'The honeymoon is over': Sacramento ranks 2nd in nation for fastest-cooling housing market

‘The honeymoon is over’: Sacramento ranks 2nd in nation for fastest-cooling housing market

It may not feel like it outside, but the housing heat wave is cooling off in parts of California.”I think it’s ironic because a few years ago Sacramento was the hottest market ever and now we’re making the opposite side of the list,” said housing analyst Ryan Lundquist.On that list compiled by Redfin, Sacramento is ranked second in the nation to be the fastest cooling housing market. Other Northern California cities include Oakland coming in at No. 3, Stockton at No. 5 and San Francisco ranked 10th. “The market has been on fire so much the past few years and with rates going up, we are seeing a change in the market,” said Audrey Chaney, an agent with eXp Realty.The change is good news for buyers.They have more options, not including new construction projects. Lundquist said there are now 4,000 homes for sale and of those, nearly half have had price drops.”Last month for the first time in 17 months, the average the buyers paid was 1% below the list price,” Lundquist said. “For all sales, last year on average buyers paid 4% over the list price.”| VIDEO BELOW | Groveland, Tracy on list of California ZIP codes where home values have soaredNot so good for buyers, mortgage rates doubled in the past few months to 6%. Chaney said even with lower home prices, mortgage payments could be hard to make because of the higher interest rate.”A lot of people could be discouraged but the silver lining is to know our numbers come up with a plan, figure out what your financial status is and know what works for you,” Chaney said.And a cooling market means back to reality. “The reality check is the honeymoon is over. We’ve had this two-year stint of the most aggressive market ever and now the market has shifted into something else,” Lundquist said.As for sellers, Chaney said they need to adjust their expectations of what their asking price should be since the market is changing. | RELATED | Explained: Real estate market balancing out means different things for sellers, buyers

It may not feel like it outside, but the housing heat wave is cooling off in parts of California.

“I think it’s ironic because a few years ago Sacramento was the hottest market ever and now we’re making the opposite side of the list,” said housing analyst Ryan Lundquist.

On that list compiled by Redfin, Sacramento is ranked second in the nation to be the fastest cooling housing market. Other Northern California cities include Oakland coming in at No. 3, Stockton at No. 5 and San Francisco ranked 10th.

“The market has been on fire so much the past few years and with rates going up, we are seeing a change in the market,” said Audrey Chaney, an agent with eXp Realty.

The change is good news for buyers.

They have more options, not including new construction projects. Lundquist said there are now 4,000 homes for sale and of those, nearly half have had price drops.

“Last month for the first time in 17 months, the average the buyers paid was 1% below the list price,” Lundquist said. “For all sales, last year on average buyers paid 4% over the list price.”

| VIDEO BELOW | Groveland, Tracy on list of California ZIP codes where home values have soared

Not so good for buyers, mortgage rates doubled in the past few months to 6%. Chaney said even with lower home prices, mortgage payments could be hard to make because of the higher interest rate.

“A lot of people could be discouraged but the silver lining is to know our numbers come up with a plan, figure out what your financial status is and know what works for you,” Chaney said.

And a cooling market means back to reality.

“The reality check is the honeymoon is over. We’ve had this two-year stint of the most aggressive market ever and now the market has shifted into something else,” Lundquist said.

As for sellers, Chaney said they need to adjust their expectations of what their asking price should be since the market is changing.

| RELATED | Explained: Real estate market balancing out means different things for sellers, buyers

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