New statistics from DataQuick show that home sales in July were up more than 70% from the same time last year. DataQuick analyst Andrew LePage says what’s driving the sales are foreclosures.
"Of all the homes that sold in Sacramento County in July about 63% had been foreclosed on at some point in the prior year."
A year ago, only about 19% of the homes that sold were foreclosures. But LePage says the high number of foreclosures being sold gives us a skewed view of the market.
"You know they’re selling for less than surrounding homes often and in some cases they’re not in the best repair."
He says the bigger question is – what’s the fate of homes where prices have held up relatively well and foreclosure activity is uncommon?
"These are places like Land Park, Curtis Park, East Sacramento, Granite Bay. The sales are just very low in these higher priced markets right now."
As for what the future holds, LePage says that’s too difficult to predict.
"Because if we sort of run out of first time home buyers who can qualify and are willing to buy now and we see continued job loss, then it’s really anybody’s guess where we end up 6 to 12 months from now in this market."
The median sales price in July was $210,000. That’s $10,000 less than the previous month. And it’s more than $100,000 less than the same time last year.