All I hear from agents is “housing inventory is so low” and “our resilient sellers market”. Sacramento is no different. Check out March’s data.
Low inventory has been exasperated in April by sellers reluctance to list during our stay order. I’ve been calling this an “artificial bubble” for the last 6 weeks. From someone who has actively participated through the last 4 downturns, I can tell you each one was different. And if you’ve been in the market the last 15 years you know that this can change very quickly. Inventory exists, it’s just not on the market yet.
With massive unemployment, huge mortgage delinquencies, along with tightening credit standards, demand will fall and prices will head lower. When prices start to fall, we will see a flood of properties hit the market as investors, second home and Airbnb owners unload inventory to conserve the equity they’ve gained over the last 10 years. Homeowners who need to move will price to sell quickly, before prices fall too much so they can ride out the recession in their next home. Prices will fall further. And those agents who told you how great the market is will be out of business.
Be careful of false prophets. Listen to the experts. Reach out to my team at Alexis McGee Group or myself personally and get your ducks in a row…