Sacramento Real Estate Market

Sacramento is the state capitol, located in Northern California on the Sacramento River.

Its population is an estimated 500,000, the 7th largest urban area in California, it includes El Dorado, Placer, Sacramento, and Yolo counties and many communities of smaller area, all of them considered some of the best locations for a home in the US.

The city divides itself into 4 districts, Central/Eastern, Southwestern, Southeastern and the region north of the American River. The real estate market is reported as experiencing fewer foreclosures than last month, or as being unrealistic, depending on which side’s accounts are read.

Real Estate in Sacramento

Home sales have been slower than expected due to a drop in values and the huge amount of homes forced onto the market by foreclosures. Investors with cash or good credit are finding a great buyer’s market with all kinds of properties from the higher end luxury homes to smaller apartments can be purchased at bargain price in this buyer’s market.

Real Estate companies are claiming this process is now slowing, but analysts fear the only factor that is holding back a dam of unlisted properties that will flood the market, causing property prices to plummet further, is the fact that banks have help on to foreclosed homes and not made them available to the market. This would only improve the market for investors and buyers.

A History of real Estate in Sacramento

Sub prime mortgages, that is loans made to home owners who did not really have the resources to cover the monthly payments, have hurt the economy in Northern California, just the same way as nationally.

When the Global downturn hit, many who were already marginal lost all hope of paying back their mortgages, as well as finding cash for other bills, often because the work they were engaged in was terminated.

What this means for Investors in Real Estate

Along with a strong buyer’s market, there exists a $8000 tax credit for buying a new home, a move made recently to stimulate the market, which may well include those in higher income brackets, as the government seeks to keep the market going.

Other programs, such as those sponsored by Habitat for Humanity have attempted to halt slow loss of homes in foreclosure, but in reality, the problem is so large, these efforts all are comparable to a drop in the ocean.

Some indications that the hope realtors have recently expressed may not be unfounded comes in the analysis of how well the banks, who hold back properties that have been foreclosed from entering the market in a flood, rather balancing the entry of these residences into the market against properties sold, have helped to hold prices at a steadier rate.

What is Available in Sacramento’s Real Estate Market?

The short answer is all types of homes are represented on the current market, from heritage buildings in the old town to brand new developments in the rising Tahoe Park community. Because of the huge amounts of property on the current market with prices looking to stabilize soon, it is an excellent market to invest in.

Some popular residential neighborhoods include East Sacramento, Land Park, South Land Park, Meadowview and South Natomas, where prices varied less than the state average, some homes picking up 2% in value, last month. Up and coming areas are Woodlake, Richardson Village, Tahoe Park East, Newton Park and Boulevard Park, where some homes gained up to 50% in value, last month, a clear indication of rising popularity.

Recently sold homes include a typical family home in the sought after area of East Sacramento which featured 2 bedrooms, I bathroom and a pleasant garden. The final price was $300,000, which is $25,000 less than the median for that level of home in the area.

In Woodlake a Tudor style detached family house with large garden and close to downtown center, built in 1948, with 3 bedrooms and 2 bathrooms is on offer for $429,000.

Seize the Market!

If local realtors are correct, (and they generally are) then the low prices may not continue very much longer, the market is in recovery, and prices that have already seen small increases in some more affluent neighborhoods, will rise steadily over the next few months, with no more dramatic swings in either direction.