Sacramento Home Journal

Purva Brown
June 29th, 2007
Finance, Investment Properties, Market News
1 Comments

While bemoaning the idea that none of my buyers want to buy right now and we’re hearing the “we’re holding off buying for now…” (By the way, never - NOT ONCE did I hear that when prices were headed up two years ago. Heard it from sellers that wanted more for their home - their houses are still on the market. Do we see a similarity here? Hmm… buyers?)

… That sentence got too long, so let me begin again. While talking about our potential buyers, Huck - my preferred mortgage consultant - and I got into an email commentary of the Sacramento real estate market and how it will end eventually. Here’s a direct quote:

“Here’s what will happen: Without [the buyers on the fence] constantly in (watching) the market, inventory in a neighborhood of interest will drop, then some house will sell
for a comparatively high price, it will then become “the comparable” for
everything selling subsequent, and we’ll be off on the upswing again. I’ve
seen it happen over and over…

“There’s one almost identical to mine that did just that and it closed about
2 wk ago, driving mine from about $850,000 to $900,000 in one shot. Now
there’s another one like mine pending for $895,000.

“Truly savvy investors are willing to buy BEFORE that happens, and are
willing to see lower prices for a short time before the rise…”

Something to think about!

One Response to “Sacramento real estate market - how will the slump end?”

• John Lockwood 30June2007

  Are we in a slump? I was up until two AM last night faxing an offer. If we get any slumpier I’m going to keel over.
  I’m hoping that once you’ve had two or three shifts of Elite floor time you’re going to start writing about how tired you are.

  Of course in one sense you’re right. As I’ve documented tediously on Sacramento-Home.com — sales are down, inventory’s up, etc. However, as you point out, in any market there are OPTs (Over Priced Turkeys) and many good bargains.

  The client I was up with last night is going to have an accepted offer (99.9% done, as I just heard from the agent) on an absolutely gorgeous home in a beautiful neighbhood, at $52,000 below TODAY’s market value — let alone what you could have touched it for two years ago. In fact, the home across the street diagonally from it has an offer on it for $193,000 more.

  Sure, it’s not a great time to be a seller. That’s why they call it a “buyer’s market”. Let’s go shopping!

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