New Listing: 2814 Karitsa Avenue, Sacramento, CA 95833

Lovely 3 bedroom, 2.5 bathroom, approximately 1,702sf home for sale in Riverdale North in Natomas! As you enter, you will love the high ceilings and light-filled rooms. The interior has been freshly painted. The front room is a formal living area which makes for the perfect home office set-up or play area. The family room opens to the dining area and kitchen. The kitchen offers a breakfast counter, tile countertops, gas appliances, and plenty of storage. As you make your way to the stairs, find a downstairs half bathroom. Upstairs, the spacious primary suite features dual sinks, a separate tub and shower, and a huge walk-in closet. There are two additional large hallway bedrooms, and laundry space with cabinets. Private backyard and patio is the perfect place to unwind or entertain with lots of sunny space to garden or play. 2-car garage, tile roof, newer water heater. Washer, dryer, and refrigerator may stay. The Riverdale North community amenities have something for everyone, offering pool, a fully-equipped gym, and a clubhouse available for events. Plus, you're just minutes away from lovely parks, scenic trails, award-winning schools, shopping, easy access to both I-5 and I-80, and easy access to downtown Sacramento. HOA dues are $58/mo. Don't wait! For more photos and information, along with a 3D virtual tour, please visit 2814 Karitsa Avenue, Sacramento, CA 95833.

New listing - 4041 Neapolis Lane, Sacramento, CA 95834

Welcome to the vibrant Paseo at Westshore community in North Natomas! This lovely 3-bedroom+loft, 2.5-bath, 1,811sf home offers stylish, low-maintenance, and energy-efficient living! You will love the open-concept main level, which features laminate floors, and a spacious great room. The kitchen has espresso cabinets, granite countertops, stainless steel appliances, and a large breakfast bar that is perfect for entertaining. The dining area opens to a private, low-maintenance backyard with a patio. Upstairs, the primary suite includes a walk-in closet, ensuite bathroom with dual sinks, and a large shower. Additionally, upstairs you will find two large additional bedrooms, a full bathroom, and a laundry room. You will also love the generous loft, which is ideal for a home office, gaming room, play area, or an optional 4th bedroom. Enjoy modern comforts and efficiency with a tankless water heater, tile roof, and low-E windows. 2-car garage. The HOA maintains the front yard, freeing up your time to enjoy the nearby parks, trails, and all that the Westshore community offers. Conveniently located near shopping, dining, award-winning schools, and easy freeway access downtown or to the airport. Don't wait! HOA dues $38/month. Offered at $525,000. For more photos and a 3D Virtual Tour, please visit 4041 Neapolis Lane, Sacramento, CA 95834.

Another proud first-time homeowner -- and this one shared her story with Sacramento Magazine...

My first-time buyer client, Aralyn, whose home purchase experience is chronicled in this month's edition of Sacramento Magazine closed today! Read the SacMag article here.

New Listing - 46 Chief Court, Sacramento, CA 95833

Adorable and affordable 3 bedroom, 2 bathroom, 1406sf, mid-century style Natomas home on a secluded cul-de-sac. You will love the spacious, light and bright open layout. The interior and exterior have been freshly painted. Large living area with corner fireplace opens to a large kitchen with breakfast bar. Tile and new laminate flooring throughout. Spacious hallway bedrooms with lots of closet space. Hallway bathroom has a new vanity, sink, and countertop. Primary bedroom features a walk-in closet and updated ensuite bathroom! Inside laundry room. New dual pane sliding door opens to a huge landscaped backyard with fresh sod and automatic sprinklers. Central heat and air. Attached garage. River City Commons offers lots of amenities including two swimming pools, tennis courts, basketball court, and more! HOA dues $87/mo. Also located in close proximity to the South Natomas library, community center, parks, shopping, public transportation, Discovery Park/American River Parkway, and downtown. Don't wait! Offered at $349,900. For more photos and detail, along with a 3D virtual walkthrough, please visit 46 Chief Court, Sacramento, CA 95833. 

