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As we go further into the year, the question we’re hearing the most is: Are we transitioning from a seller’s market to a buyer’s market? Right now, there’s no definite answer to that, as the market is in a unique spot. You could say that we are experiencing market discomfort.
Interest rates are still hovering around 7%, even though the Federal Reserve mentioned rate reductions this year. This creates some uncertainty for both buyers and sellers. Buyers are cautious and unsure of where things are headed, while most sellers are holding onto their homes because they have low interest rates on their current mortgages. This scenario is making both sides hesitant, creating a slight discomfort in the market.
Despite the lack of inventory, there is still movement in the market, especially for homes priced under a certain price point. The trick is to identify the sweet spot in your area. While we can’t give a blanket answer for the entire state, we can tell you that in Tracy and Manteca, specifically, the sweet spot seems to be around $800,000. Properties priced competitively at or below this point are still moving.
There are also programs available to help buyers cope with higher interest rates. We partner with mortgage companies that offer temporary rate buydowns, allowing you to initially secure a lower rate with the possibility of refinancing at a much later date when rates come down.
Are we in a buyer’s market? Not quite yet. Sellers are still hanging onto their homes, but as the market slowly transitions into a buyer’s market, homes priced at $800,000 might see slight price decreases.
As a buyer, securing a home now could be your best option, even if home prices are slightly higher. As a seller, watching the market dip can be concerning. We can already see a slow decline and extended days on the market, with buyers demanding more favorable terms.
The secret here is to make informed decisions based on your unique circumstances. A lot of sellers are asking whether they should sell even though their current mortgage rate is low; the truth is that it all depends on your situation. This is a conversation that we’d love to have with you.
We are data-driven agents with different resources to give you the best information. If you’d like to have a copy of this report or have questions about the market, simply send us an email or call us. We’re here to help you navigate the market with confidence.
