The changes in the weather have been crazy this year, but so have the changes in the real estate market.
We went from a red-hot market a year ago, firmly in home sellers’ hands, to a market at the end of 2022 that had rising inventory and buyers capable of negotiating price reductions and credits from home sellers.
Those changes lasted for a few months, but now we face a new type of market.
Demand from home buyers is now lower than last year due to their purchasing power being diminished by higher rates, but we also have had an equal if not greater decline in supply due to fewer listings being added to the market compared to last year, possibly due to the same increase in interest rates.
There were 42% fewer new listings added to the market this February than in February of last year.
Because of this lack of new listings, the balance has shifted back to home sellers with only 1.1 months of inventory for Placer County.
What is interesting, is that certain subsections of the market are much tighter than that. There are currently only .6 months of inventory in Rocklin under $750,000. The same is true for Folsom under $750,000.
My clients from the attached video viewed 13 homes with me over the past two weekends. 9 of those homes are now in contract, 5 with multiple offers, 2 with 5 offers, and 1 with 9.
Needless to say, when you are going up against 5 or 9 offers, it is not likely that you will be able to negotiate a price reduction or seller credit.
This market change came on fast, along with the one before it, and before it.
If you would like the help of an agent who remains very informed and active in the field, who can help you succeed in getting an offer accepted in a competitive market, help you take advantage of the market as a seller, or if you just have a question, let me know.
I’m always happy to help ????
Posted by Patrick Hake on