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Analysts Say Home Prices Stabilizing



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(Sacramento, CA)
Thursday, July 8, 2010
New figures from research firm Clear Capital show the bank-owned or REO saturation rate in the Sacramento area is 36%. Senior Statistician Alex Villacorta says that’s still higher than the national average of 25%…

“But overall it’s a step in the right direction considering that just a little over a year ago the REO saturation rate for Sacramento was just a little over 60%. So we’ve almost cut that rate in half.”  

And that’s good for home sellers who have to compete with bank-owned properties that are typically listed at a discount.
 
The new Clear Capital report also finds Sacramento area home prices have increased 11% over last year. The reason – Villacorta credits programs like the federal home-buyer tax credit. But it’s unclear what direction prices will go as those incentives come to a close.
 
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