Sacramento Area’s Median Price Is On The Move…
June 22nd, 2009 Categories: Mortgage and Loans, Pre Foreclosures, Real Estate News, Real Estate Trends, Sacramento Real Estate
With most of the real estate market here in Sacramento county being bank owned and short sales; first time buyers and investors are making up more than 70 percent of sales.
Since early 2008, most of the sales here in the Capital region have been some type of distressed sales; most of these have been in the lower price ranges and are being purchased by buyers who don’t have to sell another property in order to purchase.
Last month, Sacramento County’s median priced existing homes actually rose 9.4 percent. From around $160,000 in March and April to $175,000 in May. These are homes that actually changed hands. Compared to the median price of homes active on the market; which is $235,000 a difference of nearly 35 percent.
The median sales price is hugely affected by the fact that there are so few homes selling in the over 50k market. In May, 1829 homes sold for less than $550,000 and only 40 homes sold for more than $550,000! That is a remarkable difference. Yet when I look at active homes for sale; there are 135 under 500k on the market today and 35 over 500k. Clearly, the foreclosures and distressed sales in the lower end are where all the action is right now.
It will be interesting to see what happens with our median price as more of the big homes enter the market as distressed sales, and fewer lower priced homes enter the foreclosure process. Most of the resets in the sub-prime area have already occurred; the graph above shows the timing of the resets of both Sub-Prime vs. Alt-A and option ARM resets, and shows that we are actually in a “lul” right now, with the second wave just beginning….
