It is the basic supply and demand playing out in the Sacramento real estate market. Good old fashioned economics 101 where the demand outweighs the supply forcing the prices upward. Here is a Sacramento county graph of housing supply by price range (thank you Ryan Lundquist for this great information). You can see from the graph below that inventory is down in every price range in the Sacramento area. This is not about the pandemic as realtors are using virtual tours and maintaining safe protocol for conducting business. This is about mortgage rates that have dropped below 3% six month ago making owning a home more affordable for many.
Even with the rising prices, Sacramento still remains one of the larger cities with affordable home prices.
It will be interesting to see where prices go the first quarter of 2021. Stay tuned for my monthly updates and be sure to share this information with anyone you know who may be interested in buying or selling in the Sacramento area in the near future. Having a source of good data and a reliable, professional realtor will make the entire process less stressful and more successful.