Sacramento is an eclectic community with homes ranging from entry level to luxury. Some Realtors say it is on the verge of a boom, others that it is making a comeback from a seasonal back-to-school slump.

"The real estate market is the on the verge of a "boom" due to the lowest interest rates in 30 years," says Realtor Steve Repp. "At the present time, good locations sell at the full sales price. Homes under $200,000 are selling at record highs. Homes from $200,000 to $600,000 are selling quickly. Homes in the price range of $600,000 to $1,000,000 and higher are selling at a slower pace. Multiple offers are common at the present time in this real estate climate, please be prepared.

Sacramento has a lot to offer, says Repp. "Neighborhood schools, quality day care, good location, investment opportunities in real estate are all strong factors," he says. "The real estate market will continue with this strong momentum. There does not appear to be a slow down for some time."

Explains Realtor Steve Rath, "The revitalized seller’s market that began on January 1 2002, has continued through the year to date and with the fall approaching, there doesn’t appear to be an end in sight.

"With strong demand still firmly in place and acutely low inventories (10 percent lower than last year), our area's markets should hold through the traditionally slower fall and winter seasons," he continues. "The only wildcard here is some global event or national disaster that changes consumer confidence."

He advises, "Although, regionally speaking we’re in a seller’s market, don’t be misled. There are pockets and neighborhoods where inventories are exceeding a six-month supply, which indicates a buyer’s market. Examples of these are: some neighborhoods in El Dorado Hills priced from $400K to $550K, areas of South Placer County over $700K, Elk Grove between $200,000 and $375,000 and other pockets. So each home and neighborhood should be evaluated before purchasing or selling, by someone who understands absorption rate and market trends, so that you have a clear picture of what the target property is worth and where it may be heading."

"East Sacramento contains large elegant homes to quaint cottages many 60 plus years old," says Realtor Cel Durant. "All major services are within walking distance, with many restaurants and stores to choose from. East-Sac is one of Sacramento's oldest and well-known areas. The majority of homes are in the $200,000-400,000 price level, but low inventory of homes still keeps prices increasing in this area."

What about talk of a cooling market?

Says Realtor John Lockwood, "With interest rates at all-time lows and the continuing influx of interested Bay Area buyers, we're still experiencing a fairly strong sellers market in spite of some talk of cooling. There is a small amount of seasonal slowdown with the back-to-school season upon us.

"The most intense "inventory" pressure continues to be for buildable bare land, but resale homes are still moving quickly."

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Published: September 19, 2002

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