Business Journal: Home Prices Dropping

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(Sacramento, CA)
Monday, August 27, 2007

Good news for homebuyers. The housing downturn has lowered prices and made new homes in the Sacramento area a little more affordable.

According to a report by the National Association of Home Builders, about 15 percent of families could afford a median-priced home during the second quarter of this year. That compares to 13.4 percent able to pony up the cost of the same house in the first quarter.

The region ranks No. 25 in the nation for least affordable housing. This is a few steps better than first quarter’s 21st place. And even though California holds nine of the 10 least-affordable markets nationwide, Sacramento is more affordable than the state’s average. In the Golden State, only 11.7 percent of families could afford a house this quarter.