The stats show the market is slowing (and we’re not surprised)

Shocking titles tend to get clicked more on Facebook. So if I wanted more clicks, I probably could have gone with a sensational title like, “The market is taking a turn downward”. Or maybe I could have said, “Big changes you MUST know about in Sacramento real estate.” After all, the stats are showing values are softening, so hyping up this point could certainly lead to more traffic. But you know what? I’m not interested in hype, and I never want more clicks at the expense of my integrity. Yes, the market is growing softer right now, and that can feel scary for some, but truth be told there really isn’t any shock here because this is exactly what we expect to see happen during the fall months. Nonetheless, the fascinating part is the fall season this year has still been different than it was last year. This year is actually much more competitive and far less dull. So let’s unpack some trends below with the goal of understanding what values are doing so we can more effectively tell the story of the market to our clients and contacts. I hope this is helpful for locals as well as out-of-town readers (what is your market doing right now?).

housing numbers - image purchased and used with permission by sacramento appraisal blog

Two ways to read THE BIG MONTHLY POST:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

DOWNLOAD 70 graphs HERE (zip file): Please download all graphs in this post (and more) here as a zip file (or send me an email). Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share (please don’t copy verbatim). Thanks.

One Paragraph to Describe the Sacramento Market: The market has been slowing in the Sacramento area, but it’s nowhere near as slow as it was last year at the same time. Overall sales volume is up nearly 11% in the region this year, housing inventory is down 24%, and homes took 4 fewer days to sell this September compared to last September. There have actually been less price reductions so far this year too. In terms of home prices, the median price, average price per sq ft, and average sales prices are tending to be about 4-5%+ higher than they were last year, though this doesn’t mean values are necessarily 4-5% higher. This is an important distinction because median price increases don’t always translate dollar to dollar to actual value. Keep in mind the median price in the regional market has softened by almost 2.5% over the past few months, and the median price in Sacramento County has been about the same for five months in a row. There are some graphs below to help show the seasonal market, and they remind us it is customary to see the median price soften, inventory increase, and sales volume decline during the fall months. Overall there is still a higher demand than there was last year, but the market is very price sensitive. Buyers simply aren’t pulling the trigger on overpriced homes (sellers, please consider that). By the way, if you missed my post last week, I gave some perspective on “real estate bubble” conversations, and it is a very relevant post as we see price metrics begin to soften at this time of year.

Sacramento County Market Trends for September 2015:

  1. The median price has been hovering around $290,000 for 5 months (3.6% higher than last year).
  2. It took an average of 36 days to sell a house last month (up 2 days from the previous month).
  3. Last year at this time it was taking an average of 41 days to sell a house.
  4. FHA sales were 29.5% of all sales last month (nearly 28% of all sales in Sacramento County last quarter).
  5. Sales volume is 10.1% higher so far in 2015 compared to last year.
  6. Sales volume was 13% higher in Sept 2015 compared to Sept 2014.
  7. There is a 1.74 month supply of homes for sale (similar to previous month).
  8. Housing inventory is nearly 30% lower right now compared to Sept 2014.
  9. The average price per sq ft is 188 (5.6% higher than last September).
  10. The average sales price is $314,317 (1.9% higher than last September).

Median price since 2013 in sacramento county

reo and short sales sacramento county 2

seasonal market in sacramento county median price

seasonal market in sacramento county sales volume 2 FHA and cash trends in Sacramento 3

seasonal market in sacramento county inventory 2

inventory - September 2015 - by home appraiser blog CDOM in Sacramento County - by Sacramento Appraisal Blog price metrics since 2014 in sacramento county

Sacramento Regional Trends for September 2015 (Sac, Placer, Yolo, El Dorado):

  1. Sales volume was up 11.5% in Sept 2015 compared to Sept 2014.
  2. Sales volume for the year is up 11% compared with 2014.
  3. The median price at $325,000 is up 4.8% from last year, but down 2.5% from the past few months.
  4. It took an average of 41 days to sell a house last month (2 days longer than last month).
  5. FHA sales were 23% of all sales in the region last month.
  6. There is 2.06 months of housing inventory (same as previous month).
  7. The average sales price is $360,481 (4.3% higher than last year, but down slightly from three months ago at $370K).
  8. It took 4 less days to sell a house this Sept compared to Sept 2014.
  9. FHA sales volume has increased by 30% in 2015 compared with 2014.
  10. Housing inventory is nearly 24% lower right now compared to Sept 2014.

