is leaving no one behind - interest rates are at their lowest and home prices are half of what they were seven years ago. So it's also STILL a great time to buy!

Keisha Mathews, REALTOR®
CDPE®, HRC®, HAFA® Certified
"SAR Masters Club Member 2012"
Mathews & Co. Realty Group
@ Century 21 Landmark Network
keisha.mathews@century21.com
http://www.SheSoldItForMe.com
(916) 370-1803 cell
lic#: 01439130
0 votes
Morgan Larson, Agent, Folsom, CA
Wed Apr 3, 2013
Hands down, it's a Seller's Market.

The definition of a Seller's Market is having less than 6 months of inventory. We've had fewer than 2 months of inventory for over a year. What that means is if no new homes came up for sale, all homes would be sold within 2 months. Wow!

What people often confuse is that it is a great time to purchase, but that doesn't make it a buyer's market. Seller's have the upper hand. Why? Because they are receiving 3, 5, 10, sometimes even 25 offers! The seller has choices when it comes to who will purchase the home.

As a buyer, how you can you make yourself competitive? Shorter closing time frames, higher purchase prices backed with additional funds to close over appraised value, and clean offers asking very little from the seller.

Does this sound unfair? Maybe...but remember 1.5 years ago people were offering way under asking price and having the seller pay for everything. No fun for home sellers!

So things always swing back and forth. Rarely is a real estate market even keel. And remember, it is still a GREAT time to purchase!
0 votes
Sue Archer R…, Agent, Palm Harbor, FL
Tue Apr 2, 2013
It's a seller's market and it will be that way for quite awhile with low inventory and low rates creating high demand and higher prices. Buyers are behind the curve the whole time, because prices are rising and the comparable sold properties are still not recorded when they make their offer.

It's difficult in this market to know how high you need to go to be selected as the top offer, competing easily with 10-20 other offers. While 37% are cash buyers, many others are guaranteeing to pay the difference between appraised vale and offer price. That makes it extra difficult for an FHA buyer to compete when they have little cash to bring to the game.
0 votes
Kylee Roe, Agent, Sacramento, CA
Tue Apr 2, 2013
Seller's market. Buyer's who think they can offer lower than list price, will, or should get an education quick! BUT....there are some highlights for buyers--I have one who offered on a home in Colonial Heights, and was accepted immediately and no other offers! She backed out, due to appraisal challenges, made another offer in Tahoe Park, and was accepted--no other offers.

So for the buyers--keep making strong offers! You will have some luck and get into contract!
0 votes
Grounded. Re…, Agent, Sacramento, CA
Tue Apr 2, 2013
Definitely a SELLER'S MARKET!
VERY low inventory, median price up 24% year over year, extremely low interest rates, etc.
This is the time to make sure you have a well connected, LOCAL agent that can get wind of homes that may be for sale before they hit the MLS.
0 votes
Patrick O'Ha…, Agent, Citrus Heights, CA
Tue Apr 2, 2013
This is definitely a seller's market.
Our two most recent listings received over 20 offers each
and both are in escrow substantially over list price. Of those
40 offers only one came in below list price. That means there
are 38 disappointed buyers waiting for that next new listing.
0 votes
Lyuba Smith, , Sacramento, CA
Tue Apr 2, 2013
Sellers market! Low Inventory is pushing up price.
0 votes
Ute Ferdig, Agent, Auburn, CA
Tue Apr 2, 2013
My observation is that just about anything under $200,000 sells over asking price. About half of those purchases are made by cash buyers. The great majority of homes up to $300,000 also sell above asking price, but only about a third of the buyers are cash buyers.

While cash is still king, this does not mean that cash buyers are able to buy below asking price. The way I see it, the main purpose of preparing a CMA for buyers in this hot price range is to let them know what the approximate fair market value is so that they know how much over value they are bidding. Sellers love those above fair market value cash buyers because they don't have to worry about appraisal values. Is this another bubble in the making? Only the future will tell and of course by then it will be too late.
0 votes
Teri Andrews…, Agent, Auburn, CA
Tue Apr 2, 2013
Sellers without a doubt, even in the more remote areas
0 votes
Jaime Becker, Agent, Sacramento, CA
Tue Apr 2, 2013
It is most definitely a seller's market that predominantly shows in the $400-500k price ranges and below.
0 votes
Maurice Thom…, Agent, Mathers, CA
Tue Apr 2, 2013
I agree with Elizabeth... This is a sellers market. Low inventory = lower supply = higher prices.
High demand = higher prices. With low inventory and high demand it is a sellers market. Please let me know if you have any questions.
0 votes
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