When you think of hot housing markets in California, most people think of Los Angeles and San Francisco. But California actually has several hot markets at the moment, including one that may surprise you: Sacramento.
According to information compiled by the online real estate firm Redfin, Sacramento is currently one of the hottest markets across the country with a sale-to-list ratio of 103%. This means that homes in Sacramento are currently selling for slightly more than the prices that they are listed at due to high demand and lower than usual inventories.
Sacramento is not at the top of the pack in every hot market category. For example, it isn’t getting as many offers per home as markets like San Jose or San Francisco. However, residents of Sacramento and house flippers who are flocking to the area are still quite pleased with the current situation. Sales volumes in Sacramento were up 5.2% in the month of May over the previous month, and prices are also on the rise. In May home prices went up 8.1% over the previous month and 40% over the previous year. To make matters even more interesting, inventory went down in Sacramento, whereas it is beginning to increase in other markets. This may mean that prices will continue to surge and more offers will be made on Sacramento homes in the near future.
Real estate investors are doing very well in hot markets like Sacramento that are a little bit out of the mainstream radar. In Sacramento, investors can enjoy a little less competition from fellow flippers while still generating excellent ROI. With prices on a steady rise and inventories still low, demand is only going up in this hotbed of housing activity, and savvy investors are taking notice.
Learn more about Sacramento and California’s other hottest housing markets by contacting ZINC Financial today. With our private money loans, new investors and experienced house flippers alike can take advantage of prime real estate market conditions throughout the state. Call (559) 326-2509 to learn why so many investors have made us their private money lender, and begin the process of finding your next fix and flip project today.