By Mike Hazlip—
More and more homes in Citrus Heights and the Sacramento region are seeing reductions in prices from original list price, as interest rates rise and the housing market begins to cool.
A two-bedroom, two-bath home at 6624 Oak Branch Ct. was originally listed at $519,000 last month, but now that same home is $489,990. Another three-bedroom home on Merlindale Drive was listed two weeks ago at $525,000, but has already been reduced to $499,990.
Real estate appraiser Ryan Lundquist of the Sacramento Appraisal Blog says it’s a different market today than just a few months ago. As of June 2, he said Citrus Heights had 64 active listings, with 19 of them having a price reduction, equating to 29.6% of homes on the market seeing a price drop.
“The housing market sizzle has faded and we’ve entered a different season. We’ve basically said goodbye to the most aggressive housing market ever, and we’re in a new market now,” Lundquist says.
A top factor influencing the slower the market, Lundquist says, is a return to normalcy. He sees the increased demand for larger homes fueled by pandemic work-from-home orders beginning to wane, saying the “mad rush to the market has subsided.”
What Citrus Heights is seeing is on par with the region, where 33% of all active listings in the Sacramento region have seen price reductions, according to Lundquist.
Listings for Citrus Heights on Zillow show a home at 8446 Robie Wy., has seen three price reductions since first being listed in April for $845,000. The home is now listed for $750,000.
Another home in the newly developed Mitchell Village is up for sale with two price reductions since April. The four-bedroom, three-bath home built in 2021 is currently on the market for $649,000.
Citrus Heights real estate broker Cara Richey says price reductions should not necessarily be a “red flag” for buyers. Richey says listings priced above comparable homes are now above market value as values return to normal.
“When a market begins to shift, it’s not uncommon to see the price reductions happen, but often these reductions are simply reflecting homes that were listed at a progressive pricing – above actual sold comp value,” Richey said. “When the market suddenly stops increasing, those homes are suddenly above market value and often the price reductions are bringing them back to actual sold comps prices.”
A June 1 report by CNBC says mortgage demand nationally has reached its lowest level since 2018.
