We are in the middle of a crazy real estate market the Greater Sacramento area. First time home buyers are being outbid by Cash Investors and Cash Buyers. It is not uncommon to write over 10 offers for a first time home buyer in this market and sometimes still not get a home. FHA home buyers are constantly being out bid due to the fact that they don’t have the necessary funds to pay more than the appraised value of the home and conventional buyers and cash buyers are purchasing the homes.
With this recent lack of inventory, the cash buyers are now being outbid by other cash buyers and we have seen homes selling for $20,000 over the list price. Everyone is scrambling to find the deals only to find out that ship may have already sailed.
With spring a few month’s away and home prices on the increase, we should see more inventory coming on the market and some sellers with enough equity to move up in the market (an area we haven’t seen for many years).