Sacramento, CA Real Estate Market Trends & Analysis 2019

Key Takeaways


The Sacramento real estate market owes a great deal of its recent success to its neighbors to the Southeast. As perhaps two of the hottest markets in the entire country, the success seen in San Francisco and San Jose has started to spread to other cities in northern California, not the least of which includes Sacramento. As a result, real estate in Sacramento has increased in value without sacrificing any demand. In fact, the Sacramento housing market has seen an influx of interest, as the California capital remains considerably more affordable than its nearby counterparts. The unique combination of demand and increases in local home values should serve Sacramento real estate investors well, at least for the foreseeable future.

Sacramento Real Estate Market Overview

  • Median Home Value: $326,400
  • 1-Year Appreciation Rate: 3.1%
  • Median Home Value (1-Year Forecast): 1.1%
  • Median Rent: $1,780
  • Average Days On Market (Zillow): 44

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Median Home Price Sacramento

With a median home value of $326,400, the average price of real estate in Sacramento is about $100,000 more than the national average. It is worth noting, however, that while real estate in Sacramento is more expensive than the majority of the country, it’s considerably cheaper than some of its closest neighbors: San Francisco and San Jose to be exact. In fact, Sacramento boasts a median home value that is merely a fraction of San Francisco ($1,362,200) and San Jose ($1,006,300). Nonetheless, it’s the capital’s close proximity to these cities that has facilitated the latest increase in prices. As more and more people look to leave the overpriced cities, Sacramento should see an increase in both prices and demand, each of which bode will for homeowners and investors.

Sacramento Foreclosure Statistics

As the economy improves and home prices increase, the number of new foreclosure filings in the Sacramento real estate market has retained a steady downward trend. “In June, the number of properties that received a foreclosure filing in Sacramento County, CA was4% lower than the previous month and 33% lower than the same time last year,” according to RealtyTrac, a nationally recognized database that specializes in distressed properties.

Of the distressed homes in the Sacramento real estate market, bank-owned homes saw the biggest year-over-year decline. Dropping 67% from this time a year ago, bank-owned homes now represent the smallest fraction of foreclosures in Sacramento, with just 14.8% of all distressed homes being of the bank-owned variety. The largest majority of distressed homes in Sacramento, however, haven’t even been foreclosed on, but rather are at risk of foreclosure. Otherwise known as pre-foreclosures, 56.2% of the distressed properties identified by RealtyTrac are simply at risk of falling into foreclosure. Despite their ambiguous status, however, pre-foreclosures represent a great opportunity for Sacramento real estate investors who know where to look. That said, here’s a list of the neighborhoods with the highest distribution of distressed properties in Sacramento:

  • Herald: 1 in every 802 homes is currently distressed
  • Rio Linda: 1 in every 1,278 homes is currently distressed
  • Wilton: 1 in every 1,330 homes is currently distressed
  • North Highlands: 1 in every 1,412 homes is currently distressed
  • Citrus Heights: 1 in every 1,870 homes is currently distressed

Sacramento Real Estate Investing

The greatest thing the Sacrament real estate market has going for it at the moment is its close proximity to both San Jose and San Francisco. As the considerably more affordable alternative to its neighbors to the Southwest, Sacramento has seen an increase in buyers seeking refuge from otherwise outrageous prices. As buyers flee the likes of San Francisco and San Jose, Sacramento has become a safe haven for those with a more modest budget. In fact, it’s most likely the short distance between Sacramento and these two cities that helped land California’s capital on Realtor.com’s latest Hottest Markets list. As of July, the Sacramento real estate market was considered the nineteenth hottest market in the country, up five spots from the previous year. Sacramento real estate investing, as a result, should be able to capitalize on the latest improvement in rankings. The increased demand, in particular, should bode well for anyone who is able to acquire any of the distressed properties discussed above for a discount.

Sacramento Real Estate Market Summary

The recent success of the Sacrament real estate market is due, largely in part, to the unparalleled success of its neighbors. San Jose and San Francisco are simply too overpriced for many people to call those areas home, which has forced prospective buyers to turn their attention to Sacramento. As a result, Sacramento real estate investors who can cater to those coming to their city from its more expensive counterparts could be in for a good year. Not only is demand expected to increase, but so too are home values and opportunities.

Have you thought about investing in the Sacramento real estate market? If so, what are you waiting for? We would love to know your thoughts on real estate in Sacramento in the comments below.

*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 expressed 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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