The housing market in the US continues to favor sellers, with the median price for new homes in Sacramento reaching $650,000 in 2021. That figure catapults Sacramento to the top of the list for the least affordable homes in the US.
Those interested in moving to Sacramento will hope that the real estate market gets more affordable for buyers as soon as possible. But since nobody knows exactly when that might happen, it helps to have a good grasp of the region’s current real estate market before you move there.
In this blog, we take a close look at today’s housing market in Sacramento. Let’s delve right in.
Home Prices Out of Reach for Many Residents
The housing crisis in the US pushed home prices to a record $350,000 in May 2021 nationally. But when you consider home prices in Sacramento are $300,000 more than the national average, it’s easy to see why the region is currently a home seller’s haven.
Unfortunately, that high price has made it difficult for many aspiring homebuyers in the region to make an offer. About 80 percent of the households in Sacramento are priced out of new homes.
While the median household income in Sacramento is $76,706, one needs an income of at least $128,447 to afford a home here.
The Real Estate Market Is Becoming Less Competitive
Given the shortage of new homes in the Sacramento region, one would expect the market to be highly competitive. But that’s not the case. In the last 45 or so days, the housing market in Sacramento has become less competitive. This may be some encouraging news for people contemplating going to Sacramento.
Where home sellers were getting ten offers per listing, now the number has gone down by about half. The size of offers has also gone down. More buyers are now getting homes at list price or slightly over as bidding wars come down.
Perhaps the main reason for the declining competition is the high price of homes in the region. As the market normalizes, it’s possible that you’ll be able to get the Best SAC Homes at better prices.
Rental Prices on the Rise
It’s not just the price of homes that have gone up in Sacramento. Rental prices have also seen a sharp increase in recent years.
With home values increasing by over 21 percent, rental prices have come up with the increase. If you’re set on living in Sacramento, expect to pay an average of $1,760 in rent. That’s higher than you’d pay in Seattle, New York, and Washington, D.C.
Evaluate the Sacramento Housing Market Before Moving There
Few areas in the US exemplify the current housing crisis better than Sacramento. The sky-high home prices in the region make the housing market a seller’s paradise. For aspiring home buyers, it’s imperative to check your numbers and plan well to get a piece of this hot real estate.
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