Sacramento, California is the capital of California and the hotseat of local government where a recall of its governor is in progress. But that hasn't slowed the housing market, say local Realtors.

"Sacramento is a prime place to live-and it's still close to recreational attractions, such as Lake Tahoe, ski resorts, the Mother Lode and Napa Valley, that make weekend getaways a breeze," says Realtor Don Hipp. "Of course, Sacramento has always had its own attractions. Right here, we have enough natural delights and cultural events to keep your weekly planners filled year-round. There are a thousand miles of Delta waterways to play on, the American River Parkway bike trail to ride on, and annual events like the world-famous Sacramento Dixieland Jazz Jubilee. Recently, the River Cats minor league baseball franchise built the family-friendly Raley Field in West Sacramento and set attendance records, and Sacramento is home to one of today's hottest NBA teams -the Sacramento Kings."

About the market, Hipp says, "Sacramento continues to experience a seller's market with strong price appreciation. The trend is for houses to stay on the market a bit shorter. The average market time for homes sold in April was 33 days, compared to 36 days in March and 42 in February. Recently I have been seeing lookers turn into buyers as they watch interest rates rise and fear they will be left out if they don't find a home and lock in an affordable interest rate. I expect the market to settle down a bit this year. Homeowners will still see good appreciation, but probably not at the rates that we have seen over the last two years.My overall projection for the market: Still a seller's market, with an upward price trend, but more realistic appreciation."

Says Realtor Randy Hawley, "Sacramento is a thriving real estate market to start with: Sacramento is in a central location to a variety of great things to do in surrounding areas like Reno, Tahoe, River rafting, boating, fishing and the list goes on. In the nearby foothills, there is a great variety of wineries and Old Sac with its early western style is the center point of Sacramento's attractions."

He explains, "Our multiple listing service shows daily activity, example: 300 new listings and 310 that sell daily. Some days are a little different; however, this is the norm. Low supply, high demand. Many buyers are finding that although the interest rates are low, prices keep going up, and they are. You can still find affordable housing here in Sacramento, but, of course, different areas get different prices. The growth in Sacramento has not stopped or even slowed down. Since 2000 and even through 2001 and 2002, Sacramento has set record highs in sales and new building permits every quarter."

Hawley advises, "A lot of people listen to or rely on statewide or national news media statistics, but once you see what's going on here in Sacramento it doesn't look like all this building and expansion in these areas and surrounding Counties point to a suffering or bad economy. Just the opposite. Many home owners and buyers still have an opportunity to take advantage of this market before it gets out of touch. However, a lot of people that could have bought a year or so ago that wanted to wait until prices went down, can no longer sell and buy up or buy their first home.

"In my opinion the Sacramento real estate market is not slowing down," he says. "New listings that are priced right are still experiencing multiple offers and in some cases a multitude of multiple offers. The residential income 1-4 unit properties are a hot commodity and don't last long."

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Published: August 25, 2003

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