Rancho Cordova overtakes Roseville as hottest city for home sales in Sacramento region, new data show
New numbers show that home sales across the Greater Sacramento region are on a rebound, and there's a surprising new city taking the top spot away from Roseville, which had been the hottest housing market.
Tim Murphy, CEO of the North State Building Industry Association, said 496 newly built homes were purchased in August across the region. That's the highest number since February and more than 80 units above the historical average.
"I think people who are in the market to buy a new home are looking for good interest rates," Murphy said. "They're looking for great incentives."
Those incentives range from buying down interest rates to bigger bedroom closets and some even more creative ideas.
"There's even a builder that's offering a swimming pool as an incentive, so they are motivated," Murphy said.
Roseville has traditionally been the hottest place to buy a new home, but now there's a new leader. In August, the city of Rancho Cordova took the top spot with 91 new home sales.
"It is a desirable community. It's very well planned. It's easily accessible from Highway 50, so don't discount Rancho Cordova. It's a great community," Murphy said.
The one factor not making any movement is the price. The median home cost is $595,000 — exactly the same as it was one year ago — making the dream of owning a home still out of reach for many.
"There's only about 13% of Californians who can afford a home at the median price rate right now," Murphy said.
So will this home-buying trend continue? Murphy said the biggest factor could be interest rates, which are predicted to be cut before the end of the year.
"We have seen every time that there's been a dip in rates that gotten closer to 6%, we've seen a corresponding spike in homebuying, so if interest rates continue to drop, there are a significant number of people out there who are ready to buy," Murphy said.
Builders have been working with local governments to try and reduce housing costs by lowering the mandatory development fees that pay for new roads, parks and schools, and can currently run more than $90,000 per home.