If you live in the Bay Area, then you probably know of someone who has moved up north to the Greater Sacramento region. Sacramento is a hot spot for many people who are looking for the benefits of living in California – like being near both the vast ocean and the snowy mountains – but desire a respite from the challenges of living in the fast paced life. If you’re thinking about making this transition, here are some things that you should know.
2021 is the year of low mortgage rates. When my parents bought their home in Martinez back in 1994, their mortgage rate was around 9% on $550,000. Let’s break that down into the numbers to really see how amazing this is. $550k with a 30 year fixed loan would equal a monthly payment of $4,425. Now in 2021, that same priced home at $550k at a 3% mortgage rate would equal a payment of $2,319 per month. Now if you paid that over the 30 years, the 9% rate would equal a total cost of $1,593,153. At 3%, your total cost of the house would be $834,776. That’s a huge difference! This lower payment means that if your budget allows it, you can buy more house for less money.
Bring on the New Builds. – If you’ve spent any length of time searching for homes in Northern California, you know that inventory is incredibly low right now. Another interesting thing to note is that many new builds are at the same price point as resale homes (you will have to consider location and lot size). As of February 2021, there are currently 182 new build communities in the Sacramento area and they range in price from the $330,000’s all the way to around a million. So if you’re interested in moving up north, take some time to research new builds as a viable option.
Seller’s Market – If you own a home in the Bay Area, then now is an incredible time to sell. Check out these December 2020 stats from the California Association of Realtors (CAR):
The average price of a home in California is $717,930 which is up almost 17% as compared to December 2019.
The average time a home is on the market is just 11 days – 60.7% less than the previous year.
The sales price to list price ratio is 100.1%, up 1.9% from last year. This means that buyers are offering list price or are offering over.
The real estate market is extremely competitive right now and it’s an incredible time to purchase real estate. Since demand is high, as a buyer you can have confidence that your new home will hold its value and even increase. Additionally, low mortgage rates will have more of your dollars going towards principal. As a seller, you’re going to get top dollar for your home. However, with a market this busy, it’s crucial that you get a reputable real estate agent to help navigate you through contracts, fees, negotiations, and more. The Rick Fuller Team has agents in both the Bay Area and Sacramento County to help you throughout your journey. Call them today to start planning your next move!
