About three of every five homes under $400,000 that were sold in January were bank-owned properties in the Sacramento region, the most recent evidence of the hard-hit housing market, according to a Lyon Real Estate and Trendgraphix report released Wednesday. Bank-owned homes, properties taken back by lenders when homeowners miss consecutive mortgage payments, are dominating the market and greatly lowering prices in the region. Existing home sales declined 4 percent last month to 1,113 properties compared to January 2006. But there is a bright spot – pending sales increased to more than 2,400 homes in January, meaning home sales activity will likely improve during the next several weeks.