SACRAMENTO, Calif. — With average mortgage rates hitting 8% and housing prices still close to record highs, the dream of homeownership may feel more out of reach than ever for potential first-time homebuyers.
Sacramento appraiser and housing analyst Ryan Lundquist says the region is missing about 13,000 listings — a roughly 40% decline from a normal year.
"It's kind of crazy to have a market like this where there's competition still in the midst of a struggle for affordability," said Lundquist.
Gone is the feeding frenzy of cheap borrowed cash, he added.
As sub-3% rates remain in the rear-view mirror and the cost of borrowing cash as high as it’s been in a generation, sellers should price accordingly.
"If you aren't getting buyers out there, then (it's) time to adjust," said Lundquist. "I just say, sellers, there's a smaller pool of buyers and be realistic about that. It's not 2021, you can't command whatever you want."
As for buyers?
"Buyers, I would just say be discerning, be picky," he said. "Be patient. Wait for the right house, but realize that there is still competition in this market."
The 8% mortgage rates are here and for now, more buyers and sellers are sitting it out.
