National Market Snapshot 

Buyers are flooding the market to take advantage of record-low mortgage rates; many with a sense of urgency based on expert forecasts for a steady rise in rates and home prices. And high buyer demand paired with record-low housing inventory is creating the ultimate sellers’ market, making it a fantastic time to sell your house.

Over the next six months you can expect to see new construction pick up and more sellers entering the market due to forbearance programs being phased out and an increased comfort level with having people in our homes. This should help curb the inventory crisis and rapid appreciation we’ve seen over the past year. 

According to Chief Economist at the National Association of REALTORS®, Dr. Lawrence Yun, we may see a slight dip in home prices later this summer, but there is still enough pent up buyer demand to prevent any major drop. 

Regional & Local Market Trends 

Sacramento home prices soared in May, hitting another all-time high ($498,500)! Median home prices in the region have risen by 26.2% year-over-year, setting new records both regionally and locally.

While the entire country is experiencing incredible growth, it’s not surprising our local market remains a standout. Since the spring of 2020, buyers are looking for homes that can offer:

• Desirable location and outdoor amenities

• Solid and diversified local economy

• Population diversity and entrepreneurship

• Remote work capabilities

• [MUCH] more space and larger homes

All of which can be found in Sacramento’s diverse and eclectic neighborhoods!

Are We In A Bubble?

 Did you know the most Goggled question regarding real estate today is, “Are we in a housing bubble?” 

To accurately answer this question it’s important to take a trip down memory lane and revisit the conditions that led to the 2008 recession. Shady loans with adjustable rates, homeowners with extremely low equity and a surplus of inventory were driving factors in the real estate market crash.

This time around things are much different. Banks are better funded, homeowners hold more equity, and most homeowners have fixed rate loans. On top of this, the inventory shortage and buyer demand is not a smokescreen. 

So while home prices have rapidly increased, most experts have agreed it is due to supply and demand, not a real estate bubble.