n ON THE MARKET
BEYOND THE BUBBLE
It’s nearly impossible to predict what will happen to housing prices
BY Ryan Lundquist
I GET A LITTLE BORED WITH REAL
ESTATE “BUBBLE” CONVERSATIONS.
People often are looking for a quick
one-word answer. Are we in a bubble
or not? Yes or no? Well, there’s more to
consider beyond just one word, which is
why we need to look at some of the big-
ger dynamics in the Sacramento real
estate market.
The spring market has been really
competitive. Real estate agents are say-
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ing it’s “hot” and they’re right because
buyers are hungry, sales volume has
been strong and it’s taking less time to
sell. But prices also seem a little flat.
That sounds crazy since there’s so much
competition, but it’s what the stats show.
We’re seeing market momentum
slow. For years, prices would increase
7 to 10 percent over the previous year,
but now it’s more like 2 to 3 percent.
National real estate expert Barry Habib
has the perfect metaphor. He says the
market used to be driving 80 mph,
but now it’s driving 30 mph. In other
words, we’re still seeing progress with
price growth, but it’s been a much
slower pace.
The last half of 2018 was really dull
and many wondered if the market was at
a tipping point because buyers seemed
to put their foot on the brakes. When
interest rates increased, buyers began