Buying a new home in the Sacramento CA real estate market is considered an exquisite investment– for those who could afford it. The city has experienced non-stop growth over the past decades which has made it one of the hottest real estate markets in the country.
While Sacramento CA real estate properties are affordable, it’s a tough job to get your hands on properties here as there’s a massive demand that exceeds supply.
It’s not unusual if you feel like you’ve waited too long and that all the good and affordable ones have been taken. While that may be true for most cities, when it comes to buying new homes in Sacramento, the time you should buy is always now.
The Realities of the Sacramento CA Real Estate Market
The anticipation of property increases and their affordability has been a major attraction for homebuyers in Sacramento. In September 2021, the prices of single-family homes in the city grew by 15.5% according to data from the California Association of Realtors.
The rush for new homes is consequent on what it offers. With an unsold inventory of 1.7 months, the numbers can be either good or bad depending on whether you’re a seller or buyer.
What You Should Know
- The Sacramento CA real estate market is a seller’s market; meaning more people are looking to buy than sell. The low inventory typically leads to sellers setting their asking prices higher than what they may have expected.
- A lot of prospective homeowners and California residents are eyeing Sacramento, which in addition to the already built-up demand has caused prices to increase more.
- Sacramento’s real estate market appreciated 163.46% in the last 10 years according to data from NeighborhoodScout.
What Sacramento has to offer?
Sacramento offers an amazing experience compared to other cities in the state. There are so many things you should consider if you plan on investing in the Sacramento CA real estate market.
Quality of life: one reason people are rushing to cities like Sacramento is due to the lower cost of living. For instance, the cost of living in Sacramento is cheaper than most of the CA coast. In fact, it’s 22.65% less expensive to live in Sacramento than New York (without rent).
That’s why most people buying a new home in Sacramento overlook the struggle or high prices.
Infrastructure: Sacramento can hold its own against most cities in the U.S when it comes to infrastructural development. Its central position makes it accessible from neighboring cities and towns, making it a hotspot for both commercial and residential properties. Being the state’s capital, the city enjoys a massive transportation network, including rail and air transportation. It also hosts numerous companies and firms including Kaiser Permanente and Blue Shield.
Leisure: The city also offers amazing leisure spots like local breweries, Sac Republic games, North Natomas Regional Water Park, and lots more.
Buying a New Home in Sacramento: Should You Invest in Sacramento Real Estate?
Now that you know much about the Sacramento CA real estate market, you probably have an idea why everyone wants a piece of it. Real estate investment is all about location, and the city of Sacramento is an ideal location for anyone looking to invest. In fact, it’s ranked as one of the top 10 real estate markets in terms of appreciation.
The city is easily overshadowed by bigger cities like San Francisco and LA, but when you look deep into the local real estate trends, you’ll know it’s a perfect location to invest in.
The median rents around Sacramento are about $1,700 monthly. This may seem unattractive when compared to the $2,500 for LA or $4000 for San Francisco. But it doesn’t cost you a million dollars to buy a decent bungalow in Sacramento, and the property appreciates very quickly. Also, rent in Sacramento is increasing rapidly due to the deficit in property demand and supply.
With the affordable market entry, growing rents, and high appreciation, Sacramento is a dream city for anyone looking to buy a new home.