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Old 07-11-2016, 11:06 AM
 
781 posts, read 632,511 times
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Old 07-11-2016, 11:21 AM
 
Location: Sacramento
524 posts, read 407,310 times
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California has a major housing affordability issue. The bay area has extremely high housing costs. Los Angeles, San Diego and much of coastal southern California up through Santa Barbara are very expensive to buy property. People in all of these areas looking to stay in California but find somewhere nice to live that's still reasonably affordable see Sacramento as a great option. People in those expensive areas desperate to get into the housing market but can't afford to buy where they live look to somewhere like Sacramento for investment property. So it's competitive here and prices have increased with the increasing demand.


Like in any city - you are going to have to make compromises on where in Sacramento you can buy a house. As others have said maybe bide your time a little while you get to know the city and it's different neighborhoods and see where areas are changing and young people are moving to. In another couple years you might be looking for something different than you are as a single young dude and maybe then will be a better time to buy. Nobody knows what is really going to happen - but surely the prices can't keep going up forever?! We are already right on the edge of what average people can possibly afford - the bay area is way past that point - but then again there is a lot of wealthy people in California and just a crap load of people in general.


Good luck with it all. Make sure you do some research on whether it makes sense for you to own property at this point in your life. There are lots of other investments to make. If you are in it for the long game then that's one thing. But if you are thinking short term -- your first few years of mortgage payments are paying much more toward interest on your loan than they are toward paying down any of your principal. So if you are selling within a short amount of time then you are gambling on appreciation - you are probably not paying down your loan as much as you might think. Also closing costs/RE fees etc. take a bite out of any gains you might see.
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Old 07-11-2016, 07:35 PM
 
Location: Living rent free in your head
36,496 posts, read 16,969,895 times
Reputation: 26999
Sacramento is very "affordable", no you can't get a SFH for 300k in midtown, but really does that surprise you? You can get a SFH in a number of suburban areas of Sacramento for that, if you want to live in the middle of a 'hip area' then maybe you should consider renting? Or, you might look in Greenhaven, East Sac, South Land Park & West Sacramento, you would be close to midtown & should be able to find something you can afford. Or, if home ownership really appeals to you, buy in Elk Grove.

https://www.redfin.com/city/16409/CA...608,no-outline
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Old 07-11-2016, 09:17 PM
 
Location: Rancho Cordova
254 posts, read 289,525 times
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Off the top of my head I can name quite a few area that you can afford between AR and Elk Grove. Downtown/Midtown or Curtis Park/Land Park aren't in your budget but plenty of other places are. 95817, 95820, 95824, 95822, 95823, 95832, 95828 are a few zip codes you can look into.

I don't really care for them but you can look into The Mills at Broadway as well. Or if you really want to live in the grid look into a condo.
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Old 07-12-2016, 06:20 PM
 
Location: Folsom
5,101 posts, read 8,339,962 times
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Sounds right to me. I was making a similar amount when I moved to Sac at the top of the bubble and I waited until the crash until I jumped in. I would suggest waiting. Save, eventually you will be able to buy in your desired neighborhood. Plus, things change, you may not be working in Elk Grove in 2 years. I changed jobs twice in that time, and my 3rd job was in the opposite direction. So glad I waited.
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Old 07-14-2016, 04:32 PM
 
Location: New Mexico
514 posts, read 1,062,752 times
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Have been keeping an eye on Sactown housing prices the past two years. One expects the huge increases in the coastal cities, but surprised how much they have increased in Sacramento. Especially the areas we love the most, Land Park, Midtown, Commons and Fair Oaks.

Coming from a state with negative population growth and a city with fairly lousy economy makes the moving challenge more difficult but not impossible. We know we will have to downsize quite a bit. The upside for us is getting back to CA.
When we left years ago we certainly underappreciated what we had. Sometimes it takes a big move to reset and rethink the lifestyle opportunities. Ready for a more robust menu of lifestyle, culture and fun things to do. Sure it is more expensive, but I now know we get what we pay for, and cheap areas are just that for a reason.

Hope we can get back to CA within the next few years.
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Old 07-15-2016, 12:52 AM
 
263 posts, read 433,000 times
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Try south Land Park, kinda around Fruitridge and Freeport.
My wife's family lives there; she grew up there. Relatively safe (safer than Oak Park) and plenty of homes in the $200-$350 range. I think it would be a sound investment.
We just bought just north of Land Park where it's much pricier, > $1MM.

I agree that prices are high in Sac. I'm moving to Sac from LA where so Sac feels cheap, but it is high compared to a similar type city in other states. For ex, I'm from Columbus, Ohio originally and stuff there is much cheaper than Sac and the cities are similar (both capitals, about same population).

Good luck
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Old 08-02-2016, 06:24 PM
 
1,148 posts, read 1,313,959 times
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Quote:
Originally Posted by andrew61987 View Post
I'm 29M, single, no family, making $75k and have a tiny bit saved up. New to Sac but have always heard it's a bargain by California standards. Figured things would be pretty decent for me and have dreams of owning a house, but I was shocked when a crappy little 2/1 on a busy street a couple blocks down went on sale for over $400k. That's beyond out of reach. Who the heck is buying these things? I'm renting a house that's the same size for $1,275, something doesn't compute! I work in Elk Grove so I'm pretty much restricted to anything south of the American River and along the 5/99 corridor. I've cruised around areas south downtown but decent areas are almost as pricey, and Elk Grove, well, lets just say bored soccer moms are nice from time to time but I'm not ready to make that a full time gig. What would you do?
It sucks man, I feel your pain. I was almost in the exact same position as you a couple of years ago, and I make just a little more than you now in the $80K range. Your best bet is to start small with a condo and build equity. You can still make that happen for the low $200K range in many decent areas. I also suggest finding a new development and putting a deposit down. Then, you have time to save for a downpayment and you may experience some appreciation before you even set foot in your home. Unfortunately, this is California and nothing is cheap at all. We have to struggle for every single thing we get.
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Old 08-02-2016, 06:31 PM
 
1,148 posts, read 1,313,959 times
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Quote:
Originally Posted by caligirlz View Post
Sounds right to me. I was making a similar amount when I moved to Sac at the top of the bubble and I waited until the crash until I jumped in. I would suggest waiting. Save, eventually you will be able to buy in your desired neighborhood. Plus, things change, you may not be working in Elk Grove in 2 years. I changed jobs twice in that time, and my 3rd job was in the opposite direction. So glad I waited.
I hear this so much from people who bought immediately after the crash. That was a once in a generational thing and it's not likely to happen again. The flip side is, you could wait two years for a dramatic drop and nothing may change and in the meantime you've lost $10,000-15,000 in equity that you may have built simply by paying a mortgage. In my opinion, the bottom line is, if you want to own a home and you have the ability to do so, do it. The market will always experience peaks and valleys, but if you research a good area with potential for growth the odds are stacked in your favor of coming out ahead.
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Old 08-05-2016, 09:07 PM
 
Location: Shingle Springs, CA
532 posts, read 1,335,927 times
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It is cheap in Sacramento area compared to other areas of California (like Southern CA or the Bay Area), but prices have really been rising lately.

I just read somewhere that here in El Dorado County, in 2011 the average price of a house was $260k; today, it's $425k.

Prices on my street have increased to about $375k; when the bubble burst in 2008, my street was going for about $430k, which is absurd for 1970 old ranch houses. So it's on an upward course, for sure, so you have to decide whether to jump in now or wait a couple of years for the bubble to burst again.

Best wishes.
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