This article has been updated to get an overview of the Sacramento housing market for 2021. The realtors' forecast is that Sacramento house prices would continue an upward surge this year as well. The Sacramento–Roseville–Arden-Arcade, Calif. Metro Area is expected to have the nation's hottest housing market in 2021. Realtor.com has listed Sacramento metro area to have the strongest housing market in 2021 due to a rush of buyers coming from the ultraexpensive Bay Area in search of more reasonably priced homes.
Sacramento home price is forecasted to grow by 7.4% and home sales are expected to grow by 17.2% in 2021. Tight supply and strong demand are boosting home prices in the Sacramento housing market making it strongly skewed to sellers. In January 2o21, home prices of existing single-family homes in Sacramento County increased by 21.3% to $459,770 while sales increased by 6.5% on a year-over-year basis, according to the California Association of Realtors.
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. According to C.A.R., the unsold inventory in the county has dropped to 1.4 months from 2.4 months in January 2020. It shows the amount of time (in months) it would take for the current rate of sales to deplete the total active listings.
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Sacramento Housing Market Trends 2021
According to Realtor.com, in January 2021, the median list price of homes in Sacramento City was $395K, trending up 12.9% year-over-year. The median listing price per square foot was $269. The median sale price was $400K. Sacramento City is a seller's real estate market which means that more people are looking to buy than there are homes available.
Sellers that are just getting into the market are seeing they can set their asking price a little higher than what they may have expected because inventory is so low and the buyer pool is still growing. 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. For Sacramento, the Sale-to-List Price Ratio of 101.17% shows that sellers have managed to hold good leverage in these negotiations in the past month.
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 January 2021.
- Closed sales of single-family homes were down 31% from December.
- Compared to one year ago, the current sales figure is up by 11.7%.
- The median sales price increased .2% for the month from $444,500 to $445,500.
- This figure is up 18.8% from January 2020 ($375,000).
- The Active Listing Inventory decreased by 2.2% from December to January.
- Compared with January 2020 (2,460), inventory is down 45.7%.
- The Months of Inventory increased from 0.5 Months to 0.7 Months.
- The Median DOM (days on market) remained at 7 and the Average DOM increased from 16 to 17.
SACRAMENTO SINGLE FAMILY HOME RESALES (JANUARY 2021) |
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| (Data for Sacramento County and the City of West Sacramento) | |||||
| Monthly Statistics | Current Month | Last Month | Change | Last Year | Change |
| Listings Published this Month | 1,268 | 1,074 | 18.1% | 1,489 | -14.8% |
| Active Listing Inventory | 719 | 735 | -2.2% | 1,409 | -49.0% |
| Pending Sales This Month | 1,462 | 1,488 | -1.7% | 1,325 | 10.3% |
| Number of REO Sales | 0 | 6 | -100% | 12 | -100% |
| Number of Short Sales | 3 | 5 | -40% | 2 | 50.0% |
| Equity Sales | 1,051 | 1,517 | -30.7% | 930 | 13.0% |
| Other (non-REO/-Short Sale/-Equ | 0 | 0 | 0% | 0 | N/A |
| Total Number of Closed Escrows | 1,054 | 1,528 | -31.0% | 944 | 11.7% |
| Months Inventory | 0.7 Months | 0.5 Months | 40.0% | 1.5 Months | -53.3% |
| Dollar Value of Closed Escrows | $513,410,840 | $748,521,940 | -31.4% | $390,089,221 | 31.6% |
| Median | $445,500 | $444,500 | 0.2% | $375,000 | 18.8% |
| Mean | $487,107 | $489,870 | -0.6% | $413,230 | 17.9% |
Sacramento Real Estate Market Forecast 2021 (Updated)
What are the Sacramento real estate market predictions for 2021? Is the Sacramento housing market shaping up to continue the trend of the last few years as one of the hottest markets in California? We have already mentioned above that Sacramento is predicted to be the hottest houisng market for 2021. The combined home price and sales growth are expected to be 24.6% in the houisng market of Sacramento–Roseville–Arden-Arcade, Calif.
