How California Fires Are Affecting Sacramento Area Real Estate
How California fires are affecting Sacramento area real estate is a timely and brilliant blog. It is written by our exclusive buyer’s agent, Josh Amolsch. Enjoy, — JaCi Wallace.
I have realized over the years that things that are obvious to me are not always obvious to other people, and vice versa. We all live in our own little bubbles or “echo chambers” as I heard someone once say. We live “our own truth”, a sad but true reality for the misled.
If you were to ask my dentist how California fires are affecting Sacramento real estate, he might tell you that homes are sitting on the market longer right now because buyers don’t want to go out in the smoke to see homes. Well, no. Homes are flying off the shelf as if they were the mad rush in March 2020 for toilet paper. People don’t seem to care about the smoke-filled skies right now when it comes to buying a home. A steady stream of buyers keeps on coming in from the Bay Area. Since companies have found out that their employees can work from home, it seems they are taking advantage of that momentum. Boy, some commercial real estate is going to take a hit due to the lack of demand for brick and mortar.
One big way how California fires are affecting Sacramento area real estate is with affordability in the foothills. I recently wrote an offer on a property in Colfax, and the insurance quote came back at $8000/yr. That pre-approved buyer is suddenly not able to buy that home, even though it is in his price point. With fewer buyers for these types of properties, with astronomical insurance costs, we might start to see properties come down a bit in Placer and El Dorado counties. Heck, as long as I am speculating, we all might see our insurance rates go up if we keep having these fires in California. #%^& flows downhill, right? Yes, it does, especially when all the trees and absorbent-brush have been burned up.
Displacement is another way that California fires are affecting the Sacramento area’s real estate. I can’t imagine all of those people who lost their homes in the fires will just wait. Who wants to wait in a hotel room for their insurance company to build them a new house right where theirs burned to the ground. Many sellers will move out of the area or out of state.
Sacramento area real estate is, ahem, on fire and has been since before it was trendy. To navigate this absolutely crazy market, you need an experienced agent, a legendary team. Give us a call if you want to buy or sell, and we will hit it out of the park for you. When we take on a client, we dedicate our lives to making their goal come to fruition.
— Josh Amolsch