SACRAMENTO (CBS13) — The Sacramento area is experiencing a rise in housing prices seen in other parts of the country, forcing buyers into bidding wars and paying over the asking price.
Bruce Hohenhaus is looking to buy a house in one of his favorite Sacramento neighborhoods.
“I was hoping to buy something close to downtown in the Sacramento area,” he said.
But he says he knows it’s a sellers market.
“I’ve seen things come on the market in within a day or two it’s pending,” he said.
Add to that competition leading to price increases.
“I’ve heard of multiple offers and prices above asking,” he said.
That’s the state of the market right now says Sacramento real estate agent Kurt Campbell, so why the hot real estate market?
“The demand is rising creating more rising price. There’s more people in the same pool,” he said.
And according to Campbell, that pool is also filled with investors.
“People are ready to pull the trigger an investor will come in and buy something for all-cash,” he said.
Leaving first-time buyers putting in offers sometimes 5 or 6 times. They’re getting priced out of the more established neighborhoods and forced to change their location strategy.
That may be what Hohenhaus will do. He loves a 1925 brick Tudor on the market for just under $700,000 in West Sacramento but doesn’t want to get caught up in a bidding war.
“I remember the bubble from 2007 2008 I don’t want to be on top of that bubble,” he said.