Sacramento Real Estate Views

At the Bottom? Is Our Market Coming Out of the Trash Can?

I got an email last week that spoke of a couple of indicators that point to our market coming out of the most recent downturn.

How do we know when the market is going to hit bottom? Honestly, that is a tough question that even the most seasoned real estate brokers won’t even attempt to answer…the “uhs” and “wells” flow like water and no one can say for sure where or when the market will touch back down and begin to head up.

There are a few things happening now though that suggest there might be some light at the end of the tunnel:

1. Investors are returning to the marketplace. I speak to Realtors everyday and one of the things I’m hearing is that there are more investors in the market now than there has been since 2000 to 2003. This is an indication that value is returning to our market.

2. We’re seeing more multiple offers. I just closed a deal with a Prudential Realtor from Elk Grove who told me that she just lost a deal to a multiple offer situation. Multiple offers mean that the property was priced correctly and multiple offers drove that price up. Its a win for a seller no matter what market you’re in.

3. New home traffic is way up. This I see up close and personal everyday. Interest rates are low and so are the prices. This combo is an ideal buying environment. The only hang up here is credit. Money isn’t falling from the sky like it used to. For those who are qualified and have a bit of liquidity, gee whiz what a great time to buy.

There are other signs like mortgage applications on the rise, an increase in permits issued, etc. Its still early yet. Rest assured, this is a great time to buy a home or investment property.

Related posts:

1. Sacramento Home Buyers – YOU HAVE 37 DAYS TO BE IN CONTRACT!

This entry was posted on Monday, February 11th, 2008 at 10:06 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.

1. Big Bear Real Estate - Tyler Wood said at February 11th, 2008 at 10:44 pm

   Hey Rob.

   I have been hearing that a lot of markets are coming out of the trash can these days. Whether or not this is here to stay is still yet to be seen in my opinion, but the great news is at least people are started to see some activity.

   The bottom of the market is just like the top of the market, you won’t know you where there until about 6 months later. If clients are looking to buy real estate in the Sacramento area, now might be the bottom they have been waiting for.

2. robsaxe said at February 12th, 2008 at 5:45 am

   Great points, Tyler, thanks!

3. Kathy Vaughan said at February 12th, 2008 at 11:16 am

   Hi Rob,
   Love that positive news. So far this year we are at 25% of our total sales for 2007. That’s with a record breaking 20 feet of snow. YIPEE! Come on buyers.

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