Remember that cool buyer assistance program I mentioned a few weeks ago from the State of CA? Well, it's already on pause as all of the allocated funds have been committed. That was quick. And, it speaks to the theme of this week. There is more demand than supply. We are in a supply crunch, and that's why prices are sustained. What's more, buyers are paying these prices. Buyer's have accepted these prices. How do I know? I can tell because if you look at the Market Profile below for Sacramento County, price reductions continue to decrease since June of last year and in some areas we are actually seeing increases. Inventory is still declining as houses are being purchased, and, both the average days on market and median days on market are showing down trends. It's my belief that the 20% down buyer assistance program could affect housing prices over the next 30-60 days as well since buyers approved for the program were more than likely rushing to get an offer accepted to ensure they would be awarded the down payment. This remains to be seen, and is only me thinking out loud, but hopefully you can see where I am trying to go with it. I am going to repeat my advice from last week's newsletter. If you are in the market as a buyer, please go and look at the homes that have been on the market for even 15+ days, but ideally 30+. Yes, there is a reason it is still sitting there, but could it work? Does it meet 80% of what you are looking for? How likely is a home in your search to meet 100% of your check boxes? If you own your home currently, did it meet all your requirements when you purchased? Let me know, I'd love to hear! What are you seeing or hearing? I'd love to know paul@guiderealestate.com |
