Condition Trumps Location in Sacramento Real Estate

Never thought I’d see the day that a home’s condition trumps location in Sacramento real estate. It’s been leaning this way for years, ever since the market crash created a falling market from 2006 through mid-way of 2011. That’s when the flippers stepped in and took over the market in a big way. Also, new housing is moving the market again, which was not a competitive factor during the downturn.

Need examples? Just look at building projects like the Mill at Broadway, which is sandwiched between two public housing projects and sits under the intersection of two major freeways. Or, the McKinley Village housing development, built next to railroad tracks where a train goes by 52 times a day and within the traffic roar of I-80. Horrible locations for real estate. But the home’s condition trumps location.

Today’s Sacramento home buyers gravitate toward and tend to prefer brand new or newly remodeled. They would prefer to buy a home in a bad location than fix up a home in a good location.

Not every home seller has the money to prepare a home for sale. However, the market for homes without updates appear to appeal primarily to contractor flippers, and those people do not want to pay market value. They typically demand high discounts.

Throw into the mix that the pool of home buyers who want to remodel a home is small, on top of some areas having so much inventory that we have shifted to a buyer’s market, and it doesn’t present an attractive picture for those sellers. Most of Sacramento shows increased inventory and falling sales.

Have you noticed the trend of home buyers deciding condition trumps location?