It is very active in Placer and Sacramento county for any homes priced under $300,000. There are multiple bids as investors and first time home buyers are trying to purchase the same properties. The listing inventory is down to 1.5 month supply. That means it is a Sellers market. The listing inventory needs to be at 6 months for it to be an equal market between Sellers and Buyers. The price of homes has increased 4% over the last month so home prices are starting to tic up.
If you are a buyer and thinking of purchasing a home right now and it is priced under $300,000 you need to make an agressive offer. Especially if you are asking the Seller to pay up to 3 percent for your closing costs. You have to have an offer that is going to compete with an all cash offer that can close is 10 days or sometimes even less.
On the positive side, interest rates are GREAT! You can get a loan under 5% right now depending on your credit score of course. Of course you need to prove your income, just like it used to be before the No income, no asset loans. But hey, right now it is like the perfect storm. Reasonable prices on the homes and great interest rates! What more could you want?