June 2016 H OUSING N EWS R EPORT
MARKET SPOTLIGHT
Sacramento Still Boosted by Bay Area Bubble
By Daren Blomquist, Executive Editor
Sacramento housing statistics all point to the telltale signs of a strong seller’s market, with a low supply of homes for sale countered by strong demand from local buyers and Bay Area “refugees” flush with cash. But there are some early indications that the ground below this fundamentally sound market foundation is slowly beginning to shift, according to local market observers. While this subtle shift will not likely trigger another seismic market event of the magnitude seen during the Great Recession, it could provide an uncomfortable jolt for some Sacramento home sellers who think they are in the driver’s seat. “Before we could get away with an overpriced home; the market would catch up with it quickly. But we can’t get away
with that now,” said independent Sacramento broker Brent Gove, a real estate author and host of a weekly real estate show on local radio station KFBK. “What’s moving is the stuff that’s priced properly.”
Slowing on the High End
Gove and other local real estate experts said the higher end of the Sacramento market is less forgiving for sellers than the lower end. “We’re seeing everything under $500,000 is very aggressive,” said Gove, adding that he typically is listing 25 properties at any given time, the bulk of them above $500,000. “Everything over five, if it’s not priced well, it seems like we’re starting to see a bit of a slowdown … homes are sitting longer, clients are noticing.”
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SOURCE: RealtyTrac
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