Sacramento City Council approves a temporary moratorium on tenant evictions relating to hardships caused by COVID-19

Our local elected leaders, responding to calls from tenant advocates to provide relief to renters experiencing hardship related to our current public health situation, enacted an ordinance aimed at preventing renter displacement.

Last night, the Sacramento City Council approved a temporary moratorium on tenant evictions relating specifically to COVID-19. Keep in mind, this applies to all residential rental units within the city limits of the City of Sacramento.

Details of the new ordinance:

• Effective Immediately, but not retroactively applied if tenant was already delinquent in rent
• Moratorium applies to evictions due to nonpayment of rent due to COVID-19
• Tenant was sick or caring for COVID-19 family member 
• Tenant experience layoff or other income reduction associated with COVID-19 
• Tenant’s compliance with a recommendation from a government agency to stay home, self-quarantine, or avoid congregating 
• Tenant needed to miss work to care for a home-bound school-aged child 
• Tenant must do all of the following: 
• Notify landlord in writing before rent is due that the tenant has a valid reason for delayed payment 
• Provide verifiable documentation of a covered reason 
• Pay the portion of rent the tenant is able to pay 
• Tenant has 120 days after the termination of the Sacramento County public health emergency order to pay landlord all unpaid rent. 
• Landlord and Tenant may voluntarily agree to an alternate timeline for payment of rent due in arrears. 

Here is a link to a Delay in Payment Notification Form provided by the City of Sacramento.

The County of Sacramento has not taken similar action as of now, nor have the other cities within Sacramento County.

New Listing - 1796 Mammoth Way, Sacramento, CA 95834

Stunning 3 bedrooms+loft, 3 bathrooms, 2,320sf former model home in Sonora Springs Natomas! You will love the spacious floor plan with every upgrade imaginable! Separate living and family rooms, gas fireplace, enormous open kitchen with island, granite counters and stainless steel appliances. Upstairs loft area, built-in home office cabinetry, master suite with dual sinks, separate tub and shower. Wood flooring, custom shutters and drapes plus designer features. Stamped concrete backyard patio with planter beds. Attached two-car garage. Homeowners Association has community built-in pool and recreation facilities, low dues at approximately $73/month. Close to shopping, schools and parks. Don't wait! Offered at $375,000. For more photos and a 3D virtual tour, please visit 1796 Mammoth Way, Sacramento, CA 95834. MLS#18023260

New Listing - 137 Mike Gartrell Circle, Sacramento, CA 95835

Spacious single story 3 bedroom, 2 bathroom, 1,733sf home in Regency Park Natomas! You will love the custom interior paint, vaulted ceilings, lots of natural light and open feel, formal dining area, kitchen with stainless appliances, 5-burner gas stove and convection oven. Large master suite with walk-in closet, ensuite bathroom with double sinks, large sliding door leading to the backyard. Close to recreational bike trails, parks, restaurants, retail, freeways, and Sacramento International Airport. Don't wait! Offered at $375,000 subject to lender approval of short sale. For more photos and a virtual tour visit 137 Mike Gartrell Circle, Sacramento, CA 95835.

The monthly costs of renting a home versus buying a home in Sacramento - how do they compare?

I have kicked off the beginning of the last few years with blog posts about the costs of renting versus buying a home in Sacramento. It's not a big secret that apartment and single family home rents in Sacramento are increasing. According to a recent article from the Sacramento Bee, rents in Sacramento from mid-2016 to mid-2017 increased on average 9.9%.

Last year, many of my clients stated one of their reasons for buying a home was, among many other things, so they could take more control over their monthly housing expenses. Many figured that if they remained renters, they would potentially have to deal with regular rent increases, and if they purchased their home the monthly mortgage would be a fixed expense. Additionally in many cases, the cost of purchasing a home is actually less than the cost of rent.

So today, as I have before, I thought I would break down a few home purchase scenarios by zip code. 

