Sacramento market overview, by Serina Lowden.

Sacramento Market Overview

By Serina Lowden

Sacramento’s real estate market has continued to grow at a high rate with an increase in home values, making the houses more expensive. Limited inventory has made Sacramento real estate remain competitive as buyers try to purchase a house in the market. The 2020 metro area of Sacramento Rose Arden- arcade was ranked in the 5th position in the US. The latest report shows that the median home price has moved up by 8% in the past years in the Sacramento market. 11.7% increase in rent has been recorded, indicating that the rental market is growing at a high pace. Home value increase has resulted in high demand for houses in Sacramento real estate, increasing home prices.

In Sacramento, $475136 is the average price of a home, and the median home is 48.1% more than the national average. The same median home in California is $734612 higher than in Sacramento. With this price difference, most buyers prefer to buy a home in Sacramento, which is affordable to many. However, Sacramento’s median home price has increased by 20.9% since last year despite the relatively affordable price, which is much more profitable to sellers.

MARKET TREND ON SACRAMENTO REAL ESTATE

Covid 19 has largely affected Sacramento real estate market, where most people lost their job, and their financial income was reduced. When the pandemic popped in the country, the rate people were buying a home in Sacramento reduced due to unemployment. This made the Fed drop the interest rate to 3. 45% which is a

low level historically to promote buying activity among people. Due to the reduced interest rate, more buyers decided to utilize the opportunity and bought more homes and investors. As the pandemic is easing, more people are willing and ready to buy homes in Sacramento real estate than when the pandemic was starting. The unemployment rate is also decreasing as some people are getting back to their work, empowering people financially to buy more homes in the Sacramento market.

Covid 19 has compounded inventory shortage while demand and supply are yet to balance due to high competition. To solve this problem, builders have gone back to work to build more houses to improve supply. Therefore, in the next few years, more homes will be on the market, and this will be helpful to people wishing to get a house from Sacramento.

THE INCREASING POPULATION HAS IMPROVED

Sacramento’s real estate demand in the area over the past years. The migration pattern has increased over the past years as people are relocating to inland destinations like Sacramento from pricier coastal real estate. From 2010 to 2019, Sacramento’s population has increased at a rate of 10%, according to the latest census bureau figures. Additionally, according to the latest report, the number of days a house listed for sale spent in the Sacramento market has reduced to an average of 11 days. This is clear that home selling in Sacramento is moving at a high rate. In 2021, the Sacramento market was growing more than in 2020 due to the high employment rate and population increase. In the last few months of 2022, the Sacramento market has grown as compared to last year as the demand is increasing day by day. World and news latest report has ranked Sacramento as the best place to live in the US.

WHY DO PEOPLE PREFER SACRAMENTO?

• Affordable housing is one of California’s best places to live for those seeking a costeffective place to raise a family. • Sacramento has an amazing restaurant that most people wish to visit. • Burgeoning food, wine, and beer scene • The area has tree-lined streets with incredible shopping and outdoor recreation. • Mild climate with low chances of violent crimes • Sacramento has the most beautiful day trip location.

PROJECTION FOR 2022

Sacramento real estate market home prices will continue to rise for the next months of the year due to the increased home value. Demand for Sacramento houses has continued to rise, which is even going to raise the price more. Pandemic impact on people is also seen to ease, and the interest rate may increase in the next few months of the year.