Sacramento home prices jump again, but expert predicts they will cool off

Published: Friday, Jul. 19, 2013 - 12:00 am | Page 6B
Last Modified: Sunday, Jul. 21, 2013 - 9:54 am

Home prices in the Sacramento region jumped dramatically in June compared with the same month a year ago, DataQuick said Thursday.

Placer County saw a record 32 percent rise in the median price of single-family resale homes, while Sacramento County fell just short of its record 42 percent gain in May, the San Diego-based data service said.

The reasons for the spike are "super-low mortgage rates, a super-low inventory of homes for sale, and record-high levels of investor activity," said DataQuick analyst Andrew LePage.

That's been the case for months, he said, but things are starting to change.

Rates for 30-year mortgages have gone from a historic low of about 3.5 percent earlier this year to around 4.5 percent today. Investors are tapering activity. And more homes are hitting the market.

"It's unlikely that we would see these sort of gains last much longer," LePage said.

Even so, June remained a month to remember.

In Placer County, the median price for detached resale homes went from $275,500 in June 2012 to $363,750 last month, DataQuick said.

In Sacramento County it rose from $165,000 to $233,000 – for a 41.2 percent gain. El Dorado and Yolo counties also saw median resale home prices rise by more than 30 percent from June to June, according to DataQuick.

About three-quarters of the leap in median prices is the result of rising home values, LePage said. Another big factor is the mix of homes on the market, with fewer foreclosures and more mid- to high-priced homes.

Call The Bee's Hudson Sangree, (916) 321-1191.

© Copyright The Sacramento Bee. All rights reserved.

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