• The rental rate data I refer to is the average for a 3-bedroom single family home according to Rent-o-Meter, which compiles rental data from around the United States from a variety of sources. I also note the "80% range". So keep in mind there are lower rents in the range, as well as higher rents, however those are probably "outliers" and that range captures the majority of where rents fall.
• The median home price data I refer to is from November 2017 (most recent data available) per Trendgraphix, which compiles Metrolist MLS home sales data.
• For estimating the monthly payment, I am using today's market interest rates - which according to Freddie Mac, the average rate for last week in the nation for a 30-year fixed mortgage was 3.99% (rounded up to 4%). The monthly payment will be the "fully loaded" payment with principal, interest, property taxes and homeowners insurance (and mortgage insurance if applicable).
  
  
  Carmichael - 95608
  Median single family home price: $374,000
  Average rent for a 3 bedroom home: $1,784 (80% range $1,395 - $2,195)
  30-Year Fixed VA Loan (zero downpayment): $2,237
  30-Year Fixed FHA Loan (3.5% downpayment): $2,419
  30-Year Fixed Conventional Loan (10% downpayment): $2,233
  30-Year Fixed Conventional Loan (20% downpayment): $1,895
  
  Citrus Heights - 95610
  Median single family home price: $325,000
  Average rent for a 3 bedroom home: $1,756 (80% range $1,450 - $2,100)
  30-Year Fixed VA Loan (zero downpayment): $1,944
  30-Year Fixed FHA Loan (3.5% downpayment): $2,111
  30-Year Fixed Conventional Loan (10% downpayment): $1,931
  30-Year Fixed Conventional Loan (20% downpayment): $1,647
  
  Orangevale - 95662
  Median single family home price: $368,000
  Average rent for a 3 bedroom home: $1,792 (80% range $1,525 - $2,000)
  30-Year Fixed VA Loan (zero downpayment): $2,202
  30-Year Fixed FHA Loan (3.5% downpayment): $2,382
  30-Year Fixed Conventional Loan (10% downpayment): $2,187
  30-Year Fixed Conventional Loan (20% downpayment): $1,865
  
  Elk Grove - 95758
  Median single family home price: $380,000
  Average rent for a 3 bedroom home: $1,724 (80% range $1,550 - $1,950)
  30-Year Fixed VA Loan (zero downpayment): $2,273
  30-Year Fixed FHA Loan (3.5% downpayment): $2,457
  30-Year Fixed Conventional Loan (10% downpayment): $2,258
  30-Year Fixed Conventional Loan (20% downpayment): $1,926
  
  Land Park / Curtis Park - 95818
  Median single family home price: $486,000
  Average rent for a 3 bedroom home: $2,313 (80% range $1,725 - $3,000)
  30-Year Fixed VA Loan (zero downpayment): $2,907
  30-Year Fixed FHA Loan (3.5% downpayment): $3,124
  30-Year Fixed Conventional Loan (10% downpayment): $2,888
  30-Year Fixed Conventional Loan (20% downpayment): $2,463
  
  Tahoe Park / Tallac Village / Colonial Heights - 95820
  Median single family home price: $260,000
  Average rent for a 3 bedroom home: $1,568 (80% range $1,295 - $2,000)
  30-Year Fixed VA Loan (zero downpayment): $1,555
  30-Year Fixed FHA Loan (3.5% downpayment): $1,702
  30-Year Fixed Conventional Loan (10% downpayment): $1,545
  30-Year Fixed Conventional Loan (20% downpayment): $1,318
  
  Rosemont / College Greens - 95826
  Median single family home price: $325,000
  Average rent for a 3 bedroom home: $1,652 (80% range $1,450 - $1,900)
  30-Year Fixed VA Loan (zero downpayment): $1,944
  30-Year Fixed FHA Loan (3.5% downpayment): $2,111
  30-Year Fixed Conventional Loan (10% downpayment): $1,931
  30-Year Fixed Conventional Loan (20% downpayment): $1,647
  
