Tensions rise as market floods with listings, buyers feast, and sellers…well

Serious sellers are turning to real estate professionals because they don't want their home to just sit stagnant on the market that offers more choice and variety to buyers now than for a very long time.

This reminds me of a favorite saying of the legal profession that anyone who attempts to defend himself in a court of law "has a fool for a client."

According to the Sacramento Business Journal, the number of existing homes listed for sale in the Sacramento real estate market is at 22,000 and continues to rise. Home sales fell 42% and foreclosures are 10 times worse than they were at this time last year. This trend is expected to carry over into next year.

It's a buyers market. As prices continue to fall, home affordability is making a comeback. The median price for homes in Sacramento County is at $339,000 which is a 10% drop from last year.

Homes that ARE selling are priced below the last comparable sale. With so many choices available to the qualified buyers, sellers have to be realistic of the current market and not try to compare their home to what their neighbor may have sold for a few months ago.

There's a great deal of tension.

Homes in foreclosure increased from 477 last year to 3,641 this year. Buyers are watching the market to see what's going to happen with the home prices before they dip their feet into the buyers' pool. The drastic increase in home prices over the last 5 years have been hard to swallow for those who are just getting ready for home-ownership.

Many homeowners used their houses as ATM machines, refinancing to the maximum appraised value and are now nervous to see their property values plummet.

Though interest rates have risen there are still some great loan programs available. Home prices have begun to come down. Buyers have a smorgasbord of inventory to choose from.

This is a great time for home-buyers. Sellers who have an excellent listing agent working for them will benefit as long as they don't trip themselves by holding on to delusions of what they would like and instead, pay attention to "what is."

Some good news for those who purchase homes before the drastic drop in home values:

SacramentoCounty News Release, July 3, 2007 - Reflecting that much of the residential real estate market has experienced a recent decline in value, the Assessor's Office has reviewed the market values of residential properties in SacramentoCounty and will be reducing the assessed values of over 50,000 properties on the 2007-08 property tax roll.

Wishing you the very best!