Skip to content
CapRadio

CapRadio

listen live donate
listen live donate
listen live
donate
  • News
    • News

    • State Government
    • Environment
    • Health Care
    • Race and Equity
    • Business
    • Arts and Lifestyle
    • Food and Sustainability
    • PolitiFact California
    News
    • News

    • State Government
    • Environment
    • Health Care
    • Race and Equity
    • Business
    • Arts and Lifestyle
    • Food and Sustainability
    • PolitiFact California
  • Music
    • Music

    • Classical
    • Jazz
    • Eclectic

    • Daily Playlist
    Music
    • Music

    • Classical
    • Jazz
    • Eclectic

    • Daily Playlist
  • Podcasts & Shows
  • Schedules
  • Events
  • Support
    • Support
    • Ways to support
    • Evergreen Donation
    • One-Time Donation
    • Corporate Sponsorship
    • Vehicle Donation
    • Stock Giving
    • Legacy Giving
    • Endowment Support
    • Members
    • Member Benefits
    • Member FAQ
    • Member Newsletter

    • Fund drives
    • Drawing Winners
    • Thank You Gifts
    Support
    • Support
    • Ways to support
    • Evergreen Donation
    • One-Time Donation
    • Corporate Sponsorship
    • Vehicle Donation
    • Stock Giving
    • Legacy Giving
    • Endowment Support
    • Members
    • Member Benefits
    • Member FAQ
    • Member Newsletter

    • Fund drives
    • Drawing Winners
    • Thank You Gifts
  • About
  • Close Menu

Sacramento housing prices surge in February, setting new records

Monday, March 14, 2022 | Sacramento, CA
Listen
/
Update RequiredTo play audio, update browser or Flash plugin.
Rich Pedroncelli / AP Photo

In this photo taken Wednesday, July 5, 2017, a sold sign is displayed in front of a house in Sacramento, Calif.

Rich Pedroncelli / AP Photo

Home prices shot up dramatically last month in the Sacramento area according to experts who track the numbers.

The median price for a home in the Sacramento region in February was $590,000, up $31,000 from a month ago, the largest dollar increase ever at this time of year. The trend points to another very aggressive market in the months to come, much like last year’s record-breaking rise in housing values.

CapRadio's Randol White discussed the recent numbers with certified residential appraiser and housing analyst Ryan Lundquist.

Interview Highlights

Help us put last month's pricing spike into context, it was record breaking by some measures, was it not?

Yeah, it was. And normally prices do increase from January to February. It's part of the normal rhythm. But last month, in our 11th year of price growth, we saw the median price tick up by $31,000, or basically about 5.5% when a normal year's more like 2 to 3%. And so it's phenomenal growth for this late in a price cycle.

And the weekly price growth is also showing similar trends?

Absolutely. It really started to shoot up the last week of February in particular.

Is there a neighborhood, city or maybe even county in the region that's seeing the largest gains?

I would say, I mean, all ships rise with the tide. And so really everything has been going up. It's in all counties. And so, you know, there might be some that are the winners from month to month. But I mean, really, just about everything is showing tremendous gain.

Does that include starter homes that first-time buyers might be looking at? Are we seeing this trend in the lower-priced options?

You know, we really are, and I would say that the lower half of the market has rampant upward pressure. The way I look at it is the median price in the region is $590,000. So literally half the market is fighting for homes in that range. But even in Sacramento County, prices are lower and the median price is closer to $540,000. And so the market is just really duking it out in those price ranges or, you know, when you consider properties, for instance, under $400,000, there's very few listings anymore under that price point. And so about 10% or so of the market.

In order for this to happen, buyers need to be willing to pay the higher prices or even offer well above what sellers are asking.

That's been the case. I mean, it's really true that buyers have had to bring, you know, money often above the appraised value or make a really competitive offer. If there's a lot of offers, you're not going to stand out if you're offering below list price for the vast bulk of the market.

Is the expected rise in interest rates behind some of this?

It really is. And so what's happened is that mortgage rates rose exponentially, very, very quickly. And I think a lot of people were looking on and thinking: well, this is going to cool off the market immediately. But I think it had the opposite effect where it caused buyers to run to the market sort of out of a fear of missing out and wanting to lock in a lower rate as soon as possible.

Final question. It's the crystal ball question. What do you see playing out for the rest of the year?

Well, you know, that's hard to predict. It's hard to predict what cryptocurrency is going to do or whether mom jeans are going to be just as popular next year as this year. Or who's going to be the president in two years from now. 


These are all basic questions, but I think they remind us that the future hasn't happened and it's not so easy to know. And so, you know, I'll say that my crystal ball is broken. But I will say for the first six months of the year, we are poised to have a very aggressive market because that's what the stats are indicating right now. And I think that this year is sort of trying to rival that aggressive market we saw last year. And then, you know, afterwards we'll see what happens.


Follow us for more stories like this

CapRadio provides a trusted source of news because of you.  As a nonprofit organization, donations from people like you sustain the journalism that allows us to discover stories that are important to our audience. If you believe in what we do and support our mission, please donate today.

Donate Today  

    More about housing

  • Andrew Nixon / Capital Public Radio

    Housing

    CapRadio's coverage of California housing issues in the Sacramento region and throughout the state.
  • Business
  •  

 housing

Sign up for ReCap and never miss the top stories

Delivered to your inbox every Friday.

 

Check out a sample ReCap newsletter.

Thanks for subscribing!

Thank you for signing up for the ReCap newsletter! We'll send you an email each Friday with the top stories from CapRadio.

Browse all newsletters
 We Get Support From:
Become a Supporter 
 We Get Support From:
Become a Supporter 

Back to Top

  • CapRadio

    7055 Folsom Boulevard
    Sacramento, CA 95826-2625

    •  
      (916) 278-8900
    •  
      (877) 480-5900
    •  Contact / Feedback
    •  Submit a Tip / Story Idea
  • About

    • Mission / Vision / Core Values
    • Stations & Coverage Map
    • Careers & Internships
    • Staff Directory
    • Board of Directors
    • Press
  • Listening Options

    • Mobile Apps
    • Smart Speakers
    • Podcasts & Shows
    • On-Air Schedules
    • Daily Playlist
    • Signal Status
  • Connect

    •  Facebook
    •  Twitter
    •  Instagram
    •  YouTube
  • Donate

  • Listen Live

  • Newsletters

CapRadio stations are licensed to California State University, Sacramento. © 2023, Capital Public Radio. All Rights Reserved. Privacy Policy | Website Feedback FCC Public Files: KXJZ KKTO KUOP KQNC KXPR KXSR KXJS. For assistance accessing our public files, please call 916-278-8900 or email us.