  Pocket / Greenhaven - 95831
  Median single family home price: $406,000
  Average rent for a 3 bedroom home: $1,835 (80% range $1,550 - $2,213)
  30-Year Fixed VA Loan (zero downpayment): $2,429
  30-Year Fixed FHA Loan (3.5% downpayment): $2,620
  30-Year Fixed Conventional Loan (10% downpayment): $2,413
  30-Year Fixed Conventional Loan (20% downpayment): $2,058
  
  Arden / Arden Park / Sierra Oaks - 95864
  Median single family home price: $460,000
  Average rent for a 3 bedroom home: $1,775 (range $1,395 - $2,695)
  30-Year Fixed VA Loan (zero downpayment): $2,752
  30-Year Fixed FHA Loan (3.5% downpayment): $2,960
  30-Year Fixed Conventional Loan (10% downpayment): $2,743
  30-Year Fixed Conventional Loan (20% downpayment): $2,331
  
  These numbers are just a baseline to give you an idea of housing affordability in certain areas, and where it might make sense to purchase versus continue to rent. There are other tangible and intangible benefits to homeownership as well. For example, you may be able to deduct mortgage interest, property tax, and other expenses on your annual income tax return (consult your CPA). Additionally as a homeowner, you will have the freedom to decorate as you choose, plant a garden, remodel, and customize your home in other ways that might not make sense as a renter. I picked these zip codes at random...if there is another area that interests you, I would be happy to provide information specific to your situation.

New Listing - 3622 Sardinia Island Way, Sacramento / Natomas, CA 95834

Elegant and better-than-new 3 bedroom + den, 3 bathroom, 1,941sf home at Courtyard Westshore Natomas! You will love the light and bright spacious layout, high ceilings, high end custom window coverings, lots of storage, downstairs den/possible 4th bedroom, downstairs full bathroom, kitchen with maple cabinets and granite counters, upstairs loft area with built-in desk area, huge master suite with separate tub and shower, 2-car attached garage, low maintenance backyard. Close to parks, schools, and more! Homeowners Association dues at $92/mo covers common area and front yard maintenance. Offered at $359,000. Don't wait! For more information, photos and a virtual tour visit 3622 Sardinia Island Way, Sacramento, CA 95834.

New Listing - 3026 Swallows Nest Drive, Sacramento, CA 95833

Beautifully updated 2 bedroom, 2 bathroom, 1,257sf unit in the highly sought Swallows Nest community! You will love the spacious layout, updated kitchen with granite counters, new laminate flooring, new carpet, dual master bedrooms with updated bathrooms, new central heat and air (2017), attached 2-car garage, private deck, secluded serene setting. Homeowners Association offers a manicured 9-hole NCGA golf course, tennis courts, swimming pools, guarded front gate, and more. Located minutes from the Sacramento River, close proximity to Downtown Sacramento. Don't wait! Offered at $245,000. HOA dues $416/month. For more photos and a 3D virtual tour visit 3026 Swallows Nest Drive, Sacramento, CA 95833.

New Listing - 3224 Normington Drive, Sacramento, CA 95833

This cute 3 bedroom, 1 bath, 1,220sf fixer home near the South Natomas area has tons of potential and is the perfect blank canvas for your personal touches. you will love the cute front patio, ample living areas, wood flooring, inside laundry, big backyard, newer fencing, possible RV access with paved side driveway. Great location near shopping, freeways, and public transportation. Don't wait! Offered at $189,900. Probate sale, not subject to court confirmation. For more photos and detail, please visit 3224 Normington Drive, Sacramento, CA 95833.

How to get an accurate measurement of a home's size and square footage when public records are incorrect...

Generally when I list homes for sale, I pull data out of public record to get an idea of the number of bedrooms, bathroom, parcel size, and square footage. Occasionally though, the data in public record is inaccurate.

Recently, a potential seller client contacted me about listing a home in the Arden area. According to the Sacramento County Tax Assessor's records, the home was 3 bedrooms, 2 bathrooms, and 1,440sf. So I reviewed similar comparable recent sales in the neighborhood and then met the seller at the house a few days later. Immediately I could tell that the home was significantly larger than the assessor's records. The home had an addition. This particular addition was not permitted...however sometimes even permitted additions do not get updated in the public records.

