This article has been updated to get an overview of the Sacramento housing market. Tight supply and strong demand are boosting home prices in the Sacramento housing market making it strongly skewed to sellers.
Due to the short supply of available properties, Sacramento is going to continue feeling a lot of pressure on the listings in the form of multiple offers from buyers. This has led to Sacramento being a sellers’ real estate market, forcing buyers into fierce competition with one another.
Home values have been rising in this region despite the economic disruption caused by the coronavirus pandemic. The median sales price hit $425,000 in Sacramento County and $469,000 in the four-county region last month, up roughly 10.4% from August 2019. The realtors’ forecast is that Sacramento house prices would continue an upward surge in the next year as well.
Home sales have slowed down primarily due to the significant economic slowdown stemming from the response to the pandemic. August closed with 1,560 sales, down 11.9% from the 1,755 sales in July. Compared to one year ago (1,567), the current figure is down .4%, according to the Sacramento Association of REALTORS®.
Both nationwide and in the Sacramento area, housing inventories are down significantly. The Active Listing Inventory decreased by 2.2% from July to August, from 1,266 units to 1,238 units. Compared with August 2019 (2,460), inventory is down 49.7%.
According to Realtor.com, in September 2020, the median list price of homes in Sacramento was $394.9K, trending up 12.8% year-over-year. The median listing price per square foot was $255. The median sale price was $390K. Homes in Sacramento sold for approximately 100.56% of the list price on average in September.
Ideally, a buyer would prefer a sale to list price ratio that’s closer to 90% and a seller would always prefer scenarios that can yield a ratio of 100% or higher. The ratio of 100.56% shows that sellers in Sacramento have managed to hold good leverage in these negotiations in the past month. The median days on market were 47 days. The trend for median days on market in Sacramento has gone down since last month, and slightly down since last year.
Below is the latest monthly report of the Sacramento housing market released by the Sacramento Association of REALTORS®. The report shows key housing metrics of Sacramento County and the City of West Sacramento for August 2020.
Closed sales of single-family homes were down 11.9% from July.
Compared to one year ago, the current sales figure is down by 0.4%.
The median sales price increased .5% for the month from $422,745 to $425,000.
This figure is up 10.4% from August 2019 ($385,000).
The Active Listing Inventory decreased by 2.2% from July to August, from 1,266 units to 1,238 units.
Compared with August 2019 (2,460), inventory is down 49.7%.
The Months of Inventory increased from .7 Months to .8 Months.
The Median DOM (days on market) dropped from 9 to 7 and the Average DOM dropped from 25 to 21.
SACRAMENTO SINGLE FAMILY HOME RESALES (AUGUST 2020)
Monthly Statistics
Current Month
Last Month
Change
Last Year
Change
Listings Published this Month
1,886
1,873
0.7%
2,122
-11.1%
Active Listing Inventory
1,238
1,266
-2.2%
2,460
-49.7%
Pending Sales This Month
2,343
2,325
0.8%
1,984
18.1%
Number of REO Sales
12
12
0%
17
-29.4%
Number of Short Sales
2
5
-60%
3
-33.3%
Equity Sales
1,546
1,755
-11.9%
1,547
-0.1%
Other (non-REO/-Short Sale/-Equ
0
0
0%
0
N/A
Total Number of Closed Escrows
1,560
1,772
-12.0%
1,567
-0.4%
Months Inventory
0.8 Months
0.7 Months
14.3%
1.6 Months
-50.0%
Dollar Value of Closed Escrows
$742,360, 144
$830,340,176
-10.6%
$659,110,038
12.6%
Median
$425,000
$422,745
0.5%
$385,000
10.4%
Mean
$475,872
$468,589
1.6%
$420,619
13.1%
Courtesy of Sacrealtor.org
Sacramento Real Estate Market Forecast 2021
What are the Sacramento real estate market predictions for 2020? Is the Sacramento housing market shaping up to continue the trend of the last few years as one of the hottest markets in California? Let us look at the price trends recorded by Zillow over the past few years.
