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July 5th, 2019 by Marco Santarelli
How is The Sacramento Real Estate Market 2019?
Real estate can be a worthy investment opportunity. With research, a plan and the right price, just about anyone can be a real estate investor. If you are looking at investing in the Sacramento real estate market as a potential investment opportunity, you must read till the end. Sacramento is overshadowed by bigger, glitzier cities like San Francisco or Los Angeles.
Sacramento is the capital of California, though many mistakenly think it is L.A. or another larger city. It is home to just over half a million people. When you take suburbs like Yuba City, Truckee, Roseville and South Lake Tahoe into account, the Sacramento housing market contains around two million people.
However, size isn’t reason enough to invest in a housing market. The rise and fall of Detroit and current decline of other rust belt cities are testament to this. If you are an investor, Sacramento real estate has a track record of being one of the best long term investments in the nation.
There are a number of reasons to consider investing in the Sacramento real estate. Is Sacramento going to be one of the hottest real estate markets for investors in 2019? To answer this question, let’s take a look at the latest Sacramento housing market trends and find out the prospects of investing in Sacramento real estate in 2019.
Sacramento Real Estate Market Forecasts 2019 & 2020
The median home value in Sacramento is $327,200 on Zillow. Sacramento home values have gone up 4.0% over the past year and Zillow’s Sacramento real estate market prediction is that the prices will rise 2.1% by May 2020. The median list price per square foot in Sacramento is $229, which is lower than the Sacramento–Roseville–Arden-Arcade Metro average of $247.
The median price of homes currently listed in Sacramento is $335,000 while the median price of homes that sold is $306,200. The median rent price in Sacramento is $1,750, which is lower than the Sacramento–Roseville–Arden-Arcade Metro median of $1,950.
Here is the Sacramento real estate price appreciation graph by Zillow. It shows us the current home price appreciation forecast of 2.1% till May 2020.
Sacramento Housing Market Forecast 2019 – 2021
The Sacramento housing market forecast for the 3 years ending with the 3rd Quarter of 2021 is also positive. The accuracy of the Sacramento housing market trend prediction is 74%. Accordingly, LittleBigHomes.com estimates that the probability for rising home prices in Sacramento, CA is 74% during this period. If this Housing Market Forecast is correct, home values will be higher in the 3rd Quarter of 2021 than they were in the 3rd Quarter of 2018.
Check this page each quarter for updates to the Sacramento, California Real Estate Forecast.
Sacramento Real Estate Market Trends
Sacramento real estate market trends indicate a decrease of $9,000 (-3%) in median home sales and a 1% rise in median rent per month over the past year. The average price per square foot for this same period rose to $240, up from $227. Trulia has 2,757 resale and new homes for sale in Sacramento, CA, including open houses, and homes in the pre-foreclosure, auction, or bank-owned stages of the foreclosure process.
The median sales price for homes in Sacramento for Mar 27 to Jun 26 was $325,000 based on 2,348 home sales. Average price per square foot for Sacramento was $241, an increase of 6% compared to the same period last year. The median rent per month for apartments in Sacramento for Jun 1 to Jul 1 was $1,850.
As per the real estate company named Redfin, the Sacramento housing market is most competitive. Homes in Sacramento receive 1 offers on average and sell in around 13 days. The average sale price of a home in Sacramento was $333,000 last month, up 2.8% since last year.
The average sale price per square foot in Sacramento is $233, up 5.4% since last year. Homes typically receive 1 offer. Homes for sale in the Sacramento housing market sell for around list price and go pending in around 13 days. Hot homes for sale in Sacramento, CA can sell for about 2% above list price and go pending in around 6 days.
Sacramento Housing Market Statistics
There are 2,745 homes for sale in Sacramento, ranging from $40K to $33.9M on Realtor.com. 274 of which were newly listed within the last week. Additionally, there are 530 Sacramento rental properties for sale, with a range of $125 to $4.2K per month. Data by Realtor.com shows that in May 2019 the housing market in Sacramento, CA was a seller’s market, which means there were roughly more buyers than there were active homes for sale.
In May 2019, the median list price of homes in Sacramento, CA was $349K, trending up 4.2% year-over-year. The median listing price per square foot was $230. The median sale price was $339.7K. On average, homes in Sacramento, CA sell after 46 days on the market. The trend for median days on market in Sacramento, CA is flat since last month, and flat since last year.
The median list price in Sacramento, CA is $375,000 on Movoto.com. The median list price in Sacramento went down 1% from June to July. Sacramento’s home resale inventories is 1,073, which decreased 3 percent since June 2019. The median list price per square foot in Sacramento is $237. June 2019 was $238. Distressed properties such as foreclosures and short sales remained the same as a percentage of the total market in July.
