Business Journal: Foreclosures Drive Up Home Sales
Home sales are improving, slightly. But foreclosures remain a pesky problem for the region.
Friday, September 12, 2008
Existing home sales soared 65 percent last month compared to August 2007, the most recent evidence that the housing market may be experiencing a modest recovery in Sacramento region. Of course, many of those homes were bank-owned, as many financially-strapped homebuyers have lost their homes during the past several months. In fact, about three of every fives homes that sold in August were owned by banks, and 85 percent of those homes sold for less than $200,000, according to Trendgraphix Inc., a division of Lyon Real Estate. Sacramento County had almost 6,000 foreclosure notices last month, that’s a 13 percent increase from August — and the four-county region reported more than 7,700 foreclosures, a 16 percent jump from a year ago, according to a RealtyTrac report released Friday. The city of Sacramento had the 10th-highest ratio of foreclosed homes in the nation. But the low prices are helping to trim the number of homes on the market – to about 10,700, 30 percent less than the record inventory reached in August 2007.