Sorry to say, it’ll get worse before it gets better. The reality is we are in the midst of change and there is a rough patch ahead. But the market will figure this out! We can’t control what the market does, but we can control our response to the market.

Based of the current Market Trends pulled directly from the Multiple Listing Service (MLS) as well as the ever-awesome intel from the almighty local appraiser/guru Ryan Lundquist, we've gathered the latest and greatest information on what we're seeing in the Sacramento Region real estate market right now. 

Remember: The Market Isn't The Same Everywhere

You can't compare the housing market apples to apples across the country or even within local markets. Here are two images from John Burns Real Estate Consulting to show what we mean. Read their original post here.

Prices In Sacramento Are Dipping

Here’s a look at the preliminary median price for November 2022 in the Sacramento region. The median price this year (black line) is officially below last year (orange line), and 40% of pandemic price gains have been wiped away over the past six months. This is exactly what sellers need to hear right now! This median is not a perfect metric as it doesn’t rigidly translate to every price range and location.

Getting Worse Before It Gets Better 

As of now, it looks like we’re going to have the worst November in over two decades in the Sacramento region. November volume looks like it’ll be down about 43% from the pre-pandemic average, and down 49% from last year (Sacramento County is 46% and 50%). Nearly half the market is missing, or we could say half the market is happening. We are still of a positive mindset and here to help you all through this ever-changing market!

Current Mortgage Rates

Side By Side Comparison of Your Mortgage Rate Payment: Six Months Ago vs. Now

What Does This All Mean to Me?

This might be helpful as you plan ahead for the spring market. We still anticipate seasonal volume changes even in a downward market. We are hearing buyers choosing to wait for better inventory in the spring, and some sellers choosing to wait to list in the new year instead of December.

Waiting is not the answer for everyone!! There is a lot of unknown, and here is what we know. The interest rate is at the highest it's been over this last year, but that can change or even increase in the next few months. We have resources out there for buyers to partner with lenders who offer grant programs or other creative financing options that can help make your mortgage payment more affordable even with the higher interest rates. For sellers, it is still technically a seller's market because we have less than 6 months of inventory. It's just about finding the right strategy; making your house the best-looking and the best-priced so it stands out against all competition. 

Thanks for tuning in! If you have any real estate needs or questions please reach out! We want to be a resource whether that’s giving you information on improving your home, renting it out, investing, buying or selling and we have recently partnered with a loan company and can help you with any refinance or lending questions.

Talk to you soon, and Happy Holidays!!