Sacramento homes now selling for 2% under asking price
SACRAMENTO -- Housing market analysts say over the last several months, the pendulum has swung from a sellers' market to a buyers' market. But how?
"I think if you originated from here, it's been too expensive. It's been the bay area coming paying cash buying us out," said Aretha Mitchell.
Housing analysts explained to CBS13 that one year ago, Aretha would have been right. In the summer of 2021, homes were selling at unprecedented levels. On average, buyers paid about three percent above the asking price, and homes were spending about 12 days on the market, but one year later, everything changed.
"The honeymoon ended, and it's just a different market today," said Sacramento Housing analyst Ryan Lundquist.
But in the summer of 2022, homes are selling for two percent under asking and spending an average of 33 days on the market.
So, why did the market switch from favoring sellers to buyers?
"Mortgage rates doubled, and we're all of a sudden seeing buyers having to fork over 500-600 dollars more," said Lundquist.
Lundquist says monthly budgets are taking a huge hit and forcing buyers to back out of deals and sellers to lower their prices.
"Half of all listings right now in the region have had a price reduction," said Lundquist.
Mitchell says for sale signs that once disappeared quickly are now remaining in her neighborhood for weeks.
"I've noticed a lot of empty houses and a lot of for-sale signs going up. They were going up quick, but now they're just pretty steady," said Mitchell.