During the first part of this year, California communities dominated the list of national markets with the largest declines in housing inventory.
According to a new National Housing Trend Report, presented by Realtor.com, a new set of communities have moved to the top of the declining inventory list. They are Detroit, Boston, Denver, Honolulu and Naples, Florida. Analysts at Realtor.com believe this is the beginning of a housing market recovery in those communities similar to what happened in California late last year and into 2013.
In California we are experiencing declining buyer demand from the peak in April and May. According to a report I just read, home showing were down 3.5 percent in July compared to June. We are seeing homes stay on the market longer and not every house is getting multiple over asking price offers (well it seemed that way in March and April).
With more homes on the market it is possible buyers are deterred by increasing interest rates and, here in the Sacramento area, rapidly rising prices. The combination has made many potential buyers wary of the market and where it is headed. They have gone from actively looking to “on the fence” or now believe they have been priced out of the market. According to the report, “Home buyer fatigue after months of intense competition over historically low inventory” also may have played a role.
In addition we have our normal cycles and typically as summer winds down and the school year approaches families take this time for a last trip. It won’t be until late September or early October before we would expect more buyers to be entering the market.
