Will Investors Save the Sacramento Market?

This winter has been different for sure. While last winter, the real estate market was still reeling from sellers realizing that their mortgages were too high for them to refinance and or sell and get market value to salvage their home, this winter seems to be dotted with home buyers.

Several things I've been reading lately seem to be coming to a head to make 2008 a very exciting year for real estate.

On January 4th, the Sacramento Bee reported that Sacramento real estate is gaining its price edge over the Bay Area and Southern California. And while that may be a different way of saying that prices here have fallen faster and harder than elsewhere in California, the net effect seems to be the same: buyers from other parts of California are beginning to express interest in Sacramento. Again.

Investors in Sacramento might take longer to recover, but since almost all of them depend on equity to buy other houses, once the prices start heading up, I have no doubt they'll be out there as well.

Another piece of news that surprised me (pleasantly) this morning was the Federal Reserve cutting interest rates by .75%! Since mortgage rates inevitably follow, the downward trend is good news for buyers and investors out there.

As I've said before, the real estate market can go up, down or sideways, but every move is almost always interesting!