Sacramento Housing Market Crushed In 2007

January 20, 2008 at 6:12 pm  ·  Category: Local Business, Macro Economics, Real Estate

“What you’re starting to see right now with the foreclosure inventory swelling is the banks are getting aggressive….. I think 2008 is going to be a year to remember.”

Mike Toste, a Lincoln based real estate agent

On the front page of Friday’s Sacramento Bee was an article about December home sales.  One number really jumped out at me: 38.3% of all home sales in the eight county Sacramento region in December were homes that had been repossessed by banks.

If that wasn’t enough, the median home price dropped 20% in Sacramento County and 13.3% in Placer County in 2007 – and are 27.6% and 29% off their August 2005 peaks, respectivelyTotal sales volume for the 8 county region was down about 23% from 2006.

Volumes are falling off a cliff even as prices crash.  This means that, even at these lower levels, there still aren’t many buyers.  That means prices will probably continue to fall in 2008.

Posted by Greg Feirman  ·  Trackback URL  ·  Link

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