Why The Current Sacramento Real Estate Market May Be the Strongest in Our Lifetime

Have you checked in with the housing market lately? Real estate is booming this summer, and it’s important to know that we’re not expecting home prices or demand to take a downturn anytime soon. Despite what you may read in the headlines, the Sacramento real estate market is one of the strongest we’ve seen in years—perhaps even in our lifetime—and The Sherri Patterson Team is here to break down the facts for you.

1. The Mortgage Rates on Existing Homes

Even though the current mortgage rate is sitting higher than it has in the last few years, it’s important to keep the big picture in mind. The Federal Housing Finance Agency (FHFA) states that 80% of existing mortgages have a rate below 5%. (That’s a lot of mortgages.) But let’s keep going—the FHFA further states that 50% of mortgages have a rate below 4%.



But what about rumors of a foreclosure crisis? While current buyers are weary of mortgage rates, it’s important to keep in mind that existing homeowners are doing everything they can to keep their current rate. People want to avoid entering the rental market due to rising prices, so they will put in the effort to meet their monthly payments.

2. Homeowner Equity

Ready for some more facts? Roughly two-thirds of homeowners have either paid their mortgage or have 50% equity in their current home. (Census and ATTOM) This makes a foreclosure crisis much more unlikely to occur because homeowners have skin in the game. Back in 2008, many people had to walk away from their homes because they owed more than what the home was worth. 


Now, homeowners are rolling in equity, a term many real estate professionals call “equity rich.” They’ve already come so far on the journey to owning their home, so they are more driven to make payments and stay afloat.

3. Sale-to-List Price

Are you worried you might not get top dollar for your home now that buyers are thinning out due to rates? Well, this is still a strong seller’s market—roller coaster rates or not. Realtor.com released statistics stating that homes in Sacramento are selling for 101.05% of the asking price as of May 2023. That’s right, homes were selling above asking price a few years ago, and that trend is still going strong. Sacramento is growing and draws demand, so there is no concern for a major drop of pricing in the current housing market.

There’s a lot going on in Sacramento real estate! That’s why we recommend working with an experienced agent who knows how to navigate many types of markets. Call the Sherri Patterson Team to find a real estate agent you can trust!

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