Since 2012, the median home prices in Sacramento have appreciated by a whopping 145% (From $151,000 to $370,271) — seasonally adjusted and only includes the middle price tier of homes.
Over the past year alone, the Sacramento home values have gone up by 9%. That’s double the national average for the same timeframe. The latest Sacramento real estate market forecast is that this trend will continue in 2021 as well and the home prices will rise by as much as 8.2% until September.
Here is the graphical representation of historical Sacramento house prices and the latest forecast until September 2021.
Courtesy of Zillow.com
Here is another short and crisp Sacramento housing market forecast for the 3 years ending with the 3rd Quarter of 2021. The accuracy of this forecast for Sacramento is 74% and it is predicting a positive trend. LittleBigHomes.com estimates that the probability of rising home prices in Sacramento is 74% during this period. If this price forecast is correct, the Sacramento home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Courtesy of LittleBigHomes.com
The change in home prices for Sacramento–Roseville–Arden-Arcade, CA are shown below for the three-time periods by LittleBigHomes.com (up to 3rd Quarter, 2018). The Sacramento Home Price Index has increased for the last 25 consecutive quarters. Over the last thirty years, home prices in the Sacramento Real Estate Market have gained by 257%.
The highest annual change in the value of houses in the Sacramento Real Estate Market was 27% in the twelve months ended with the 3rd Quarter of 2004. The worst annual change in home values in the Sacramento Market was -22% in the twelve months ended with the 3rd Quarter of 2008.
Time Period
Sacramento Metropolitan Area Real Estate Appreciation
Last 5 Years
50%
Last 10 Years
46%
Last 20 Years
165%
The question now is what happens moving forward. Is Sacramento going to remain a seller’s real estate market amid the ongoing Coronavirus pandemic, which no one knows when it is going to end? These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller?
While many have lost jobs, making them ineligible for a home mortgage, some sellers have taken their homes off the market. With the re-opening of the economy, the demand is rising again. Home sales have rebounded since June with August’s figures showing a decrease of only 0.4% as compared to last year.
In the last 10 years, Sacramento has experienced some of the highest home appreciation rates of any community in the nation. NeighborhoodScout’s data shows that Sacramento real estate appreciated 112.88% over the last ten years, which is an average annual home appreciation rate of 7.85%.
This puts Sacramento in the top 10% nationally for real estate appreciation. In the latest quarter, Sacramento’s real estate appreciation rate was 1.23%, which amounts to an annual rate of 5.01%. The significant supply-and-demand imbalance is the reason that Sacramento could one of the hottest real estate markets in 2021.
In a balanced real estate market, it would take about five to six months for the supply to dwindle to zero. In terms of months of supply, the Sacramento housing market can become a buyer’s real estate market if the supply increases to more than five months of inventory.
And that’s not going to happen. This region is very much skewed to sellers due to a persistent imbalance in supply and demand. Housing inventory in Sacramento is down by a “staggering” 30% year-over-year. In August, the month’s supply of inventory increased from .7 Months to .8 Months.
This is again significantly lower than the national inventory. Due to pent-up demand and diminishing housing inventory home prices in the area will likely continue rising over the coming months.
Sacramento’s population has grown steadily over the past few years. A lot of Bay Area residents are now eyeing markets like Sacramento and Fresno. The main reason being that it’s more affordable than expensive coastal markets in California. According to the U.S. Census Bureau, Sacramento’s population grew by around 10% from 2010 to 2019. This trend of migration will continue to fuel housing demand within the region.
For buyers in Sacramento County, mortgage rates are at their lowest (lower than 3% for a 30-year fixed-rate mortgage). Therefore, this is a good time for them to enter the market and scoop up their favorite deals. Whether you’re looking to buy or sell, timing your local market is an important part of real estate investment.
