Sacramento real estate market is on the road to recovery
Real estate in Sacramento is benefiting from the improving economy, as California’s 2012 second-quarter foreclosure activity was the lowest it has been in five years. This is following a national trend - U.S. foreclosure filings dropped 10 percent in July 2012 compared to a year earlier, Businessweek reports.
Housing analysts believe this positive momentum should carry over to the upcoming quarters. In hard-hit areas such as Sacramento, this good news could bring about the successful encouragement of home ownership. Potential property buyers could find an affordable home in one of the many quality Sacramento neighborhoods.
"The foreclosure process has always been the sanitation department of the housing sector. It's where financial distress is processed. The question is whether these lower NOD numbers mean that there's less distress to process, or if we're just seeing distress get processed at a slower pace," said DataQuick president John Walsh.
According to DataQuick, 3,202 home foreclosures occurred in the second quarter of 2012, down from 3,397 properties in the first quarter. That 5.7 percent decline is good news for many local residents, as well as anyone looking to move into a strong metro real estate market.
"Obviously the economy has been on the mend - however slowly. But because housing is widely seen by economists as the biggest drag on growth, some interesting alternatives to the foreclosure process are being discussed, such as the use of eminent domain to buy and restructure mortgages," Walsh said.
The improving metro real estate industry is prompting many to get out there and look at properties. The recent short supply and strong demand are starting to create competition between property buyers, the Sacramento Business Journal reports. Bidding wars have begun to break out as housing inventory has declined to only 24 days, meaning many homes are selling within one month of being listed.
As formidable foreclosure rates still continue to plague many metros across the United States, it is positive news that Sacramento is strengthening. Current Sacramento residents and recent transplants can benefit from checking out the MLS listings in Sacramento to determine if there is a property that is right for them on the market. The decrease in foreclosure rates could help turn a housing purchase into an even stronger financial investment.