As we begin the new year, we continue to see a slowing in the number of sold homes when compared with last year, yet inventory remains tight. As we have been seeing the last 6-9 months the peak of the sellers market is behind us and the adjustment continues. Prices have settled and may continue to remain flat or decrease. Inflation and interest rate hikes will continue to affect the prices. The good news is that we are settling into this new market and whether you are a buyer or seller everyone has adjusted their expectations to the changes. Another bit of good news is that home value appreciation over the past 3 years remains strong, so if you’ve owned your home for a few years or more you are in a very good position to sell.
In the North Valley, we have seen an almost 36% increase from 3 years ago. In the West Valley, we have seen a 27% increase. These are enormous gains in value!! While each neighborhood may be different, this is an important perspective to keep in mind if you are considering selling. Not just to see the gains you have made, but also where the reality of an appropriate list price will be.
If homes are priced properly, they will have a better chance at spending less time on the market. As I’ve discussed previously, the rise in interest rates and continued inflation are causing changes in our market and affect the buying power of those looking to purchase. Ultimately, when it comes to price, it will always come down to condition, area sales and what others are willing to pay for the same house. If you are interested in learning more about your options or to discuss this in more detail, please feel free to call or email.