The only caveat is that if there’s another strong wave of the pandemic, it may ease the buyer demand, which could lead to a positive influence on the low houisng inventory while at the same time seeing a negative impact on sales. Also, if listings linger on the market for longer, buyers have a special edge in negotiating sales prices.
Real estate market forecasts given in this article are just an educated guess and should not be considered financial advice. Real estate prices are deeply cyclical and much of it is dependent on factors you can’t control. Many variables could potentially impact the value of a home in Sacramento in 2020 (or any other market) such as big changes in the distressed, new-construction, or luxury home segments. There are also a wide variety of economic and political factors that can and do impact real estate markets. Most of these variables are difficult to predict in advance.
Sacramento Housing Market 2020 Trends: Prices | Sales | Supply
Let’s talk a bit about Sacramento before we discuss what lies ahead for investors and homebuyers. Sacramento is the capital of California, though many mistakenly think it is L.A. or another larger city. Sacramento is a minimally walkable city in Sacramento County with a population of approximately just over half a million people.
It is overshadowed by bigger, glitzier cities like San Francisco or Los Angeles. When you take suburbs like Yuba City, Truckee, Roseville, and South Lake Tahoe into account, the Sacramento real estate market contains around two million people. However, size isn’t reason enough to invest in any real estate market. The rise and fall of Detroit and the current decline of other rust belt cities are testaments to this.
The city of Sacramento has a mixture of owners and renters, with 47.12% owning and 52.88% renting. According to Neigborhoodscout.com, a real estate data provider, three and four-bedroom single-family detached homes are the most common housing units in Sacramento.
Other types of housing that are prevalent in Sacramento include duplexes, rowhouses, and homes converted to apartments. Sacramento has more renter-occupied housing accounts as compared to owner-occupied.
Single-family detached homes account for roughly 60% of Sacramento’s housing units. Looking back in 2018 about 2,400 new dwelling units were built in Sacramento, most of them being single-family detached homes. That’s even more than San Francisco, a city of nearly 900,000 people where new towers have altered the skyline.
Overall, neither Sacramento nor California produced nearly the same amount of new housing that occurred during the state’s big building boom more than a decade ago, when home construction in Sacramento peaked at 4,000 new units, city officials said.
Impact of Covid19 on The Sacramento Housing Market
The Sacramento housing market has outpaced itself every year but due to the coronavirus pandemic, home sales in Sacramento dropped 40 percent in March, April, and into May, according to local real estate data sources. Data from the Sacrealtor.org shows that April closed with 1,013 sales, down 13.4% from the 1,170 sales in March.
Compared to one year ago (1,496), the current figure is a 32.3% drop. The median sales price remained at $400,000 month-to-month. This figure was up 3.9% from April 2019 ($385,000). The Active Listing Inventory increased 10% from March to April, from 1,658 units to 1,823 units.
Compared with April 2019 (2,094), inventory was down 14.9%. The Months of Inventory increased from 1.4 to 1.8 Months. May closed with 1,032 sales, up 1.9% from the 1,013 sales in April. Compared to one year ago (1,630), the current figure is a 36.7% drop. The median sales price decreased by 1.3% for the month from $400,000 to $395,000.
This figure is up 2.8% from May 2019 ($384,250). The Active Listing Inventory decreased by 2.6% from April to May, from 1,823 units to 1,775 units. In June, $415,000 was the new historical record for Sacramento median home price and we reached that with inventory down 17% and new escrows up 31.4% for June 2020. Inventory was also down 37.4% from June 2019.
Pending Sales increased by 6.8% from the previous year and increased by 17.3% from the previous month. Total Number of Closed Escrows decreased by 1.4% from the previous year and increased by 45.9% from the previous month. Total listings dropped by 13.3% from the previous year and increased by 4.5% from the previous month.
July 2020 Statistics by released by Sacrealtor.org showed that the month ended with 1,772 sales, up 17.7% from the 1,506 sales in June. Compared to one year ago (1,693), the current figure is up 4.7%. The median sales price increased by 1.9% for the month from $415,000 to $422,745. This figure is up 8.4% from July 2019 ($390,000).
