If you’re anticipating the real estate market to cool to “cold” towards the end of the year, recent sales, statistics, and even a burned-down home in Boston (which was listed for $400,000 and went pending in under a week) prove otherwise. So… if a crash is not in the forecast, what should you expect to see in the upcoming months? We’ll walk you through what we know.

SUPPLY & DEMAND IS STILL IMBALANCED, BUT NORMALIZING

California Association of RealtorsAccording to the California Association of Realtors, the market remains far from cool, however, supply-demand is experiencing more of a “normal” imbalance, as compared to what it has been in the past year or so. More than 62% of transactions that closed in September closed above asking price, but that number is down from a peak of more than 70% in June.

HOMES ARE GOING PENDING IN LESS THAN 2 WEEKS

Data show that homes are still selling in less than 2 weeks, but buyers have a little bit more time and a little bit less competition for each listing. If you are looking to put your home on the market, now really couldn’t be a better time. It remains a seller’s market, and it’s still quite competitive for buyers.

Infographic courtesy of California Association of Realtors

MORTAGE RATES ARE INCREASING

This year, rates sat well below 3% for months, however, mortgage rates may finally be heading the way many housing experts have expected them to travel by this point in 2021: sharply upward.

If you did a refi or home purchase this year, taking advantage of the historically low rates, well done. If you’ve been delaying a refi because you’re expecting rates to fall further, consider speaking with one of our trusted lending partners to see what financial move would be in your best interest.

Since rates are still low but are expected to rise even more next year, if purchasing a home has been on your mind, now is the time to get together with our team to help you take advantage of this incredible market.

THE MARKET WILL APPRECIATE SIGNIFICANTLY

Though "crash" articles get clicks, real estate will appreciate at an above-average rate through late 2021 for three reasons–scarcity, utility and demand, according to Keith Weinhold, creator of the Get Rich Education real estate investment podcast. There is a shortage of 6.8 million housing units, and since the home is now the new workplace for millions of remote workers, demand is at its highest.

LOW INVENTORY IS HERE TO STAY (AT LEAST FOR NOW)

Simply put, there is a lack of inventory in the affordable housing space. Builders are building houses that the average American cannot afford. Inventory is continuously shrinking and there are more buyers than ever for that product. As a result, multifamily vacancies will go down and rents will increase.

SO, WHERE DOES THAT LEAVE YOU?

If you’re a seller, get out your champagne glasses, because now really is a time to celebrate. With low inventory and low-interest rates, our advice would be to take advantage of this market while it continues to favor you.

Keep in mind that interest rates are increasing, and according to recent data, despite a shortage of homes on the market because other homeowners are catching on to the benefits of selling right now, competition is increasing.

If you are considering selling your home, we encourage you to work with an experienced real estate team that can help you price your home right, get multiple offers and go pending in a reasonable time.

For more information on the current Sacramento housing market, contact our award-winning team! 916-801-1105