Another seller contacted me who owned a home in Natomas that he purchased new directly from the builder. Assessor's records showed the home was 3 bedrooms, 2 bathrooms, and 1,519sf. For whatever reason, the builder reported a different floorplan than the one my client had purchased. His home was actually 4 bedrooms, 2.5 bathrooms, and the flyer he had from the builder said the home was 1,805sf.

So what do we do about this? In these situations I hire a professional property appraiser, at no added expense to my clients, to come out and measure the property. Getting an accurate measurement of a home is important, because even a small difference of perhaps 100 square feet may change the value, or change the buyer's perceived value of a home. In addition to having accurate square footage, a floorplan sketch can be a valuable marketing tool as well, since home buyers like to have room measurements.

In these two instances, the Arden home turned out to be 2,243sf, and the Natomas home turned out to be 1,838sf. Clearly those are large differences and those accurate figures definitely helped to properly market the homes and get top dollar. So I say, when in doubt, measure it!

New Listing - 2701 Bronco Creek Way, Sacramento, CA 95835

Stunning, better than new 4 bedroom, 2.5 bathroom, 1,838sf Natomas home! You will love the open layout, recessed lighting, tile flooring downstairs, kitchen with cherry cabinets, granite counters, and stainless appliances, formal dining room. Large loft/separate family room area upstairs, large master suite with walk-in closet, separate tub and shower, dual sinks and granite counters. Owned solar lowers utility bills! 2-car garage with epoxy flooring. Low maintenance yard. Adjacent to brand new charter school under construction. Low $60/month HOA dues covers front yard care. Don't wait! Offered at $339,900. For more photos and information please visit 2701 Bronco Creek Way, Sacramento, CA 95835.

New Listing - 2316 Coconut Way, Sacramento, CA 95833

Elegant 3 bedroom, 3 bathroom, 1,836sf home tucked away off the Garden Highway near the Sacramento River. You will love the open layout, vaulted ceilings, custom shutters, laminate flooring, upgraded light fixtures, remodeled kitchen w/granite counters and stainless appliances. Bedroom and full bathroom downstairs. Upstairs hallway bedroom has ensuite bathroom, master bedroom retreat has dual sinks, separate tub and shower, walk-in closet. Whole house fan, new HVAC 2015, comp roof 2012. Short distance to Virgin Sturgeon, shopping, schools & more. Don't wait! Offered at $349,000. For more photos and information please visit 2316 Coconut Way, Sacramento, CA 95833.

Has Zillow improved in 2015 and gotten more accurate in predicting Sacramento home values? Well, no...

Zillow is a blessing and a curse. I'm sure by now most folks who have contemplated buying or selling a home in Sacramento have heard of this website by now. What is Zillow? Zillow.com is a website that, among other things, provides information about neighborhoods and properties.

Zillow is a neat website. I have an agent profile on Zillow. I have clients who have found me or found my listings using Zillow. However, my general thought about Zillow is that while it's a fun consumer tool that provides property information to people looking to buy or sell (or even rent property now), the vast majority of the time, the "Zestimate" (aka, the automated estimate of value that the website dreams up for a property), is usually not close to the market value of a Sacramento area property, and the homes listed for sale on the website are not always current. I usually look at Zillow before I meet with new sellers, because I know they have looked their home's value up there...this helps me know in advance if I will be surprising them with more value, or disappointing them with less value.

As I said, Zillow is a blessing and a curse. It's a blessing because it DOES have some useful information there, cool mapping tools, some property characteristics, etc. It's a curse because most people I talk to think Zillow has current data and that the website knows everything when it comes to local real estate values. Let me tell you -- it does not have current information, and an algorithm does not replace a real estate professional who intimately knows the market. Occasionally it will get reasonably close, but I find more often than not it is WILDLY off. And folks contact me every week asking about properties posted on Zillow that have already sold.

