Friday, October 9, 2015

Sacramento Real Estate Statistics for September 2015

Wanna know what I love about this median price trend graph for Sacramento County? It's relatively flat with a slight appreciation. Wanna know what else I love about this? It looks a lot like the graph from one year ago in September 2014. In the last twelve months, Sacramento County's median home price has increased approximately 5.5%. This is nice, steady, healthy, and sustainable price appreciation. No crazy spikes one way or the other! This is SO nice compared to trends from a few years ago when the Sacramento real estate market was super frenzied and chaotic. I have been a Realtor for over a decade now and this sort of market is enjoyable to say the least.

What is really nice to know is that the market is still way below the market peak in 2005 when the median price was nearly $400,000. With current home lending standards being such that buyers have to qualify for home purchases based on current income, assets, credit scores and employment and no artificial lending criteria, I think this nice steady price appreciation is here to stay. Nothing funky about the availability of lending exists -- like 10 years ago when buyers routinely claimed income on a loan application whether true or not. Or when the irresponsible "pick-a-payment" loans were available that created this fake low house payment. That's all gone and I don't foresee it returning.

In my own transactions, I am seeing many folks who purchased a home during the bust take this opportunity to sell their current homes and move-up into a larger home, downsize, or move into a different neighborhood. I am also seeing a lot of downpayment gifts from parents to their kids, allowing them to purchase their first homes. Interest rates are still low, hovering just around 4%. Generally as we approach the end of the year, the market slows a bit and the median price tapers a business volume has not slowed in the least, so I will be interested to see if the low interest rates motivate buyers to remain motivated to buy through the holiday season.

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