Sacramento Housing Market Shows Signs of Life

Home prices in California are exuberant. They’re the highest in the nation … by far.

As a result, the inventory of resale homes on the market is creeping back up as the home-buying season kicks off, with about 11,400 homes for sale during February in the four-county Sacramento housing market.

That’s about 1,500 more homes for sale than a year ago, according to the latest figures from Trendgraphix, the research company associated with Lyon Real Estate. Those hoping for approval on home mortgages are waiting for prices to drop further - but there are signs that this is taking place.

Pending sales increased by 16 percent from January to February, which has industry observers wondering if that might be a sign of better times ahead.

“The answer depends on the escrow fall-out rate, which, up until now, has been high,” said Michael Lyon, president of Trendgraphix. “Buyers fall out of sales quickly when they can find a better home at a lower price.”

Actual sales in February were 1,195 homes, lower than a year ago when 1,375 homes sold. Current California home loan and refinancing problems may also be causing new buyers to be hesitant about entering the market.