CALIFORNIA - If you're considering buying a home in Sacramento, California, you should know that the market is currently hot. Home prices have risen considerably since two years ago, and Brandon Haefele, CEO of Catalyst Mortgage, predicts that the Sacramento housing market will continue to rise through 2023. For example, in January 2022, the median home price in Sacramento County rose by 16 percent to $524,000, while the median home price in Placer County rose by 15% to $670,000.
The Sacramento housing market will likely continue to grow thanks to the growing population and lack of supply in neighboring cities. In addition, the Sacramento housing market is more affordable than those in surrounding markets, which means that prices will continue to rise. In addition, many residents of the Bay Area are looking to buy homes in Sacramento, which are more affordable than those in the coastal markets.
The Sacramento housing market reflects the proper income mix of the Bay Area. The city is cheaper than other Bay Area metros, and Sacramento offers more affordable housing options than San Francisco. While many people in the Bay Area commute to San Francisco for their paychecks, others do not want to pay the high prices for a property there.
According to Zillow, home values in Sacramento County rose by 18.6% over the past year. The median home value in Sacramento County is $573,853, up from $448,600 in 2006. In addition, the Sacramento-Roseville-Arden-Arcade Metro has seen home values increase by 18.6% in the last year. For 2023, home values in the Sacramento area are expected to increase by 7.6%.
Although Sacramento is a sellers' market, buyers still need to compete for homes in Sacramento. The inventory in the county is still below equilibrium. This means that the demand for housing is still increasing, and prices will rise accordingly. However, with the growing population and a low supply of homes, it's possible that prices in Sacramento will continue to rise.
The Sacramento housing market currently has only two months of inventory. The low inventory and lack of supply will continue to cause high competition. As a result, home prices in Sacramento are likely to rise 15.8% next year. However, despite this high demand, Sacramento is still relatively affordable compared to San Francisco. This has made Sacramento an attractive destination for buyers on a budget.
The California housing market has experienced a boom in the last few years, but a recent slowdown has caused the market to shift. The June housing market recorded its first decline in two years and the worst since May 2020. In June, the median home price in California fell by 4.0% from a record high of $900,170 in May.
