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Low inventory is said to drive up home prices in Sacramento region

Sneak preview of luxury K Street apartments

The MAY Building at 11th and K streets in downtown Sacramento opens this week with 21 upscale apartments. Rents will range from about $1,850 to the high $2,000s.
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The MAY Building at 11th and K streets in downtown Sacramento opens this week with 21 upscale apartments. Rents will range from about $1,850 to the high $2,000s.

Home prices in the Sacramento region continue to climb, driven by low inventory, according to the monthly report released Thursday by the Coldwell Banker Residential Brokerage in Sacramento.

Coldwell said the median sale price of a home in the tri-county region – Sacramento, El Dorado and Placer – last month was $345,000, up 9 percent from a median of $317,000 in July 2015.

The figures are based on Multiple Listing Service data of all single-family homes sold in the region.

Sacramento and Placer counties both saw a year-over-year price increase of about 11 percent: Sacramento County’s median went from $279,000 to $310,000; the median sale price in Placer County spiked from $385,000 to $429,000.

The sale price median in El Dorado County in July actually dipped 2 percent from last year, to $425,000, but officials noted that El Dorado saw a 15 percent annual increase in June this year.

Coldwell Banker said home prices continue to be driven by buyers competing with one another for relatively few properties on the market. And the brokerage said lofty prices in the Bay Area are making comparatively affordable homes in the Sacramento region an attractive option.

“The Greater Sacramento area continues to be very much in demand, especially as home prices skyrocket in the Bay Area,” said Mike James, president of Coldwell Banker in the Sacramento-Tahoe region. “It used to be that retirees from the Bay (Area) were the ones moving up to this area in search of more affordable housing.

“But increasingly, we’re also seeing buyers who are still working in San Francisco, Silicon Valley and elsewhere deciding to look for homes further afield from the job centers in order to find better values.”

James said “that’s helping drive up prices in the Sacramento area, especially as we continue to deal with a shortage of homes on the market.”

Coldwell’s report said low inventory in the Sacramento region also stalled the pace of home sales in July. Sales in the tri-county region declined 12 percent, with 2,523 homes selling in July, compared with 2,866 in July 2015.

Coldwell said active inventory of homes for sale in the tri-county region last month tumbled nearly 20 percent from July a year ago – from 6,674 to 5,356 – with Sacramento County seeing a 22 percent decline in listings from last year.

Through seven months of 2016, home sales in the tri-county region totaled 16,247, down 1 percent from the January-to-July period in 2015. The median sale price in the region year to date is $336,000, up 8 percent from the same period last year.

The Creamery Development offers suburb-like amenities within walking distance of the state Capitol building. Units sell for $500,000 and up. After years of lagging, housing near downtown Sacramento is hot.

Mark Glover: 916-321-1184, @markhglover

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