Even if you haven’t been following real estate news, you’ve likely heard about the current sellers’ market in our Roseville Sacramento area as well as around the country. That’s because there’s a lot of talk about how strong market conditions are for people who want to sell their houses. But if you’re thinking about listing your house in our Roseville Sacramento area, you probably want to know: what does being in a sellers’ market really mean?
What Is a Sellers’ Market?
The latest Existing Home Sales Report from the National Association of Realtors (NAR) shows housing supply is still very low. There’s a 2-month supply of homes at the current sales pace.
Historically, a 6-month supply is necessary for a normal or neutral market where there are enough homes available for active buyers. That puts today deep in sellers’ market territory (see graph below):
What Does This Mean for You When You Sell?
When the supply of houses for sale is as low as it is right now, it’s much harder for buyers to find homes to purchase. That creates increased competition among purchasers which can lead to more bidding wars. And if buyers know they may be entering a bidding war, they’re going to do their best to submit a very attractive offer upfront. This could drive the final price of your house up.
And because mortgage rates AND home prices are climbing, serious buyers are motivated to make their purchase soon, before those two things rise further. That means, if you put your Roseville Sacramento area house on the market while supply is still low, it will likely get a lot of attention from competitive buyers. And that's particularly true now, with interest rates climbing, leading to many buyers not being able to keep shopping right now.
Be Sure to Consider The Other Side of The Coin
Now all that being said, you also need to analyze where you will move to. If you are going to be househunting in the same area, you may be concerned about whether you can find a place and buy it. That's a very real concern for many right now. If you are downsizing, you will probably have no problem. You might have to pay a higher price for the new house than you want. But you're also being paid a higher price which helps things even out. And as long as you plan on staying put for at least 10 years, hopefully all should be well.
If you are thinking of selling due to your own health issues, I would highly recommend you sell now and take advantage of these extremely high prices while you can. It's the nature of the real estate market to go up AND to go down. So best to lock in the equity while it is so high. Especially since we are already seeing fewer multiple offers. As expert appraiser, Ryan Lundquist puts it, “What I mean is inventory is increasing, price growth is slowing, and we’re seeing fewer multiple offers. Keep in mind, it’s not unusual to see multiple offers peak in either April or May, but this year was slightly earlier than usual.”
if you are concerned about a loved one's health and considering moving near them to be available to help, this is another excellent reason to sell now, lock in the equity and move – that's true regardless. But especially true if you are moving to a less expensive area.
Another excellent reason to seriously consider selling now and taking advantage of the still high prices in our area? Aging in Place! I know! I talk about that a LOT. But that's because it is so vital. I'm not saying you have to move into a 55+ retirement community (tho we do have some great ones in our area.)
But switching from 2 story to 1 story is a wise idea as we get older. (It's actually a great idea for all ages, but especially those of us boomers and seniors.) All of my kids have two stories and huge houses for excellent reasons. And when I am in their houses, some days I literally gallop up and down the stairs, just like I've always done. But then there are those days when the galloping turns into a MUCH slower walk – and some days MUCH MUCH slower, depending on how busy those cute grandkids have kept me! 😊 While I miss the extra exercise and steps I used to get in my 2 story homes, I am soooooo glad I am in a cute little single story house that I can manage on my own. And THAT's a GREAT reason to consider selling now, locking in your profit and then shopping for an easy-care, easy get-around home that's just right for you, even if you have to offer more than you want. And let me tell you, if any of you end up with a bad hip, broken ankle (I got that in my 40s 😱) or even eye issues, you'll be so grateful you moved when you did!
The current real estate market in our Roseville and Sacramento area has incredible opportunities for homeowners looking to make a move IF they have a good reason to move. Listing your house this season means you’ll be in front of serious buyers who are ready to buy. Let’s connect so you can jumpstart the selling process.