I think it's no surprise that the real estate market is on fire. The bay area folk are coming here in droves. Covid has pushed companies to allow employees to work from home and its seems to have a cost benefit. With productivity up and over head down this seems to be an unexpected turn of events. To that point, the bay area people are looking at Sacramento region as a more affordable solution.
I can tell you it's been more than difficult and frustrating out showing houses. When you want to do right by your buyer and not have them pay too much, yet they keep getting out bid. Keep in mind we're going roughly 30K over asking on most, or more! In one of the graphs below, you can see how the days on market has dropped to roughly a week. It's not going to go lower. Seller need around a week to gather offers and review. Its a frenzy out there. We're at the traditional peak buying time of the year. Spring is when we usually see an uptick in prices and number of sales. It never really slowed down this last winter.
From two graphs below, you can see we're up around 18.5% year to date. That's a huge jump in prices. At what point is affordability going to come into play? If interest rates continue to trickle up we'll see a change in the market.
For investors, this is a great time to sell. I have one investor who owns around 40 houses in Sacramento. We're reviewing the portfolio and going to pick 5 to sell. Where to park the money seems to be the usually question. Why sell high and buy high in a 1031? That doesn't make sense. I advised my client to speak to his CPA about doing a Sales Deferred Trust. Basically that's a trust where you park the money, invest in commodities and no tax is paid until you make a draw on the account. When the market makes a downturn, reinvest in real estate.
My advise for the buyers out there is to look long term and make sure you're comfortable with the payments. The market, like the stock market goes up and down. I do everything in my power to give my clients all the information they need to make the best decision for themselves.
Feels like I had too much coffee and rambling. Kinda bouncing around here but there's so much going on right now. I'm working on several land developments projects too. 60 acres in Orangevale that we're looking to map for 1 - 2 acre parcels. It's going to take 3 years, but a fantastic location. On the boarder of Granite Bay & Folsom on Santa Juanita.
I'm off to list a new house for sale in West Roseville today. 3113 Village Center Dr. 2200 sqft 2 story house. Looking to hit the market at $525,000. At that price I expect to get multiple offers. There's little to no houses for sale in Roseville right now. I'm sure I'll get calls off the coming soon sign going up in an hour.
The market is always changing, like it's alive. Make sure you are working with an experienced full time local broker like myself to take care of your real estate needs. I'm always here to help and do my best to answer my cell. Call me with your thoughs/questions.
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