We have all heard about the problems with our economy, stock market and the housing market. Sellers have seen the value of their homes decline more than 50% over the last 12 months in Sacramento area. Buyers are still apprehensive because no one seems to really know what is going to happen.
Things are starting to turn around. Activity in the housing market has definitively increased with the interest rates and home prices down. It is a great time to buy! Additionally, as the government steps in, lenders will be able to fund more loans.
North Highlands, Antelope and the outlying areas have seen a lot of activity over the past three months. There are currently 170 single family homes on the market in North Highlands, and there are 133 homes pending sale. A total of 182 homes have sold in North Highlands in the last quarter with a median sale price of $115,000. This is a decrease in value of 1% from the previous quarter and reveals that the rate of depreciation in North Highlands has slowed dramatically.
In the Antelope area, there are currently 237 active homes on the market with 155 in pending sale. A total of 240 homes have sold in Antelope over the past three months with a median price of $220,181. This is a decrease in value of 1.04% from the previous quarter and again shows the rate of depreciation is slowing considerably.
No one knows for sure whether home values will continue to drop or how exactly the government bail-out will affect the housing market. Most likely, we will continue to see bank foreclosures coming onto the market for the next few years, due to the adjustable rate loans resetting and past decline in homeowners equity. The high numbers of foreclosures have taken its toll on Sacramento’s new home builders who are trying to compete with banks that are slashing prices.
Inventory of homes on the market has actually decreased due to increased activity in the market.
The area still has an 8-month supply of owner-occupied homes and a 2-month supply of bank-owned properties. We will continue see more homes coming on the market as well as investors and first-time buyers taking advantage of great prices on homes, as well as great rates.