The real estate market trend is cutting across the country, though more notable in some areas—one worthy of note for investors in Sacramento, the capital of California. Often, most people think of Sacramento as another small community in California; they feel Los Angeles or other bigger cities in the state’s capital.
Sacramento is relatively low-key compared with the neighboring cities such as LA, San Jose, and San Francisco. However, Sacramento is presently one of the best locations real estate investors can begin to consider putting their money. This is based on market analysis, trends, and predictions, which are discussed below.
Sacramento itself is home to half a million people, but if we consider its population together with the suburbs around it, it contains over 2 million people. The real estate market’s present status is in the seller’s position as there are more buyers interested in relocating to this area. This sudden movement is attributable to the relatively affordable lifestyle in Sacramento when compared with the neighboring cities.
According to the annual real estate report, Sacramento experienced a 1% increase in the last quarter’s real estate rate. If this trend keeps going, there might be up to 4% increase before the end of the year. According to Zillow’s report, the median home value in Sacramento at the start of this year is $346,970. Over the past five years, this median home price has increased by over $100,000. This is huge as it also affected home prices, causing a 5.2% increase.
Zillow also drafted a report based on the listing price in Sacramento. Compared to December 2019, 8.1% of listings experienced a price cut, and the median list price per square foot reduced to about $233. This figure is smaller compared to the neighboring metro areas.
The report also shows that buyers can negotiate the prices of houses, even with the few houses listed for sale. This is evident in the fact that homes are selling below the asking prices. The median price of a home sold is around $322,000. Also, the rent price, $1,795, is smaller as at now, when compared with the median rent prices of the other areas.
Based on the analyses and values above and other factors put into consideration, it is evident that by the third quarter of 2021, home prices would have increased in value in Sacramento. Apart from the fact that fewer houses are being listed every passing month, the community’s economy and lifestyle are quite cheaper.
Most families prefer this option to travel down to their workplaces in bigger cities. They can do this while having their residential apartment in Sacramento. Industries are even beginning to look in the direction of the state capital as massive firms in various sectors are extension their branches to this location, hence ensuring more job opportunities.
Investors can begin to make use of this opportunity to secure properties and buildings for themselves so that when the rainy day comes, they can also make massive gains from the real estate market.