Sacramento continues to be pegged as one of the hottest housing markets for 2017. The Bee had an article in November citing Realtor.com claiming Sac as a hot market to watch this year, and a week ago Zillow claimed the same. What exactly does that mean for you this year?
First of all, are you a buyer or a seller?
As a SELLER, you’ll want to anticipate multiple showings of your home, keeping you busily cleaning your space, and you’ll possibly receive multiple offers on your home. In times like this when we have a combination of low inventory and quote on quote “HOT” markets, sellers tend to push the envelope on price, listing their home for prices above what may otherwise be considered the norm. And many times they even get what they ask for. Just in the past 18 hours alone I have 1) looked up a home in Folsom that sold recently, to find that it closed $25K over list price and received 12 offers! and 2) inquired on a home I showed which I felt was priced too high only to hear that they have received 6 offers already. Things….are….moving.
You’ll want to be cautious though in setting your listing price. You don’t want to list the home so high that buyers no longer see value in the property. That would make your home go stale with no showings and no offers…a seller’s nightmare. There’s a fine balance of pushing the envelope on price and tearing that envelope open with garden shears. 🙂 You also want to be very aware of your property and how attractive it really is to buyers. If you back a noisy freeway or live in an igloo shaped home…there may not be that upward pressure from buyers on price. Be sure to think critically about how attractive your home really is to buyers.
Also as seller, you’ll want to be prepared of where you’re going next…because you may receive a great offer sooner than you think! Do you have plans in place on where you’re going? Are you moving into a rental or buying another property? Be sure to factor this in. The last thing I want you to be is a couch surfer!!
As a BUYER, this will probably mean a tougher, longer haul for you. When things heat up, and inventory is low, competitiveness begins. It all goes back to your Econ 101 class where your teacher discussed supply and demand. Yes, I’m an econ geek here!! Low supply + high demand = an increase in prices. There’s just not that many homes on the market right now…particularly in January. And from what I’ve seen recently, buyers are still looking!!
My best piece of advice for buyers is to have patience. It may take writing up several offers before you get one accepted and are able to move forward. In the meantime, work on improving your financial situation, whether it be your down payment, credit score, paying off debt, etc. The more we can talk about how fantastic your financial situation is, the better!! Don’t settle for a home just because your offer will be accepted because nobody else wants it! When you find that right home, do all you can to show dedication and love for the property. That’s where I come in to help you do all we can.
With January almost over, it will be interesting to see if Sac lives up to the hype that the news has already created. I do think it’s still an affordable market compared to the bay area and many other locations. It’s a growing area with jobs and a perfect location between the ocean and the mountains. I’m energized and ready for a wonderful 2017!!