Hottest housing market? It’s not New York, San Francisco or LA. Sacramento has topped the list of the least affordable new home markets in the country.
Sacramento’s median new construction home price is $650,000
In order to afford the $39,000 down payment, Sacramentans need an income of about $128,000. But the median household income here is just over $76,000.
A big shortage of homes
Kelly Pleasant, owner of Pleasant Real Estate Group in Sacramento, said he’d estimate the new home price average is a bit lower, around $500,000 to $550,000. In the last 45 days Pleasant has seen the Sacramento become less competitive, which typically happens in the fall, but there is still a big shortage of homes here, he said.
“Instead of maybe 10 offers (per listing), you’re seeing five offers,” Pleasant said. “Instead of $50,000 or $60,000 over, maybe you’re getting it at list price or $20,000 over.” The Crocker Village development in Curtis Park, where about 200 new homes are under construction, are all purchased except for about 14, said Matt Edwards, community sales manager. The prices are $975,000 to $1.6 million, he said. “You can’t keep up with consumption,” Pleasant said. “Builders are behind.”