Solano County real estate sales remain soft
The current Solano County real estate market continues to trend toward soft sales and less overall inventory movement when compared to year over year data. Though this reality mirrors the national home sales picture, local residents may find additional limitations and obstacles when selling or buying.
When inventory is low, logic dictates that the market swings toward a seller. Ordinarily this axiom is realized when sellers ask for and receive top dollar for competitively priced properties. Conversely, buyers who are motivated to move often justify the need to make aggressive offers (in many instances, over asking price) due to a relative reduced number of homes in desirable locations.
However, the current state of the market is not only highly influenced by low inventory, but is additionally affected by increasing interest rates. Present interest rates have forced many buyers to not only qualify for “less of a home” – in the local expensive Bay area market – but cloud the overall sales picture in Solano County as general affordability has declined.
A national industry website noted home sales contract signings in the west recently fell 9.8 percent to the lowest level since June 2014. Website Homesnap delineating home sales in the Solano County market, noted that as of early March the local market “stayed soft, as there were only 293 homes sold over the last 30 days.” Ultimately, the website researchers concluded that home sales prices are indeed rising in Solano County, as “the median sales price this period increased from $370,500 to $372,000. With only two months of inventory to sell, Solano County is a definite seller’s market, in spite of the dip in sales.”
If you happen to be on the other end of the spectrum as a buyer, not all of the recent real estate sales news is of a doom and gloom nature. According to national data, wages have seen a slight increase and are on an upward trend. This positive sign is in addition to a growing economy boosted by optimistic hope following the recent presidential election.
The bottom line… Despite the good news, buyers in relatively expensive entry markets such as Solano County are still going to find the housing environment tough to navigate, especially those buyers looking for homes on the lower end of the price spectrum, where inventory is lower and competition for ownership is fierce.