Winter 2024 Sacramento Market Snapshot
Mural of the California Capitol Building at J and 20th Streets. Photograph by dpaul brown.
As has been the trend statewide, the Sacramento region saw a drastic downtick in inventory in 2023. This is in large part due to mortgage rates reaching their highest in recent years, which in turn had the dual effect of suppressing buyer demand and locking in owners who are sitting on mortgages with low rates. With a slight decline in rates, and predictions of more reductions to come, the market is thawing … slightly. As Sacramento appraiser Ryan Lundquist shows, the number of listings year over year in January was up somewhat. However, we are still significantly off from a typical market.
Chart by Ryan Lundquist, SacramentoAppraisalBlog.com. Used with permission.
It’s highly likely that if and when rates come down, as they are expected to do, buyer interest will expand. Already, Sacramento has been identified as the number one destination for Bay Area home buyers looking outside their region, with more than double the number of searches than the second highest region, Los Angeles. What’s less certain is whether sellers will list their homes. Hopefully rates will come down enough for sellers to consider their next moves.
Prices predictably dipped in January, but are overall up YOY. Again, if buyer demand increases, so too will we expect to see prices increase. The following charts offer more data on Sacramento County. If you have questions on this or other Sacramento Region counties, just reach out.
