September 2023 Market Update

Hey there, Sacramento! Eduardo here from the Partners in Real Estate team, and I’ve got some insights to share about the current real estate market as we transition from September into October and beyond. If you’re pondering whether to buy or sell in this seemingly daunting market, I’ve got some good news and strategies to help you make informed decisions.

Check out my video below or continue reading as I share a quick run down on the real estate market in Sacramento for September 2023.

First, let’s address the elephant in the room: the recent Federal Reserve decision to pause interest rate hikes. While there may be one more hike on the horizon, the market remains relatively stable. The standout factor this year is the uncharacteristic plateau in housing inventory as we head into fall and winter. This is not the usual sharp decline we see in other years, and it presents unique opportunities.

For potential buyers, now is a prime time to act. If you qualify and can manage the current interest rates, consider strategies like the 21 buy-down, which allows you to secure a lower interest rate for the first 12 months of your mortgage. As rates are expected to eventually decrease, this can lead to significant savings down the road.

Tips for Buyers:

• Act Now: Despite recent concerns about rising interest rates, the market remains relatively stable. If you’re planning to buy within the next year and meet the qualification criteria, don’t wait. Seize the moment, as opportunities may dwindle as rates potentially rise.
• Consider the 21 Buy-Down Strategy: This strategy can be a game-changer. It allows you to secure a lower interest rate for the first 12 months of your mortgage, potentially saving you a significant amount of money in the long run.
• Negotiate Strategically: In a market that’s less frantic than before, take the time to negotiate effectively. Discuss options with your real estate agent and explore possibilities like seller concessions.
• Don’t Overlook “Stale” Listings: Sometimes, homes that have been on the market for a while are overlooked gems. Be open to exploring properties that have lingered, as sellers may be more flexible with pricing.

If you’re looking to sell your home, it’s crucial to remember that despite the competitive market, you must be strategic in how you present and price your home. Pricing your home for the condition that its in and based on true comps is key. Overestimating your property’s value based on the highest sale in your neighborhood won’t attract buyers. Make necessary updates, clean, and ensure your home is move-in ready to stand out. Here’s the top tips to keep in mind:

Tips for Sellers:

• Price Your Home Realistically: Avoid overpricing your property based on the highest sale in your neighborhood. Instead, set a reasonable price that reflects your home’s actual condition and market trends. This will attract serious buyers.
• Prepare Your Home: Buyers are looking for move-in-ready properties. Invest in updates, clean thoroughly, and ensure your home makes a great first impression.
• Stay Flexible: While competition isn’t as fierce as it once was, be prepared to work with buyers on negotiations. Remaining open and flexible can help close a deal.
• Effective Communication: Work closely with your real estate agent to devise a winning strategy. Discuss market conditions, pricing, and marketing tactics to ensure your home stands out.

For both buyers and sellers, effective communication with your real estate agent is essential. Explore opportunities, negotiate strategically, and don’t be deterred by initial impressions. There’s still ample activity in the market, and winter might just be your golden chance to make your move.

Lastly, if you’re considering a property investment, the market continues to offer opportunities. Keep your options open and work with experienced professionals who can guide you through the process. Key to your success on this front is to know your numbers. This means that you have clarity on what your cash position is as well as what your financing options are. These are absolutely critical in informing what you can and can’t consider. If you’re interested in learning more about this, make sure to register for our “INVESTING IN SACRAMENTO” Webinar scheduled for Wednesday, October 18th, at 7:30PM. You can click here or the button below to get more info.

In conclusion, Sacramento’s real estate market, though challenging, holds potential for those willing to act strategically. Don’t wait on the sidelines; seize the opportunity now. Feel free to reach out to us for a consultation, and we’ll help you navigate this market with confidence. Thank you for reading, and stay tuned for more insights!