Buyers are turned off right now. This is true about the market as the number of pendings has plummeted since April, but it’s also true about busy locations. Today, I have some fresh perspective and stats. I hope this is helpful.
UPCOMING SPEAKING GIGS:
7/16/25 Comps & Adjustments (3 hours)
7/17/25 Jamie Pierroz Event (private)
7/22/25 Investor Event (register here)
7/25/25 Prime Real Estate (private)
7/31/25 Thomas Harris Event (TBA)
8/6/25 Realtor Event TBD
9/10/25 Windermere Sacramento
9/16/25 Culbertson & Gray (private)
9/24/25 Keller Williams Roseville
9/26/25 PCAR
9/30/25 Elk Grove Regional MLS Meeting
10/15/25 EDH Coldwell Banker (private)
10/21/25 Orangevale MLS Meeting
11/4/25 SAR Main Meeting
BUYERS ARE TURNED OFF ABOUT BUSY STREETS
It’s not like buyers were ignoring busy locations in the past, but today any perceived adverse location is standing out like a sore thumb. When the market was ultra-competitive in 2021, buyers were prone to be more forgiving of a busy street since there weren’t as many options, but that’s not the vibe today since supply has been growing more than demand. Do you agree? What are you seeing out there?
I talked to an owner this week about a listing that is not selling, and it turns out he’s on a busy street. After chatting for a good chunk of time, I asked if it was possible that the busy location was underestimated in developing the list price, and the owner said that was likely the case. The good news is after a couple of price reductions, the property is at least getting showings (which tells us value is likely close).
My advice? Recognize how picky buyers are about location, condition, and price in today’s market. And don’t underestimate how much location can truly matter to buyers today. When it comes to comps, be sure you’re finding other homes with similar location issues. Don’t simply say, “Well, I’m just going to subtract $5,000 or $10,000 because that’s what I’ve always done.” Why not dig into the comps to help understand the impact of a busy location? Find properties in the immediate neighborhood or competitive areas that sold with an adverse location, and try to unpack how much the location impacted the price. When we do this, we might find instead of adjusting down $5,000 or $10,000, maybe it’s 5% or 10% (there isn’t a one-size-fits-all answer here, so we have to look to the comps).
WORST SALES VOLUME EVER FOR JUNE
The pool of buyers has been shrinking lately, and that’s huge for sellers to recognize. In fact, sales volume in June in the Sacramento region was the worst we’ve seen since MLS went digital in 1998. And this is especially bad since we’ve had population growth through these decades. I guess the positive news is that volume is only barely lower than one year ago, so at least it wasn’t dramatically different. By the way, in coming months, I suspect 2025 will do better than 2007 numbers since 2007 got absolutely crushed during the second half of the year.
Placer had the second worst June next to 2007, so it wasn’t technically the lowest June ever. So, congrats?
BEST MINDSET EVER
While talking about the worst volume ever, I want to mention the importance of cultivating the right mindset. For anyone who works in real estate, it’s all about keeping your head down, running toward the challenge of this market, having optimism for life and business, and connecting with people who have incentive to participate in today’s housing market. Remember, if we’re missing 30% of the normal number of buyers, that means 70% of buyers are present. How can you connect with the 70%? That’s what matters.
MORE BUYERS ON THE HORIZON?
Since April, we’ve seen buyers step back in light of more uncertainty. Check out the blue line below. But in the background mortgage applications for purchases have been increasing, so eventually we’ll see more buyers. For now, there’s a clear disconnect between more applications and actual sales happening though, so don’t get too hyped.
SELLERS ARE ALSO PUMPING THE BRAKES
Sellers have pumped the brakes too, which reminds us that uncertainty is also a big deal for sellers. I mentioned this when May looked to be down, and that trend continued through June. All everyone is talking about is exploding housing supply, but let’s watch seller behavior closely. Yes, the pile of active listings has increased quickly, but if sellers back off some, that could change how much the pile grows, right? Check out my skateboard wheels analogy if you want a helpful way to think about how supply can change.
If you want to see new listings and pendings in your area, check out Redfin’s weekly stats here.
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Questions: What are you seeing with buyers and location right now? Any thoughts about low volume? What point stands out to you the most? I’d love to hear your take.
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