I posted a few times last couple years about how the sales prices of my transactions compare to Zillow data. I've closed 10 transactions in the last couple months so let's take a look to see how close Zillow is to the actual selling prices of these properties.  This information is current as of today, December 27nd, 2015.

10267 Croydon Way, Rancho Cordova, CA 95670; this was a short sale home I listed (represented the seller) in Rancho Cordova. The original listing price was $199,500 (price was pre-approved by the lender Wells Fargo and by Fannie Mae), and this closed on 9/17/15 for $195,000. Zillow's Zestimate: $229,404, approximately 15% above it's selling price. Wow...that's one heck of a difference.

3073 Sand Dollar Way, Sacramento, CA 95821; this was a home I sold (represented the buyer) in the Arden area. The original listing price was $399,950, and this closed on 9/18/15 for $361,000. Zillow's Zestimate: $305,224, approximately 18% below it's selling price. Hmm...we are 2 for 2 with large differences already.

4241 62nd Street, Sacramento, CA 95820; this was a home I listed (represented the seller) in the Tallac Village / Tahoe Park area. The original listing price was $269,900, and this closed on 9/30/15 for $275,000. Zillow's Zestimate: $266,444, approximately 3.2% below it's selling price. Ok that's at least a little bit closer.

7110 Stella Lane #13, Carmichael, CA 95608; this was a condo I sold (represented the buyer) in Carmichael. The original listing price was $117,900, and this closed on 10/5/15 for $118,000. Zillow's Zestimate: $116,555, approximately 1.2% below it's selling price. Ok, reasonably close.

2180 Weller Way, Sacramento, CA 95818; this was a home I sold (represented the buyer) in the Land Park neighborhood. The original listing price was $359,000, and this closed on 11/2/15 for $363,000. Zillow's Zestimate: $371,956, approximately 2.4% above it's selling price.

36 Glenville Circle, Sacramento, CA 95826; this was a home I sold (represented the buyer) in the College Greens neighborhood. The original listing price was $307,000, and this closed on 11/9/15 for $325,000. Zillow's Zestimate: $321,022, approximately 1.3% below it's selling price.

1750 Baines Avenue, Sacramento, CA 95835; this was a home I listed (represented the seller) in the Natomas Park area. The original listing price was $525,000, and this closed on 11/18/15 for $499,000. Zillow's Zestimate: $495,024, approximately 1% below it's selling price.

10 Shearwater Court, Sacramento, CA 95833; this was a short sale home I listed (represented the seller) in the Natomas Shorebird area. The original listing price was $375,000, and this closed on 11/20/15 for $380,000. Zillow's Zestimate: $474,204, approximately 25% above it's selling price. Yikes!

2025 Vallejo Way, Sacramento, CA 95818; this was a home I listed (represented the seller) in the Land Park area. The original listing price was $449,000, and this closed on 12/3/15 for $449,000. Zillow's Zestimate: $469,379, approximately 4.5% below it's selling price.

2025 Bidwell Way, Sacramento, CA 95818; this was a home I sold (represented the buyer) in the Land Park neighborhood. The original listing price was $599,000, and this closed on 12/4/15 for $599,000. Zillow's Zestimate: $560,980, approximately 6.3% below it's selling price.

So as you can see...there are a couple transactions where Zillow gets pretty close, however the vast majority are off thousands of dollars and several percent from the final selling price.

New Listing - 5394 Knotty Pine Way, Sacramento (Natomas), CA 95835

Adorable Natomas 3 bedroom, 2.5 bathroom, 1,519sf home! You will love all of the upgrades -- custom shutters throughout, newer laminate flooring, high ceilings, great room with integrated surround sound, kitchen with granite counters, downstairs half bathroom, spacious bedrooms, large master suite with dual sinks and tons of closet space, and more. Attached 2-car garage and low maintenance yard. Conveniently closet to shopping, parks, schools, and freeways. Don't wait! Offered at $279,900. For more photos and detail visit 5394 Knotty Pine Way, Sacramento, CA 95834.

