January 2024 Market Update : It's a New Year
It's a New Year with New Beginnings, but the Sacramento market is warm as ever!
As the holidays come to and end, with the cold weather still embracing us with its presence in Sacramento, it's time to delve into the latest trends shaping our local housing market. Here's your comprehensive January Sacramento Market Update, offering insights, statistics, and advice for navigating these dynamic times.
The Sacramento Housing Market
The Sacramento housing market has shown resilience and adaptability in the face of various challenges. Despite the fluctuations, the market has remained attractive to both buyers and investors. The city's growing economy, diverse job opportunities, and the overall desirability of the region have continued to contribute to the market's strength. Additionally, the community's ability to come together and support one another has created a sense of unity and optimism, making Sacramento not just a place to live, but a place to call home.
The Sacramento housing market in January 2024 continues to be characterized by low supply and high demand, leading to a competitive environment. In 2023, sellers backed off the market, with a significant decrease in property listings compared to previous years. This resulted in increased competition and higher prices, with the median sale price of a home in Sacramento reaching $490,000, up 6.4% from the previous year.
The market is expected to remain competitive in 2024 due to the low supply and low demand dynamics, with the "X factor" being the impact of mortgage rates.
Zillow's 1-year market forecast for the Sacramento–Roseville–Arden-Arcade area anticipates a -2.5% change in home values, reflecting a decline in the market. Despite the decline, the city's real estate market is still attractive to investors, and job prospects and the growing economy continue to contribute to the market's growth.
The housing market is still favoring sellers, with limited supply and high demand, making it a challenging environment for buyers.
Overall, the Sacramento housing market is expected to remain competitive and potentially decline in 2024, with various factors influencing its dynamics.
How have Home Prices in Sacramento changed Over the Past Year
Over the past year, home prices in Sacramento have experienced some fluctuations. Here's a summary of the changes:
- In October 2022, the median sale price of a single-family home in Sacramento was $510,000
- By November 2023, the median sale price had increased by 6.4% to $490,000
- In January 2024, the median home price was $525,000, a 3.9% decrease compared to January 2022.
- In August 2023, median sales prices of single-family homes were flat year-over-year, with a slight decrease from $547,000 to $535,000.
These fluctuations can be attributed to various factors, such as changes in supply and demand, regional economic conditions, and mortgage rates. Despite the slight decrease in home prices in January 2024, the Sacramento housing market remains competitive, with limited supply and high demand.
What is the Current Median Home Sale Price in Sacramento
- As of November 2023, the median sale price of a home in Sacramento was $490,000, up 6.4% compared to the previous year. However, according to the U.S. News Housing Market Index
- In January 2024, the median home price in Sacramento was $525,000, which is a 3.9% decrease compared to January 2022.
It's important to note that home prices can fluctuate due to various factors, such as supply and demand, regional economic conditions, and mortgage rates.
What is the current inventory of Homes for Sale in Sacramento
- The current inventory of homes for sale in Sacramento experienced a 5% increase from September to October, rising from 1,368 units to 1,437 units. Additionally, there are 1,316 homes for sale in Sacramento, ranging from $29,000 to $9,000,000.
- The median home sale price in Sacramento was $460,000 in Q3 2023, showing a year-over-year change of -5.1%. The median listing home price in December 2023 was $465,000, with 1,316 homes for sale.
These figures provide an overview of the current inventory and home prices in the Sacramento housing market.
Factors that are contributing to the growth of the Sacramento Housing Market
Several factors are contributing to the growth of the Sacramento housing market, creating a positive and attractive environment for both buyers and investors. These factors include:
- Booming Economy: Sacramento's growing economy has made it an appealing alternative to other expensive markets, attracting new industries and companies
- Job Prospects: The availability of diverse job opportunities has contributed to the growth of the real estate market, with more companies settling in the area
- Population Growth: The steady increase in the population of the Sacramento metropolitan area has led to higher demand for housing, driving property values upward
- Real Estate Appreciation Trends: The city's diversified economy and government stability have contributed to real estate appreciation, providing a sense of security for investors
- Transportation Infrastructure: Sacramento benefits from a well-developed transportation infrastructure, making it accessible to residents and businesses
- Affordability Relative to California: Sacramento's relative affordability compared to other California markets has made it an attractive location for both homebuyers and investors
- Rental Income and Appreciation: The potential for high rental income and appreciation rates has made the Sacramento housing market appealing to real estate investors
These factors collectively contribute to the attractiveness and growth of the Sacramento housing market, creating a favorable environment for those looking to buy or invest in real estate.
The Sacramento housing market continues to present a compelling landscape for both homebuyers and investors. Fueled by a growing economy, diverse job opportunities, and relative affordability compared to other California markets, Sacramento has established itself as an attractive real estate destination.
While the market has experienced fluctuations, the city's resilience and the sense of community make it a place where people can find not just a house, but a true sense of home. As the market evolves, these factors are expected to sustain the growth and appeal of the Sacramento housing market in the foreseeable future.