Sacramento Real Estate - Can it keep it up?
The Sacramento Region Real Estate Market is making national news recently. Recognized as the Hottest Market in the nation by many sources, the Sacramento Metro Area (Technically the Sacramento–Roseville, CA Combined Statistical Area, has seen remarkable demand for several years.
Can it last?
Is this just a bubble?
Chart's are courtesy Ryan Lindquist and the Sacramento Appraisal Blog
Are we headed for another crash?
After a lot of research, I believe the answer is a resounding HECK NO! A crash is not likely and this is not a bubble.
Here's why I say this: In the Sacramento-Roseville, CA Combined Statistical Area, since 2008, Jobs, households, population, income, HAVE ALL INCREASED FROM 9.8 TO 12.4 PERCENT, While HOUSEING UNITS IN THE SAME TIME AND THE SAME AREA HAVE ONLY INCREASED 2%...
Think about that for a minute.
Rent rates are increasing just as fast as home values... that's driving a large portion of the market, as rental rates are surging, it allows home prices to rise without much danger. It's hard to figure there's a "Bubble" in rents.
So this market is here for a while- especially in the entry level to mid level homes.... Not to say that it can't change, but that would be a result of an overall economic disaster. Houseohold numbers, household income, job numbers. We are still seeing just a fraction of new homes being built compared to the 18,000-22,000 annuallly that were in the late 90's and early 2000's - If everything else is a constant, supply and demand are the only real factors of any market.
The market cannot sustain itself and rise this fast forever. It can't. And mortgage rates MUST go up some time. So things have to change. But a crash is not likely...
If you're curious, you an find out how much your home has appreciated! Text, email or call me! I'll run the numbers and share it all with you! Or use this handy tool: http://smartersellers.com/ to see whats happening in your area.