The current economic crisis and recession has hit real estate market in all parts of America and the capital city of California is not an exception at all. In Sacramento, you can find home prices going down, though there is some increase in price in recent months but increase is miniscule. Also, the increase in Sacramento foreclosures is another important factor behind the bad plight of real estate market in Sacramento.
Although there have been no good news for investors in recent months as real estate market is not really active but you must still conduct some research on your own to see if investing in Sacramento foreclosures for sale can be good thing or not.
In this regard, it is essential to check the median price for a home in Sacramento and following graph, which is also available on Trulia.com, will surely make you identify few important things.
This graph shows the market trend for the median sales price in Sacramento from the year 2000 to the year 2009. By analyzing this graph right from beginning, it becomes evident that there was a consistent increase in price which continued till the last quarter of 2006. That was the time when the median price in Sacramento was at its very best. The price in the last quarter of 2006 was around $354K. After that, there was consistent decrease in the median price until 2009 when price was hovering around $110K mark.
The median price from Dec 08 to Feb 09 was close to $135,000, which showed a decrease in the median price by 38.8% as compared to the price in the same period in last year. This analysis was based on the sales of 4,563 homes. The noticeable thing in the market was the increase in home sales. Even after the decrease in median price there was an increase in home sales in Sacramento which is clear from the following graph.
This graph makes it pretty clear that there though there was a decrease in home sales in the first quarter of 2009 but there was also an increase from the first quarter of 2008 till the last quarter of the same year. However, there was also an increase in number of sales from Dec 08 to Feb 09, which was around 26.2%.
Now, it is quite clear from the median price and the number of sales that investing in Sacramento foreclosures may or may not be a good decision, especially considering the current economic situation. Though some improvement is expected but still there are not signs of it. So, take your time before directing your money to the real estate market of this city.
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Written by Alex Rolim.