Sacramento, CA Single Family And Multi-Family Homes
Following the housing market decline in 2007, single family rental properties became favorable options for investors, saving in construction or refurbishment prices. The quick turnaround for an owner to rent out their property means cash flow is almost immediate.
Single family rental homes have grown up to 30% within the last three years. Almost all the housing demand in the US in recent years has been filled by single family rental units.
As per the real estate company called Neigborhoodscout.com, the median house price in Sacramento, CA is $344,349, which indicates that home prices in Sacramento are well above the national average for all cities and towns.
Single family detached homes are the single most common housing type in Sacramento, accounting for 60.32% of the city’s housing units.
Other types of housing that are prevalent in Sacramento include large apartment complexes or high rise apartments ( 23.82%), duplexes, homes converted to apartments or other small apartment buildings ( 7.60%), and a few row houses and other attached homes ( 6.63%).
The Sacramento housing market is healthy and that the city remains a choice landing spot for coastal emigres tired of skyrocketing housing costs and long commutes. 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.
Currently, there are 926 single family homes for sale in Sacramento, CA on Zillow. Additionally, there are 298 single family homes for rent in Sacramento, CA. Under potential listings, there are about 18 Foreclosed and 429 Pre-Foreclosure homes. These are the properties that may be coming to the market soon but are not yet found on a multiple listing service (MLS).
Sacramento, CA Foreclosures And Bank Owned Homes 2019
According to 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%.
With U.S. home values having fallen by more than 20% nationally from their peak in 2007 until their trough in late 2011, many homeowners are now underwater on their mortgages, meaning they owe more than their home is worth.
The percent of Sacramento homeowners underwater on their mortgage is 5.6%, which is higher than Sacramento–Roseville–Arden-Arcade Metro at 4.7%.
There are currently 591 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 421. In May 2019, the number of properties that received a foreclosure filing in Sacramento, CA was 13% lower than the previous month and 15% lower than the same time last year.
Home sales for April 2019 were up 0% compared with the previous month, and down 100% compared with a year ago. The median sales price of a non-distressed home in Sacramento was $0. The median sales price of a foreclosure home in Sacramento was $0, or 0% higher than non-distressed home sales.
Sacramento Home Prices And Real Estate Appreciation 2019
Sacramento real estate appreciated 66.24% over the last ten years, which is an average annual home appreciation rate of 5.21%, putting Sacramento in the top 10% nationally for real estate appreciation.
During the latest twelve months, Sacramento’s real estate appreciation rate, at 4.05%, has been at or slightly above the national average. In the latest quarter, Sacramento’s real estate appreciation rate has been -0.08%, which annualizes to a rate of -0.34%.real estate
The above statistics on real estate appreciation in Sacramento, CA were taken from NeighborhoodScout.com. You can visit their page for more information. Relative to California, their data shows that Sacramento’s latest annual real estate appreciation rate is lower than 50% of the other cities and towns in California.
Best Places To Buy Real Estate In Sacramento, California
If you are looking to buy real estate in Sacramento, you should know the best places to invest in. The three most important factors when buying a real estate anywhere are location, location, and location. Location creates desirability. Desirability brings demand. Demand would raise the price of your Sacramento real estate and you should be able flip it for a lump sum profit.
When looking to invest in Sacramento, you need to find places where the expected property appreciation forecast is positive. The running costs for owning and managing an Sacramento investment property should be low. The neighborhoods in Sacramento must be safe to live in and should have a low crime rate.
The neighborhoods should be close to basic amenities, public services and shopping malls. There should be a natural and upcoming high demand for rental properties and a low supply of income properties.
There are 126 neighborhoods in Sacramento. There are 411 schools in Sacramento, CA. There are 163 elementary schools, 80 middle schools, 62 high schools and 106 private & charter schools.
Some of the best neighborhoods in Sacramento, California are Florin, East Sacramento and Meadowview. East Sacramento has a median listing price of $671K, making it the most expensive neighborhood. Haggin Park is the most affordable neighborhood in Sacramento, with a median listing price of $239.5K.
Here are the 10 best neighborhoods in Sacramento to invest in real estate because they have the highest appreciation rates (List by Neigborhoodscout.com).
Should You Invest In Sacramento Real Estate In 2019?
Is it worth buying a house in Sacramento, CA? 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 good investment? You need to drill deeper into local trends if you want to know what the market holds for the year ahead.
We have already discussed the Sacramento housing market 2019 forecast for answers on why to put resources into this market. Although, this article alone is not a comprehensive source to make a final investment decision for Sacramento but we have collected ten evidence based positive things for those who are keen to invest in the Sacramento real estate in 2019.
