Sacramento is predicted to have one of the best real estate markets moving into 2022. A lot of new buyers are moving to areas with more reasonable prices thus creating demand. However, there’s not enough supply, which is consequently leading to a steady increase in Sacramento’s Real Estate value for California’s capital.

Sacramento Real Estate Market Trends 2021-2022

Since remote work is becoming common, people aren’t bound by their offices’ location anymore. Sacramento is seemingly benefitting from this trend and buyers are flocking to more affordable properties within California.

GCG Real Estate leveraged the property demand in 2021 to make its investors money through both multi-family and single-family residential units. And with the forecasts of 2022, it seems that our current Limited Partners will continue to enjoy ample profit through their investments in GCG Real Estate Private Equity .

How Many People Moved to Sacramento in 2021?

The Sacramento real estate market had the highest number of people moving in compared to any other metropolitan area. It is in the top 100 places in America to currently move to right now and is regarded as a diverse city. It saw a 1.51% increase in population in 2021. Almost 25,000 people are making their move to Sacramento from Bay Area every year.

It’s safe to say that the demand for housing in Sacramento is going to continue to increase in 2022. The diverse job market, quality of life, and rental market growth are attracting home-buyers and investors alike to come to the Sacramento County real estate.

Sacramento Rent Prices

Sacramento’s rental market has seen an increased demand as well. If people can’t find an affordable home to buy, they’ll naturally move to rental options within the country.

To put things into perspective, according to Sacramento real estate agents, in the last month, the rent for a studio apartment increased by almost 5% to about $1,775 per month. Out of the current population, almost 48% are house-owners, and 52% of the people are living on rent.

The average rent for an apartment in Sacramento is $1,709. Other than that, you’ll find homes, duplexes, and even more luxurious options depending on what you’re looking for.

Sacramento House Prices

According to Sacramento’s real estate agents, the average sale price of a house came out to be 450,000 USD which is an almost 16% increase compared to last year. It’s plausible that Sacramento will see a 15% increase in its prices within the next twelve months as we move into 2022.

The median price per square foot for Sacramento is 317 USD. The reason there’s so much demand right now is because of low mortgage rates, and affordability. Based on the demand, there was almost a 24% increase in home values this year alone.

Currently, there are more buyers than sellers, making this a sellers’ market. Since supply can’t seem to catch up with this region’s demand, it’s likely that the prices will continue to grow in the coming months.

Reasons to Invest in Sacramento

Since we already analyzed the data for the Sacramento real estate market, you probably have an idea as to why anyone would recommend you to go for it. But, let’s take a look at the bigger picture and how an investment in Sacramento can be fruitful for you in the coming years.

Here are a Few Reasons You Should Invest

Currently, there are about half a million people who are looking to buy a property in the Sacramento real estate market.
The average rent from Airbnb is $2,700 and traditionally you can make up to $1,500 a month.
There’s a thriving job market and it’s projected to increase by 35% in the next ten years.
There are almost 190,000 students and 16,000 employees in the education sector, who need, you guessed it, a place to live.

How Long Does It Take to Sell a House in Sacramento?

Well, the capital of California does have increased demand, essentially making it a seller’s market. But even then, getting an offer, and finalizing the entire process can take a considerable amount of time.

Even if you do end up finding an offer that’s worthwhile, it can still take you almost 17 days on average to sell. This is pretty low compared to other states in the US, where it can take up to 80 days!

Of course, this number is subject to change depending on the current market’s condition, your location, and if the price of your house is significantly greater than the median house price of Sacramento.

Get Started with Investing in the Sacramento Housing Market

It’s no surprise that the Sacramento Housing Market is gaining a whole lot of traction from American residents. It’s an educational and healthcare hub that will continue to appreciate in value both in terms of rental and property value.

GCG Real Estate has been working with houses in the Sacramento real estate market for well over a few years now. We saw the potential in its Real Estate market and have been leveraging the insatiable demand of buyers by buying undervalued properties, renovating them, and selling at a higher price.

Our recent acquisition and renovation of a single-family residential unit cost us $414,040. It was then sold for $525,000, netting our investors a profit of $110,960.

Interested in becoming a Limited Partner with GCG Real Estate Private Equity? Get in contact with us now, and we’ll answer all your questions!