By Robert Langston
EXPERT Sacramento Housing Market OPINION: is Red Hot Right Now
WWW.THEPOWERISNOW.COM
PRICE APPRECIATION The home price in Sacramento in the last month has grown from 18% to 25% year-over-year. However, the median prices are not increasing at the same rate. The current median sale price of homes in Sacramento is $427K, a 26.5% increase from last year’s $365K. The median sale price/sq. Ft is now at $315, a whopping 26.0% increase. The sale-to-price ratio for homes in Sacramento was at 104.62%. That means that people were paying 5% over the listing price. Depending on which side of the fence you are on, brought on by the supply and demand dynamics in Sacramento. SUPPLY AND DEMAND The current supply of existing homes in Sacramento is currently not enough. The supply chain challenges experienced in the building community are not working in favor of the shortage. Low labor supply, high lumber expenses, and material shortages have made it impossible to build a home first enough to keep up with the demand.
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acramento offers a cheaper alternative to buying a home other than settling in the more expensive San Jose. Its housing market in recent months has been very hot and competitive. Millennials and firsttime homebuyers are entering the market as home affordability has dramatically improved since the reduction of interest rates. The demand has been high, but the ever-diminishing inventory has made it difficult for homebuyers to find homes. The little inventory that has made it into the market has had multiple offers made, resulting in heated bidding wars. If you are entering the market, be patient, and know this;
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