On Thursday, CNN reported that a study conducted by RealtyTrac revealed that property values are now higher in the Sacramento area than in many other major U.S. cities.
The report comes amid a growing number of properties going on the market and the possibility that the price of a home in the area could exceed $1 million in the next year.
The study by Realtric, which is based in Washington, D.C., found that median home prices have been rising in the Bay Area for more than 10 years, with a sharp rise in 2015, with home values jumping 8% to $2.35 million.
“It’s a trend we’ve seen in many places around the country,” said Realtrac chief economist Tom Anderson.
“It’s kind of been happening for a while.”
The report also noted that the number of new homes listed in the region is rising, and that more homes are being sold.
The surge in sales also comes amid rising mortgage rates, which are increasing at a faster pace than the rate of inflation.
The rate of increase for the rate on a 10-year, fixed rate mortgage is 4.5%, according to the Mortgage Bankers Association, compared with 3.4% in the U.K.
The increase in mortgage rates is also due to the high cost of home equity, and higher mortgage payments as well.
The rise in sales in Sacramento comes at a time when the number a new home sold in the state has more than doubled in the past five years, and in the last two months more homes have been sold in Sacramento than any other city in the country.
The city has seen a record high number of homes sold this year.
That is up from just 13,931 a year ago, according to Realtrac.
The California Housing Finance Agency reports that a record number of people purchased homes in Sacramento this year, with more than 11 million homes sold.
That number is nearly double the previous record high of 8,879 sold in 2007, according the agency.
There are currently more than 17,000 units available for sale in the county, according data from Realtrans.