Sacramento, Placer, El Dorado and Yolo counties all shattered their median home price records set in the early 1990s, which was the peak of the capital region's last big market upswing. That run-up was followed by a severe slump that lasted until 1996, when home values finally began rising again. With Bay Area buyers pouring in this year to the capital region's fledgling subdivisions, the cost of new homes also soared to new highs. But don't give the Bay Area buyers all of the credit for this year's double-digit median price increases. Such gains were common in many areas not dominated by Bay Area buyers, from parts of south Sacramento to Placerville.
Some sales agents insist that the impact of the Bay Area buyers has been exaggerated.
For the most part, agents contend, this summer's robust resale home market can be chalked up to a strong economy, low unemployment and locals feeling secure in their jobs. Now I don't hear that at all. Also, they were financially prepared. Sacramento Realtors also point to another powerful trend pushing prices hard this year in Arden Park, east Sacramento, Land Park, Curtis Park, midtown and other neighborhoods close to Sacramento's major job centers. They maintain that a significant number of buyers, some empty nesters and others with children still at home, are moving in from the far-flung suburbs to eliminate their commutes.