Home Prices in Sacramento Fall; Ripe Time for Local California Mortgages
While California mortgage brokers just came out with their forecast for the future, let’s focus on the present for a moment.
The median home price in the Sacramento housing market plummeted last month, while sales tumbled in the latest evidence of a struggling real estate market.
Home prices in the four-county region declined 3.9 percent to $365,000 in November compared to a year ago, according to a California Association of Realtors (CAR) report released Thursday. But several markets - including Elk Grove and West Sacramento - reported much larger price drops.
Existing-home sales fell 24.5 percent last month in the Sacramento area compared to November 2005, according to the closely watched monthly report. The region’s sales drop was one of the largest in the state, as California mortgage activity remained quiet.
“There is a mixed picture across the state, with more regions reporting year-to-year declines than increases at this point,” said Leslie Appleton-Young, vice president and chief economist for CAR. “We’ve seen three or more months of year-to-year price declines in areas where there was a lot of homebuilding activity and in those areas that are popular for second home purchases.”
With fewer sales and a buyer’s market, some sellers accepted much lower prices for their homes in the Sacramento area and statewide. More first-time home buyers are entering the market as a result.
Elk Grove, Lincoln and Placerville endured double-digit percentage declines in median price from a year ago. Placerville fell 14.6 percent to $365,000; Lincoln dropped 13.8 percent to $420,909; and Elk Grove declined 12.9 percent to $428.000.All four counties reported lower home prices, led by a 16 percent decline in Yolo County. El Dorado County had the smallest drop, down 4.3 percent. Placer and Sacramento counties’ median home prices fell 12.6 percent and 8.8 percent, respectively.
Statewide, the median home price increased 1.4 percent to $555,290, while home sales were down 22.2 percent from a year ago. In order to boost the market, some companies are offering unique California home loan deals.