August 7, 2012 · Leave a Comment
Real estate in Sacramento, California has become among the most popular in the world in the last few months but what does it hold for investors looking forward and is it time to shop for properties elsewhere?
Those focused on real estate investing in Sacramento have begun to panic as mortgage lenders become more unreasonable with REO terms and bidding wars frequently mean competing with 10 or 20 other investors, while properties sell for thousands over asking prices.
Local government is already concerned about the availability of affordable housing in the area as investors scramble to grab up every possible home as rentals, though with 30% of investors paying cash it is hard to regular home buyers to compete.
Zillow recently predicted that Sacramento home prices would rise at double the rate of the national average over the next year but of course with their track record in reality it could be anywhere from on par to three times as fast.
Still it is becoming clear that investors need to look for deals besides REOs if they want to continue to make a profit and avoid buying on speculation alone.
The latest stats from data compiler Trulia show Sacramento’s average listing price shooting up 7.5% in the last week, with median home prices rising 1.9% since the same time last year.
However, while Sacramento may be attracting a lot of attention in the news San Diego seems to offer better numbers for real estate investing in terms of real gains. This includes the average price per square foot rising 3.9% year-over-year, the median sales price up 7.9% over the same period and home values steadily rising for the last 4 months according to the latest S&P index report.
Still there are deals to be found all over the county though real estate investing pros definitely need to dig a little deeper to avoid battles over REOs and buy right.