Two Citrus Heights homes over $800k see multiple price drops

By Lily Tu–
Two single-family homes in Citrus Heights with list prices over $800,000 have seen recent price drops, as the market sees demand falling amid rising interest rates.

The top-priced listing is a four-bedroom, three-bath home at 8117 Glen Canyon Ct. selling for $850,000, according to its listing on the real estate website Trulia. The 2,728-square-foot house sits on a .43-acre lot and is priced at $312 per square foot, with all furniture included in the sale.

The property is tucked away on a dead-end court and features a long private driveway with a gated entrance. The home has seen two price drops since it was first listed for $899,000 in late April, with the most recent drop posting on Oct. 18.

The second listing is a five-bedroom, three-bath home for sale at 7713 Cottingham Way, listed on Trulia for $849,900. With the home standing at 3,343-square-feet, the property is priced at $254 per square foot and also features an outdoor pool and three-car garage. The property was listed around two months ago for $865,000 and has dropped about $15,000 since then. Like the Glen Canyon listing, the most recent price change has been the second of two decreases since the home first went up for sale.

Ryan Lundquist, a Sacramento-area certified residential appraiser and housing analyst, explains in an Oct. 18 blog post that the current 8% interest rates are “like a gut punch to housing demand.” In his post, he notes the 8% rate is significantly higher than what the Mortgage Bankers Association had initially forecasted for this quarter.

“So many predictions said we’d be at 6% or below by now,” Lundquist remarks. “Yet here we are.”

He adds that higher interest removes demand from the market, noting that the 8% rate may appear psychologically intimidating to potential home buyers — although he said more data from future months is needed to tell if this is the case.

For the current market, Lundquist advises sellers to combat low demand by lowering prices and making concessions to buyers.

“Expect low volume and low new supply ahead.”