New Listing - 1750 Baines Avenue, Sacramento (Natomas Park), CA 95835

Classy Natomas Park 5 bed, 4 bath, 3,622sf home; Renaissance Monterey floorplan. You will love the spectacular rotunda entry, vaulted ceilings, huge formal living room, formal dining room, downstairs bedroom with full attached bathroom, kitchen with center island, under-cabinet lighting, expansive counter space, pantry, nook, and designer floors, family room with elegant fireplace and mantel overlooks yard with a built-in pool, great patio for entertaining & drought-tolerant landscape. HOA offers a full activities and events calendar, bar/grill, recreation facility, private security and more (dues are $69/month). Don't wait! Offered at $525,000. For more photos and information please visit 1750 Baines Avenue, Sacramento, CA 95835.

New Listing - 10 Shearwater Court, Sacramento (Natomas), CA 95833

Sophisticated Natomas 4 bedroom, 3 bathroom, 2,426sf home in the Shorebird neighborhood! You will love the spacious layout, separate living and family rooms, laminate flooring, kitchen with granite counters and stainless appliances, large loft area, master suite with dual sinks, separate tub and shower. Backyard is a private outdoor oasis with pool, built-in BBQ area, putting green, stamped concrete patio and tropical landscaping. Don't wait! Offered at $375,000, subject to lender approval of short sale. For more photos and detail please visit 10 Shearwater Court, Sacramento, CA 95833.

New Listing - 50 Regency Park Circle, Unit 8109, Sacramento, CA 95835

Lovely Natomas 2 bedroom, 2.5 bathroom, 1,303sf end unit condo with a 2-car attached garage. You will love the granite counters and stylish backsplash in the kitchen, custom paint selections, upgraded carpet & lovely tile floors. Lots of natural light! Desirable Plan C built by Warmington Homes - Serenade at Regency Park Community amenities include a built-in pool, barbecue area, & fitness center. Washer, dryer, and refrigerator included. Close to neighborhood parks, bike/running trails, shopping, and dining. Easy access to I-5, Downtown, and Sacramento International Airport. Don't wait! Offered at $159,900. For more photos and detail visit 50 Regency Park Circle #8109, Sacramento, CA 95835.

Does it make more sense to rent or buy a home in the Sacramento area? The data is here...

For the last few years in the month of January, I have written about the difference between typical monthly mortgage payments vs. the average rent payments in certain neighborhoods in the greater Sacramento area. I thought I would start 2015 much the same way, updated with today's interest rates, average Sacramento home prices, and average rents.

2015 has started and my phone has been ringing off the hook. I have been busy with both home buyers and sellers. Who has been calling me? Prospective home buyers who finally have decided that 2015 is the time take the plunge and buy a home in Sacramento, folks who are relocating to the area, or looking for a bigger home who also need to sell their current home. I have also been called by several folks so far in 2015 who are looking to sell an investment property they've been holding on to. This is very similar to my activity that started 2014...

While home values have increased a bit since this time last year, it is still currently more affordable in many areas to buy a home in Sacramento than rent a home. And compared to our market's peak in 2005, prices are still extremely low, plus rents seem to have increased.

When you take into consideration the median home price and probable monthly mortgage payment in particular Sacramento neighborhoods vs. the typical rent, often times the mortgage payment is less. Plus often times the 'average' home that is purchased is much larger or nicer than the 'average' home rented. So as per usual, let's take a look at a few different areas...just for the sake of citing my information sources, for median home price (used to calculate mortgage payment scenarios) I am using most recent year end December 2014 Trendgraphix data, which is taken directly from MLS, and for average rent I am using the most recent Q4 2014 Homepointe Quarterly Residential Rental Survey. For my mortgage payment calculations, I am basing it on a 4.0% interest rate (which is actually slightly above today's average market interest rates), and including the full PITI - loan principle, interest, monthly property taxes, and monthly homeowner's insurance (and mortgage insurance where applicable).

