The Sacramento real estate market, which was one of the hardest hit during the economic recession, showed gradual signs of improvement despite an increase in mortgage delinquency. According to a June 15, 2010 article from the Sacramento Business Journal, "Foreclosure activity dropped last month in California, despite an increasing number of homeowners who are not paying their mortgages," ForeclosureRadar announced Tuesday. The company reported that a drop in foreclosures "makes no sense" when coupled with data on mortgage delinquency. The report mirrors a Business Journal analysis of delinquency in the Sacramento region, published May 21, which showed foreclosures are falling despite an increasing delinquency rate here. ForeclosureRadar said the number of homes that went back to the lender or were sold to a third party fell 4.1 percent in May compared with a year ago.
The article by Michael Shaw went on to note that "The report mirrors a Business Journal analysis of delinquency in the Sacramento region, published May 21, which showed foreclosures are falling despite an increasing delinquency rate here. ForeclosureRadar said the number of homes that went back to the lender or were sold to a third party fell 4.1 percent in May compared with a year ago.
Earlier this month, foreclosure tracker RealtyTrac reported a 12 percent drop in total foreclosure activity in Sacramento, including notices of default and trustee sales." While counterintuitive, the drop in foreclosures may reflect increased flexibility on the part of banks when dealing with distressed properties.
The average sales price of a Sacramento home for sale increased somewhat in the latest tracking period, possibly as a result of the drop in foreclosures. According to a June 22, 2010 article from the Sacramento Business Journal, "Sacramento’s median home price in May was $191,430, according to the California Association of Realtors. That’s 14.4 percent above the low of $167,340 in April 2009, but still 51.5 percent below the peak price of $394,450 in August 2005. Home prices in the region haven’t recovered from the trough, or low point, as well as other areas in the state. The statewide median price is $324,430, or 32.3 percent above the low in February 2009. The statewide median didn’t peak until May 2007, and the median price is 45.4 percent below the high of $594,530."