As the new year progresses, Sacramento is showing signs of being on the forefront of the real estate scene. The average price of homes in our beautiful area is up. Inventory is flying off the MLS shelves, and prices continue to climb while mortgage rates remain low.
Many of the buyers on the scene are bay area renters who are coming to Sacramento in search of their first home. As mentioned, interest rates are at all-time lows and the government is offering more programs for first-time buyers. With the ability to work remotely, bay area residents are choosing to put their money into a real estate investment rather than spend money on a rental. Since Sacramento has more affordable housing prices as compared with the bay area and other parts of California, it has become the choice of home purchase for many.
This major movement is causing all time lows in inventory as well as price increases across the board. Many homes are selling above asking price, sometimes as much as $25-$50K more. The market conditions are great for Sacramento, especially for the local economy. For homebuyers, it creates a challenge to find an available home and a bidding war once one has been selected.
If you are interested in purchasing a home in the Sacramento area, working with a realtor with knowledge of the different neighborhoods and the pace of the market is really important. You and your realtor will need to be aggressive and plan for potential price increases.