A new housing season is just around the corner, set to start in the late spring and carry on into the summer of 2023. As inflation continues to worry people across the country, buyers wonder if they’ll be able to buy their own home this year. According to experts, prices in El Dorado County are expected to increase due to the ongoing housing shortage against rising demand. What does this mean for buyers? Simply put, if buyers are keen on owning a home in El Dorado County, they need to fully commit themselves and buy soon before inventory runs out.
This report compiles the latest trends and predictions for the new housing season, as well as a glimpse into the current market. It also includes the cost of living in El Dorado County to help you better develop your financial plan.
Increase in home prices
California is a massive state with dozens of counties, so it can be tricky to provide a concrete estimate of how home prices will fare. According to the California Association of Realtors, the overall state of California expects to see a decline in home prices, but there is an exception. The Sacramento region, which includes El Dorado County, is expected to see another price spike. The price spike is mostly a result of the region’s high desirability — year-round warm weather, rich history, and famous wine-making and agriculture have made El Dorado County a popular destination for visitors and new residents. As supply dwindles, we can expect to see these values continue to rise.
Limited supply versus high demand
One of the many reasons behind soaring high prices is a limited housing supply versus a high consumer demand. El Dorado County is a beautiful region with affluent suburbs and a high quality of life. It’s no wonder people continue to relocate there, but these population booms have unfortunately contributed to the depleting housing supply. Paired with home construction labor and supply shortages, the limited supply has transformed the housing market into fierce competition among buyers.
A market snapshot
As of 2022, there are a little under 900 properties available for sale in El Dorado County, including luxury estates, single-family villas, manufactured homes, condos, and plots of land. Interested buyers should always keep in mind that limited housing inventory remains a major issue, meaning El Dorado Hills real estate and nearby markets are expected to sell out. If you’re interested in houses for sale in Shingle Springs, El Dorado Hills, or any other El Dorado County neighborhood, it helps to prepare ahead.
Cost of living in El Dorado County
Compared to the national average, the overall cost of living in El Dorado County is 43.7% higher but 6.2% lower than in California as a whole. This value is based on several different factors, including groceries, healthcare, housing costs, utilities, and transportation. Here is a breakdown of these factors and how they compare to the national median in the same categories:
-
Groceries in El Dorado County are 6.8% higher than the national average, while healthcare is about 15% higher. Healthcare includes health services and prescribed medications you have to pay for.
-
Utilities account for your heating and cooling, natural gas, electric, water, and garbage removal costs. These bills are 7.7% higher than the national median. Transportation is 24.2% higher, calling for many residents to own their own vehicles instead of using public transport.
-
Housing in El Dorado County is 111.3% higher than the average cost of homes across the country. For example, the median cost of a home in the county is $616,500, compared to the national median of $291,700. As for rent, a studio apartment is approximately $1,108 on its own. Additional bedrooms may cost an additional $100-$600 per room, depending on the location and square footage.
The final verdict
Experts predict the El Dorado County real estate market will see a gradual increase in market prices, and inventory will remain a prominent issue. Home construction has suffered from a massive labor and supply shortage over the past few years, but people are hopeful for more homes. For now, buyers are advised to prepare in advance. El Dorado Hills real estate is one of the most sought-after areas in the Sacramento region, despite the price spike, and as more people flock to the market, supply will deplete even more. In other words, if you want a home in El Dorado County, it would be good to begin making preparations now.
Partner with Kristen Haus to learn more
For further information on El Dorado County real estate, reach out to expert Kristen Haus. Her expertise and commitment to client satisfaction distinguish Kristen as an elite realtor. She’ll help you get started on a homebuying plan to prepare for the new season, so be sure to connect with her as soon as possible!
