If you’ve thought about moving to the Sacramento area, you may feel discouraged by the increased cost of homes in the area. While the city has much to offer and is known for its incredible bars, restaurants, parks, and other amenities, those trying to live on a budget may struggle to afford the cost of a home in today’s market. It’s important for all potential buyers and sellers to understand what the increased prices mean for them.
Home Prices Are Still Rising in Sacramento: What Does This Mean for Buyers and Sellers?
1. More Competition for Buyers
Unfortunately, when prices for homes are on the rise, it often means there is more competition for buyers looking to find a home. Those on the hunt to find that hidden gem are typically looking to get a house for the most affordable price possible. As a result, the competition for any homes that are within your budget may be stiff, making it even harder for you to find a place to move into in Sacramento. While the competition is great for sellers looking forward to selling their property and moving somewhere else, it can be challenging for people who’d like to move to the area. This is why it is so important to find an experienced Realtor who knows all the ins and outs of the market as well as one who is very familiar with the area. Reach out to Team Lund today and we will help you through the process!
2. Higher Mortgage Payments for Buyers
When buyers find a home and get approved for the loan to purchase it, we know they’re incredibly excited about it! After all, who doesn’t want to move into a beautiful home that has everything they want inside it? But the increased cost of homes in Sacramento typically leads to higher monthly mortgage payments. Although this could be considered a negative for those who are on the fence about buying, many people do prefer to have a bit higher mortgage payment when buying a home instead of spending close to that on rent each month.
3. Less Time Spent on the Market for Sellers
While buyers are at a disadvantage in this market, sellers are making out exceptionally well because of the increase in home value. Instead of putting the home on the market and waiting months to find someone to buy it, it’s becoming easier than ever for sellers to make the sale within weeks or even days of putting their homes on the market. It’s a good thing for them because most people don’t want to wait to make that sale.
4. Easy for Sellers to Get More than the Asking Price
In addition to homes spending less time on the market because of the stiff competition, sellers can typically get more than the initial asking price. Homes are selling for more than they’re worth because there aren’t enough of them on sale, and people want to buy them, so they’re willing to pay the extra money. As a result, sellers benefit from profiting off the sale of their homes even more than they have in the past. It's true that with home prices on the rise in Sacramento, buyers can be at a disadvantage and sellers at an advantage. The sellers can often make more money than anticipated and sell the property with ease at a fast pace. But without an experienced Realtor, buyers may struggle to find a home that meets their needs and falls within their price range.
Don't worry, we have the experience you need! We want to encourage you to reach out to Team Lund today for help.
We would be happy to discuss your needs, look at the current market and see if we have any of our non advertised 'pocket listings' that match your needs! We love happy buyers and sellers and would consider it a privilege to join you in your journey!
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