Investing in Sacramento real estate will fetch you good returns in the long term as the home prices in Sacramento have been trending up 4.2% year-over-year. 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.
1. Slow and Steady Wins the Race
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 the third healthies housing market in the state.
2. Cost of Living is a Selling Point
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.
3. The Return on the Investment Remains Strong
For those considering Sacramento real estate investment, median rents of around 1700 a month in Sacramento doesn’t sound as appealing as the 4000 a month in San Francisco and 3400 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 rental rates in the Sacramento housing market went up nearly 9 percent year over hear. That was the greatest increase for any American metro area.
4. It 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.
5. San Francisco’s Insanity Adds to Sacramento’s Stability
There are people 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.
6. Sacramento Has a Better Quality of Life
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 own 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.
7. Sacramento is Safer
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 makes it a safer place to live.
8. There Are Investment Opportunities in Sacramento
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. In fact, the Central Valley is one of the most productive agricultural areas in the United States.
This means that Sacramento real estate investment opportunities include agricultural land and former farmland that is open to new development.
9. The 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 a number of high tech jobs, many of them small firms that relocated to the area for its lower cost of living and doing business.
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.
10. 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 Real Estate Investment
Maybe you have done a bit of real estate investing in Sacramento, CA but want to take things further and make it into more than a hobby on the side. It’s only wise to think about how you can and should be investing your money. In any property investment, cash flow is gold. A good cash flow 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 a good Sacramento real estate investment opportunity would be a key to your success. in If you invest wisely in Sacramento real estate, you could secure your future. If you are a beginner in the business of cash flow real estate investing, it very important to read good books on real estate.
The less expensive the Sacramento investment property is, the lower your ongoing expenses will be. Roughly a $150,000 property is what some experts recommend starting with.
Most investors naturally gravitate to residential property investment. 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. If housing supply meets housing demand, real estate investors should not miss the opportunity since entry prices of homes remain affordable.
You must also collaborate and learn from savvy real estate investors who have retired early on in their lives by investing in some of the best real estate markets like Sacramento, CA. 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.
Buying an investment property is different from buying an owner-occupied home. Whether you are a beginner or a seasoned pro you probably realize the most important factor that will determine your success as a Real Estate Investor in Sacramento, CA is your ability to find great real estate investments in that area.
According to real estate experts, buying in a market with increasing prices, low interest, and low availability requires a different approach than buying in a cooler market.
We strive to set the standard for our industry and inspire others by raising the bar on providing exceptional real estate investment opportunities in the U.S. growth markets. We can help you succeed by minimizing risk and maximizing profitability.
The aim of this article was to educate investors who are keen to invest in Sacramento real estate in 2019. Purchasing an investment property requires a lot of studies, planning, and budgeting. Not all deals are solid investments. We always recommend to do your own research and take help of a real estate investment counselor.
Other Best Places To Invest in Real Estate in 2019
Another sizzling market to invest in real estate is Fort Collins, CO. The Fort Collins area is growing both as an outer suburb of Denver and for its own reasons, making it the fourth largest city in the state. The city offers an ideal mix of jobs, affordable living, and decent quality of life that will keep it strong for years to come.
The Fort Collins housing market has seen steady appreciation because the population itself is growing slowly but steadily. The population has been growing at roughly two percent a year. This causes the Fort Collins real estate market to appreciate at a slightly faster rate, but the Fort Collins housing market isn’t so hot that locals are priced out.
However, the relatively young population creates an opportunity for those who own Fort Collins real estate investment properties. You can rent the property to the steady stream of students, or you can rent it or sell it to the young adults who choose to stay in the area and work for one of the major employers.
The other best place to invest in real estate is Albuquerque, NM. Albuquerque is an often overlooked real estate market in the West because it doesn’t make headlines. However, the strong fundamentals and positive long-term outlook make it a great place to consider investing.
The Albuquerque real estate market is considered balanced. The number of buyers and sellers is roughly even. It isn’t so hot that property values are skyrocketing. Demand isn’t so soft that property values are declining. Homes take 60 to 80 days to sell. This is the sign of a healthy real estate market that will remain stable unless the job market collapses.
Let us know which real estate markets you consider best for real estate investing! If you need an expert investment advise, you may fill up the form given here.
One of our investment specialists will get in touch with you to discuss all facets of searching for, buying, and owning a turnkey investment property.
*Remember, caveat emptor still applies when buying a property anywhere. 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.
Slow and steady
Cost of living
Bucking bad trends
SF insanity / SF suburb
Quality of life
Housing Market Data, Trends & Statistics
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