SACRAMENTO, CA – Sacramento’s home prices are projected to drop 15.7 percent for the year, but that’s good news. Other counties are expected to fall 19 percent to 20 percent.
Much of Sacramento’s good fortune is due to the lack of foreclosures actually hitting the market. Banks are holding on to thousands of foreclosed properties in the Sacramento region. But, they are coming on the market in dribbles. So slowly, they are snatched up in a few days. That kind of demand is pushing up the price of homes that are $300,000 and under.
What was expected to be a flood of foreclosures
is turning out to be a trickle. Michael Lyon of Lyon Real Estate agreed.
“Now that we’ve talked to the banks and found out what’s going on, they don’t have the personnel to do the processing to get it out,” Lyon said.
Lyon said the federal government has put heavy restrictions on banks that took bailout money when it comes to following through on foreclosures.
“There’s too much of a bureaucratic mess to really throw these things out on the streets so they’re coming in at a rather absorbable rate, which is keeping that low end, under $300,000,” said Lyon. “It’s becoming a seller’s market. I didn’t think I would be saying this for years.”
Lyon predicts that instead of seeing a wave of foreclosures sweep in over the next few months, it will likely now be a steady stream over the next few years.
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