Natomas - 95833, 95834, 95835
Median single family home sale price: $288,000
Average rent for a 3 bedroom home: $1,353 (range $1,095 - $1,795)
30-Year Fixed VA Loan (Zero downpayment): $1,788
30-Year Fixed FHA Loan (3.5% downpayment): $2,046
30-Year Fixed Conventional Loan (10% downpayment): $1,735
30-Year Fixed Conventional Loan (20% downpayment): $1,483

Elk Grove / Laguna - 95757, 95758
Median single family home sale price: $321,000
Average rent for a 3 bedroom home: $1,471 (range $1,195 - $1,950)
30-Year Fixed VA Loan (Zero downpayment): $1,993
30-Year Fixed FHA Loan (3.5% downpayment): $2,281
30-Year Fixed Conventional Loan (10% downpayment): $1,934
30-Year Fixed Conventional Loan (20% downpayment): $1,654

Rosemont / College Greens - 95826, 95827
Median single family home sale price: $244,000
Average rent for a 3 bedroom home: $1,239 (range $90 - $1,495)
30-Year Fixed VA Loan (Zero downpayment): $1,515
30-Year Fixed FHA Loan (3.5% downpayment): $1,734
30-Year Fixed Conventional Loan (10% downpayment): $1,470
30-Year Fixed Conventional Loan (20% downpayment): $1,257

Arden - 95821, 95825, 95864
Median single family home sale price: $250,000
Average rent for a 3 bedroom home: $1,275 (range $995 - $1700)
30-Year Fixed VA Loan (Zero downpayment): $1,552
30-Year Fixed FHA Loan (3.5% downpayment): $1,776
30-Year Fixed Conventional Loan (10% downpayment): $1,506
30-Year Fixed Conventional Loan (20% downpayment): $1,288

Carmichael, Fair Oaks - 95608, 95628
Median single family home sale price: $318,000
Average rent for a 3 bedroom home: $1,649 (range $900 - $2,600)
30-Year Fixed VA Loan (Zero downpayment): $1,974
30-Year Fixed FHA Loan (3.5% downpayment): $2,259
30-Year Fixed Conventional Loan (10% downpayment): $1,916
30-Year Fixed Conventional Loan (20% downpayment): $1,638

Citrus Heights, Orangevale - 95610, 95621, 95662
Median single family home sale price: $251,000
Average rent for a 3 bedroom home: $1,278 (range $995 - $1,550)
30-Year Fixed VA Loan (Zero downpayment): $1,558
30-Year Fixed FHA Loan (3.5% downpayment): $1,783
30-Year Fixed Conventional Loan (10% downpayment): $1,512
30-Year Fixed Conventional Loan (20% downpayment): $1,293

South Land Park, Pocket / Greenhaven - 95822, 95831
Median single family home sale price: $223,000
Average rent for a 3 bedroom home: $1,293 (range $1,000 - $1,795)
30-Year Fixed VA Loan (Zero downpayment): $1,384
30-Year Fixed FHA Loan (3.5% downpayment): $1,584
30-Year Fixed Conventional Loan (10% downpayment): $1,344
30-Year Fixed Conventional Loan (20% downpayment): $1,149

Obviously there are other tangible and intangible benefits to home ownership as well...for example, a tangible benefit is the fact you can write-off or deduct your mortgage interest on your income taxes, and also deduct some other related expenses each year. An intangible benefit might be that as a homeowner, you have the freedom to paint the walls, decorate, plant a garden, remodel, etc.

So clearly these numbers are just a baseline to give you an idea of housing affordability in certain areas. You definitely need to consult a loan officer to see what type of financing is the best fit for you, and ultimately just how much you can afford - and there are several variables that will affect your interest rate and terms. You should also speak with a CPA or qualified tax professional regarding the mortgage interest and other tax deductions to see how it will affect your particular situation. If you need a good referral to either one, feel free to contact me and I can put you in touch. And of course I can help you purchase your home and all that goes with it...