The present situation of Sacramento Real Estate:
Sacramento real estate has seen exponential growth in the 1995-2005 period at a rate higher than any of the states in the vicinity. But last few months have seen a steep fall in the investment in Sacramento real estate. The number of both
single family unit and
multi family unit permits filed in the first half of 2006 was way below that in 2005.
According to predictions, the figure for single and multi family units will go down by 40 percent and 19 percent in 2006. This declination is not peculiar in case of
Sacramento real estate but the idiosyncrasy stems out from the fact that the surge in
non-residential building activity in Sacramento has not offset the fall in residential activity whereas in case of other states they have made for 80 percent of the fall. According to Real Estate Research Council, Sacramento area home values have risen by 177 percent since 2000 whereas the San Fransisco Bay Area has seen a deluge of only 102 percent. However, recent building activity has helped the for-sale price (of Sacramento) remain within limits.
The
long-term trends and recent sales activity suggests that the preference for Sacramento real estate may see unfortunate changes happening. The median home prices for June 2006 has been almost flat and the sales activity has fallen more aggressively than state's larger metropolitan areas. This slowdown in the Sacramento real estate can have serious adverse effects on the economy of Sacramento by hampering
employment growth in the construction sector and untoward effects on the
finance sector.
Availability of loans :
There are different types of loans that one can chose from:
- Mortgage Term- These are available with a maturity period of 15 or 20 or 30 year terms. The monthly payments are lower for longer terms for a given amount.
- Fixed or floating interest rates- Fixed rate loans are useful if the interest rates are low and the converse is true for adjustable rate mortgage.
- Government-backed loans- These loans are available to qualified buyers and offer special terms such as lower down payments and/or reduced interest rates.