Sacramento Housing Market Report
It is only a matter of time before our rising California home prices will reach our record high set in 2007, says C.A.R. Chief Economist Leslie Appleton-Young. In fact, Appleton-Young says our homes prices will surpass that pinnacle during the next 3 to 5 years. We are still sitting with low inventory and fewer numbers of buyers who can afford to buy a home. According to C.A.R., almost 3 out 4 buyers cannot afford to buy a home in California. That’s staggering to think about. Not to mention, any little jump in interest rates could further dampen enthusiasm to buy a home in Sacramento.
Everybody and their uncle has a story to tell you about the September 2017 housing report for Sacramento. But the one place you can always count on to give you accurate information is Trendgraphix. However you decipher it is up to you. I’m sure there are agents out there who will look at the square-foot-cost chart in Sacramento and predict a bubble, and I’d say they are crazy because the conditions that created a bubble do not exist today. We don’t have a plethora of 100% financing, and a little over half of all transactions are conventional, with the rest about 12% cash, 25% FHA loans. Our qualification guidelines are stringent.
While I did not expect to be named the #1 agent at Lyon Real Estate last month, it’s still gratifying to know the Elizabeth Weintraub Team is continuing to perform as a dominant force in the Sacramento housing market. I looked at the fact I spent a week visiting my sister in Minneapolis and a little over two weeks in Hawaii between June and July, but I never stop working regardless of where I may physically have been. That means the production we pumped out for July is pretty incredible, I suppose, given the circumstances. My team members were also visiting Europe, the East Coast and the Bay Area as well, so we all managed to get in a few trips while keeping track of Sacramento real estate.
When I look at the Trendgraphix numbers for the Sacramento June Housing Market report, I am astounded. How quickly we jumped from a median price in the 7-county-region of $389K to $400,000. Prices are continuing to climb; buyers are clawing tooth and nail to buy a home, and interest rates are increasing as well. Where will it stop? At what point will people say they don’t want to move to Sacramento or they will take a job elsewhere?
Of course, in California, where else are they gonna go that’s an affordable metro area? Or will we turn into a state of tenants paying rent to foreign investors?
This is the housing supply for our country today, from May of last year through April of 2017, courtesy of the National Association of Realtors. We are not an island in Sacramento. Low inventory is a factor in just about every major metropolitan city in America.
You know how Facebook and Photos, to mention a couple of places, shows you stuff from years ago as a blast from the past? Well, I’ve been yakking about the Sacramento real estate market inventory and how dire it is right now, often comparing it to 2005. Then it occurred to me that to properly put things into perspective, I should pull the charts.