Although real estate in the country is reviving, it is worth noting that some parts of the country have almost stabilized while other parts are still struggling to catch up with the rest of the country. One of the places where the real estate market is better than before the 2008 crisis is in Sacramento. Subsequently, Sacramento property management is highly competitive compared to other parts of the country because investors and renters have high expectations to be met. Properties are selling like hot cakes and investors have very high expectations when buying properties. It is also worth noting that some Sacramento property management firms can make up to double what property management firms in other parts of the country earn because rental rates are very high.
If you are aspiring to acquire properties in Sacramento, then you should do so before prices become unaffordable. Properties appreciate year after year and there is no sign of prices coming down anytime soon. Property owners in the area are smiling to the bank because properties values in the region are shooting up. Additionally, the demand for rental properties in the area is escalating, making Sacramento property management a very lucrative business for those who can withstand the competition.
Expectations for 2016-2017
Recent studies show that the housing market in the area is expected to continue booming throughout 2016 and 2017. So far, the market is doing extremely well and the area was ranked among the top ten hottest real estate markets in the country by the first quarter of 2016. According to the report given by some local realtors in the region, 2015 was a very busy year and realtors do not expect anything less in 2016 and 2017.
Local realtors say that the demand for properties in Sacramento is more than the supply and some property buyers are considering neighboring areas such as Roseville and Lake Tahoe. Some of the key factors that have contributed to the area’s rapid real estate market growth include low-interest rates in the region that make it easy to acquire properties that could be unaffordable without cheap mortgages.
High Demand in the Area
Unlike in other parts of the country where cases of foreclosure are a common phenomenon, the situation is different in Sacramento. Realtors say that home sales have increased by over 10 percent in the last one year and cases of foreclosures are no more. Property managers in the area do not need to do extensive marketing because demand for properties is high throughout the year. However, it is worth noting that the fact that properties are appreciating rapidly in the area, that is not the only reason why real estate demand is very high. Some people fear that interest rates are going to go up in the near future so they want to buy now because they do not know what tomorrow has in store.
It is also worth noting that when some investors are advised to lower prices for their properties in order to attract more buyers in other parts of the country, the situation is very different in Sacramento. Some buyers go for highly priced properties because they believe they are more valuable. Properties are equally expensive in the surrounding areas such as Roseville where an average four- bedroom home sells for over $400,000. According to local realtors, if a similar home is priced for $300,000, it cannot remain in the market for more than two weeks without someone buying it. This has made it difficult to find a cheap home in the region.
Not Everyone is Optimistic
However, there some people who think that property prices in the region are going to reach the peak and start going down in the next five years. Others anticipate another real estate bubble in the region if the prices continue going up in the next two years. It is also worth noting that affordability is going to become an issue in the near future and property owners will be forced to lower prices to attract more buyers. This is likely to affect the investors acquiring property now if the price falls below the current ones. Nevertheless, these are all predictions by experts in the industry and it is difficult to say with certainty whether prices are going to go down in future or not. One thing for sure is that the real estate market in the region is doing very well and the trend is expected to continue throughout 2017. This means the market is in favor of investors and those aspiring to acquire more properties should do so before it is too late.
Written by Sacramento Real Estate and Property Management Company
2 Rivers Properties
5325 Elkhorn Blvd #124, Sacramento, CA 95842, United States