Monday, July 27, 2020
This summer has been different from years before. I suppose this is expected since we're in the mist of Covid-19. We're seeing a higher demand for houses then there are supply and it's causing prices to rise. Most buyers seem to be loosing out on several houses before getting more aggressive and finally getting a house. Since spring, you can see on both charts that the pending's have shot up. Part of the reason for the housing shortage is rates. With interest rates down in the 2's and low 3's, a lot of people are deciding to stay put and refinance. Another factor is people might have trouble getting a new loan due to their job situation. I recently had two buyers fall out of escrow because they were furloughed.
Many of my buyers and clients are interested in what the market is going to do this winter / next year. One can only speculate but I see two different paths depending on the election. Either way the market is going to correct, the timing will be different due to who is elected president. I think we'll hit a downturn softer and faster with Biden and with Trump I think we'll prolong the downturn but it will be worse when it hits.
Uncertainty is in the air. The stock market is volatile, gold prices are soaring.
My last update was mid Feb, before Covid hit. Quite a curve ball I'd say. I've very curious how this will be after the election come Nov. I have to say, some of this seems politically charged.
If you have an investment property and you're considering selling, I'm happy to consult and run numbers to see if now is the time that makes sense to sell. For buyers, I suggest getting a great loan officer that will get you DU approved and you're going to have to be aggressive to get a house right now. Some buyers of mine have given up. It can be frustrating! Having a long time experienced realtor like myself that knows most of the other agents in town is also a helpful factor when trying to get your offer accepted.
Sacramento County Chart thru June 2020
Placer County Chart thru June 2020