sales volume 2015 vs 2014 in sacramento placer yolo el dorado county

breakdown of sales fha and everything else in sacramento placer yolo el dorado county

breakdown of sales in sacramento placer yolo el dorado county

median price sacramento placer yolo el dorado county

months of housing inventory in region by sacramento appraisal blog

days on market in placer sac el dorado yolo county by sacramento appraisal blog

Placer County Market Trends for September 2015:

  1. Sales volume was up 7.7% in September 2015 compared to September 2014.
  2. Sales volume for the year is up 15.8% compared with 2014.
  3. The median price in Placer County is $389,000 (about 1% higher than last year at the same time).
  4. Cash sales were 18.8% of all sales last month (very normal level).
  5. It took 46 days on average to sell a house last month (same as previous month).
  6. Last year at this time it took 1 day longer to sell a house.
  7. FHA sales were 16.7% of all sales in Placer County last month.
  8. There is 2.42 months of housing inventory (17% lower than last year).
  9. The average price per sq ft is 194 (5.3% higher than last year at the same time).
  10. REOs were 2.6% of all sales and short sales were 1.5% of all sales last month.

Placer County median price since 2014 - part 2 - by home appraiser blog

months of housing inventory in placer county by sacramento appraisal blog

days on market in placer county by sacramento appraisal blog

interest rates inventory median price in placer county by sacramento appraisal blog

Placer County sales volume - by sacramento appraisal blog

I hope this was helpful. Thank you so much for being here.

Quick Pricing Advice:

  1. It’s normal for prices to cool during the fall. This year the market is not as soft as it was last year at this time, but we are still seeing a softening.
  2. Price according to the most recent listings that are actually getting into contract rather than the highest sales from the spring.
  3. Talk about the difference between actives, pendings, and neighborhood sales on your listing appointments and in your appraisals. See How to use a CMA to gauge the temperature of the market for a fantastic way to quickly explain what the market is doing to your clients.
  4. The market is price sensitive, which means buyers are not biting on overpriced listings despite inventory and interest rates being relatively low.
  5. Remember there are many markets within a market, so price according to the neighborhood market rather than county-wide trends since your neighborhood might be more or less aggressive compared to the entire county.

DOWNLOAD 70 graphs HERE (zip file): Please download all graphs in this post (and more) here as a zip file (or send me an email). Use them for study, for your newsletter, or some on your blog. See my sharing policy for 5 ways to share (please don’t copy verbatim). Thanks.

Questions: How do you think sellers and buyers are feeling about the market right now? What are you seeing out there?

If you liked this post, subscribe by email (or RSS). Thanks for being here.

Six temptations to avoid when the market slows down

At this time of year the weather begins to change, the kids are finally back in school, AND pumpkin spice lattes come back on the menu at Starbucks. Oh, and it’s normal for the real estate market to slow down.

sacramento real estate market- image purchased from 123rf and used with permission by sacramento appraisal blog

The Truth: Real estate is usually very seasonal, meaning the market heats up in the spring and begins to slow down later in the year. This is normal, and we know this intellectually, yet it’s still easy to freak out when properties start taking longer to sell or demand changes. This is why I hope this post will be relevant.

NOTE: There is a difference between a market being slow and showing signs of a seasonal slowing. 

