The Sacramento Bee just labeled our housing market is one of the nation’s hottest in 2017. The National Association of Realtors predicts that Sacramento is about to become one of the hottest in the country. They even go as far to say it will be the fourth hottest housing market this year by price appreciation and growth in sales volumes. Sacramento is just behind Phoenix, Los Angeles, and Boston. This is a ranking of over 100 large metro areas. While much of the country is projected to slow down a little bit, Sacramento is looking better than ever. Home prices are expected to grow 7.2%, and the volume of home sales is set to increase nearly 5%.
So what’s making Sacramento so attractive? Well, people and places like the San Francisco Bay area just simply cannot afford the inflated prices that tend to soar beyond the national average. Sacramento has actually been on the sidelines for a long time compared other markets and has very cautiously snuck under the radar as being one of the more popular places for growth.According to Core Logic, Sacramento County’s median home price is about $310,000.
This is still about 17% below the prerecession peak. Placer County has a median price of $429,000, 15% under the peak. But, prices are growing more slowly to compared to a decade ago. This is actually good news. If gains happen too fast, housing bubbles tend to burst. Sacramento’s success could be the strength of the bay area. People are seeking cheaper housing and a quieter lifestyle. The median price for the bay area is over $675,000. [Source]
Of course, this is all projections. According to some real estate sites, the Sacramento market trends indicated an increase of $17,250 or about 7% in median home sales over the past year. The average price per square foot rose to $196, up from $178. According to different real estate sites, the median list price is about $300,000 with the median price per square foot coming in at $207.
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All this to say, it’s hard to figure out exactly what your home is worth because there are so many extenuating factors. Location, condition, micro markets for the neighborhood, repairs and comparable sales in the same area.
For a typical homeowner, pricing in marketing their home might sound great, especially if you’re trying to get the most from the home, but there are still distressed homeowners out there or people facing foreclosure or a home that they don’t know how to get rid of. This is where investors come into play. You need to know that you will get a fair market value for the home in its current condition and location. I know the real estate market and I want you to be aware of it as well. Even though prices are up, some homes may not have gained value and may have actually lost value over the year. You owe it to yourself to find out. Call me today to see exactly how much your home is worth right now. We can discuss negotiations, what you can save by selling your home to an investor versus with a real estate agent, and how much the home could be worth in today’s market.