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Sacramento Real Estate Market Update
There is a huge wave of first-time homebuyers on the horizon – some have already begun entering the market. As a result of the market downturn we had experienced a few years back, a new category of buyers has been created: comeback buyers.
Comeback buyers are people who are returning to the market after losing their home to foreclosure, short sale or bankruptcy. There are scores of people in the Greater Sacramento Area that have had this issue come up. These people went from being a homeowner to being a renter; after 2-3 years pass and this demographic decides to purchase a home again, they are categorized as a first-time home buyer.
A nationwide survey shows that in 19 of the 20 largest metropolitan areas, over 5% of people surveyed stated that they had the intentions of purchasing a home within the next year. Taking this another step further, 10% of renters indicated they wanted to purchase a home within the next year and the vast majority of people surveyed felt very confident in their ability to do so.
When all of these statistics are added together, it tells us that 4.2 million potential first-time home buyers will be entering the market. You may be thinking, “So what?” That is double the amount of people that were first-time homebuyers in 2013!
Out of this category of first-time homebuyers, 85% of millennials stated that they plan on buying a home in the future and 49% stated that they plan to do so within the next two years. My son, who is a millennial, just closed on a home! Millennials expressed that with purchasing a home, they are seeking security, happiness and fulfillment.
My concern with the influx of first-time homebuyers is that we are already experiencing a squeeze in the Sacramento market due to inventory decreasing, home sales increasing, and interest rates increasing. To help you avoid running into this problem, I will be sending out additional videos this month – so stay tuned!
If you have any questions in the meantime, please feel free to reach out to me. Thanks and have a great day!
