The Sacramento housing market remains HOT with sellers receiving multiple offers and short days on the market. Buyers are still obtaining 30 year mortgage rates under 3% giving buyers the purchasing power to counter act the rising home prices. The rate drop from 3.25% to 2.85% has given buyers the ability to afford more home from the same monthly payment.
However there is a growing national discussion on the coming wave of foreclosures and short sales. Some believe that we have not experienced the true impact in the real estate market from the pandemic. According to data from Black Knight Inc., "as of August 25, 3.9 million homeowners were in active forbearance, or 7.4% of all active mortgages, representing $828 billion in unpaid principal." As unemployment assistance, stimulus payments, and SBA loans end we have to expect the number of REOs and short sales to grow. The government is looking to implement flexibilities to protect borrowers.
As shown here by the graphic made by Ryan Lundquist of SacramentoAppraisalBlog.com, at the present time we aren't seeing any indicators of this in our market yet. Could this be due to the migration the Sacramento area is experiencing being one of the top markets in the nation or is it simply too soon to tell?
