Sacramento pre foreclosures have weakened their hold on home prices as the median sales price surged in February despite an uptick in the entry of homes to foreclosure listings in Sacramento.
According to the Sacramento Association of Realtors, the sales price median for homes in Sacramento County and in West Sacramento in February was $179,900, up by 5.8 percent from the $170,000 median in January and up by 7.7 percent from the $167,000 median in February last year.
The sales price median for condos also increased, posting a 17.5-percent increase year-over-year from $80,450 to $94,500. Compared to the January 2010 median of $85,000, the increase rate was 11.2 percent.
As condos became more affordable, sales increased by almost 22 percent from January to 114 units. Condo sales were also up by almost 15 percent from the February 2009 sales of 94 units.
The supply of houses on the market also surged to a supply level of 2.7 months from the previous supply level of 2.8 months. In February, there were 3,281 homes listed for sale, including 1,156 units which were already in escrow.
The pace of Sacramento pre foreclosures is still surging because the default rate in the area is still high at 12.3 percent. Based on a report from Forbes magazine, Sacramento is 11th in a ranking of the most troubled housing markets in the country. Over the past couple of years, Sacramento suffered from single-family and duplex foreclosures and from substantial decline in property values.
In the Forbes ranking, Miami was the most troubled market with a default rate of almost 29 percent. Other Florida cities were ranked second, with an average default rate of 16 percent. Las Vegas followed at third place with a default rate of 21.7 percent.
The still significant pace of home auctions in Sacramento also pushed the city to the Brookings Institute’s list of the 20 cities that have not started a clear recovery from the recession. Sacramento was 16th in the list, as its year-to-date change in home prices was a negative 9.2 percent and its gross metropolitan product since the housing boom has plunged by 2.7 percent.
The pace of Sacramento pre foreclosures and completed foreclosures in 2009 also attracted international attention as they sprouted a tent city outside Sacramento. The tent city has since been fenced off, but the still high level of foreclosures is still a problem besieging the city.
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