Six temptations to avoid when the market slows down

  1. Freaking out: Just as we expect the weather to change during the fall, let’s expect real estate to change too. The public likes hearing positive news (“values are increasing”), so reporting a market slowing seems negative or anti-climatic, but it’s actually normal almost every single year (see this post and look at the fall graphs compared to the spring). On the positive side, a slower seasonal market might provide space for a vacation, relaxation, and most significantly an opportunity for the real estate community to communicate seasonal dynamics to clients. Of course when a market slows it’s not always easy to be self-employed since paychecks also slow. Yet when we start realizing the market slows during the end of the year, it helps us adjust our expectations and make plans for life and business. There has to be more to the last quarter of the year than being stressed until the market picks up again in the spring.  🙂
  2. Projecting the aggressive spring on summer: It’s easy to look back in time to a more aggressive market and want to price according to sales from the hot spring. But when the market has changed, be careful to look at values for what they are right now instead of projecting hotter seasonal trends of the recent past onto a fading summer or cool fall. This is just the same as not dressing for summer if it is winter (I do wear flip flops year round though). We have to do what makes sense for the current time.
  3. Putting too much weight on sales: Sales tell us what the market used to be like when the sales went into contract several months ago, but listings and pendings tell us what the current market is like right now. When values begin to soften during the fall, this makes it all the more important to look at listings / pendings instead of only sales. If the listings are priced at a similar level to recent sales, but not selling, this tells us the market has changed, and we might need to adjust our expectations (and prices). The same is true with the stock market. We wouldn’t use stock prices from three months ago as our gauge for today’s prices, but instead look at what stocks are actually selling for right now.
  4. Targeting that one magical buyer: We all want to attract the highest price ever, so it’s easy to hold out for that one cash buyer from outside the market who is going to pay more than anyone has ever paid. Yet we have to consider what the rest of the local market is willing to pay (this is what the appraiser is going to be considering too). If you lined up 100 buyers who are interested in the neighborhood, what is the most probable price most buyers would be willing to pay? That’s a good picture of what market value looks like.
  5. Refusing to reduce the list price: It can sting to reduce the list price, but if the price isn’t right, it’s time to change that, right? If you had something for sale on Craigslist and it wasn’t selling, would you keep the price the same? No, you’d change it if you really wanted to sell. How do you know if the price is wrong? If there aren’t any offers, you’re not “in the market”, but only “on the market” (Jay Papasan). An honest question: If the market is telling you to reduce the price, but you aren’t willing to do so, do you really want to sell?
  6. Not listening to your real estate agent: If you are an owner and your real estate agent keeps encouraging you to do something to the property or change the list price, but you’re not listening, ask yourself why you are not listening.

I hope this was helpful.

Social Media Podcast: By the way, a few weeks back I did a podcast with The Appraiser Coach on using social media. Here it is in case you want to give it a listen in the background. It’s geared toward appraisers, but there are probably relevant nuggets in there for anyone in the real estate community. Listen here or below.

Questions: What’s temptation #7? Did I miss anything? I’d love to hear your take.

If you liked this post, subscribe by email (or RSS). Thanks for being here.

Where the market went last year and where it is now in Sacramento

Not sensational, but fairly normal. That’s a great way to describe last year’s real estate market in Sacramento. There was a nominal uptick in value during the first part of the year, but otherwise values were very flat. Let’s take a look at the year as a whole below and delve into some December trends too.

Two ways to read this post:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

Email me for the graphs: If you would like all the graphs in this post (and many more), send me an email. You can use these in your newsletter, some on your blog, and some in other social spaces. See my sharing policy for ways to share.

Sacramento County 2014 Year in Review - smaller

Sacramento County Year-End Stats:

1) Median Price ended at $265,000
2) Average Sales Price ended at $293,646
3) Average Price per sq ft ended at $170
4) Sales volume was down 7.7% in 2014 compared to 2013.
5) FHA sales increased by 11.3% from 2013.
6) There were 38% less cash sales this year.
7) Short sale volume was down 64% from 2013 level.
8) Bank-owned sale volume was down 18.9% from 2013.

1) Values increased only a few percent over the year:

price metrics since 2014 in sacramento county

How much did values rise last year? The median price increased 6% from December 2013 to December 2014, the average price per sq ft increased by 3.5%, and the average sales price increased by 4.5%. It’s easy to look at the median price at 6% and think, “Sweet. Values increased by 6%”, but an increase in median price at 6% doesn’t necessarily translate into an actual 6% boost in value to every property. When we look at other metrics such as price per sq ft and average sales price, those metrics are even lower than 6%. All things considered, the actual increase in value was modest at probably 3-4% at best.

context for median price since the real estate bubble by sacramento appraisal blog

2) Inventory increased this year (declined in December):

inventory in sacramento county  Since 2011 - by sacramento appraisal blog

Housing inventory was flirting with 2 to 2.5 months for much of the year. This means there were generally 2 to 2.5 months worth of houses for sale at any given moment. The peak was 2.75 months in November, and the low was last month at 1.79 months. Remember, inventory almost always declines during December, so don’t make too much of the low number (it doesn’t mean buyers flooded the market).

months of housing inventory by sacramento appraisal blog

During November and December people tend to be thinking of turkey and gifts instead of real estate, so it’s not a huge surprise to see sparse inventory. Moreover, it’s natural to see a lower inventory right now since many owners do not want to list their properties until February or March when the market begins to heat up. As January unfolds though, listings are slowly starting to come back on the market. As you can see, inventory is not the same at every price level, and it was very low in December other than above the $1M range.

