Waiting for the market to bottom out? You may be too late!

I’ve repeatedly been asked when I thought the Sacramento housing market would bottom out.  My answer was always the same: “The only way to see the bottom is to be past it.”

The latest home sale statistics show that the bottom of Sacramento’s housing market may be behind us.  The median home price in Sacramento County in August was $190,000.  Compared to February 2009’s reading at $167,000, that represents a 13.8% increase in Sac-town’s median home price.  The graph below shows how a trough in the median home price has developed over the last nine months.

The last 9 months show a trough starting to form on Sac-town's median home price
The last 9 months shows a trough developing

Market timing is more luck than skill.  For those waiting to time the bottom, you may be a few months late.  But, that doesn’t mean you’ve missed your chance at buying a home at an incredible value.  There are still 2,993 properties for sale in Sacramento for less than $190,000.  Opportunities still abound for those decisive enough to follow the facts

Folsom Home Prices Remain Resilient

Over the last 12 months the Dow Jones Stock Index has fallen nearly 20%.  Considering how battered real estate has been relative to other parts of our economy, you’d think Folsom home prices haven’t fared much better.  But, in actuality, the Folsom median home price has remained essentially flat.  In June 2008, it was at $384,000, and in June 2009 it was $382,000.  It feels great to live in a community that has weathered the real estate down-turn better than others in our region.  Since real estate prices in the Sacramento region peaked in August of 2005, the median home price in Sacramento county has fallen 54%.  In Folsom, only 30%. Here is a history of median home prices since the market peak in August 2005

Also, here is a wonderful article that details how many home renters are becoming home owners as the difference between their old rent payment and new mortgage payment has become marginal.  Give it a read.

Buying is now cost-effective for some renters