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Sacramento, CA: Real Estate Market & Trends 2016

Published on Friday - November 18, 2016

Business is booming for the Sacramento real estate market in 2016. The first-half of the year saw home prices rise to their highest level in nearly nine years, while appreciation rates for Sacramento real estate continue to steamroll past the national average. Furthermore, the Sacramento housing market continues to gain support from home affordability, new housing construction and the local economy, all of which influenced the success of the Sacramento real estate market in the first-half.

Sacramento, CA Real Estate Market Statistics:

Sacramento real estate investments

Home appreciation rates are running on all cylinders in the Sacramento real estate market. The second quarter experienced remarkable gains in both one and three-year appreciation rates, as values for Sacramento real estate grew at a rate of 11.2 percent during the first year, and 36.6 percent in the third. In comparison, the national average achieved one-year appreciation rates of 4.9 percent and three-year rates of 17.8 percent. For Sacramento real estate investing purposes, gains in the last three years have extended the trend of positive growth since the recession. For those considering Sacramento real estate investments, the following outlines appreciation gains in previous years:

  • Homes purchased in the Sacramento, CA housing market one year ago have appreciated, on average, by $37,504. The national average was $14,963 over the same period.
  • Homes purchased in the Sacramento, CA housing market three years ago have appreciated, on average, by $99,168. The national average was $46,878 over the same period.
  • Homes purchased in the Sacramento, CA housing market five years ago have appreciated, on average, by $170,313. The national average was $82,353 over the same period.
  • Homes purchased in the Sacramento, CA housing market seven years ago have appreciated, on average, by $165,694. The national average was $77,054 over the same period.
  • Homes purchased in the Sacramento, CA housing market nine years ago have appreciated, on average, by $11,579. The national average was $31,126 over the same period.

For homeowners and investors, the payoff to Sacramento’s thriving real estate market is total equity. Gains in the last seven years have significantly surpassed the national average, with only year nine failing to outpace the rest of the country. For Sacramento real estate investors and homeowners, price appreciation and principle payments in the last three years have boosted total equity growth since the recession.

One surprising factor of the Sacramento real estate market is the amount of foreclosures currently on the market. The month of October saw 2,743 properties in some stage of foreclosures, according to RealtyTrac. However, the number of foreclosures is actually three percent lower than the previous month and 24 percent lower than the same time last year. In addition, the number of REO properties, otherwise known as bank owned real estate, in Sacramento remained unchanged compared to the previous month, while increasing five percent from the past year.

Sacramento, CA Real Estate Market Summary:

Sacramento real estate investing

  • Current Median Home Price: $323,700
  • 1-Year Appreciation Rate: 11.2%
  • 3-Year Appreciation Rate: 36.6%
  • Unemployment Rate: 5.6%
  • 1-Year Job Growth Rate: 2.8%
  • Population: 479,686
  • Median Household Income: $55,615

Sacramento, CA Real Estate Market (2016) — Q2 Updates:

Sacramento real estate

The Sacramento real estate market experienced substantial gains in the first-half of 2016. The median home price for Sacramento real estate was $323,700 during the second quarter, compared to the national average of $239,167. One-year appreciation rates were 11.2 percent compared to 4.9 percent achieved by the rest of the country, while three-year rates skyrocketed to 36.6 percent compared to 17.8 percent. That said, prices for Sacramento real estate continue to grow relative to last year, which bodes well for homeowners and investors.

Along with flourishing home prices and appreciation rates, the local economy in Sacramento continues to roll. Employment has held up and is on an upward trend, as one-year job growth reached 2.8 percent during the second quarter, compared to the national average of 1.9 percent. Although unemployment rates were higher than the rest of the country in Q2, the local economy in Sacramento is stronger compared to other markets.

Other factors influencing the Sacramento real estate market include home affordability and new housing construction. Homeowners paid 13.9 percent of their income to mortgage payments during the second quarter, whereas the national average paid 15.8 percent. Home affordability for the Sacramento housing market furthered improved in the second quarter of 2016, making it one of the more affordable markets in the country. On that note, new housing construction is on the rise, which could further enhance home affordability. The current level of construction in Sacramento was 23.7 percent below the long-term average, while single-family housing permits ballooned to 25.3 percent, compared to the national average of 10.6 percent.

Lastly, Sacramento real estate investing is anticipated to see an increase in activity in the second-half of 2016. The combination of rising home prices and appreciation rates, coupled with high volume of foreclosures, should create lucrative opportunities for investors in the next couple years.

Moving forward, the Sacramento real estate market is forecasted to experience significant growth in the next 12 months. According to the National Association of Realtors, home prices for Sacramento real estate are expected to grow by four percent, compared to the national average of 3.6 percent. For those considering getting started in real estate, the Sacramento real estate market remains one of the hottest markets in the country.

*The information contained herein was pulled from third party sites. Although this information was found from sources believed to be reliable, FortuneBuilders Inc. makes no representations, warranties, or guarantees, either express or implied, as to whether the information presented is accurate, reliable, or current. Any reliance on this information is at your own risk. All information presented should be independently verified. FortuneBuilders Inc. assumes no liability for any damages whatsoever, including any direct, indirect, punitive, exemplary, incidental, special, or consequential damages arising out of or in any way connected with your use of the information presented.

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