04/07/2025
Nice graph comparing stock market to Sac county home prices.
https://m.facebook.com/story.php?story_fbid=1256665809793231&id=100063494715527&mibextid=wwXIfr
I'm starting to get questions about the stock market and housing market. Here's the median price in Sacramento and the S&P 500. Not always the same exact trend. Most buyers don't derive their income from the stock market, so this doesn't affect everyone. We definitely need to watch consumer confidence and economic uncertainty right now though. Some buyers on the higher end are likely more sensitive to what happens in the stock market. Some buyers might use their 401K for a downpayment, and that could be less appealing at the moment.
When looking at the two trends, it's been pretty similar over the past decade, but there are some definitive differences when we step back. Sacramento didn’t drop during the dot com bust around 2000. Sac peaked a couple of years before the stock market during the Great Financial Crisis (2007). Sac dropped in the 90s while the stock market increased. The local market saw explosive growth beyond what stocks did from 2000 to 2005.
Any thoughts?
