Median Home Prices Still Falling, Sales Growing

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(Sacramento, CA)
Tuesday, July 15, 2008

According to new numbers from the Sacramento Association of Realtors, nearly 70% of the homes that sold were bank-owned foreclosures. 

Association President Alan Wagner says he expects that number to rise. As for prices? 

"Our prices will not drop a lot more from where they’re at now because it’s become affordable. With the interest rates and buying a home in the $200,000 price range, all of a sudden it’s comparable to where the rent is and when it’s compared to where the rent is it’s time to get off the fence and it’s time to move."  

Last month’s median price was $220,000…that’s 35% lower than June of 2007. At the same time, home sales almost doubled from the same time last year. 

Wagner says homes that were selling for $350,000 one or two years ago are now selling for 30% to 40% less.