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Thinking of buying or selling this month and want to know what you’re getting into and if now is the right time for you?Well we are going to break down what’s happening in the Solano County real estate market right now and what that means for you as a buyer OR seller in this market. Let’s go!
WHAT IS THE MARKET LIKE NOW? INVENTORY & MORTGAGE RATES
Spring is officially here and the biggest issue we are seeing in the housing market is not high prices or a crash, but rather an issue of inventory. we are actually down 38.5% in inventory when you compare March to February, which is really interesting because we typically see MORE inventory as the Spring market hits, not less. Now this is straining the market because we are seeing increase in buyer demand but the inventory is still lagging behind, leading to a real imbalance in the supply and demand. I mean take Vacaville for example- this is a city of over 100,000 people and we currently only have 69 homes on the market!
We are seeing multiple offers come back to the table, especially on hot homes that are ready to go and feature hot buyer trends, and even contingencies lifted in some cases. But because interest rates are higher than they were this time last spring and home prices are already high, we aren’t seeing offers 50K over the list price like we did in 2021. At least, not YET!
Speaking of mortgage rates, mortgage rates with the local lenders we use are currently sitting at mid to high 5%, which is much lower than the 7% we saw just a few months ago in November of 2022, but still not low enough to convince current home owners with 3% mortgage rate to sell their house and upgrade. And that’s really where we are at right now. This time of year, we usually see more homeowners put their house on the market, but rates are still too high for it to make sense for them to move.
Also, it’s been an extremely rainy Spring, which has most likely delayed a lot of homes from hitting the market, as it’s tough to prep your home for the market when it’s raining. So here we are, limited inventory and growing demand. What does that mean for you as a buyer or seller? Let’s start with you buyers…
HOME BUYERS
If you’re a buyer, the first thing you need to do is find a local lender- make sure you shop rates and ask them how available they are. The reason for this is you need your lender to be available on the weekends or after 5Pm because that is often when deals are made. They need to be able to communicate to the listing agent how strong of a buyer you are financially, so it makes your offer stronger. They will also help you get pre-approved! This is extremely important- you need to know what you can qualify for and have a pre-approval letter ready to go because with the lack of inventory, homes are starting to go within days again, especially if they are ready to go and priced correctly. The last thing you want is to miss out on the house you finally see because you weren’t pre-approved.
After being pre-approved, find a local realtor, emphasis on
the word LOCAL. If you are in Solano County, find a realtor who specialized in Solano
County. You need those local connections now more than ever to secure homes-
local realtors have connections with other agents who are listing homes and can
leverage those relationships to make your offer more competitive. They are also
able to lean into the local real estate community to see what’s coming soon and
get you in before it goes live so you don’t miss your shot. Also, if you are a
2nd time buyer, ask your agent about a bridge loan, which is for
those that want to buy a home before they can sell theirs. A bridge loan allows
you to take equity out of your current home as a down payment for the new home,
and makes your offer much stronger to the seller, because you are no longer contingent
on. Selling your home to purchase theirs. Our last listing in Dixon had
multiple offers and we ended up going with buyers who used this bridge loan to
be non-contingent and we are advising all our buyers in the same boat, to have
this conversation with their lender Before looking at homes, so they can be
ready in case they find the homes of their dreams before they can sell their
current one.
Prepare yourself for limited inventory and know that if you really want to get a home soon, you and your agent need to be looking every day because homes are going FAST! Also, stay strong, your home will come up but don’t give up. More buyers will continue to enter the market as we approach Summer so if you find the home that you want in the next month or two, make your offer competitive and lean on your realtor to make your offer as competitive as possible.
HOME SELLERS
Now if you’re thinking of selling your house, we would recommend doing it sooner than later to get the most amount of money for your home. This is because we just don’t have any inventory and if your home is priced competitively and prepped correctly, you can expect multiple offers which means a higher price! It’s Important to get a good realtor to list your home. We recommend interviewing multiple agents. See what their experience is selling homes, how they would price your home and why and see how they market your home! Because inventory is so low, chances are you’ll be able to sell your house regardless, but if you want the MOST money out of the sale, that means you want to rely on your realtor to help you prep your home to make it more marketable, get as much exposure as possible and a competitive price to drive more people into your home. The only time we are seeing homes sit on the market in this market, is if they are priced too high! So make sure you have a real estate agent who knows how to prep your home, market your home and price your home so you can make the most amount of money from your home, your biggest asset.
In general, this lack of inventory makes is challenging for buyers, so if you want a house right now, stay strong and committed the cause and rely on your realtor and mortgage broker to help guide you through this unprecedented market and are strategizing how to make your offer as competitive as possible with the money available to you! If you are a seller, make sure you know where your next move is or have a plan of action. Your home will sell, but whether it sits on the market for weeks and goes for below list or goes in days over list price will be based upon how your local real estate agent preps, markets and prices your home together with you!
If you need any help navigating this market, we’d be happy to help! Fell free too give us a call at (707) 761-2473 or email us at ratleffrealtygroup@gmail.com, or even schedule an appointment with us directly at https://calendly.com/ratleffrealtygroup/helpmemove !
