Planning to buy in Sacramento? You

PLANNING TO BUY IN SACRAMENTO? YOUR BUDGET SHOULD LOOK LIKE THIS…

Robert Langston

Sacramento is not just an ordinary city; it is California’s capital city, the United States of America. It is located in coordinates 38°34′54″N 121°29′40″W, and its motto is Urbs Indomita (English: “Indomitable City”). Sacramento is one of the best places to invest in properties or purchase a private residence not only in California but in the United States as a whole. Therefore, if you have a plan to buy a home in Sacramento, you’re in the right place at the right time. Here, you’ll learn what your budget should look like to get a suitable property in Sacramento. However, before we go into that, it is essential you know basic facts about the city you’re planning to invest in. The city was incorporated on February 27, 1850, and chartered in 1920. Today, it has grown to become one of the most notable cities in the US. It features a total area of 99.77 sq mi (258.41 km2). Water covers 2.19% of the city’s total area at 2.09 sq mi (5.41 km2). Land, on the other hand, covers 97.68 sq mi (253.00 km2) (References to the United States Census Bureau). In 2010, the city was reported as home to 466,488 people, and in 2019, the population significantly rose to 513,624 (according to the US Census Bureau). Its population density is 5,258.02/sq mi (2,030.13/km2).

Purchasing properties in a city of this nature requires a significant amount of money. According to the Sacramento Housing Market (SHM), most Sacramento homes that are put on sale get multiple offers. Thus, home purchase in the city is highly competitive. Homes in the city sell at about 1% above the listing price. It takes about eight days to sell a

home on listing in Sacramento. Hot homes can sell above 4% list price with a pending period of less than five days.

Now, you must have seen how lucrative it is to purchase a property in Sacramento. Now, what should your budget look like?

According to fortunebuilders.com, the median home value in Sacramento as of 2020 is $366,600. On the other hand, the average price of a property in the city is approximately $109,937. This is above the national average. Therefore, with a budget of roughly $400,000, you can purchase a great home in Sacramento. While this might seem to be a high price compared to several other cities in the US, it is little compared to the costs of homes in Sacramento’s neighboring cities. For instance, San Francisco has a median home value of ($1,416,879); for San Jose, the median home value is ($1,052,521). Now you can see that home prices in Sacramento are just a small fraction compared to other cities in its proximity.

According to noradarealestate.com, real estate in Sacramento didn’t really feel the Covid-19 effect. At a time when property values were dropping across the country, property values in Sacramento kept increasing. During the pandemic, the median sales price in Sacramento hit $425,000.

Realtors have also forecasted that house prices in Sacramento are not close to dropping anytime soon. Instead, the costs will continue with the upward surge even by next year. Therefore, if you have about a $400,000 budget, you can still find a suitable property in Sacramento. However, it’s better to buy your Desired property soon considering the upward price projection of realtors.

References

https://en.m.wikipedia.org/wiki/Sacramento,_California https://www.redfin.com/city/16409/CA/Sacramento/housingmarket https://www.fortunebuilders.com/sacramento-real-estate-andmarket-trends/ https://www.noradarealestate.com/blog/sacramento-realestate-market/