A look at the Housing market in Sacramento

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Creative Commons License photo credit: rezlab

The housing market in Sacramento is made up of a variety of smaller markets; with popular areas including: Land Park, Midtown and East Sacramento. It’s a very interesting and unique location. Downtown Sacramento is growing due to investments from investors buying real estate in the area. That means commercial real estate in the area is a bit more exciting and active than residential properties. The city is also located near rivers which makes it a unique place to buy commercial or residential property. In the first quarter of this year inventory or houses on the market have increased; while the demand has tapered off. That means the Sacramento market is learning towards the buyers at this time. The median home sale in the area at the end of March was close to $180k. While this is a rather low median price for the state of California; it is an increase for Sacramento in comparison to previous quarters.

At the end of May there were a bit over seven thousand homes on the market, so again Sacramento is experiencing a buyers market at this time. The number of foreclosures is rather high for the area and many Realtors wonder if this will have a negative effect on traditional home sale prices that seemed to have stabilized. Although the price ranges in Sacramento are low compared to other cities in California; the city is ranked extremely low when it comes to home affordability. This means that residents in the area are still not able to afford the home prices due to the median average salary in Sacramento. Out of 451 markets in the U.S. that are ranked in affordability, Sacramento comes in at number 421. Again this is not a good number. A good Realtor will therefore be a major asset when searching for a home to buy in the area. They can tell you what areas are the most likely to rebound from the current stabilized conditions. You’ll also want to know as much as possible about your future homes location; because as mentioned Sacramento has several micro markets. There is no better time than now to make a purchase in Sacramento and simply doing a bit of research on the city can net great results in this buyers market.