Where have all the buyers gone?
For the better part of a year now, I have spent countless hours searching for properties and driving buyer’s around, showing them houses, writing multiple offers only to be rejected and beat out by offers sometimes $30,000 above the list price in Elk Grove and Sacramento!
“Have Faith!” I’d tell them, “Your turn is coming!” “You’ll get the next one!”…
This scenario repeated itself 2 or more months running, until FINALLY we get into contract!
…Then came the interest rate spike last month, as high as 5% for some types of financing!! “Ouch!” Since then, interest rates have settled and risen, and suddenly my car is empty, and my phone isn’t ringing…Where have all the buyer’s gone??
I call my buyers, and they are still interested in buying a home, but are seemingly paralyzed by the recent rate spikes. Ironically, at the same time, home prices are stabilizing and the offers, while still multiple on most well priced homes in Elk Grove and Sacramento, are at or slightly above list price.
What does this mean to you as a buyer??
According to Albert Chavez of Summit Funding, “Higher interest rates mean a decrease of $25,000 in purchase power, and $100 more a month for your mortgage payment.”
With more inventory and stable pricing, it is fast becoming a more normal market, and buyers have a better chance at getting the home they want at a price they can afford.
This graph shows the current ratio of homes for sale, and homes sold for the last three months. As you can see our inventory has gone up, so…Where have all the Buyer’s gone??
Written by Karen Funk | Keller Williams Realty Elk Grove Agent | www.FindaHomeinElkGrove.com to search all homes for sale
Karen Funk | 916-405-5765 | firstname.lastname@example.org | BRE#01717918
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