Home prices in Sacramento have gone up over 9% in the past year and predictions are that growth will continue into 2021. What is fueling this growth and what can buyers and sellers expect in the year to come?
While many parts of the country are experiencing price growth, Sacramento is a unique real estate market. As a major city, it is more affordable than most California metro areas, especially when compared against some of the sought-after coastal cities like San Diego and San Francisco.
Here are some interesting stats about prices in Sacramento…
Sacramento is currently experiencing a supply and demand imbalance that is putting upward pressure on home prices. Tight supply and very strong demand are certainly contributing to this increase. Here are some interesting stats about the number of listings, closed sales, and days on the market to highlight this supply and demand phenomenon…
Clearly, Sacramento inventory is becoming scarce, sales are up, and homes are selling faster than ever. Here is a quick summary what Sacramento real estate looks like…
• Monthly inventory is lower than it has been in more than 15 years; we have 20 days of housing supply.
• We had record sales in September 2020 in Sac County; the highest in 11 years.
• The million dollar plus market has grown this year; 3.3% above $1M as compared to 2.5% last year.
• Demand has increased dramatically from both local and Bay Area buyers.
• Normally, the market starts to chill out with the weather; this year we continue to remain strong. With mortgage rates below 3%, this is not surprising.
As we move further into fall, it will be interesting to see if prices and demand continue. Many thanks to Ryan Lundquist – Sacramento Appraiser – for his statistics, insights, and excellent services.