The Active Listing Inventory decreased 15.3% from June to July, from 1,495 units to 1,266 units. Compared with July 2019 (2,425), inventory is down 47.8%. The Months of Inventory decreased from 1 Month to .7 Months.
Courtesy of Sacrealtor.org
Sacramento Real Estate Foreclosure Statistics
Here are some foreclosure statistics of the Sacramento real estate market. As per the foreclosure data by Zillow, in Sacramento, 0.8 homes are foreclosed (per 10,000). This is greater than the Sacramento–Roseville–Arden-Arcade Metro value of 0.4 and also lower than the national value of 1.2.
The percent of delinquent mortgages in Sacramento is 0.7%, which is lower than the national value of 1.1%. The percent of Sacramento homeowners underwater on their mortgage is 5.6%, which is higher than Sacramento–Roseville–Arden-Arcade Metro at 4.7%.
Data by Sacrealtor.org shows that the number of REO sales (single-family homes) in June dropped by 21.4% from the previous year. The number of Short Sales also dropped by 20% from the previous year and increased by 0.4% from the previous month (May).
There are currently 352 properties in Sacramento, CA that are in some stage of foreclosure (default, auction, or bank-owned) while the number of homes listed for sale on RealtyTrac is 285. In September, the number of properties that received a foreclosure filing in Sacramento, CA was 5% lower than the previous month and 74% lower than the same time last year.
As of now, the zip code with the highest foreclosure rate is 95817, where 1 in every 2174 housing units is foreclosed. 95838 zip code has the lowest foreclosure rate, where 1 in every 3972 housing units becomes delinquent.
Potential Foreclosures in Sacramento
352 (RealtyTrac)
Homes for Sale in Sacramento
285
Recently Sold
6723
Median List Price
$355,000 (1% drop vs Aug 2019)
Sacramento Real Estate Investment: Should invest in Sacramento?
Should you consider Sacramento real estate investment? Now that you know where Sacramento is, you probably want to know why we’re recommending it to real estate investors. Investing in real estate is touted as a great way to become wealthy. Many real estate investors have asked themselves if buying a property in Sacramento is a good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
Although this article alone is not a comprehensive source to make a final investment decision for Sacramento, we have collected evidence-based positive things for those who are keen to invest in the Sacramento real estate market. Let’s take a look at the number of positive things going on in the Sacramento real estate market which can help investors who are keen to buy an investment property in this city.
Sacramento Is A Healthy Housing Market
Sacramento had several thousand people move in there in 2017. Between people relocating here from overheated housing markets and demographic momentum, it saw 1.4 percent growth in 2017 and 2018. This gives the Sacramento housing market a source of slowly increasing demand and rising property values. Yet the area isn’t experiencing a bubble that will burst down the line.
The area also has a steady enough job market that it isn’t experiencing population loss like the San Joaquin Valley due to environmental crackdowns on agriculture or the risk of a collapse like San Francisco’s tech bubble may see. This is why SmartAsset ranked the city as the third healthiest housing market in the state.
For those considering Sacramento real estate investment, median rents of around 1700 dollars a month in Sacramento doesn’t sound as appealing as the 4000 dollars a month in San Francisco and 3400 dollars a month in San Jose. However, Sacramento is more landlord-friendly than some of the alternatives. For example, the Sacramento housing market isn’t burdened by local rent control laws, though the state government is considering imposing it on the whole state.
A side benefit of the relatively affordable Sacramento real estate market and increasing demand is that any Sacramento real estate investment will see significant appreciation. For example, the average rental rates in the Sacramento housing market went up nearly 9 percent year-over-year in 2018. That was the greatest increase for any American metro area.
Sacramento’s real appreciation rate is also above the national average. Sacramento real estate appreciated 108.07% over the last ten years, which is an average annual home appreciation rate of 7.60%, putting Sacramento in the top 10% nationally for real estate appreciation.
