Current Listings from Sacramento Metrolist
Markets in Sacramento 2012
2011 was a difficult year for Sacramento regional housing market. Yet hope springs eternal for a better 2012. Recent weeks, anecdotally demonstrated additional buyers in the market, and house prices seemingly stablized after the usual activity at year end. The data remains unclear as to direction, but pleasant weather and an extended escrow process should yield more positive data points in the coming weeks.
Overall sentiment is positive, and national economic data show an economic recovery. We all do hope this momentum can be retained as the nation goes through the election process. Depending upon the outcome, employment could remain acceptable for the remainder of the year. This portends recovery in the housing market and pent up housing demand will likely surface.
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BUYER ALERT
So would be a buyers market in 2012 with prices affordable and inventory being satisfactory. Much has been made about the shadow inventory. With the rate of foreclosures declining somewhat REA believes that bank inventory will be more quickly taken to market. Add to that the increasing acceptance of short sales would help clear this hidden supply. Increased supply suggests considerable choice for buyers so now is the time to particpate in the market. For investors, rates of return surpase other asset classes, and considerable cash exists looking for return. Cash on Cash rates of return remain favorable as more households join the rental ranks.
FINANCING CONSIDERATIONS
The financing of real estate purchases remains the friction of the market. While rates remain historically low, and house prices affordable, difficulties in obtaining financing and increased regulation make lender approval problematical. In the presence of favorable lending practices REA suggest the market would quickly move toward a better equilibrium.
