Real Estate Values:
Sacramento Home Prices Rising Above Water
Sacramento Real Estate Values Expected To Continue Upwards
Real estate values continue to rise statewide, and Sacramento is no exception. In fact, the capital region is one of the brighter stars in the market … at least in the rate of increase. There is a lot of talk as to just why real estate values are rising as they are, but the fact is that this market action is consistent across the state, and does not appear to be fizzling out.
Here is a report from Sanford Nax in the Sacramento Business Journal:
"Underwater homeowners are quickly rising to the surface in the Sacramento area. Zillow reports the cumulative increase of Sacramento-area home values at year-end 2012 is expected to be $14.8 billion…"
Real Estate Values Driven By Lack Of Inventory
The very quick rise in real estate values reported here is simple to explain, really. When investors realized the falling market had actually bottomed out, smart money jumped in and bought up the inventory. Now … with less supply of available homes … Sellers can demand more for their properties.
It's not likely that this rate of increase in real estate values will be sustainable. Probably not. But there is no indication that we are approaching a market reversal. Certainly a slow-down in the rise of values is probably happening right now, but it appears that will be a simple adjustment in a market that is on the rise overall.
Real Estate Values.