Therefore, with the affordable entry price of homes, high appreciation, and growing rent prices, real estate investors in Sacramento can enjoy positive cash flow and nice profits.
Sacramento’s Cost of Living & Quality of Life
Sacramento may not offer the $200,000 salaries of tech startups, but it doesn’t cost you more than a million dollars to buy a modest bungalow, either. Sacramento’s cost of living is much cheaper than the California coast just 75 miles away. That’s why the Sacramento real estate market being 50 percent higher than that national average is irrelevant – it is the sizzling home prices in the Bay Area that make people move here for the relative bargains. The 20 percent higher cost of living is a bargain, too, compared to the California coast.
Sacramento offers a better quality of life than the larger cities it is becoming a suburb of. We’ll ignore the fact you’re far closer to Lake Tahoe because any home in the Sacramento housing market puts you in easy reach of the outdoors. The area offers white water rafting, hot air balloons, mountain biking, fishing, and nature walks. You don’t have to buy a luxury property in the Sacramento real estate market to enjoy beautiful views or living near open spaces.
The area had its great cuisine and entertainment options before the influx of Silicon Valley types, but a livelier night scene is forming, too. A side benefit of the more affordable Sacramento housing market is that homelessness is almost nonexistent in Sacramento. You certainly don’t need a poop reporting app to avoid the attendant health hazards while you go on your morning run.
One of the reasons to snap up a Sacramento real estate investment over one in the hotter real estate markets is that the area is safer overall. Sacramento has a slightly higher property crime rate than other big cities in the cities, but Sacramento has a much lower violent crime rate. People are more concerned about being mugged, raped, or murdered than having their car broken into.
The nonviolent crime stats are also skewed due to the more lenient authorities in San Francisco and Los Angeles. When you ignore people shooting up in public and won’t punish violent panhandlers, your official crime rate is lower but that doesn’t make it better. Sacramento seeking to maintain order, public health, and safety make it a safer place to live.
Sacramento is Bucking the Bad Trends Plaguing California
California is seeing overall population growth, but it isn’t healthy. Native-born Americans are fleeing the state for Oregon, Nevada, Arizona, and Idaho. They’re replaced by lower-skilled, lower-paid legal and illegal immigrants. This hollows out the middle class of the state while contributing to sky-high poverty rates. Sacramento is a stark contrast to these unhealthy trends. It is receiving an influx of middle class and working-class people from around the state who don’t want to leave California.
This is why Sacramento ranked number one in the state for one-way U-Haul trips in 2018. This makes the Sacramento real estate market much healthier since it contains a true income mix. It also allows Sacramento real estate investment investors more options than luxury homes and densely packed affordable units, the only types of housing you see built in San Francisco.
People are willing to commute 90 minutes to San Francisco each way to get those Silicon Valley paychecks, though they don’t want to pay SF prices for a property. This is increasing the value of homes on the western side of the Sacramento real estate market since they’ve become a de facto suburb of the Bay Area.
While Yolo County is a rapidly developing suburb of San Francisco, the eastern side of the Sacramento metro area contains large tracts of agricultural land. The Central Valley is one of the most productive agricultural areas in the United States. This means that Sacramento’s real estate investment opportunities include agricultural land and former farmland that is open to new development.
Sacramento’s Diverse Job Market Is a Plus for Residents
San Francisco suffered a decline in the early 2000s when the first internet bubble burst. Fears of regulation and anti-trust action against Big Tech firms could cause the San Francisco area to suffer a second major decline because they’re so dependent on high tech to bolster the real estate market. Sacramento does have several high tech jobs, many of them small firms that relocated to the area for its lower cost of living and doing business.
The government is the largest employer, and it is a stable one at that. Healthcare and construction are major employers, as well. This gives Sacramento a more stable job market in addition to low unemployment rates. Tourism and the service sector is a growing contributor, too, as people move here for the lower cost of living and have more money to spend on luxuries like going out. This contributes to the improving quality of life that will keep the Sacramento real estate market going strong.