 3) Sales volume was down 7.7% in 2014 compared to last year:

sales volume through nov 2014 in sacramento county

Sales volume was down by 7.7% this year, which translated to 1,310 less sales on MLS this year compared to 2013. As you can see by the graphs above and below, volume this year was much lower than previous years. There were more sales in December than November, but that’s not a surprise since November had a sluggish sales volume (and December often has more sales than November, but technically many of these sales got into contract in November).

sales volume in Sacramento County since 2001

 4) FHA purchase volume increased by 11% this year:

FHA sales since 2009 in Sacramento County by sacramento appraisal blog

FHA has been making a big come-back in the market. Why? There are less cash investors, and FHA has been one of the strongest options for many buyers trying to purchase with little money down. This year FHA sales represented about 24% of all sales, whereas last year FHA was just under 20% of the market. Remember that FHA used to represent over 30% of the market from 2009 to 2012, so there is room for continued FHA growth. This year there are bound to be some more competitive conventional products hit the market, and the 90-day flipping rule will thwart some FHA buyers, but otherwise FHA should still be a relevant force to reckon with in housing in 2015.

5) The Fall showed a normal real estate seasonal cycle:

cooler price in Fall 2 - by sacramento appraisal blog inventory during fall 2 - by sacramento appraisal blog

sales volume in fall through 2014 - by sacramento appraisal blog

It’s easy to get alarmed when prices soften during the Fall, but that’s normal. There are simply fewer sales, and inventory tends to be a bit higher too.

6) There were 38% less cash sales this year:

cash sales and volume in sacramento county - by home appraiser blog

Having 38% less cash sales in 2014 made the market feel a whole lot different than 2013. This dynamic really cooled off values and brought about a more “normal” feel. In 2012 and 2013 there was an extraordinarily high level of cash investors playing the market, but without the investors this year it gave us a picture of what demand really looks like in the Sacramento market. It’s a healthy sign to see more conventional sales this year too compared to 2013.

Cash sales since 2009 in Sacramento County by sacramento appraisal blogFHA and cash sales since 2009 in Sacramento County by sacramento appraisal blogFHA and cash sales in Sacramento County by sacramento appraisal blog

I mentioned above that having less investors has helped FHA buyers get into contract more often, and these graphs really prove the point. The same is true with conventional and VA buyers. This past year owner occupant buyers were actually able to get into contract without having to try to outbid investors with deep pockets.

7) It’s taking 20% longer to sell a house in today’s market: 

CDOM in Sacramento County - by Sacramento Appraisal Blog

It took 50 days on average to sell a home last month in Sacramento County, which is 20% longer than it was taking one year ago (40 days in December 2013). Keep in mind it was taking easily 80-90 days at the end of 2011 and beginning of 2012, which was only three years ago. Ultimately well-priced properties are still selling very quickly and receiving multiple offers in some cases, but properties that are overpriced are sitting on the market. This is the classic example of what Jay Papasan says about “being on the market” vs. “being in the market”.

8) Distressed sales were hardly a force in 2014:

REOs and Short Sales since 2013 in Sacramento County

REOs and Short Sales in Sacramento County

Both short sales and REO sales hovered around only 6% of the market for the past two quarters. There are still distressed sales to buy out there, but they are far and few in between.

9) Interest rates are boosting purchasing power for buyers:

interest rates by sacramento appraisal blog since 2008

All the experts keep saying rates are going to increase, but then the Fed keeps surprising us with lower rates. Obviously this cannot continue forever, but for now lower rates are going to help buyers afford more house for their money (and afford to purchase in a market with higher prices).

10) Trends to Watch: Job Market, Interest Rates, and Inventory

layers of the market sacramento county since 2008 - by sacramento appraisal blog layers of the market sacramento county since 2011 - by sacramento appraisal bloglayers of the market sacramento county since 2001 - by sacramento appraisal blog

Three factors to watch this year include interest rates, the health of the local and national job market, and housing inventory. These are three of the biggest players in the market right now since cash investors and freakishly low housing inventory are no longer driving factors.

a) Interest Rates: Rates moving up and down will impact values to a certain extent as buyers will be able to either pay higher prices or not.

b) Job Market: Our economy has been inching forward, but we need local buyers to have higher incomes. Relief at the gas pump will certainly help free up some funds, but that is an external temporary boost for buyers instead of wage growth.

c) Housing Supply: Inventory has been flirting with 2.5 months, and it was poised to grow this coming year (but we’ll see what lower rates do to inventory as more buyers may enter the market). Remember that the market in Sacramento showed declining values any time in the past 15 years when inventory was higher than 4 months of housing supply. We like to say “5 months is a normal supply of houses”, but that’s not the norm for today’s market. In short, let’s keep our eye on how high inventory goes because the market is very sensitive to increases in inventory.

