If 2020 taught us anything, it’s that interest rates in the US dropped dramatically and many homeowners decided to buy something new. Instead of 4% interest rates in Sacramento, people were able to purchase property with historically low interest rates like 2.5%. While some say we’re on the verge of another real estate bubble that is about to burst, others are believing now is the time to buy.
According to expert luxury estate agent Sheldon Salnick, now is the perfect time for first time buyers to find a home at an unbelievably low rate. Sheldon has been helping buyers with home purchases in the Chicago area for 20+ years and is very familiar with all of the United States’ real estate markets including Sacramento.
Interest rates aside, why is the Sacramento real estate market on fire?
1. Sacramento Is a Desirable Place to Live
The last decade as seen the growth of Sacramento with transplants coming from the Bay Area and as far south as San Diego. People who want to remain in the state of California are choosing to migrate to Sacramento due to its low costs. Compared to that of Oakland or San Francisco, Sacramento is a surprisingly budget-friendly place to call home.
2. The Climate is Ideal
Sacramento also has relatively predictable weather patterns that is causing its real estate to be sparse. In Sacramento it’s warm enough to have a pool and you’re also close enough to Tahoe experience snow. This makes Sacramento an ideal area for a flexible climate. And while it’s hot in the summer, the winter is mild and you’ll only experience a bit of rain.
3. Everything Is Close
You have the beach to the west and Sierra Nevada mountains to the east. Head north and you’ll reach the Oregon border, head south and you’ll find sunny beaches in LA and San Diego. To be able to drive to any of these destinations makes Sacramento a highly desirable city to live in.
4. The Farm to Fork Capital of the World
One of the 916’s favorite monikers is The Farm to Fork Capital of the World. This is because Sacramento is close to several different farms and fields of fresh produce. Most restaurants in Sacramento source their food from these farms and you’ll find your favorite groceries as fresh as can be at the local markets. If you’re familiar with Sacramento, you’re familiar with the food.
5. More Square Footage
Last but not least, Sacramento’s homes offer their residents more square footage for storage, living and more. Again, comparing real estate in other cities like Seattle, Portland or San Francisco, you’ll pay a large price for only a little bit of home. This is even true for commercial real estate in Sacramento.
The last several months have definitely been a seller’s market. A home goes live on the MLS and its under contract in just a few hours. We’ll likely continue to see this throughout 2021 or as long as interest rates stay low.
If you recently bought or sold a house in Sacramento, please tell us about your experience. Did you buy in Sacramento for any of the reasons listed above?