But this time, you may want to
listen because it’s not us saying this and if they’re right, Sacramento real
estate will be a downright hot commodity in 2016 – one of the hottest markets
in the entire country. If they’re right, you’ll want to go ALL IN on Sacramento
real estate in 2016.
That’s the findings of a
comprehensive economic forecast released this week by Realtor.com that listed
the 10 up-and-coming metropolitan markets in the country. Realtor.com, the
preeminent resource for everything housing, published the findings of their
data and analysis by Chief Economist John Smoke.
Their opinion of California’s Queen
City was that it would be one of the top ten real estate markets in 2016. In
fact, Realtor and Smoke had Sacramento listed as the number four most up and
coming real estate marketing in the country, behind only Providence, Rhode
Island, St. Louis, Missouri, and San Diego, California.
Sacramento sat number four on the
impressive list “where home buyers and sellers are the most motivated
and active” according to Smoke and Realtor.com, with
Atlanta, Georgia, New Orleans, Louisiana, Memphis, Tennessee, Charlotte, North
Carolina, Virginia Beach, Virginia, and Boston, Massachusetts filling out the
rest of the top ten.
Top 10 Real Estate Markets to Watch
in 2016
1 Providence, RI
2 St. Louis, MO
3 San Diego, CA
4 Sacramento, CA
5 Atlanta, GA
6 New Orleans, LA
7 Memphis, TN
8 Charlotte, NC
9 Virginia Beach, VA
10 Boston, MA
To calculate these ten real estate jackpots, Realtor.com
accounted for past trends, season variations for housing, and comprehensive
economic data for every one of the 100 largest metropolitan markets in the
country. Their statistical model further factored home sale and statistics,
then spitting out a list of predicted future values for the coming year. They
highlighted those markets where forecasted growth was equal to or better than
the U.S. average, and voila…had their top ten.
In fact, Sacramento as well as the other nine markets on the
list have real estate that’s in high demand, defined by 60% more listing page
views than the U.S. overall average and inventory that sells 16 days faster
than the U.S. average.
So why are we basing our advice to double down on Sacramento
real estate on the recommendation of just one website, no matter how respected
and diligent it is? Not at all. After Realtor.com released their findings, some
of the biggest and most venerable media outlets and financial analysts parroted
the prediction that Sacramento would come up all cherries, many of them
including it in the top ten on their own lists, albeit based on a different
combination of data and factors.
Here is a list of sources that either backed up
Realtor.com’s placement of Sacramento in the top ten, or coronated the Queen
City with their only list:
CNBC
CNN Money
Inman News
Money Talk News
Realty Today
Home Buying Institute
Housing Wire
And even a national real estate website that starts with a
‘T’ and rhymes with ‘Rulia’ backed up Sacramento’s top ten status.
All of these websites/news outlets pointed to a combination
of surging demand based on growing household formation (Gen X’ers moving up and
Millenials moving in), a surging job market, low unemployment numbers, and
other key indicators. As far as I can tell, their statistical models don’t even
factor in the Sacramento X Factor – the rise of downtown redevelopment around a
new arena.
Either way, it seems Sacramento is in being lauded as one of
the hottest real estate markets in the country for 2016, definitely worth
doubling down for residents and investors. But by all means, don’t just take
our word for it.
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