The Diverse Sacramento Rental Market Is a Plus for Investors
If you’re considering Sacramento real estate investment, the diverse rental market is a definite plus. Being a state capital, it is home to several universities. This allows you to rent to the relatively large student market in addition to the local population. There is, of course, the University of California campus in Sacramento, but you could own investment properties by American River College and other, smaller schools in the area, too.
Sacramento Rental Statistics: The average rent for an apartment in Sacramento is $1,438, a 5% increase compared to the previous year, according to RENTCafé. More than 60% of the apartments can be rented for $1,500 or less while about 25% fall in the range of $1,500 t0 $2,000.
The average size for a Sacramento, CA apartment is 823 square feet. Studio apartments are the smallest and most affordable, 1-bedroom apartments are closer to the average, while 2-bedroom apartments and 3-bedroom apartments offer more generous square footage.
As of September 2020, the average rent for an apartment in Sacramento, CA is $1652 which is an 8.29% increase from last year when the average rent was $1515, and a 0.79% decrease from last month when the average rent was $1665.
One-bedroom apartments in Sacramento rent for $1495 a month on average (a 9.03% increase from last year).
Two-bedroom apartment rents average $1749 (an 8.46% increase from last year).
The average apartment rent over the prior 6 months in Sacramento has increased by $181 (12.3%).
One-bedroom units have increased by $156 (11.7%).
Two-bedroom apartments have increased by $219 (14.3%).
Some of the most affordable neighborhoods for renting in Sacramento are:
Airport, where the average rent goes for $950/month.
Brentwood, where renters pay $950/mo on average.
Carleton, Freeport Manor, Hollywood Park, and Golf Course Terrace where the average rent goes for $950/mo.
Swanston Estates where the average rent goes for $1,108/mo.
Valley High-North Laguna where the average rent goes for $1,233/mo.
Boulevard Park where the average rent goes for $1,279/mo.
South Natomas where the average rent goes for $1,281/mo.
Sacramento Investment Properties: Where To Invest?
In any property investment, cash flow is gold. California has the 6th largest economy in the entire world. This is largely driven by its innovative production, the heavy tech sectors in the state, and more. Sacramento is an island of sanity in an overpriced, over-regulated, and overheated West Coast housing market.
It reflects the California ideal that most of the state has lost, and that’s we recommend it to investors over the “hotter” California metro areas. These are the same factors causing many Californians themselves to vote with their feet and move here instead of moving out of the state altogether.
The city remains a choice landing spot for coastal emigres tired of skyrocketing housing costs and long commutes. Sacramento is also a fast-growing city with a flourishing real estate market. Continuously developing economy, employment, and a better quality of life offer a lot of opportunities for real estate investors in Sacramento to purchase single-family homes as investment properties.
Good cash flow from Sacramento investment property means the investment is, needless to say, profitable. A bad cash flow, on the other hand, means you won’t have money on hand to repay your debt. Therefore, finding the best investment property in Sacramento in a growing neighborhood would be key to your success. If you invest wisely in Sacramento real estate, you could secure your future.
The less expensive the Sacramento investment property is, the lower your ongoing expenses will be. When looking for the best real estate investments in Sacramento, you should focus on neighborhoods with relatively high population density and employment growth. Both of them translate into high demand for housing.
The neighborhoods should be close to basic amenities, public services, schools, and shopping malls. A cheaper neighborhood in Sacramento might not be the best place to live in. A cheaper neighborhood should be determined by these factors – Overall Cost Of Living, Rent To Income Ratio, and Median Home Value To Income Ratio. It depends on how much you are looking to spend and if you are wanting smaller investment properties or larger deals in Class A neighborhoods.
