May Market Update for greater Sacramento Area

In May, compared to last year, we had 18% less "For Sale" homes on the market. The number of "Solds" also decreased by 10.4%. That doesn't necessarily mean sky is falling down. You have to look at the big picture and several months of "trend" in order to make a conclusion. 
Price-wise, "For Sale" prices rose 12.7% compared to May of last year. We also had an increase of 4.4% for "Sold" prices. 

For those who know me, they know that I don't sit around. I'm always out and about, talking to realtors, appraisers, buyers and sellers, etc. I like to be "in the field". So far, I'm not seeing any signs of market slowing down. If homes are prices right, they sell within days with multiple offers. There are plenty of willing and capable buyers out there. However, as I have mentioned previously, buyers shy away from overpriced properties, even though we have a shortage of homes in our area (and nationally). 

To buyers: Get pre-approved first and start looking for your dream house with the help of a professional agent like me. 

To the sellers: Don't over price your home. Fair market value will get your homes sold and get you to where you need to be. Over price and you get to keep it. Remember: high percentage of the sales are done with a loan. That means YOUR HOME HAS TO APPRAISE. If it doesn't sale will not take place. Appraiser are trained professionals who have to justify the appraised value. That means even if you find a buyer willing to pay the outrageous amount you want to sell your house, it still needs to pass appraisal. If it doesn't, deal will fall through and you get to keep your home.