Wall Street Journal - Sacramento Market
Hello Sacramento BP community,
I’m sure many of you have seen the Wall Street Journal article from a few days ago, regarding the Sacramento market "real estate boom." If not, here’s the link:
https://www.wsj.com/articles/sacramento-is-califor...
“Sacramento Is California’s Newest Real-Estate Hot Spot. The once-sleepy government town is attracting a rush of buyers and flurry of development near its Golden 1 Center, a new NBA arena.”
For full disclosure, I haven’t had a WSJ subscription since college and I’m unable to read the full article. However, I believe the above title and short video say it all, or at least enough to spark a discussion.
For those of us from Sacramento (and surrounding areas), this isn’t new news. We’ve all seen (and read about) the influx of buyers from the Bay Area, rising home prices/rents, double digit appreciation and multiple offers on listings. The video points towards the migration of Bay Area residence and Golden 1 Center as some of the driving forces. It also touches on a few of the new developments in the city.
To build on that, I keep a close eye on a few zip codes/areas in Sacramento that I like and know extremely well. I’m seeing new housing built in areas further from Downtown and East Sac.
My questions and talking points are as follows:
-What is the current housing supply of Sacramento and surrounding areas? I’m under the assumption that the supply of housing is still low.
-What would be considered a normal/healthy supply of housing in the area?
(I’ve heard agents spout off these numbers nonchalantly, but can’t recall exactly what they were. Hopefully someone can help.)
-What are some major housing developments going on in the area?
-Is enough housing being built to provide a market equilibrium?
-If so, based on the rate of housing being built (existing and anticipated housing developments ), about how long would it take to reach a market equilibrium?
The goal of this post is to gather a better understanding of where Sacramento is in the real estate cycle. Not just based on personal opinions, or by feel, but by the numbers.
There are number of Bigger Pockets members in other markets that are nervous about reaching a market peak and move towards hypersupply. It’s clear Sacramento is still in the expansionary phase, but how long will it last?
Please feel free to post information, links, and just share your personal/professional opinions. Again, it would be nice to gauge the market based off numbers, but we can’t ignore political, social and other economic factors that may affect the market.
I look forward to everyone's input.
-Taylor