Sacramento’s Affordability: The amazing resiliency of our under 200k market…
October 11th, 2008 Categories: Real Estate News, Real Estate Trends, Sacramento Home Buyers, Sacramento RE Stats, Sacramento Real Estate
Sacramento has now become the state’s most affordable housing market with about 55.7 percent of all homes for sale in the four-county metro area were priced so that a family making the median income in the region could afford them!
I’ve been so excited to watch as our local real estate market sales have held. Despite all the bad news; global recession, stock market fears, job losses, high energy costs etc.
Every time my team and I have an open house, we find four or five buyers who absolutely need, want and can afford to buy in the next few months!
We are running into first time buyers, investors, move-up buyers, relocation buyers, empty nesters who want to downsize, just about every reason imaginable for moving; and these people are ignoring the news, knowing that this may be the best time to buy… Low mortgage rates, a great supply of homes to choose from, and an overall belief in an economic recovery and an underlying long term strength of California’s real estate market always seem to be the reasons people point to when we ask “why are you buying?”.
I just ran some preliminary numbers for the first ten days of October in Sacramento county.
It is obvious that the homes that are priced under 200k are still in a sellers market, with the median cumulative days on the market for those homes at an amazing 15 DOM!!
The reason is easy; if you quickly run numbers, a mortgage on a 200k home, even with only a 3% down is going to be around $1400 per month, and in a 30% tax bracket, with the tax savings that the interest deduction will give you, you can actually own a 3 bed 2 bath home in a great neighborhood for just about what it would cost to rent, plus you will see the appreciation, when our market comes back!
Yep!
It’s a great thing to see in our area. There are buyers everywhere AND they have a selection. What comes around goes around.
great article, Forth!
Rob
Yep!
It’s a great thing to see in our area. There are buyers everywhere AND they have a selection. What comes around goes around.
great article, Forth!
Rob