Housing bust reaches new low in Sacramento region | SierraSun.com

Housing bust reaches new low in Sacramento region

SACRAMENTO (AP) ” For every two homes that are sold in the eight-county Sacramento region, another one goes back to the bank.

That is the latest indicator of the area’s housing woes, which are among the worst in the state.

Last month, 2,978 new owners bought homes in Amador, El Dorado, Nevada, Placer, Sacramento, Sutter, Yolo and Yuba counties, according to La Jolla-based DataQuick Information Systems.

But 1,367 homeowners in the region lost their houses in foreclosure, according to Fair Oaks-based Foreclosures.com, a Web site for real estate investors.

Analysts say the ratio could grow even worse as sales slow down in the fall and winter, while foreclosures continue rising.

Last month in Sacramento County there were more defaults than sales, DataQuick reported.

“You’re seeing the numbers going up bigger, bigger, bigger every month,” said Alexis McGee, president of Foreclosures.com. “I don’t see them slowing down.”

Sales fell to a 12-year August low in Sacramento County and an 11-year low in Placer County. Things were even worse in the San Francisco Bay area and Southern California, where August sales fell to their lowest levels since 1992.

Analysts say the number of homes on the market ” now at a record 16,262 in El Dorado, Placer, Sacramento and Yolo counties ” will continue to grow as sales prices decline.

Median sales prices in Sacramento and Placer counties are nearly 20 percent off their 2005 highs, according to DataQuick. The median is the point at which half the houses cost more and half cost less.

The median price for new and existing homes in Sacramento County has fallen to $312,250, which is where it was in June 2004. The median price for new homes ” $332,000 ” is the lowest it has been since October 2003.

Sales prices of new and existing homes in Sacramento County fell 13.3 percent from last August, by far the steepest drop among California’s large urban counties.


Information from: The Sacramento Bee, http://www.sacbee.com

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