Questions: How would you describe the market in 2014? Anything else you’d add? If you are not in Sacramento, are there some similarities here that also resemble your market? I’d love to hear your take.

If you liked this post, subscribe by email (or RSS). Thanks for being here.

The real estate market continues to soften in Sacramento

uncle ricoHave you ever met someone stuck in the “glory days” from high school or some other period of life? The best example I can think of is the character Uncle Rico from the 2004 film Napolean Dynamite. This guy could do nothing but think about his former life as a quarterback, and how if he could just go back in time, he’d win the state football championship. He simply couldn’t move on because he was fixated on the past. But isn’t that sort of like what is happening in real estate today? Many sellers are stuck in the mindset that the market is still aggressive like it was in the “glory days” of 2012 and the first half of 2013. But the market has changed. Let’s take a look at ten quick talking points to help explain what the Sacramento market is doing, and why it is moving the way it is. I hope this is helpful for you and your clients.

Two ways to read this post:

  1. Scan the talking points and graphs quickly.
  2. Grab a cup of coffee and spend a few minutes digesting what is here.

free market trend graphs from sacramento appraisal blog

1)  The median price has been flat for FOUR MONTHS in a row:

median price and inventory since 2013 - by sacramento appraisal blog

The median price has been $270,000 for four months straight in Sacramento County. Can you see why many in the real estate community have been describing the market as flat? Remember of course that not every neighborhood or property type in Sacramento is experiencing this same flat trend, but there is no mistaking the market has been leveling off.

But Trendgraphix Showed an Increase? Trendgraphix in MLS shows the median price increased from $270,000 to $272,000 this month, but unfortunately that’s not an accurate number since they pulled their data a bit too early before all sales from August were entered into MLS.

2) Average sales price has also been flat:

price metrics since 2014 in sacramento county

If you need wisdom, don’t just ask one person for advice, but seek the council of a few. It’s the same in real estate. We need to be careful to not just look at the median price to determine what the market is doing. Let’s also take a look at the average price per sq ft and average sales price in Sacramento County. Of course we can check out other metrics too, which we’ll get into below.

price metrics in sacramento county

As you can see, the past few months of each metric above shows the market is flattening out. The market tends to cool down as summer fades away, but just as I said last month, the cooling began early this year, so it will be interesting to see how the Fall unfolds.

3) Distressed sales are still very low:

REOs and Short Sales in Sacramento County

REOs and Short Sales Percentage and Volume in Sacramento County

There have been slightly more bank-owned sales over these past few months, but any uptick has minimal at best. There is no “foreclosure flood” that has hit the market as REO sales were still just barely over 5% of all sales last month. Short sales have persisted to decline, and only represented about 6% of the market last month.

4) The number of listings has been increasing (so have price reductions): 

Active listings in Sacramento County by sacramento appraisal blog

number of listings in sacramento - July 2014 - by home appraiser blog

There were slightly more listings in August compared to July. If the market unfolds like it did last year, listings will increase again in September, but then begin to decline as a part of the normal cooling season in Fall (we’ll see what happens though). The psychology of buyers has been changing drastically over the past two months as buyers are gaining more power from sellers. Buyers seem more prone to believe time is on their side, they are aware of price reductions, and they are generally not willing to pay top dollar unless it is truly warranted. The market has been inching toward a buyer’s market over the past 15 months, but these past few months there were some very big strides taken toward a buyer’s market. In August there were seemingly about 400 price reductions every single day in MLS. For every new listing that came on the market, it seemed there was about an equal number of price reductions. What does that tell us?

