Zillow expects Sacramento-area home values to rise nearly 12% | News
SACRAMENTO - There's potentially some good news for Sacramentans looking to sell their homes.
Zillow.com analysts predict Sacramento-area home values to increase by 11.9 percent in 2013. This comes after a similar increase last year.
"It's important to be cautious moving forward, even as we celebrate the undeniably positive end to 2012, and be careful that consumers don't grow to expect such high appreciation as the norm," said Zillow Chief Economist Stan Humphries.
The slowly improving economy and continually low mortgage rates, typically translate into greater consumer confidence and increased home sales. Buyer demand, which is driven both by investor and consumer interest, is spurring new construction, as home builders continue to be confident about future demand for driving.
Sacramento's value outlook is based on a number of indicators. This includes the number of homes for sale, population growth, property taxes and loan delinquencies, among other factors.
Real estate price increases in El Dorado and Placer counties near Lake Tahoe are also boosting the Capital City. Those areas are included as part of the Sacramento region's metropolitan statistical area. Zillow.com says that as buyers from the Bay Area (and beyond) seek to purchase second homes at lower prices, the cities around the lake should be among the top performers this year.
"Buying a home should be a long-term decision, and these swings between a deep housing recession and higher-than-normal appreciation rates can give consumers whiplash and cause some to lose sight of that," Humphries says.
The Sacramento area is ranked 2nd for appreciation potential, just behind Riverside. Four other California cities made Zillow.com's top 10 list: San Francisco, Los Angeles, San Diego and San Jose. Nationally, home values are expected to go up 3.3 percent.
By Chris Nguyen