The Placerville real estate market, found in the economically stricken Central Valley housing market, showed conflicting signs in the most recent tracking period, possibly because of the expiration of state and federal tax credits. The most visible result of this was in the area of Placerville and other Sacramento area homes for sale, which dropped dramatically in the month of May. According to a July 20, 2010 report from the Sacramento Business Journal, “Sacramento-area new-home sales dropped 48 percent in May from the previous year, likely because of the end of the federal tax credit, according to the California Building Industry Association and Hanley Wood Market Intelligence. Homebuilders sold 165 single-family homes in May, compared to 317 for the same month last year, the most recent evidence that the housing market continues to struggle. April sales were far from robust at 185 homes, despite the end of the federal tax credit on April 30. The four-county region’s median-home price — meaning half the homes sold for more, the other half for less — dropped 9.3 percent to $306,150 in May, from $337,390 in May 2009. All three categories of new-home sales — which includes condominiums and townhomes — plummeted 51 percent in May, compared to a year ago. Single-family homes account for about 85 percent of new-home sales in the region. Statewide, home sales were down 46 percent in May compared to a year ago, with single-family homes off 45 percent, according to Hanley Wood. But the median single-family home price increased 6 percent to $345,917.”
On the other hand, the number of properties which were foreclosed in the Placerville housing market decreased substantially in June of 2010. According to a July 13, 2010 article from the Sacramento Business Journal, “Sacramento foreclosures fell significantly in the region in June, on both a monthly basis and a year-over-year basis, according to figures released Tuesday from ForeclosureRadar.com, which tracks distressed property in the Western U.S. The firm reported that 1,235 homes either went back to lenders or were sold to third parties at trustee sales during the month in the four-county region. That’s down from 1,883 in June of last year and 1,491 in May. The company said California foreclosure sales were canceled in record amounts, which it attributed to a single lender, JP Morgan Chase, cancelling foreclosure sales.”