Rising home prices boost Sacramento real estate market
Real estate in Sacramento saw marked improvements in the past quarter, as did many other metros across the country. According to the National Association of Home Builders (NAHB), home prices are rising in metros across the nation, indicating a steady housing recovering is currently underway.
"We're seeing a more robust housing sector than many other parts of the economy," said NAHB Chief Economist David Crowe. "One of the reasons is we have finally begun to see on a national scale that house prices are picking up again."
Crowe claims that the pent-up desire for living in a home, rising consumer confidence and growing rental demand are contributing to the improving housing market and pushing up property prices. In addition, builder confidence in the remodeling and single-family and multifamily construction industries is also improving.
According to Mark Zandi, chief economist for Moody's Analytics, rising levels of confidence in the national economy are largely due to the housing market. He predicts 1.1 million total housing starts in 2013, approximately 1.7 million to 1.8 million in 2014 and more than 1.8 million in 2015. The steady progression of national property prices is expected to be present in individual metros.
Here are three ZIP codes in Sacramento that already feature rising property values:
1. ZIP code 95822. The median price of a single-family home in this Sacramento ZIP code was $129,000 in September 2012 - a 56.4 percent rise in a year-over-year comparison. The real estate news and custom data agency DataQuick claims that 57 home sales occurred in the area during the month, which was a 21.3 percent increase over a twelve month period.
2. ZIP code 95660. The source claims the median price of a property in this area was $101,000 in September 2012 - up 38.4 percent from September 2011. This highest price of a property sale attained in the North Highlands ZIP code during this time period was $357,000. The median price paid per square foot for a home in this community was $94 in September 2012 - a 30.7 percent increase.
3. ZIP code 95662. The Orangevale neighborhood could offer potential homebuyers an affordable house. The median price of a single-family home in this ZIP code was $232,000 in September 2012. Property values have improved 25.4 percent in a year-over-year comparison. Home prices may have increased, but the number of property sales decreased 31.6 percent to 39 during the same time period.