Sacramento remains a top destination for homebuyers despite a cooling in the U.S. real estate market

Sacramento – The housing market has cooled in recent months, but Sacramento remains one of the most sought-after metropolitan cities in the country, according to Redfin.

We spoke to an expert about what to expect from the housing market in 2023.

“Overall, Sacramento is one of the most popular destinations for people looking to move,” said Taylor Marr, deputy chief economist at Redfin. Most of those people are from the Bay Area. .

Sacramento is the country’s largest metropolitan area to move population in the fourth quarter of 2022, with more than 7,000 people trying to move here in November alone, according to Redfin analysis.

Marr says Sacramento is benefiting from this transition because of a number of factors.

“The number one reason is affordability and the space and working from home frees me from having to work and work close to home,” he said.

Winter has historically not been a popular time to move, but now may be the perfect time for potential home buyers to get a good deal.

“This is a great opportunity for buyers because there is less competition now than there was a year or two ago,” said Kimberly Prince, a real estate agent in Sacramento.

Inventory has shrunk since home sales peaked in early 2022, which gives buyers more bargaining power, Prince said.

“It’s a great time for homebuyers to enter the market because there are sellers willing to sell,” said Katie Pastor Trinidad, a mortgage planner.

Trinidad said interest rates were low a year ago, but demand has increased and house prices have soared. Now that interest rates have leveled off, power has shifted in favor of buyers.

Homes are on the market longer, and when a deal is struck, homes are sold below list price, and sellers and builders are more willing to offer concessions.

Reverend Trinidad said, “Sometimes sellers are willing to cover some of the closing costs, so buyers can come in with a down payment. We may be able to negotiate how low the first two-year interest rate will be.” increase.

Bottom line: If you’re thinking of moving out this year, realtors like Prince say don’t wait for interest rates to drop.

“I think it’s a great time to buy,” Prince said.

And looking ahead, Redfin predicts the housing market will pick up again.

“Interest rates are coming down. We’re past the peak in interest rates, we’re past the peak in inflation, and there’s optimism that the market can rebound once sales have bottomed out,” Prince said. “We believe more homes will come to market and more people will be able to buy and sell homes to move.”