In summary, our local markets are currently characterized by limited inventory, which is contributing to price stability. Despite the increase in interest rates, prices have either remained steady or risen due to the full impact of the summer market. The scarcity of available homes has led to the resurgence of multiple offers, and interest rates have exhibited fluctuations, briefly reaching around 8% last month, with their trajectory influenced by inflation and rate hikes, subsequently affecting the market.
On a positive note, there has been robust appreciation in home values over the past three years. If you’ve owned your home for a few years or longer, you are in an advantageous position if you’re considering selling. It is anticipated that a significant increase in inventory may occur when interest rates start to decrease, which could have an impact on pricing.
In the North Valley, prices have remained relatively stable compared to last year, but total sales have decreased significantly. The West Valley has seen a consistent number of sales but a larger increase in the average price. Keep in mind that when looking at a one-month comparison, some of these fluctuations in numbers can be influenced by just a few sales transactions.
Even with a lack of inventory a properly priced home will have a better chance of selling quickly, given the changes brought about by rising interest rates and ongoing inflation, which are affecting the purchasing power of buyers. Ultimately, pricing will always be influenced by factors such as the property’s condition, recent sales in the area, and the willingness of potential buyers to pay for a similar house. If you would like to explore your options or delve deeper into this topic, please feel free to get in touch with us via phone or email.