SACRAMENTO, Calif — Sellers backed off the Sacramento region real estate market in 2023.
According to data compiled by Sacramento area appraiser and housing analyst Ryan Lundquist, there were just 21,000 property listing last year in Sacramento, Placer, Yolo and El Dorado counties.
"We're missing a glaring 15,000 listings from the normal level, and so the market would have felt a lot different if we had all those listings hit the market, instead of those sellers sitting back," Lundquist said.
Lundquist said the activity added up to about 60% of the normal market amid high mortgage rates and high prices.
"It's about rates, but I think the bigger picture is about affordability," Lundquist said, adding that there's no reason for a lot of sellers to move if the cost of a replacement home is so much more.
"It's just a situation where the math doesn't work," Lundquist said.
The 2023 dynamic is likely to carry over into 2024, where the market still feels competitive due to low supply and low demand, Lundquist said.
The "X factor" for 2024 is what happens to mortgage rates.
"Everyone and their mom has a prediction, and we'll see who's right," Lundquist said.
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