What To Expect From Sacramento’s Housing Market in 2019
When people think of California, they think of year-round perfect weather, white sandy beaches, ocean horizons and, of course, Hollywood. However, California has so much more to offer than all that. California is one of the few states that has both a coast and mountain ranges. It also has rivers, redwoods, lakes, valleys, deserts and dunes. It is characterized by wineries and crops, national parks and well-known monuments. For all these reasons and so many others, California is THE place to live.
The housing market in California is not bad either. In fact, it’s doing really well. This is especially true of the Sacramento housing market. If you’re thinking of buying in Sacramento, it’s important to first explore the market trends so you can be certain that investing in real estate in Sactown is right for you.
Migration Toward Less Dense Areas
Those that work in big cities often want to live in or near those big cities. However, just like in every other city across the nation, homes in California’s main metropolises are fairly unattainable.
San Francisco is the nearest municipality to Sacramento. While San Fran has so much to offer, such as job opportunities, shopping, culture and diversity, it does not offer affordability. The median home price in The Bay is $1.6 million dollars. The annual salary needed to buy a home at that price is $173,783, a number that exceeds California’s median household income by more than $100,000.
If you’re bringing in an average income but work in San Francisco, fear not. Sacramento is just an hour and a half outside the city. Sacramento real estate is more than affordable for the average wage earner, with the average home value a reasonable $321,900. Though the price is expected to rise some in 2019, it is not expected to go above $350,000. A $350,000 home is affordable for a family that earns significantly less than the state’s median of $67,739. Because of its affordability, the California Association of Realtors anticipates that aspiring homeowners will migrate to Sacramento and other less busy areas and simply commute to work in nearby municipalities.
Skyrocketing Sale Prices
Skyrocketing sale prices means great things for sellers. Local and overseas investors have no qualms about paying a bit extra for prime real estate, fixing it up and holding onto it until the right buyer comes along. If the right buyer doesn’t come along, investors figure they can always rent out the properties. After all, the average monthly rent for a one-bedroom apartment in an unassuming neighborhood is nearly $1,200. Rent near campus, Midtown or Downtown exceeds $1,800. If people are willing to pay nearly $2,000 a month to live in an apartment, it’s safe to assume they would pay even more to live in a home.
The Market Will Remain Stable
You may have heard several Sacramento market predictions that claim the market is going to collapse in 2019. Such predictions are all hype. The strong demand characteristic of the California housing market is not going away any time soon, and studies suggest that home prices will continue to stabilize over the next two years. With historically low mortgage rates, a strong economy and continued construction, a housing market crash does not appear imminent.
Want to learn more about what to expect from the Sacramento housing market this coming year? Contact Carlile Realty & Lending today.