Scott Sambucci

California Housing Recovery? Not So Fast

I would agree Tim's comment that there are differences between the new and existing home markets. I only specialize in the existing home markets, but there are some interesting price trends that we're seeing. For example, check out this chart of existing home prices in Sacramento by 25% divisions - top, two middle, and bottom market segments:
tinyurl.com/7l3vbn

There is definitely a rate of decline in home prices at the lower ends of the market. The question is - are these reflective of a turnaround, or just that prices have fallen so far that there is an asymptotic effect at some perceived price floors? Either way, prices are starting to show signs of leveling in Sacramento. If California was first in the glut, it could be first out and maybe this is the beginning of the beginning....