Sellers

Alright sellers, here’s the recap of what’s going on with your side of the market:

INVENTORY SHORTAGE = HIGH HOME PRICES

We’re not new to this idea, right? After such a hot market over the last few years, we didn’t expect to face the same inventory shortage. However, this lack of supply isn’t from a pandemic or restricted building materials—but sellers unwilling to list.

Homeowners are starting to get that sinking feeling that their “starter home” might be a little more permanent than they thought. The reason? The insanely low mortgage rate they locked-in back in 2021. 

Those 3% rates have bumped up to 8% and this has resulted in—once again—another shortage of inventory as sellers who would typically list are deciding to stay put for now.

Sellers, this is still your time to shine!

The lack of competition is raising the price of homes, so you could still get top dollar on that starter home! And if you’re worried about how to afford a new place with these high mortgage rates—if you can swing it, we highly recommend creating a plan to buy your home now and refinance once the rates start to drop.

Economists are telling us that they will. Perhaps not tonight, tomorrow, or even by the end of the year—but they’ll slowly creep back down. And once they do? Expect a buyer frenzy that you just narrowly avoided. 

One final note for sellers… there is a smaller pool of buyers out there. It’s crucial you trust your agent when it comes to pricing your home and be open to giving buyers concessions if needed.

Buyers

We know that the housing market is looking a little bleak for buyers at the moment. The reason?

HIGH MORTGAGE RATES + HIGH HOME PRICES = DIFFICULTY AFFORDING A HOME

*Home prices have remained steady with no major dip this year.

Everyone in the industry is like a fish on a hook, waiting to get reeled in by the Feds’ decision to lower the mortgage rates. When will it happen? How long will we have to wait? Why isn’t inflation decreasing?

We’re tired of waiting, too—we promise. But we have some hopeful tips that might lift your housing market spirits: Marry the home, date the rate 

There’s a good chance you might have heard this saying before. It’s a strategy that works great for some, but not all buyers in the current market. 

The concept? Don’t wait until the rates go down. Right now, there are very few buyers in the market, so the competition is lower than it has been in years. However, once those rates start to drop, every buyer on the block will flock to what little inventory we have left.

So, to avoid this intense competition, buy a home now, possibly include a buydown and refinance once the rates adjust.

There are quite a few programs that can assist with the affordability of your home until the rates decrease. If this sounds like a good plan for you, reach out to our team today! We’d love to get the ball rolling and strategize how to get you your dream home—without the competition.



Final Thoughts

This fall presents an opportune moment for both buyers and sellers in the Sacramento real estate market. Buyers can take advantage of more negotiation power and reduced competition. While sellers can benefit from low inventory and high home prices.

There are some challenges to the market, but our team is skilled at coming up with creative, win-win scenarios that will help you navigate these obstacles and come out on top! If you're ready to make a move, don't hesitate to reach out to The Sherri Patterson Team for expert guidance and support throughout your real estate journey.