Real Estate Analysis and Commentary

October 3rd, 2023 3:50 PM

Sacramento County Housing Market

According to the California Association of Realtors®, in August 2023, the median sold price for existing single-family homes in Sacramento County was $535,000. Compared to July 2023, this indicates a decrease of 2.2%. However, when compared to August 2022, the prices have remained relatively steady, showing a marginal year-over-year change of 0.0%.

Regarding sales, there was a notable month-to-month change with a 7.7% increase. However, year-over-year, sales have witnessed a significant decrease of 19.1%, reflecting the dynamic nature of the real estate market.

Central Valley Housing Market

In the broader Central Valley region, the median sold price for existing single-family homes in August 2023 was $485,000. This reflects a month-to-month decrease of 0.8%, and a more significant year-over-year increase of 3.2% compared to August 2022.

Regarding sales in the Central Valley, there was a month-to-month change of 4.0%, illustrating a positive trend. However, similar to Sacramento County, there was a substantial year-over-year decrease of 19.0% in sales.

Posted in:Real Estate and tagged: Home Prices
Posted by Bob Peterson on October 3rd, 2023 3:50 PMLeave a Comment

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February 9th, 2023 2:51 PM
Property taxes almost always depend on what your property is worth. If you’re wondering how, exactly, they’re calculated, we have some insight to share with you.

Mill Rate

To calculate property taxes, cities, counties, and even school districts combine their own levies to work out a total tax rate for a region, which is called a mill rate.

The mill rate is multiplied by the assessed value of your property.

The more valuable your property is, the higher your property taxes are likely to be.

Property Values

Land and structures have different values attached to them. For example, vacant land without a house or a building will have a lower assessed value than a comparable piece of land that has a 4-unit apartment building on it.

Property improvements will also impact value. The upgrades and updates you made in order to raise your rental value will also raise your property value and your taxes.

Posted in:Real Estate and tagged: Taxes
Posted by Bob Peterson on February 9th, 2023 2:51 PMLeave a Comment

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January 30th, 2023 1:46 PM

Sacramento, CA is One of the Most Overpriced Housing Markets in America

Demand for housing has risen sharply in 2021, and that has affected prices. According to the carefully followed S&P CoreLogic Case-Shiller Indices, home prices nationwide rose 19.1% in October, compared to the same month last year. In several markets, the figure was over 25%.

Surging demand, in addition to limited housing inventory, has created a sellers market unlike anything seen in recent memory. Homes are now selling faster than ever before – and also for more money than ever before.

The reasons behind this trend are varied. Certainly, low mortgage rates have contributed to increased demand for housing, although these have begun to rise. Further, during the COVID-19 pandemic, tens of thousands of people have departed expensive coastal cities such as New York and San Francisco, where home prices exceed twice the national median, for cities inland where prices have been lower.

Because of the high demand for housing in some markets, sellers are able to command a premium price for their homes, and in many parts of the country, homes have become overvalued compared to historical numbers.

A new report from researchers at Florida Atlantic University’s College of Business identifies Sacramento, California, as one of the most overpriced housing markets in the country. Currently, the average home in the area is selling for about $570,569, according to estimates from real estate data company Zillow. This is well above the average predicted price buyers should be paying of $455,309 – an estimate based on calculations using historical sales data.

The 25.3% premium home buyers are paying on the average house sold in Sacramento ranks as the 47th highest of the 100 metro areas covered in the report.

The ranking of the most overpriced cities is based on a methodology developed by researchers Ken H. Johnson, Ph.D., and Eli Beracha, Ph.D.


Rank City Premium paid on avg. homesale (%) Average home price ($) Expected home price ($)
1 Boise City, ID 78.4 500,137 280,406
2 Austin, TX 58.0 534,433 338,345
3 Ogden, UT 55.9 482,461 309,392
4 Phoenix, AZ 50.1 422,463 281,372
5 Provo, UT 49.8 530,171 353,892
6 Las Vegas, NV 49.4 391,346 261,958
7 Spokane, WA 48.9 402,085 269,963
8 Atlanta, GA 47.5 330,218 223,835
9 Salt Lake City, UT 47.3 544,529 369,626
10 Detroit, MI 47.2 225,601 153,230
11 Charlotte, NC 44.6 329,961 228,218
12 Stockton, CA 42.0 526,520 370,716
13 Colorado Springs, CO 41.8 452,127 318,846
14 Lakeland, FL 40.6 267,184 190,054
15 Tampa, FL 39.9 323,040 230,843
16 Memphis, TN 39.7 205,936 147,421
17 Raleigh, NC 38.8 391,444 282,093

Posted in:Real Estate and tagged: Mortgage
Posted by Bob Peterson on January 30th, 2023 1:46 PMLeave a Comment

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January 16th, 2023 4:00 PM

Instant Reaction: Mortgage Rates, January 12, 2023

Following market trends, mortgage rates dropped this week. According to Freddie Mac, the average rate on a 30-year fixed mortgage fell to 6.33% from 6.48% the previous week. Rates moved closer to 6% as inflation slowed further in December for the sixth straight month. Since their latest peak in mid-November, mortgage rates have decreased by 0.75 percentage points.

The beginning of the new year allows people to start over again and set their resolutions for the year. One of those resolutions may be buying a home. This downward trend of mortgage rates gives a scrap of hope for many home buyers for the months ahead. With a 6% rate instead of 7%, buyers pay about $2,700 less every year on their mortgage. As a result, owning a home becomes affordable to about 1.4 million more renters and 4.3 million more homeowners. This could bring more buyers back to the market, boosting demand for housing and increasing market competition.

Nevertheless, it’s not just affordability that’s a roadblock. There’s also a persistent shortage of homes. Historically, a 6-month supply is necessary for a normal market with enough homes available for active buyers. However, there’s a 3-month supply of homes at the current sales pace. Even with 1.1 million homes available for sale, buyers still have difficulty finding a home to purchase.

Posted in:Real Estate and tagged: Mortgage
Posted by Bob Peterson on January 16th, 2023 4:00 PMLeave a Comment

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January 11th, 2023 2:36 PM
What do we mean when we talk about property taxes?

That term can actually mean a lot of different things. You probably pay taxes on your own home - the one you occupy. As a real estate investor and property owner, there are also the taxes that you’ll pay on your investment property.

Tax time is often stressful, especially for those of us who cannot count on a juicy refund. That doesn’t mean it has to be awful. You know tax time is coming and you have a whole year to prepare.

Let’s take a look at what we’re working with so you know what we mean when we talk about taxes across the next few months.
  • Real estate taxes are levied on most properties in our market and even across the country. These real estate taxes are not federal; they’re paid to state and local governments, and they most typically fund local and state services and programs.
  • Personal property taxes are levied on mobile assets, not fixed and stationary assets like a home. Cars and boats are subject to personal property taxes.
Here’s a snapshot of what we mean, which might make it easier to conceptualize:

Real Estate

Personal Property

Single-family home that you live in.  

Car that you drive or purchase for someone else to drive.

Condo, townhome, or other multi-family property.  

Mobile homes.

Any rental or income-producing property you own.  

Planes, boats, motorcycles, and trailers.

Posted in:Real Estate and tagged: Taxes
Posted by Bob Peterson on January 11th, 2023 2:36 PMLeave a Comment

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