Let us also look at the price trends recorded by Zillow over the past few years. Since 2012, the median home prices in Sacramento City have appreciated by a whopping 160%. Currently, the typical value of homes in Sacramento is $399,683 (only includes the middle price tier of homes). Over the past year alone, the Sacramento home values have gone up by 12.5%.
- Sacramento–Roseville–Arden-Arcade Metro home values have gone up 11.3% over the past year and the latest forecast is that they will rise 8.8% in the next year.
- Sacramento County home values have gone up 11.9% over the past year.
- Sacramento City home values have gone up 12.5% over the past year.
Here is the graphical representation of historical Sacramento house prices and the latest forecast until January 2022.
Here is another short and crisp Sacramento housing market forecast by LittleBigHomes.com for the 3 years ending with the 3rd Quarter of 2021. They estimate 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.
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. These numbers can be positive or negative depending on which side of the fence you are — Buyer or Seller? The demand outpaces the supply in this region. Home sales have rebounded since June with January's figures showing an increase of 11.7% 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 109.72% over the last ten years, which is an average annual home appreciation rate of 7.69%.
This puts Sacramento in the top 10% nationally for real estate appreciation. In the latest quarter, Sacramento's real estate appreciation rate was 1.69%, which annualizes to a rate of 6.94%. 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” 53.3% year-over-year. In January, the month's supply of inventory was 0.7 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.
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 2021 (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.
Impact of Covid19 on The Sacramento Housing Market
Here’s a rundown of where the Sacramento real estate market was before the pandemic and how COVID upended things. We shall mainly discuss median home prices, inventory, economy, growth, and neighborhoods, which will help you understand the way the local real estate market moves in this region.
Let’s talk a bit about Sacramento. 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 Pandemic
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 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's 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. The 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 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), this figure was up 4.7%. The median sales price increased by 1.9% for the month from $415,000 to $422,745. This figure was 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.
2020 Annual Data for Sacramento County and the City of West Sacramento
December 2020 Statistics released by Sacrealtor.org showed that the month ended with 1,528 sales, up 1.1% from the 1,511 sales in November. Compared to one year ago (1,244), this figure was up 22.8%. The median sales price increased 1% from $440,000 to $444,500. This figure was up 15.5% from December 2019 ($385,000).
The Active Listing Inventory decreased 23.4% from November to December, from 959 units to 735 units. Compared with December 2019 (1,315), inventory was down 44.1%. The Months of Inventory dropped from .6 Months to .5 Months.
The year 2020 ended with 16,421 Closed Escrows, a 0.8% drop year-over-year. The Dollar Value of Closed Escrows was up 10.1% ($7,586,072,122). The median sales price in 2020 (1/01/20 to 12/31/20) was $461,974, up 11% from the previous year.
Sacramento County Real Estate Foreclosure Trends
Here are some foreclosure statistics of the Sacramento real estate market. The number of new foreclosure filings in the Sacramento real estate market has maintained a steady downward trend since the last recession. However, the Coronavirus has caused a reversal in foreclosure trends.
Due to the pandemic, there are moratoriums on single-family foreclosures and real estate-owned (REO) evictions until March 31, 2021, to keep delinquent homeowners in their homes. Hence, data by Sacrealtor.org shows that the number of REO sales (single-family homes) in January 2021 was 0.
In September 2020, there are currently 352 properties in Sacramento, CA that were in some stage of foreclosure (default, auction, or bank-owned) while the number of homes listed for sale on RealtyTrac was 285. 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.
NEW FORECLOSURE FILINGS FOR SACRAMENTO COUNTY, CA
| Foreclosure Type | Prior Month | Prior Year |
| Pre Foreclosures | + 59.3% | – 74.1 % |
| Auction | + 72.7 % | – 77.1 % |
| Bank Owned | – 81.8 % | – 92.9 % |
CURRENT FORECLOSURE RATES FOR SACRAMENTO COUNTY, CA
Buying a pre-foreclosure home is a great opportunity to pay the lower-than-market price for a property, especially if you find a short sale property. You'll also face less competition than if you were looking to buy a foreclosed property at an auction because you'd be bidding against other investors.
In Sacramento County, 1 in every 6127 homes currently becomes distressed. Here’s a list of places with the highest distribution of distressed properties in Sacramento.
