The rise in price reported Thursday by MDA DataQuick comes as the overall number of homes sold in the region had increased for 14-months in a row.
DataQuick’s Andrew LePage says more people are buying higher-priced homes.
“It means that the market’s, at least for now, moving a little bit closer toward a normal balance between sales and the different price categories. You know, the other thing it signals is just that those foreclosures for now at least are drying up. An entirely different question is whether we’ll see another wave or two of foreclosures coming in the next year.”
Still, May's median home price of $175,000 in the Sacramento area was more than 22% lower than the median in May of 2008.
And foreclosures still accounted for more than half of the sales in May.