Sacramento home prices on the rise
Positive real estate news keeps abounding from Sacramento. The real estate bubble of the mid-2000s burst with such force that home prices crashed, and many potential homebuyers were left fearful of extending their finances by purchasing a house. However, the lackluster qualities that negatively impacted the Sacramento real estate market have decreased, and housing in the area may once again be a smart investment for potential homebuyers.
The houses for sale in Sacramento are situated in an improving metro economy. According to data from CoreLogic, housing prices in the four-county Sacramento region increased by 6.3 percent in August 2012 in a year-over-year comparison - that's including the recent 1.5 percent increase from July to August.
These figures include distressed home sales, which make up approximately half of the local housing market. The Sacramento Bee reports that with the exception of distressed house sales, home prices rose by an astounding 8.2 percent in August 2012 by comparison to figures from August 2011. Home prices improved 2.9 percent instead of 1.5 percent from July to August when excluding distressed properties.
The Sacramento Business Journal reports that the city's rebound is among the sharpest in the country. Alex Villacorta, director at housing market research firm Clear Capital, claims that Sacramento housing prices are expected to increase by 7.6 percent during the next six months - one of the largest expected gains in the nation.
In fact, the price increases are occurring at such a high rate that some real estate experts are worried about another housing bubble. Despite this, other market professionals offer words of comfort, claiming that while the growth rate is high, prices remain so low (from where they were prior to the recession) that there is currently no need to fear.
"There is a feeling of another bubble. That is a valid argument, but we are at such a low point in prices that it is a completely different ballgame," Villacorta told the news source. "It is so far from normalcy. That is why you see great affordability. Prices (in Sacramento) today are 56 percent below peak levels."
Potential homebuyers who are considering a new house would do well to check out the MLS listings in Sacramento.