Distressed Housing Market Shrinking
The distressed housing market has declined dramatically. With improved home prices over the past five years the number of distressed properties in California and the Sacramento area is much less than it was during height of the recession.
According the California Association of Realtors (C.A.R.) in January 2009, almost 70 percent of all homes sold in the state were distressed. This includes bank owned properties and short sales. As of January 2014 the percentage of distressed properties sold declined to under 16 percent of all sales. C.A.R. further reports back in January 2009, the bank owned properties and short sales made up approximately 60 and 10 percent of the total sales.
"At the time, short sales were rising and peaked in January 2012 when they accounted for 25.6 percent of all sales."
During the height of the recession I was working on up to 25 short sale listings at one time. As of today, we do not have a single short sale listing although they accounted for 9.2 percent of all sales in January of this year.
I don't have specific numbers for the Sacramento area but with our area being particularly hard hit by the housing price correction and recession, I am sure the percentage of distressed property sales exceed the state averages and may still account for more than 16 percent reported on statewide basis for January of this year. With housing so strong in the early 2000's builders were putting up homes very fast, lenders were scrambling to make loans and unfortunately many people who were able to get financing were not financially strong enough to withstand a shock. When a new homebuyer who depended on two incomes lost one or had a significant reduction they were unable to make payments and with prices plummeting had no borrowing power. This was a common recipe for short sales and foreclosures.
The good news is during the same period, January 2009 to January 2014, California's median home price has increased more than 64 percent from $249,960 in January 2009 to $410,990 in January 2014. In Sacramento County sales prices have appreciated 56.2% over the last 5 years. The average listing price for Sacramento homes for sale on Trulia was $309,598 for the week ending Mar 19 and according to Zillow the median home value in Sacramento is $235,100 which is up 22.9% over the past year. Zillow is now predicting they will rise 7.5% within the next year.
If you have a question or comment about this article, please let me know. I can be reached at the MagnumOne Realty office in Roseville (916-899-6571) or by sending me an email to firstname.lastname@example.org.
Sacramento Realtor, Julie Jalone of MagnumOne Realty in Roseville, writes about the shrinking distressed housing market in California and where prices are headed.
Print This Article
Julie Jalone, wife and mother living in Rocklin, is an experienced professional Realtor ® serving
the Greater Sacramento area including Placer, El Dorado, Yolo and Yuba counties.
Julie may be reached online at www.jalone.com or by calling (916) 276-6883
Check out her daily web blog: Keep it Real in Sacramento
Placer County News HeadlinesRoseville California Crime Brief (8.31.14)Roseville, CA - Roseville California crime brief update report for August 31, 2014.
Acura ILX: Luxury Vehicle, Reasonable PriceFor car shoppers looking for an upscale luxury sedan that doesn't arrive with a luxurious price tag, Acura debuted the ILX a year ago and its back for 2014 virtually unchanged
People with Autism Especially VulnerablePerhaps like you, recently I read of an incident in Okeechobee, Florida, in which an 18-year-old man was recorded on video beating, choking, kicking, and holding a knife to the throat of a 16-year-old boy with autism.
54 Year Old Roseville Woman Killed with Own VehicleRoseville- 54-year-old Bernadette Ann Richardson was killed when her SUV rolled backwards as she was retrieving a bicycle from her 1997 Ford Explorer.
Photos: Napa Earthquake DamageWe recently had the opportunity to tour Napa following the magnitude 6.0 earthquake. The downtown area of Napa which contains many older buildings was hit especially hard.
California Senate Passes New Gun Violence BillCalifornia's state today passed the "Gun Violence Restraining Order (AB 1014)," legislation that would allow family members or law enforcement to petition a court
Laura's Law Implementation in Placer CountyPlacer County became the sixth county in California Tuesday to implement Laura's Law - a state statute that authorizes court-ordered assisted outpatient treatment of residents with severe
$22 Million Animal Services Center in Auburn Moves ForwardThe Placer County Board of Supervisors awarded a design-build contract on Tuesday that paves the way for construction of a long-planned Animal Services Center in North Auburn that
Autism in Girls Study Launched in CaliforniaAutism is far more common in boys than girls - affecting 1 in 54 boys and 1 in 252 girls - but little is known about biological differences between boys and girls with autism.
Sierra Shoot Out Water Polo Tournament in RocklinThe Sierra Shoot Out Water Polo tournament is back for another year at Sierra College. The junior college has hosted this high school tournament for over 20 years
What is Slowing the California Housing Recovery?Realtor, Julie Jalone of MagnumOne Realty in Roseville, writes about why the California and Sacramento housing markets are not expanding as fast as expected. Find out what Julie thinks is contributing to a slower real estate market.
Circus Vargas in Roseville this September Roseville,CA -- Get ready for the ultimate entertainment extravaganza for all ages as the circus comes to Roseville.