Looking to buy a Roseville home? Get a full Home Search
Selling your Roseville home? Get a free Home Price Evaluation
Over the last few months, we have seen prices stabilize and sales decrease. We are in the midst of a shift, from a strong seller's market to a more normal, balanced market that you would expect to see this time of year. In our opinion, there are two major reasons for the shift.
The first is affordability. The housing affordability index has gone from 67% to 44% in Roseville, and we've seen similar shifts in communities across the area. The housing affordability index refers to the percentage of people that can afford a medium priced home within a county. The drop in index really means that there are fewer buyers on the market than there have been.
The second cause of the shift is the increase we've seen in new construction. In Roseville alone, we have 8 major builders and 18 new home communities. This new construction is competing for buyers with resale homes, which will cause prices to flatten out and remain stable.
With all that being said, let me tell you right now that the sky is not falling and it's not time to panic. The economy is good, interest rates are still low, and current lending practices are fundamentally sound.
The decision to buy or sell should be based on your personal needs and wants vs. what the market is actually doing. If there is anything we can do to help you out, or any questions we can answer, don't hesitate to reach out.
No comments :
Post a Comment