Distressed Housing Market Shrinking
SHARE with Friend
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 email@example.com.
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 Crime Report Digest Update (7.29.14)Roseville, CA - The Roseville Police Department weekly crime report digest update for July 29, 2014.
Different Standards From Mortgage LendersJulie Jalone of MagnumOne Realty in Roseville, reports on a recent Fannie Mae survey which indicates there may be a growing difference in credit standards between small and large lenders. Which do you think has the tighter credit standards? Check out Julie's article and find out.
PCWA Comments on Bay Delta Conservation PlanDrought Watch: PCWA expresses concern about future water supply reliability for Placer County and claims EIR fails to consider key issues.
Honor Bowl Games at Del Oro August 2014ROCKLIN, CA. - William Jessup University announced today that it will serve as a sponsor for the Northern and Southern California 2014 Honor Bowl football games.
Tahoe Bike Classic Sept. 27 & 28The inaugural Tahoe Bike Classic will take over the Lake Tahoe basin this fall, September 27 & 28, 2014.
Lake Tahoe Marathon Returns September 14thArguably the most beautiful marathon in the world, the Lake Tahoe Marathon returns to Lake Tahoe on Sunday September 14, 2014. Since its inception in 1995, the Lake Tahoe Marathon has evolved into a premier running event
3 Month Old Dies in Sacramento, Parents JailedAshleigh Smith and the 19-year-old father, Terry Scott, were interviewed, they were both booked that night into the Sacramento County Jail on felony child abuse/neglect charges.
Dropping Gas Prices Lift Summer DriversLocal gas prices continue to drop and bring relief to drivers across California and the nation.
Inter-Faith Task Force Seeks New MembersThe Roseville Police Department is hosting an Inter-Faith Task Force comprised of congregational leaders and security teams for churches and other
Lake Tahoe Basin Community Plan Environmental ReviewWith the release of the Notice of Preparation (NOP) for the Environmental Impact Statement/Report, the ongoing update to the complex Tahoe Basin Community Plan continues to make progress
Preventive Autism Treatment Focus of Research AwardsResearch could affect nearly one in every four cases of autism among children in the U.S.
Simple Changes Helping California Small Businesses and EntrepreneursIt's not easy doing business in California. In order to be successful, business owners must overcome many challenges, one of which is dealing with California's complicated tax system