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Inventory continues to be low in the region with rising prices and competition for most properties. Sales volume is rising as shown below for Davis and Woodland:
Inventory has risen in Davis but is still on the low side. Woodland continues to run significantly below normal.
Prices overall are increasing rapidly in Woodland and moderately in Davis. Keep in mind that specific market segments may be trending differently depending upon demand.
Everyone is talking about competing against 15 offers and prices 30% over initial list. Davis and Woodland are competitive, but not that competitive, as shown below.
Arbuckle Market Trends
Arbuckle is an unincorporated community of approximately 5,000 people located about 45 minutes northwest of Sacramento along Interstate Highway 5 in Colusa County. It features homes built in the 1940-50s plus newer subdivisions built over the past 20 years and is surrounded by farmland.
Inventory is very low, not that unusual given how small the Arbuckle market is. Sales volume in 2020 was down 10% from 2019, not unusual for the area. Prices have increased significantly over the past 12 months as shown below.
A longer look shows the effect of the pandemic on pricing:
Of the 37 homes sold in Arbuckle since 1/1/20 in Metrolist, 17 had one offer and 20 had more than one with a peak of 17 offers for one property. Competition has picked up in Arbuckle, following trends throughout the area.
Every day I receive calls and offers from lenders, agents, and buyers hoping I can help them with a purchase appraisal. I’m very fortunate to be busy and can’t finish anything quickly now because of my workload. I strongly suggest everyone to be patient if an appraisal is part of your transaction. This graph below from Freddie Mac will help explain the situation.
Appraisal volume ties directly to interest rates. When rates fall, mortgage financing rises and drives appraisal volume up. When rates rise, appraisal volume falls. However, as shown above, the number of appraisers in the US who work with lenders has been relatively stable over the past eight years. The interest rate cycle rises and falls much more rapidly than the time it takes to develop a productive appraiser, causing appraiser shortages in times like now.
Great update Joe! What a time to be an appraiser. Various factors aligned at this time.
Thanks Bryan. Good seeing you last night even if it was on Zoom.
Nice update my friend! It’s an interesting time to be appraising! I hope you’re doing well. Most of my family and I have had are second dose of the vaccine. My best to you! I look forward to catching up soon.
Thanks Jamie. Glad to hear you and yours are doing well. My wife and I have received our shots and my son goes in for his second tomorrow.
Love the stats Joe. Well done.
I hope all is well with you and yours Joe! I’m fully vaccinated and looking forward to having a social life again. 😉 I am glad you shared the Freddie Mac graph and hope that lenders and AMCs will see it and understand why appraisal turn times have increased.
Great to hear from you. I hope you’re as busy as you want to be, and not any busier!