Trend #1: The Market is HOT! Ranked as one of the nation’s hottest markets Sacramento placed in the top 5 of Realtor.com’s rankings of 100 largest metro areas. Other reports forecast that Sacramento will remain as one of the nation’s top markets for 2017.
Trend #2: Appreciating Home Prices! Home prices will continue to appreciate at a rate that will outpace the national average. Following the lead on ranking as one of the nation’s top markets, the price growth is estimated to reach 7.18 percent with the sales growth of 4.92. The median home price is estimated to reach $420,000. According to Trulia’s Sacramento market trends, the median home sales price has increased by 8%, or $20,000. Additionally, the average price per square foot also rose from $179 up to $199.
Trend #3: Increasing Mortgage Rates! With the average 30-year mortgage rate continuing to climb as the economy and job markets continue to approve many mortgage industry experts predict that it will have an effect on the overall market. With the increase in mortgage rates, more buyers are entering the market now before rates climb even higher. With rising home values as well as mortgage rates increasing, buyers are feeling the pressure. Rates remain extremely low when compared to historical averages and buyers should take full advantage now!
Trend #4: A Recovered Housing Market! After spending the past ten years recovering from the housing bubble burst, the Sacramento area real estate market finally sees a sense of normalcy and mimics many other top markets across the country. Earlier this year Zillow named Sacramento to the list of Top 10 hottest housing markets for 2017. The cities were chosen based on a high-income growth, low unemployment rates, and quickly rising home values.
Trend #5: Supply and Demand! Inventory shortage and strong buyer demand dictate the market. However, buyers will refuse to overpay. The move-up market is also strong in the Sacramento area as homeowners are looking to sell starter homes and upgrade to take advantage of low-interest rates and strong pricing. The inventory numbers are increasing as we move into the spring selling and buying season, but the market remains competitive overall.