As can be seen above, housing inventory is non-existent in Twin Creeks right now, although this is not all that much out of the ordinary in any February. Most sellers don’t want their homes listed for sale until a little later in the year when they will show better with less likelihood of rain in our area.
At this time last year, there was only one home for sale in Twin Creeks, but this followed a period of high activity in the preceeding months, as there were seven homes in escrow with sales agreed then. Today’s picture is significantly different, with only one home with a sale agreed. And there were a total of 12 closed sales in the last two months of 2021 compared with just four in 2022.
All of this is the result of the impact of higher interest rates from mid 2022. The reasoning behind that was that higher interest rates would act as a brake on inflation, and this, predictably, had a significant effect on home sales.
Up to that point, home prices had been increasing at unsustainable levels, fueled by historically low interest rates, and a shortage of homes for sale compared to buyer demand. The result was multiple offers, often well above list price becoming common place.
But interest rates are settling down now, and it’s quite possible to buy a home with a 30 year fixed rate around 5%. This, combined with the shortage of homes for sale has at least resulted in prices stabilizing, and the likelihood is that we will see homes increasing in value at a mederate pace as we move further into the year.
It’s also worth mentioning that the shortage of inventory in many areas, not just in California, is once again resulting in multiple offers. If we don’t see more sellers entering the market, it’s going to be a tough ride for buyers once again.
Questions about the real estate market in Twin Creeks or anywhere else? Call Bernard Gibbons on (925) 997-1585 or Michelle Hensley on (925) 785-5544 anytime, or email firstname.lastname@example.org. We will help in any way we can and we are always happy to hear from you.
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