Rebound Expected with Stabilization and Growth Ahead?
Roseville, Calif.- The local Sacramento & Roseville housing market is cooling, but it’s far from the crash of 2007 to 2008, and there is no indication it will sink to those levels.
Our local housing market performed well last year as we saw many Bar Area buyers headed this way to find reasonably priced homes. According to some, home prices in Sacramento are forecasted to decline by .02 percent between now and October 2023. Higher mortgage rates have clearly had an impact. The number of homes sold is falling compared to last year.
Inventory & Prices
According to the California Association of Realtors, the median home price of existing single-family homes in Sacramento County increased by 0.5 percent to $512,500 by October, while sales decreased by 43.9 percent. According to the most recent report released by the California Association of Realtors. Sacramento median home price dropped by 1.4 percent, and sales dropped by 19.2 percent from the previous month. According to C.A.R., the unsold inventory in the county is 2.9 months.
When we were looking at 2022, the predictions were good. Both sales volume and prices were expected to exceed 2021 by over 10 percent. The rapid increase in mortgage rates is changing all housing markets.
Expectations for 2023
In the last 10 years, Sacramento has experienced some of the highest home appreciation rates of any community in the nation. I am not expecting double-digit growth, but I see our housing market rebounding from the interest rate shock, stabilizing and growing in the last half of the year.
