Monday, March 26, 2018
When you get down to it, the value of a commodity is derived by supply and demand. In Placer and Sacramento area we've seen a low supply of houses for quite some time. In a typical "normal" market we expect the amount of inventory to last 2-3 months. In the last 3 years or so it's been below 2 months of inventory and closer to 1 month.
These figures take into account the oddball houses, over priced properties, land, and the high end multi million dollar properties that tend to take a year to sell. So, when you're looking for a 2,000 sqft single story in Roseville you shouldn't be surprised that they go like hot cakes. We're seeing values of these types of properties, ie... large lot, single story with a pool going well above expected appraised value. When buyers are willing to throw in cash to cover the difference, that's what it take sometimes to seal the deal. These listings are getting multiple offers driving the prices up. On this note: I have a nice single story in W. Roseville coming on the market in about 2 weeks. It's 2200 sqft single story by Foothills/Junction.
Back to the story, I think we'll see a continued increase of inventory this spring. It normally picks up this time of year; however, so the the amount of buyer so we could very well stay at this equilibrium. Other factors are the feds, jacking up rates. For folks like myself, I'm happy with where I live and I'm at 3.5% fixed 20 year. I really don't have a desire to move! I think there's a growing number of people that want to stay put and not rock the boat. There is a point thou, that people will decide to sell, take the money and run. More and more people are doing just that and leaving the state all together.
My forecast is simple, we're towards the of this roller coaster ride again. I think we're going to see market correction again, and as soon as this winter. Now I'm not suggesting a crash or anything like we went thru before, but just a simple 5-7% reduction. Enough to notice that 2018 was another peak! Only time will tell, I would like for this to continue, don't get me wrong. Business has been great.
Feel free to contact me if you have questions.
Re/Max Gold - Chad Phillips
2998 Douglas Blvd #125
Roseville, CA. 95661