The Sacramento area housing market has continued to show signs of recovery. Home values are beginning to stabilize and have even increased in some areas. However, there are still areas of Sacramento where home values continue to drop, however at a much slower pace. The number of days on the market is decreasing and many properties receive multiple offers. There are a number of economic factors that will hamper the recovery of the housing market. Many homeowners have suffered wage cuts or have been laid off. Some state workers are faced with unpaid furlough days. Unemployment is still rising. We are seeing many homeowners borrowing money and using credit cards in order to pay their mortgages each month. The general economic condition of our area directly affects our housing market's recovery.
Inventory of homes for sale is down to a thirty day supply. The number of foreclosures coming on the market has decreased considerably. It is estimated that there are over 20,000 foreclosed homes in the Sacramento area alone, waiting to be released by lenders. Buyers looking to buy foreclosed homes will have to act fast. Inventory of available homes is low and buyers will need to put in their “best and highest” offer. Bank owned properties generally sell for very close to list price if not higher. In North Highlands, homes sold in the last six months sold for an average of 101.6% of list price. Homes sold in Antelope in the last six months sold for an average of 100.62% of list price.
North Highlands currently has 128 active homes on the market. Of these, 93 are short sales. There are 93 homes in pending sale. From March to June of this year, approximately 135 homes were sold and the median sale price was $90,500. From June to September, 146 homes were sold with a median sale price of $104,000. The median sale price actually increased 15%! We have seen a lot of properties bought by investors, fixed up and then put back on the market for sale. This is called “flipping”.
In the Antelope area, there are currently 229 active homes on the market. Of these, 191 are short sales. There are 111 homes in pending sale. From March to June of this year, approximately 179 homes were sold and the median sale price was $199,900. From June to September, 204 homes were sold with a median sale price of $195,000. The median sale price decreased 2.2%.
Consumer confidence is up, but economists are hesitant to say whether or not the housing market has bottomed out. We know that the housing market is a cycle and that the current economy directly affects it. There are still more foreclosures that need to come on the market. It appears that certain areas will recover sooner than others. Our economy in general remains uncertain and it will continue to impact not only our local housing market area, but the nation's housing market as well.