Sacramento home prices rise as owners increase equity

Sacramento Homes for Sale 11

If you’re searching for Sacramento real estate, or you would like to buy a home in Sacramento, or you’re considering selling or listing your home for sale in Sacramento, you might want to know that in Sacramento County and the city of West Sacramento, the median sales price for homes increased eight percent from April to May and was up over 42 percent last month, compared to May 2012.  The median rose from $168,750 in May 2012 to $220,000 in April, to $240,000 last month.

Rising prices are restoring home equity to homeowners across the Sacramento region, who previously owed more than their homes were worth.  Over 26,500 homeowners in the Sacramento area increased equity in their homes the first three months of this year, compared to the the last three months of 2012.

The number of homeowners who owe more on mortgages that their homes are worth in the four-county Sacramento region fell from 150,198, or 31 percent, in the fourth quarter of 2012 to 123,600, or 26 percent, in the first quarter of 2013.

Increasing demand and a very tight supply of homes for sale have been driving factors as homeowners have been increasing their equity.  Home values in the Sacramento area, one of the most improved markets in the United States, have risen by double digits since the spring of 2012, when the market turned.

As Sacramento home prices rise as owners increase equity, more homeowners will put their homes on the market and price appreciation is expected to slow down.  For the time being though, there is a significant shortage of homes on the market.  In the Sacramento region, the number of homes for sale increased by nearly eight percent in May, but that’s still less than just one month of inventory.

If you’re searching for homes for sale in Sacramento or thinking of listing and selling your home, give me a call at your convenience and we can discuss your particular situation.

 

Sharon D’Arelli