Sacramento does not impress with its low rates

The entire current real estate market in the city of Sacramento is excited about the low interest rates on mortgages declared by the administration; however, buyers do not share the same enthusiasm about this situation.

It is no secret that investors, whether small or large, and all people looking to invest in a property, when making a decision, study important factors that determine property prices such as location, the condition of the property, and its price.

When analyzing the results regarding the number of applications for mortgage loans across the country, it is clear that they show an increase in refinancing, but applications for home purchases have remained relatively stable. This indicates that we have not yet reached a turning point where the figures work favorably for investors and buyers. What is certain is that if rates continue to drop, we will definitely see more enthusiastic buyers and the real estate market in the city will improve.

And although the real estate market in Sacramento has performed better in sales this year compared to the previous one, it is important to note that despite the drop in interest rates, buyers need more and better opportunities when acquiring properties. However, there is another important factor that worries buyers and investors, which is the increase in unemployment that the city is experiencing.

Market indicators show that property prices in the city have continued to rise. This situation is not very appealing to future buyers. This effect is because the inventory continues to decrease, creating a more competitive market among sellers due to not having many properties on their lists. Another cause for this price increase is the lack of properties for sale in the city.

Despite the low interest rates on loans and the few homes available for purchase, it can be concluded that the current real estate market presents a balance between low supply and low demand. However, it is important to point out that the problems the real estate market currently faces are not the rates but the number of properties.

Foreclosures Available:

Sacramento: 150

Florida: 300  

Texas: 250

By Elias DaSilva | September 18, 2024.