By Mike Hazlip—
Rising interest rates are putting sellers in a tough spot to drop prices, as buyers are facing monthly payments hundreds of dollars more than a few months ago.
Real estate listing sites show the typical Citrus Heights offerings in the $600,000 range are single-family detached homes with four bedrooms. There are also five-bedroom listings with over 2,000 square feet, and some three-bedroom properties.
New construction homes in the Mitchell Farms development can still be had for just under $500,000, up to over $600,000.
One home listed at $620,000 borders a planned stadium currently under construction at Mesa Verde High School, the first to be listed along Lost Creek Ct. after development began amid controversy over noise from some residents in the neighborhood. The two-story home last sold in 2017 for just over $400,000, and features a 2,136-square-foot layout, a large backyard, updated interior, and a two-car garage.
Related: Groundbreaking ceremony held for Mesa Verde High School’s new stadium
Real estate appraisal expert Ryan Lundquist told The Sentinel the new stadium could be an asset for the right buyer. He called the Golden 1 Center in downtown Sacramento an “asset for the entire region,” but added he is not aware of any buyers who were willing to pay more for a home near a stadium.
Citrus Heights has seen its share of price drops in recent months, but also saw a record-breaking $1.25 million sale of a residential property in August, the highest ever recorded in the city. However, records also show another million-dollar listing in Citrus Heights was pulled off the market after several price drops.
Lundquist said price drops are common in the Sacramento region. Part of the reason is the sharp rise in interest rates.
“While it’s easy to blame sellers for being disconnected from the market, it’s important to concede that it’s not easy to adjust to a quick-changing trend,” he said in an email on Wednesday.
About half of all active listings in Citrus Heights have seen a price drop, a statistic Lundquist says is on par with that of the larger region. The housing market typically sees a dip during fall and winter months, but this year’s sharp change in interest rates is adding to the market slowdown, he says.
The median price for single-family dwellings typically dips one to three percent during this time of year, but the market is seeing seven percent drops since May, he said.
“[T]here is no mistaking the stats are starting to show sharper change,” Lundquist said. “This is to be expected in light of mortgage rates going up so much lately, but it’s also something that sellers need to recognize and embrace into their selling strategy.”
