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My Blog

October 2024:

Placer, El Dorado and Sacramento Counties

Hello Again,

Describing today's real estate market is quite a challenge. We're witnessing a mixed scenario where some properties attract multiple offers and sell above the asking price, while others experience price reductions. In fact, almost half of all active listings these days undergo price drops. So, are home prices increasing or decreasing? The answer is that they're going sideways.

The average sales price in the tri-county area remained steady at $615,000 from September 2023 to September of this year. In such a market, buyers are selectively choosing the best homes, which are the ones seeing multiple offers and sales above the asking price. Other properties often require price reductions and tend to linger on the market longer. We're even seeing listings expire without a sale, which has been a difficult adjustment for sellers who urgently need to sell but find themselves unable to. They observe their neighbor's home selling swiftly for more than they're asking, yet their own agent brings no offers.

What's the secret to success in this market? Firstly, you need an accurate estimate of your home's current value. Next, decide whether you'll sell "as is" or if repairs or cosmetic upgrades are in order. If you opt for upgrades, it's critical to understand your return on investment. Missteps here can cost a seller thousands, if not tens of thousands of dollars.

Having an agent with substantial experience is crucial. Since roughly 2012, home prices have generally been on an upward trajectory. Any agent licensed during this period has primarily operated in a market where prices were perpetually rising, lacking experience in a price-deflating environment. For the last 12 years, simply getting the price "in the ballpark" was enough to sell a home. However, this strategy won't suffice in today's real estate climate. For most people, selling your home for top dollar is paramount, especially given the inflation and interest rate hikes over the past four years. If you aim to maximize your proceeds, please contact me. I would be delighted to assist you in navigating this complex market.

Until next time.

Ed Kittle - Broker