Sacramento median home values up 7.4 percent and median rents up 4.6 percent from 2014 to 2015
SACRAMENTO HOME VALUES ARE INCREASING
In January this year the median home value in the Sacramento area was $333,400. According to a report released recently by Seattle-based real estate data tracker Zillow, this is a 7.4 percent increase over the last year. This is wonderful news for investors and homeowners alike.
The U.S. national average of home values in 2014 showed an increase of 5.4 percent. Zillow states that the median value of a U.S. home in January of 2015 was $178,500.
SACRAMENTO RENTS ARE INCREASING
There is more great news for investors in the Greater Sacramento Area. Sacramento also saw an increase in the median rent for houses from 2014 to 2015. In January, the median rent for houses in Sacramento was $1,629 a month, an increase of 4.6 percent over January 2014. The national average showed an increase of 3.3 percent in the monthly rental median over the same one year period.
Although this is fantastic news for local investors, Sacramento’s numbers are significantly lower than other regions of Northern California. One example of this is the San Francisco market. The median home value in San Francisco is up 7.3 percent from last year at $705,900. However, the median monthly rental cost has gone up nearly 15 percent in the same time period. The average rental cost in San Francisco was $3,055 in January of this year. This is interesting information but it is hardly fair to compare the Sacramento and San Francisco markets. The San Francisco real estate and rental markets are unlike any others in Northern California.
“Rental appreciation has been a freight train these past few years, chugging along without any appreciable slowdown,” according to Zillow Chief Economist Stan Humphries. “Since 2000, rents have grown roughly twice as fast as wages, and you don’t have to be an economist to understand why that is hugely problematic.”
Zillow said it expects growth in rental prices to outpace home values in 2015.
It looks like Sacramento might be a great place to invest right now. With rents increasing well over the national average, investors should be giddy with excitement. Luckily Real Property Management Select serves the Greater Sacramento Area and beyond. Whether you are an experienced investor or a homeowner looking to rent your property RPM Select can help make the most of your investment.
Give us a call at (877) 603-9696 for more information to see what Real Property Management can do for you.