2019 was a great year for real estate in Placer County and Sacramento County. Home prices continue to rise and sellers had some great paydays when they sold their homes that had appreciated in value. Plus, home buyers with a great agent on their side got into the market at a great time. 

 

Here are my predictions for what to expect in 2020 for the Sacramento and Placer County real estate market.

 

A recession isn’t likely to happen

A few months back, I wrote in the blog titled 10 Step Plan to Get Top Dollar For Your Home In 2019, that we were headed towards a recession. The majority of the real estate market is based on the ebb and flow of the stock market, so things change quickly, and the stock market is still performing pretty strong right now.

 

The trade war between the United States and China, along with tariffs on goods, could affect which direction the market goes. Right now, numerous economists have predicted that we are in a very stable market place and a dip in the market is unlikely to happen. 

 

It’s very likely that the market will remain stable due to consumer confidence in the marketplace (meaning consumers are continuing to buy goods and services). Plus, the market shows record low unemployment rates, and new job creation is at a steady pace. 

 

What you should do if you’re selling your home:

For sellers, you’ll still be in a good place to sell your home for top dollar and collect a large payday due to appreciation.

 

What you should do if you’re buying your home:

For buyers, my recommendation is a little bit more thorough which leads me into my next point…

 

Competition will continue to be fierce

Even with a stable market, Placer County and Sacramento County still have low supply and large demand. 

 

Unfortunately, there needs to be ample housing even with new jobs being created. However, the rules of supply and demand hold true. There is still a shortage of housing across the country and in Sacramento and Placer County, as well as high demand because of the influx of bay area residents moving to Sacramento. A market with adequate housing would be creating a new home for every 1 to 2 jobs that are created. Right now, there’s a large gap. 

Home builders are only building new homes for one out of every six jobs that are created.

 

What you should do if you’re selling your home

If you’re a seller who is looking to sell their home in 2020, this means that you’re likely to still get a really good offer on your home. This doesn’t mean it’s a given that your home will sell. You will still need to have a good marketing strategy that attracts the right market of buyers which we’ll discuss in a moment. The biggest thing is you’ll want to work closely with your agent to negotiate buying your next home in conjunction with selling your current home so that the timelines lineup.

 

He may also want to consider buying a new build home. There are many builders in the Placer County area creating homes within the $400,000-$600,000 range. If you are considering buying a home suited for the various age ranges in your family, many of these homes have in-law quarters perfect for aging parents or young adults. 

There are a lot of new homes being built, and your agent can still help you navigate the home buying process.

 

What you should do if you’re buying a home

There are many benefits of working with a top buyers agent early on in the home buying process, including the ability to discuss your desires, locations, wants, needs, and negotiating strategy.

 

Work closely with your agent on narrowing down your market, needs, and wants. Good agents know other good agents, so they may know when a property’s coming on the market in your desired area before it hits the market

 

This also means that you need to have a good agent in your corner. When submitting an offer on a home, you need to have an offer package that makes you stand out from other buyers which we’ll dive deeper into. 

 

Mortgage rates are expected to stay the same (as far as we know)

 

According to numerous economists, the average mortgage rate at the time this article was written is 3-4%. Mortgage rates are expected to stay the same throughout 2020. This means it’s going to be a great time for home buyers to get a loan while mortgage rates are low. 

 

If mortgage rates rise, you might need to wait until you have a good offer if you are selling your home.

 

If you’re a home buyer, you’ll want to discuss what you should do if mortgage rates rise. 

 

 

 

What you should do if you’re selling your home

For home sellers, you’ll want to get your property on the market and start looking for your next home. Getting a good rate on a loan affects consumer confidence to buy since a mortgage is a big commitment.  

 

What you should do if you’re buying a home

Now is a great time to purchase, especially in the winter months when properties tend to stay on the market longer. Make sure to get in contact with an agent who has a good lender with knowledge of different mortgage programs. 

 

A great lender will know of mortgage programs that extend beyond the standard FHA and Conventional loan products. 

 

Overall, here’s how to get the best deal on a home in 2020

What you should do if you’re selling your home:

 

  • Make your listing appeal to buyers

 

Millennials are now overtaking generation X in terms of buying homes. Two-thirds of millennials still think buying a home is the American dream. 

 

You’ll still want to have a property that appeals to the average home buyer and that means making a good impression online. Even in a competitive market, it’s possible to have a listing online that doesn’t appeal to buyers. 

 

Two years ago, the average days on market was about 30 days and right now it’s only 14 days. 

 

Buyers are aware the market is pretty competitive so if your listing stays on the market longer than normal, it will look even more unfavorable to would be buyers

 

 

  • Build anticipation around your listing 

 

Your real estate agent should have a thorough marketing strategy to make your listing stand out. It should go beyond the typical posting to the Multiple Listing Service (MLS). Your agent should contact their network of agents with buyers looking for your specific type of home. 

 

You may want to build anticipation around your listing by suggesting an open house on the first day potential buyer’s can see the property. You may end up having an influx of potential buyers ready to submit an offer on your home. 

 

What you should do if you’re buying a home:

Present a stand out offer package

Present an offer package that goes beyond the basics. You can write a letter to the homeowner expressing what you love about their home, attach a picture of you and your family, and talk a little bit about your family history and your road to buying a home. Be willing to express any challenges you’ve had and paint a detailed story about what buying this home means to you. 

 

If you want to go even further, you can create a short video to submit to the seller with your offer package. It’s one thing to just submit a letter, but creating a video shows you’re wanting to go above and beyond to get the home. You can create a short video (between 3 to 5 minutes) presenting your offer to the seller to establish a connection. If you’re not sure what to say, make sure to do the following in this order: 

 

  • Thank the seller for taking only 3 to 5 minutes to watch your video – By thanking the seller in advance, you will prompt them to want to finish watching your video. Sellers are busy, and you don’t want to create a long-winded video. From the very beginning, you’re letting them know how much time it will take. Who can’t spare 3 to 5 minutes? However long your video is, make sure you are specific in that number. 

 

  • Introduce yourself to the seller and (if you feel comfortable) the individuals who will be living in the home. You’ll want to make sure to have all the individuals who are submitting the offer. If you feel comfortable having your kids involved, you can include them as well. Either way, drawing a face to a name will help establish a connection. 

 

  • Talk briefly about the challenges you’ve had finding a home (The market’s competitive. Talk briefly about the challenges you’ve had finding the perfect home. How long have you been searching? What roadblocks have you had? Or what did you have to sacrifice to save for a down payment?) 

 

  • Highlight why you love their specific home. What stood out to you the most? What did you love? How can you see your family enjoying the home? To keep it short, list 3 to 5 things you loved about the home.

 

  • State briefly why the seller should choose your offer. What will it mean to you and your family?  

 

 

If you’re looking for help finding a multi-generational home in Placer County, contact us at Quantum real estate. Our brokerage is filled with top selling agents. We’ll connect you with your personal specialized agent to help you navigate the home buying process. 

 

Let’s Talk

You’ve got questions and we can’t wait to answer them.

Contact Us

Contact

  • This field is for validation purposes and should be left unchanged.

Contact Details

Telephone:

(916) 677-9813

Address:

3231 Stanford Ranch Rd #100 Rocklin, CA 95765