Top 5 Cities Having The Highest Foreclosure Rates
- Mather: 1 in every 707 homes becomes distressed.
- Isleton: 1 in every 1062 homes becomes distressed.
- Sloughhouse: 1 in every 2648 homes becomes distressed.
- Rio Linda: 1 in every 5112 homes becomes distressed.
- Sacramento: 1 in every 5208 homes becomes distressed.
Top 5 Zips in Sacramento Having The Highest Foreclosure Rates
- 95832: 1 in every 1084 homes becomes distressed.
- 95817: 1 in every 1087 homes becomes distressed.
- 95834: 1 in every 3474 homes becomes distressed.
- 95827: 1 in every 3823 homes becomes distressed.
- 95838: 1 in every 3972 homes becomes distressed.
FORECLOSURE ACTIVITY FOR SACRAMENTO COUNTY, CA
Sacramento Real Estate Investment: Should You 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 don’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.
Among all the nation's largest metros, the Sacramento metro area is predicted to have the highest sales and price growth in 2021. 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 in the long-term.
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. Around 50% of households are renter-occupied.
Sacramento Rental Statistics: Sacramento was on the nation’s top 10 list of rent increases in 2020. More people are moving out of big cities and heading toward surrounding areas, like Sacramento. The transition is driving rental prices up in counties like Sacramento, while rent in areas like San Francisco is going down. There is not a whole bunch of rental property inventory out there, which is driving the prices up.
As of February 24, 2021, the average rent for a 1-bedroom apartment in Sacramento, CA is currently $1,450. This is a 12% increase compared to the previous year. The average rent for a 2-bedroom apartment is currently $1,850. This is a 21% increase compared to the previous year. Over the past month, the average rent for a studio apartment in Sacramento increased by 13% to $1,693.
Some of the most affordable neighborhoods for renting in Sacramento are:
- Gardenland, where the average rent goes for $895/month.
- East Del Paso Heights where the average rent goes for $1,195/mo.
- South Hagginwood where the average rent goes for $1,195/mo.
Some of the most expensive neighborhoods for renting in Sacramento are:
- Downtown Sacramento, where the average rent goes for $3,143/month.
- Natomas Crossing where the average rent goes for $2,726/mo.
- Elmhurst where the average rent goes for $2,583/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. There are 89 neighborhoods in Sacramento. Midtown has a median listing price of $838.9K, making it the most expensive neighborhood. Hagginwood is the most affordable neighborhood, with a median listing price of $278K (Realtor.com).
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.
According to Zillow, Elmhurst home values have gone up 14.3% over the past year. In January 2021, the median list price of homes in Elmhurst was $555K on Realtor.com, trending up 13% year-over-year. The median sale price was $540K. It is a seller's market.
Land Park has become relatively expensive as home values have appreciated by 8.8% over the past year and Zillow predicts they will continue to rise in 2021. The current median value of homes in Land Park is $778,298 (middle price tier of homes). In January 2021, the median list price of homes in Land Park was $632.5K on Realtor.com, trending up 4.1% year-over-year. The median sale price was $650K. It is a seller's market.
Upper Land Park is a neighborhood in the more general Land Park area of Sacramento, California. The real estate is primarily made up of small (studio to two bedrooms) to medium-sized (three or four bedrooms) single-family homes and apartment complexes/high-rise apartments. Most of the residential real estate is occupied by a mixture of owners and renters.
The median home value in Upper Land Park is $585,168. Upper Land Park home values have gone up 6.9% over the past year and they will continue to rise in 2021. It is a seller's market. The housing supply is very tight compared to the demand for property here.
Overall, in terms of house affordability, the City of Trees is a nice choice for real estate investors. According to Zillow's index, the median property price is $399,683 and home values have gone up 12.5% over the past year.
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.
Los Angeles is another expensive real estate market in CA. 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.
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.
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 properties.
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 with our team to see if Sacramento makes sense as a place to invest today.
We can help build you a custom portfolio of turnkey properties located in some of the best markets in the United States. By researching and structuring complete turnkey real estate investments, we can help you succeed by minimizing risk and maximizing profitability.
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, 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.homeunion.com/sacramento-ca/
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.thesandiegocriminallawyer.com/california-cities-most-dangerous.html
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/
