Homes for Sale in Sacramento CA – Real Estate in the State of Sacramento
There are only 2,033 homes for sale in Sacramento as of the end of March 2012. We have seen a 57% drop in the number of homes available for sale in Sacramento County. The number of houses for sale has decreased month by month during the last twelve months. There has been a 61.4% decrease in the number of homes for sale in the last fifteen months. We only have a 1.3 month supply of homes for sale in all of Sacramento County. We are in what is considered a seller’s market. Sellers’ market is considered when the inventory of homes for sale is less than six months.
Now it is very difficult to buy a house in our area. Many of the listings are receiving multiple offers. If a person is looking for a house in the sub-120k range, he is missing out on cash buyers’ offers. Cash buyers are buying houses that are priced under 100k because they can rent these houses for $1000.0 to $1100.0 per month. That’s a much better return on your investment than what the bank is offering. In fact, I’m concerned about the lack of inventory because if it goes down for another three months in a row, I think a lot of first-time homebuyers will give up and leave the market. We have been closing 1,280 to 1,597 homes per month for the last three months. If inventory drops and first-time homebuyers exit the market, we may only close 980-1,250 homes per month. That will really hurt the income of local real estate agents.
Finally, we also saw our first price increase in home prices in March 2012. It was our first price increase since the end of the federal tax credit in May 2010. We haven’t seen a price increase before that since 2005. I am confident that our values will increase for the remainder of 2012 due to the lack of supply of homes for sale in Sacramento CA. The wise investor will buy a home this spring in order to take advantage of rising home prices. People who buy now will get the best of both worlds because they will get a 10% return on their investment along with capital appreciation. Even if I was wrong about the price appreciation coming this year, we’re going to see a home appreciation soon because we’ve been in this housing bust for seven years.
