The number 1 question I have gotten lately is “when are housing prices going to come down?“
That is indeed a great question…and an answer anyone who is considering buying, now or in the future, will want to know.
We need to reach stabilization first
Using my 35 years of lending experience, I have watched financial markets go from one extreme to the other and then back again. With real estate pricing and mortgage rates in a transition phase, home prices need to stabilize first. Once stabilized, and if the supply becomes greater than the demand, then we might see home prices come down a bit. While the market is down from red hot, it still remains warm.
Sacramento region has become more desirable
The Sacramento region has more recently become a desirable area for people looking to relocate from inside and outside of California because of its affordability and geographical location (like the proximity Tahoe and the Bay Area).
This may help keep prices stable in the Sacramento area with a minimal price reduction compared to lesser desirable areas.
Bottom line….eventually a slight decrease may happen
Bottom line, as the real estate market stabilizes, we may see a slight decrease in home prices to accommodate higher mortgage rates, but buyers should not expect this decrease to be anything like the 2008 real estate market crash. Demand to move into the area is still fairly strong.
To the “buy now” or “wait to buy” crowds…
As a buyer, whether you have decided to press on or wait it out. Don’t hesitate to reach out with any financial, credit or home lending questions. For the “wait it out” group, there are critical steps to take right now to stregthen your financials for when you are ready to jump in again. For those who are pressing on to buy, I have a few tips I learned along the way that have helped my financed buyers compete with all cash offers. You can reach me directly here>>.
David Banks, Senior Mortgage Lender
Serving Northern California
Call or Text: 916-628-1864
Send me a message or question>>