Will Sacramento home prices keep rising in 2018? Here are predictions from three experts



Last year saw rising prices in Sacramento-area real estate as buyers competed for a tight supply of homes for sale.

What will 2018 hold? The Sacramento Bee asked three experts in different fields of real estate to help predict market conditions in the coming year.


Q: How will the Bay Area’s economy influence Sacramento home values, whether it continues booming, or, as some suggest, hits a downturn?

Lundquist: I think what happens in the Bay Area can impact our market to a certain extent, but I don’t think Bay Area home values are the main driver for Sacramento. If we have tech money coming in, and there’s a tech bubble, that would remove buyers from our market, particularly those with cash or looking for an investment. But I don’t think that’s the number one driving factor in our market.

Shea: Sacramento’s connectivity to the Bay Area is getting deeper and deeper. More Baby Boomers are going to come this way (to retire) and more young people, as they decide to start families, will find Sacramento an attractive place.

Wehrli: If Silicon Valley (were to slow down), it would have a marginal impact in Sacramento. There are some submarkets with newer housing – Elk Grove, North Natomas, West Sacramento – and upscale markets like El Dorado Hills that could be affected. But it’s not going to have a huge impact on Sacramento. We’d feel it but not in a major way. The Sacramento market is driven internally.


Predictions for 2019…