15,000 More Foreclosures In The Sacramento Real Estate Market

August 6, 2008

According to a CNNMoney article, 1 in every 171 homes in the U.S. received a notice of default in the second quarter of this year.  That’s triple the filings from the same period in 2007.  220,000 homes total received a notice of default. Wow…

The Sacramento real estate market is one of the foreclosure hot spots in the U.S.  Private mortgage insurers rate most of the metro counties in the state of California at high risk for further price declines.  Could it get any better…I mean worse out there? :)

People losing their homes is not good for anyone and effects all of us. Fact is, this market was inevitable. I know that’s easy to say looking back on it but going forward, I think the signs will be more visable that we’re headed for trouble.

I spoke with an experienced REO listing agent today, this is his 3rd and worse foreclosure cycle, who told me that the banks he works with are expecting another 15,000 foreclosures to come on the market in the Sacramento region by the end of this year.  Another told me that there is at least two more years of this to go.

What’s the saying?  “Let’s make hay while the sun shines” or something like that? While there is not a correlation to the number of foreclosures coming on the market and the home prices coming down, availability of money to purchase and interest rates certainly have a bearing on how low or high the prices will go. While there is a chance that the values of homes will come down more, my sense is that we’re near the bottom of the value range for the region.

Availability of money, interest rates and inventory levels will determine how long we stay there. In the meantime, it’s a great time to buy.  If you’re looking for an experienced agent to help you buy in the best opportunity market in, well, more than half a century, please give me a call.

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