SACRAMENTO, California — Sellers are missing in action. That's the story of the Sacramento region housing market right now, according to appraiser and housing analyst Ryan Lundquist.
"It's one of the most dominant trends," Lundquist said.
Lundquist said this year, about 7,000 fewer listings hit the market in the Sacramento region compared to last year. That's down 35%.
"When mortgage rates nearly doubled last year, it caused buyers to pump the breaks," Lundquist said.
The math is tough for many households. Many would-be sellers have locked in a low mortgage rate below 4% or even 3%.
With rates now over 7%, buying a replacement home isn't so appealing.
"It's almost like we have this situation where low supply and low demand have met," Lundquist said.
If there is a bright spot for people looking for a new home, construction in the area is booming.
The first seven months of 2023 has the year on track to be one of the strongest years of new construction over the past decade.
"It just goes to show that there's different markets within our market, and new construction happens to be one that's doing really well right now in the region," Lundquist said.
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