5) Inventory increased again last month and is now at 2.4 months:

inventory in sacramento county - by sacramento appraisal blog

Inventory is now at 2.4 months of housing supply (up from 2.2 month last month). This means there are 2.4 months worth of houses for sale right now in Sacramento County. Inventory for the Sacramento Region increased from 2.5 months to 2.65 months, but I’ll get into that on Tuesday when we look at the regional market and Placer County.

months of housing inventory by sacramento appraisal blog

number of listings in sacramento - by home appraiser blog

Inventory is one of the X-factors for setting the tone of the market and the direction of values. Housing inventory is still relatively low, but the market is very soft despite having less than 2.5 months of housing supply. Our market has been tapering off being on “steroids” (cash investors and 3% interest rates), and now we’re seeing how strong the local market really is now that regular non-cash buyers have to support the market. By the way, as you can see above, inventory is not the same at each price level. Generally speaking, the higher the price, the higher the inventory.

6) Sales volume is down 11% from last year:

sales volume in Sacramento County since 2008

Sacramento County has seen about 11% less sales volume so far in 2014 compared to 2013, and sales volume in August 2014 is down 14% from August 2013.

7) FHA sales were 23% of all sales in Sacramento County last month:

FHA and cash sales since 2009 in Sacramento County by sacramento appraisal blog

FHA and cash sales under 200K in Sacramento County by sacramento appraisal blog

Cash is down and FHA is up. That’s been the story over the past few quarters. Last month 23% of all sales were FHA, while the month before saw 25% of all sales as FHA. This 2% decline shows up on the graph above, but take it with a grain of salt until we add in an extra month of data to round out the quarter. It’s actually nice to see that FHA buyers under $200,000 have been over 30% of the market over the past few months. This is fantastic news since first-time owner occupant buyers can finally get into contract again after getting beat out by cash investors when the market was really hot. If it’s been a while since you’ve brushed up on FHA appraisal standards, be sure you get in tune with FHA minimum property requirements.

8) There have been 44% less cash purchases in 2014 compared with 2013:

cash sales and volume in sacramento county - by home appraiser blog - Copy

Cash sales since 2009 in Sacramento County by sacramento appraisal blog

Did you know there have actually been more non-cash purchases so far in 2014 compared with 2013? At the same time there have been about 44% less cash sales during this same time period. Remember, if cash volume was still as high as it was last year, inventory would be incredibly low, and the market would feel much like it did in early 2013.

9) It took 3 days longer on average to sell a house last month:

CDOM in Sacramento County - by Sacramento Appraisal Blog

On average it’s taking 40 days to sell a home in Sacramento County and 42 days in the Sacramento Region. Last month it took 37 days to sell a home in Sacramento County, and it’s not a surprise to see the days on market increase since the market has been slowing. Forty days is still relatively quick to sell a home because just a few years back it was taking an average of 90 days to sell in Sacramento. Keep in mind many properties are still selling quickly if they are priced correctly. Generally speaking, the higher the price, the longer it takes to sell. There were only 7 sales above one million last month, so take the 1M+ stat with a grain of salt.

10) Interest rates are hovering in the 4% range:

interest rates by sacramento appraisal blog since 2008

Interest rates took a very slight dip last month, and they’ve been hovering in the lower 4s all year. The Fed still hasn’t given any indication they will raise rates aggressively since we all know that would be a disaster for the market because of how fragile the housing market and economy still is. It would be an equal disaster to lower rates aggressively too since that would create more upward value movement, and we really need the job market to catch up to the housing market, don’t we?

Was this helpful? I hope this was helpful for you and your clients. My goal each month with writing such a big post is to help illuminate what the market is doing, and in turn help explain why the market is moving the way it is. The real estate market has many “layers” that impact value, which is why it’s important to take a look at so many trends at one given time.

Summary: The market is slowing down, and it’s simply not the “glory days” of 2012 and 2013 any longer. While this is not cheerful news for some sellers, it’s great news for buyers since they are gaining more power to negotiate. Part of the market softening is normal since values tend to cool as the summer fades away, yet part of it is the market adjusting and trying to figure out how to be “normal” and cope without outside cash investors acting as a “steroid” for values. In closing, a few months ago we talked about signs to look for when a market begins to get soft, and many of these things below have been happening.

signs-of-a-soft-real-estate-market-by-sacramento-appraisal-blog-530

Sharing Trends with your Clients? If you want to share graphs online or in your newsletter, please see my sharing policy. Thank you for sharing.

Questions: How else would you describe the market? I’d love to hear your take.

If you liked this post, subscribe by email (or RSS). Thanks for being here.