While it’s still a hot market, and prices are up over last year, it feels like it’s starting to mellow. A big part of that is surely the result of interest rates rising. However, it depends on the location. Steve is serving on several committees for the California Association of Realtors and attended meetings this week ahead of the association’s board meeting. Many agents from large metro areas around the state report that the market is still white-hot, with homes hitting values they never expected, but some are saying the number of multiple offers is down and traffic at open houses is slowing.
Note: this article was featured in our April 2022 email newsletter.
Our friend, appraiser and Sacramento-region data guru, Ryan Lundquist, just posted a useful update on his blog this week about this. Some important takeaways:
- The percentage of homes with multiple offers is down from last year, but it was still 72% in April. That’s still really high, but lower than the pace last spring.
- Buyers are paying a smaller premium over list price compared to last spring, but they’re still paying 3-4% over the list price. Last year, it was 4-5% at this time.
- More listings are posting price reductions than last year, too. It’s still a small percentage (less than 6% of listings), but it’s increasing, especially in the million-dollar price range.
The numbers and the talk among agents suggests the market temperature is changing, but it’s still very active and pretty hot.
What does this mean for you?
If you’re a buyer, it’s getting easier to get an offer accepted, because you are likely facing fewer competing offers. But it doesn’t mean it’s bargain-shopping time. It’s just a little cooler than it was last year.
If you’re a potential seller, and you’ve been waiting for the right time, this might be time to pull the trigger. Seeing the market start to slow down just a bit, you may get fewer offers than the neighbor who sold last spring, and maybe it won’t go for $100,000 over the list price, but you’ll probably still sell fast.
To wrap this up, here’s a good summary graph from Ryan Lundquist’s Sacramento Appraisal Blog. The black line is this year’s median sale price in the region, week-by-week.
Home remodeling payback
Have you wondered which home remodeling projects have the best payback in terms of increasing the value of your home? What about those that simply give the homeowner the most joy? The National Association of Realtors just published its 2022 Remodeling Impact Report, and it has a lot of great, easy-to-digest information. They show how much value each project typically returned vs. its cost. The interior project winners? Hardwood floor refinishing and new wood flooring. And while many projects actually cost more than they return in value, their “joy score” is quite high. They provide information on exterior projects as well. Take a look and see what you think!
Farmers markets
It’s that time of year when we’re getting outside more and doing some outdoor shopping. Farmers markets are a great way to find nutritious, fresh food, great flowers, and other cool stuff straight from local farmers. Check out Sacramento area farmers markets here, Placer County markets here, and El Dorado County markets here.
Happy spring!
As always, let us know if you have any questions or would like any real estate help!
Until next time, Steve & Santia