All seasonal puns aside, Midtown Sacramento residential real estate has had a steady 2016, so far. It's no secret that the inventory of homes for sale remains tight, and median home prices are continuing to steadily increase. Up about 7% since last year, the average Midtown home sold for between $450-$500k over the last quarter. This is compared to the average Sacramento County home price of $340,000. In Midtown since the end of 2015, there have been nearly 20 home sales that all fetched around half a mil for the sale. What does this data mean for you as a buyer or seller?
As a buyer: If you enjoy living in the heart of the city, then the good news is that you can also make a sound investment by purchasing in Midtown. Once the Golden 1 Arena, Downtown Commons, and numerous other upcoming developments are completed it can only be expected that home values near the central business district will continue to increase, and remain valuable through highs and lows in the economy. Location is key, and with such focus on developing the central city, Sacramento is on course to be a city where the highest home values may end up being on "the grid" in the central city, rather than just among the mega mansions in outlying suburban areas like Granite Bay and El Dorado Hills. The short version: talk to us at Premier Midtown Realty now to get in on the activity - you can come out a winner if you're ready to see the purchasing process through, and we can help!
As a seller: especially if you have held your Midtown home for over a decade and watched how low your home price fell due to the Great Recession (fortunately, not likely to happen again any time soon, despite the tumultuous equities and commodities markets this year), you are likely to make back your original investment if you sell your home now. This can be due to your desire to move away, retire and take on smaller home or rent, or other sound reasons. With decent homes scarce in Midtown, you can be assured that you will receive lots of offers on your home; the difference will be made in who you choose to list your home. If you choose to list the home yourself ("for sale by owner" or FSBO), it could end up costing a fortune to navigate the selling process and make sure the sales agreement terms have your best interests in mind - many FSBO sellers end up selling at a loss when their profit margin on the sale is lost to cover selling expenses and lower sale prices, without the benefit of a solid real estate agent to help negotiate those terms of the sale. In choosing your listing agent, on the other hand, it is best to hire an agent that knows the market and understands the real estate business in Midtown and the Sacramento Area (after all, each market has its little quirks!)
To sum it all up, supply is tight but that's healthy for the local market as it indicates that real estate is still going strong. With options for buyers and sellers in many different situations, it pays to talk to us at Premier Midtown Realty. Visit us online to get an idea of what we do, if you're not already familiar with us: Premier Midtown Realty and we'll see you in Midtown!
Sources: Sacramento Association of Realtors, Zillow.com. The information sources used and conclusions provided in this article based upon those sources have been deemed reliable, but are not guaranteed to be accurate. This article is not intended to provide investment advice, and should not be relied upon in making real estate decisions.
Ryan Wagner, California Real Estate Broker. CA BRE license # 01968073.
