The real estate landscape is changing in the Sacramento and Roseville areas as we speak. Is this a temporary change or a sign of things to come?
The prices have drastically reduced in our area for the past two years or more and in some cases, have dropped two thirds in value.
The reasons are obvious with all the adjustable mortgage rates, economy, and in many cases, people did not see a reason to stay in their home when the value had dropped so much. They literally walked away from it with hopes to buy a nicer, bigger home in two years at a great price.
But now, I am seeing a change in the past few weeks with mostly the foreclosure and short sale homes. The investors and the home buyers are now coming off the sidelines and out there making offers on these homes. This can be tough for a home buyer who must compete with an investor who has all cash or a quick close.
I have been in several multiple offer situations in the past two week and my buyers are wondering what is going on. I believe that the rules of engagement are changing and changing fast…
Before, you could take your time and try to “low ball” a price but those days are starting to be over. I see a change in the pricing on the foreclosure and short sale homes. The banks are using a new approach by pricing these homes at a great price. This causes a frenzy and in the cases with multiple offers, the price actually goes up and the home is sold quickly.
This is tough for a home seller who must compete with these foreclosure homes to sell. The price still must be right to sell in this market.
I have some theories about the changes we’re experiencing. There are some great buys in our market, people are starting to realize the prices are not going to get any better, the weather is starting to change and, thus, we are getting more into the buying season, and interest rates are incredible.
Plus, the Sacramento and Roseville area is still a very nice place to live and highly desirable. If you are in the market to purchase a home or investment, you will now need to be more aggressive in your stance.
Obviously, the higher end market is still slow but the lower end is getting a lot of activity right now and you need to be prepared. The Rules of Engagement are changing…