Sacramento housing, overpriced by 78 percent at the height of the housing bubble to undervalued by 4 percent. So says real estate website Trulia, who recently completed a review of 100 metro areas to determine values for the first few months of 2014.
According to Trulia San Francisco and Los Angeles are overvalued while the valley cities of Sacramento, Fresno and Bakersfield are undervalued. The Trulia report uses such factors as income, rents and home price trends.
The increases in prices by 20 to 30 percent we have experienced here in the Sacramento area since 2012 was, according to Trulia, a price correction of home values which had fallen too low. In addition the mix of properties with a high percentage of distressed homes and investors looking for bargains evolved to fewer distressed properties and more traditional buyers. This has helped get values to where they are today.
Other real estate experts are saying home prices in the Sacramento area have leveled out despite low inventory and this means prices are not expected to increase dramatically as they did the last two years. We appear to have reached values and prices which are close to what buyers can afford and are willing to pay. This is providing some stability to our Sacramento housing market and as a real estate agent is feeling good.
If you or someone you know is considering buying/selling or both and have questions about the market and if now is the right time, feel free to contact me. I can be reached at the MagnumOne Realty office in Roseville (916-899-6571) or by email to email@example.com.