Buyers and sellers across the Sacramento region are bracing themselves as interest rates peak after years of relief.“Instead of seeing multiple offers, five, six, or above, we’re getting a couple offers,” said local realtor, Ahrash Zamanian.Zamanian explained fewer offers are finally giving buyers a fighting chance, but the overall real estate market is not cooling off.“We just had a small baby, 2 months old… we’re hoping to get a bigger space for her play area and stuff like that, but let’s see how it goes,” said a potential buyer touring a Folsom open house with Zamanian.“The housing market has been completely bananas for the beginning of the year, unreal price growth and really over the past month or so we’ve seen the market begin to change temperature,” said Sacramento appraiser and housing analyst, Ryan Lundquist.According to Lundquist’s regional analytics, the Sacramento area is in its 11th year of growth, with housing prices increasing approximately 15% compared to this time last year.Seventy percent of properties in the last two years received multiple offers, that percentage has dropped, in the last several weeks to 55%, but Lundquist notes that even at that lower rate the number of offers is still substantially higher compared to a decade ago.According to the Federal Home Loan Mortgage Corporation, fixed-rate mortgage averages are the highest they’ve been since 2009.“Nobody predicted that mortgage rates were going to be closer to 5.5% so I think in terms of the future a lot of people think that they’ll continue to rise but nobody really has a crystal ball in that regard,” Lundquist said.Local real estate experts advise not buying a home at the moment due to feeling pressure regarding the market and current interest rates.Lundquist advises a good rule of thumb is not to buy a home that will have a mortgage payment of more than half of your monthly salary.
Buyers and sellers across the Sacramento region are bracing themselves as interest rates peak after years of relief.
“Instead of seeing multiple offers, five, six, or above, we’re getting a couple offers,” said local realtor, Ahrash Zamanian.
Zamanian explained fewer offers are finally giving buyers a fighting chance, but the overall real estate market is not cooling off.
“We just had a small baby, 2 months old… we’re hoping to get a bigger space for her play area and stuff like that, but let’s see how it goes,” said a potential buyer touring a Folsom open house with Zamanian.
“The housing market has been completely bananas for the beginning of the year, unreal price growth and really over the past month or so we’ve seen the market begin to change temperature,” said Sacramento appraiser and housing analyst, Ryan Lundquist.
According to Lundquist’s regional analytics, the Sacramento area is in its 11th year of growth, with housing prices increasing approximately 15% compared to this time last year.
Seventy percent of properties in the last two years received multiple offers, that percentage has dropped, in the last several weeks to 55%, but Lundquist notes that even at that lower rate the number of offers is still substantially higher compared to a decade ago.
According to the Federal Home Loan Mortgage Corporation, fixed-rate mortgage averages are the highest they’ve been since 2009.
“Nobody predicted that mortgage rates were going to be closer to 5.5% so I think in terms of the future a lot of people think that they’ll continue to rise but nobody really has a crystal ball in that regard,” Lundquist said.
Local real estate experts advise not buying a home at the moment due to feeling pressure regarding the market and current interest rates.
Lundquist advises a good rule of thumb is not to buy a home that will have a mortgage payment of more than half of your monthly salary.
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2022-05-16 00:58:00