Sacramento home prices are some of the most expensive in all of the United States. According to Realtor.com, there are 89 neighborhoods in Sacramento. East Sacramento has a median listing price of $769K, making it the most expensive neighborhood. Parkway is the most affordable neighborhood, with a median listing price of $299,000.
Some of the most popular neighborhoods in Sacramento, California are Florin, East Sacramento, Midtown, Meadowview, Natomas Crossing, Arden-Arcade, North Sacramento, Elmhurst, East Sacramento, Tahoe Park, North Highlands, Natomas Park, Hollywood Park, Rancho Cordova, and South Land Park.
Elmhurst, Land Park, and Upper Land Park are some of the top neighborhoods in Sacramento to buy investment properties. These are quite affordable neighborhoods with a low entry price of homes, high cash-on-cash returns, and a positive appreciation forecast for the coming years.
The median home value in Elmhurst is $494,525. Elmhurst home values have gone up 7.0% over the past year and Zillow predicts they will fall -0.1% within the next year.
Land Park has become relatively expensive as home values have appreciated by a whopping 15.5% over the past year and Zillow predicts they will rise 1.7% within the next year.
The median home value in Upper Land Park is $543,049. Upper Land Park home values have gone up 8.5% over the past year and Zillow predicts they will rise 0.1% within the next year.
In terms of house affordability, the City of Trees is a nice choice for real estate investors. The entry prices of homes start from about $345,000 and the median property price is $400,060.
Here are the ten neighborhoods in Sacramento having the highest real estate appreciation rates since 2000—List by Neigborhoodscout.com.
Oak Park
Y St / Broadway
P St / 16th St
14th Ave / Martin Luther King Jr Blvd
City Center
Stockton Blvd / 22nd Ave
L St / 7th St
E St / 16th St
14th Ave / Stockton Blvd
Franklin Blvd / 21st Ave
We recommend taking the help of the local real estate agents to find neighborhoods with an affordable entry price of homes, high appreciation forecast, and growing rent prices so that as an investor you can enjoy positive cash flow and nice profits.
Apart from Sacramento, you can also invest in many other real estate markets in California. California’s real estate market is the focus of many U.S. and foreign real estate investors. Apart from the Los Angeles real estate market, you can also invest in multiple cities in California.
The San Diego housing market offers an ideal mix of limited supply, high demand, and excellent income potential. If you’re going to invest in California, it needs to be in San Diego. The San Diego real estate market has been ranked among the ten most expensive real estate markets in the country, though it ranks below several other West Coast cities.
This creates massive demand for San Diego rental properties by those who simply cannot afford to buy homes. The rental market will continue to grow as the city grows an estimated 500,000 by 2050, adding tens of thousands each year.
Another expensive real estate market is LA. The numbers may not make sense for many investors but if you ask savvy investors based in LA they would like to bet anytime on this expensive real estate market. The Los Angeles real estate market has many points in its favor beyond its sheer size. The strong market fundamentals make the Los Angeles housing market a good place to invest if you’re looking at buying real estate in California.
Los Angeles has an unemployment rate of around 4%. What makes Los Angeles unique is the employment market. Want to work in Hollywood? Move to L.A. Want to work for a production company or in fashion? Come to L.A. If rent is too high, share an apartment or single-family home with friends.
The Los Angeles real estate market has seen a bump in residential construction. This has helped to satisfy some demand from renters. However, due to increasing demand, the new supply hasn’t brought prices down.
The Oakland housing market is a cheaper version of the San Francisco real estate market with similar rental rates and a slightly friendly legal climate. It presents a good opportunity for real estate investors. The Oakland real estate market is second only to San Francisco in terms of rental rates.
It is rivaling New York City, Boston, and San Francisco in terms of rental prices. One-bedroom apartments are averaging $2400 a month. Yet Oakland housing units remain two hundred to five hundred thousand dollars cheaper than San Francisco properties. This means you’ll see far better ROI on Oakland rental properties than San Francisco properties.
