September 14, 2020
The pandemic is still ongoing and the housing markets are clearly shifting because of it. In Sacramento, homes aren’t staying on the market for very long. People are moving out of city apartments and into family homes in the suburbs. Kids and college students aren’t physically going back to school yet for the time being.
If you are interested in moving to the Sacramento area right now, then get a good Realtor on the phone and get started on your home buying journey as soon as you can. Here are some things to keep in mind while working with your Realtor and finding your perfect home here.
In this article, we talked about the housing outlook for the Sacramento area and how it is changing during the pandemic, which had to do a lot with the fears of a deflating market. But what we’ve been seeing is that more people are searching for homes than ever. Now that it is September 2020 and we are in the thick of it, let’s talk about how some of those changes are evolving.
There are far less homes available on the market for buyers right now than usual. Average home sale prices have increased to $415,000 as of June 2020. Right now, Sacramento is a seller’s real estate market, which means there are more buyers than there are homes for sale. When there are less homes for sale than active buyers, it is a driving factor of rising home prices during the pandemic.
Home buyers looking for a place in Sacramento should prepare for stiff competition. The population of Sacramento was estimated to be over 513,000 as of July 2019, as well as another 1 million residents settled in the suburban areas of Sacramento County.
As if the increasing need for coastal city dwellers to find a home in the suburbs weren’t enough, another factor driving up demand for homes is mortgage rates have gone down again. Luckily for home buyers, right now mortgage rates are around 3% for 30-year home loans, – and this may even go down again.
Sacramento is unique among California’s major real estate markets. It’s more affordable than most, particularly when compared to the expensive coastal markets like San Francisco, San Diego and Los Angeles.
People are moving from the San Francisco area and into suburban parts of the Sacramento area, and there are plenty of reasons why that could be. The number one reason seems to be that people are moving out of the city during the pandemic to get more space. A lot of people are able to work remotely – so they don’t need to pay higher rent for a downtown apartment in San Francisco in order to be closer to their workplace.
By moving to Sacramento, residents can enjoy close proximity to their favorite retailers and grocers, but also have more space from their neighbors and enjoy the quietness offered in the suburbs. Sacramento is also a little more affordable than San Francisco and other coastal areas (as properties tend to go up in price the closer they are to the ocean).
Other reasons to move to Sacramento are it’s rich and interesting historic areas that are definitely worth exploring, beautiful parks to go out and stretch your legs in, a close proximity to lakes and reservoirs for water sports, mild weather year-round, and a lower cost of living than other major California cities. It’s also close enough for weekend getaways to many famous vacation spots – like Napa Valley, Monterey, Lake Tahoe, Palm Springs, Yosemite, and more.
One trend we’re seeing more interest in currently is that buyers are looking for short sales. A short sale will usually occur when the homeowner can no longer afford their mortgage payments and they fall behind on their payments. You can typically get a good deal when buying a short sale home as they are often sold “as-is,” but be aware that they do take longer to move forward than with regular home sales. See California Short Sales in 2020 for more information on that.
A popular home feature to consider that is being requested from Realtors right now are four bedrooms. Presumably, this is for more room for a home office as well as more space within the home for homeschooling.
When you have found a home you’re excited about, make sure you go through the list on 11 Ways to Know You’ve Found the Right Home When House Hunting and then contact your Realtor right away as homes are selling very quickly (as in most are back off the market the day they are put on the market in the Sacramento area right now).
This is a stressful time for everyone, but the housing market is continuing on as people need to move into homes that better fit their situations. We’re here to help during that process so you can get the best home for you and your family. We’ll walk you through all of the details to get it done, even during a difficult time.
Make sure to check out Coronavirus Real Estate Guide on buying a home during the lock down for safety tips and what to expect when working with a Realtor and buying a home right now.
We’re here to help you navigate the home buying process. If you’d like to buy or sell a home in the Sacramento area, contact us at Quantum Real Estate.
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