Housing prices in Sacramento are falling, along with these NorCal cities
It may not feel like it, but the heatwave is cooling down in parts of California. “I think it’s ironic because a few years ago Sacramento was the hottest market ever, and now we’re on the opposite side of the list,” said housing analyst Ryan Lundquist . On that list compiled by Redfin, Sacramento is ranked number two in the nation as the fastest cooling housing market. Other cities in Northern California include Oakland which comes in at No. 3, Stockton at No. 5 and San Francisco at No. 10. “The market has been on fire so much in recent years, and with rising prices, we are seeing a change in the market,” said Audrey Chaney, an agent at eXp Realty. The change is good news for buyers. They have more options, not including new construction projects. Lundquist said there are now 4,000 homes for sale, almost half of which have fallen in price. “Last month, for the first time in 1[ads1]7 months, the average buyer paid was 1% below the list price,” Lundquist said. “For all sales, buyers paid on average last year 4% above the list price.” | VIDEO UNDER | Groveland, Tracy on the list of zip codes in California where home values have risen Not so good for buyers, mortgage rates have doubled in recent months to 6%. Chaney said that even with lower house prices, it can be difficult to pay off mortgages because of the higher interest rates. “Status is and knows what works for you,” said Chaney. And a cooling market means a return to reality. “The reality check is that the honeymoon is over. We have had this two-year period with the most aggressive market ever, and now the market has changed to something else,” said Lundquist. As for sellers, Chaney said they need to adjust their expectations to what their price suggestion should be since the market is changing. | RELATED | Explained: Balancing the real estate market means different things to sellers, buyers
It may not feel like it outside, but the heat wave is cooling down in parts of California.
“I think it’s ironic because a few years ago Sacramento was the hottest market ever, and now we’re on the opposite side of the list,” said housing analyst Ryan Lundquist.
On that list put together by Redfin, Sacramento is ranked number two in the nation as the fastest cooling housing market. Other cities in Northern California include Oakland which comes in at No. 3, Stockton at No. 5 and San Francisco at No. 10.
“The market has been on fire so much in recent years, and with prices going up, we’re seeing a change in the market,” said Audrey Chaney, an agent at eXp Realty.
The change is good news for buyers.
They have several options, not including new construction projects. Lundquist said that there are now 4,000 homes for sale, and almost half of them have had price falls.
“Last month, for the first time in 17 months, the average buyers paid was 1% below the list price,” Lundquist said. “For all sales, buyers paid an average of 4% above the list price last year.”
| VIDEO UNDER | Groveland, Tracy on the California zip code list where housing values have risen
Not so good for buyers, mortgage rates have doubled in recent months to 6%. Chaney said that even with lower house prices, it can be difficult to pay off mortgages due to higher interest rates.
“A lot of people can get discouraged, but the most important thing is to know that our numbers come up with a plan, find out what your financial status is and know what works for you,” Chaney said.
And a cooling market means a return to reality.
“The reality check is that the honeymoon is over. We have had this two-year period with the most aggressive market ever, and now the market has changed to something else,” said Lundquist.
When it comes to sellers, Chaney said they need to adjust expectations to what their price suggestion should be as the market changes.
| RELATED | Explained: Balancing the real estate market means different things to sellers, buyers