NORADA REAL ESTATE INVESTMENTS has extensive experience investing in turnkey real estate and cash-flow properties. We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in many other growth markets in the United States. We can help you succeed by minimizing risk and maximizing the profitability of your investment property in Sacramento.
Consult with one of the investment counselors who can help build you a custom portfolio of Sacramento turnkey properties. These are “Cash-Flow Rental Properties” located in some of the best neighborhoods of Sacramento.
Not just limited to Sacramento or California but you can also invest in some of the best real estate markets in the United States. All you have to do is fill up this form and schedule a consultation at your convenience. We’re standing by to help you take the guesswork out of real estate investing. By researching and structuring complete Sacramento turnkey real estate investments, we help you succeed by minimizing risk and maximizing profitability.
Buying or selling real estate, for a majority of investors, is one of the most important decisions they will make. Choosing a real estate professional/counselor continues to be a vital part of this process. They are well-informed about critical factors that affect your specific market areas, such as changes in market conditions, market forecasts, consumer attitudes, best locations, timing, and interest rates.
Is It The Right Time To Invest In Real Estate? – The national homeownership rate is on the decline for the first time since 2017. As demographics change and baby boomers retire, you’re seeing Millennials who may not be ready to buy houses. In 2018, Millennials made up about 22 percent of the population in the United States. They’re choosing to rent over buying a single-family home or an apartment. Rising home prices and shortage of starter homes have not left Millennials many choices but to delay homeownership. Moreover, it’s even harder to take out a mortgage for those who have student loan debt.
Please do not make any real estate or financial decisions based solely on the information found within this article. Some of the information contained in this article was pulled from third party sites mentioned under references. Although the information is believed to be reliable, Norada Real Estate Investments makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. All information presented should be independently verified through the references given below. As a general policy, the Norada Real Estate Investments makes no claims or assertions about the future housing market conditions across the US. This article aimed to educate investors who are keen to invest in Sacramento real estate. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend doing your research and take the help of a real estate investment counselor.
References:
Market Data, Reports & Forecasts
https://www.sacrealtor.org/
https://www.sacrealtor.org/consumers/housing-statistics
https://www.zillow.com/sacramento-ca/home-values
https://www.littlebighomes.com/real-estate-sacramento.html
https://www.neighborhoodscout.com/ca/sacramento/real-estate
https://www.sacbee.com/news/coronavirus/article243805667.html
https://www.realtor.com/realestateandhomes-search/Sacramento_CA/overview
Foreclosures
https://www.realtytrac.com/statsandtrends/ca/sacramento-county/sacramento
Best Neighborhoods
https://www.neighborhoodscout.com/ca/sacramento/real-estate
Top Reasons to Invest in Sacramento
https://en.wikipedia.org/wiki/California_locations_by_crime_rate
https://realestate.usnews.com/places/california/sacramento/jobs
https://www.gobankingrates.com/making-money/economy/sacramento-vs-bay-area
https://www.theguardian.com/business/2019/apr/29/big-tech-regulation-facebook-google-amazon
https://www.abc10.com/article/news/local/5-rent-controlled-cities-in-california/103-591256565
https://www.thrillist.com/entertainment/san-francisco/why-sacramento-is-the-new-oakland-sf
https://www.sfgate.com/bayarea/article/SnapCrap-app-San-Francisco-poop-feces-dirty-street-13281837.php
https://www.sfgate.com/expensive-san-francisco/article/uhaul-sacramento-san-francisco-moving-exodus-13509219.php
https://www.sfgate.com/expensive-san-francisco/article/sacramento-move-grass-is-greener-tips-bay-area-13164238.php
https://www.technologyreview.com/s/613628/big-tech-breakup-regulation-antitrust-apple-amazon-google-facebook-doj-ftc-policy
Rental Market Trends
https://www.rentjungle.com/average-rent-in-sacramento-rent-trends/
https://www.rentcafe.com/average-rent-market-trends/us/ca/sacramento/
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