The price of homes in the Sacramento region continued to spike in February, according to Thursday’s report by Irvine-based real estate market tracker CoreLogic.
In Sacramento County, the median price of a resale house was $310,500 in February, compared to $290,000 in January. When compared to February 2016, the figure represents a 10.9 percent increase, CoreLogic reported.
“Since the election, mortgage rates have gone up,” said CoreLogic analyst Andrew LePage. “On the one hand, some people are getting priced out because rates are higher, but people on the fence … start to fear rates are going significantly higher so they rush to buy.”
Sacramento’s year-over-year gains “stand out” among large counties in California, LePage said. Other counties that registered double-digit increases included Santa Clara (11.4 percent), Alameda (12.3 percent) and Riverside (10.3 percent).
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Despite the price appreciation, the number of resale home transactions in February was generally down in the four-county Sacramento region that also includes Yolo, Placer and El Dorado counties. Sacramento saw a 4 percent decline, while Yolo and El Dorado transactions decreased by 5 percent and 23 percent, respectively. Placer County gained 1 percent.
The capital region has in recent months seen a surge in prices, the result of booming demand and tightening supply. While the trend has inflated values, Sacramento County resale home prices still remain well short of the record median of $374,000 from August 2005.
LePage noted that February’s median price was still 20.9 percent below the 2005 record, but when adjusted for inflation, it is actually 34.7 percent lower.
“We’re still well below the last peak, especially when you look at it in real terms, meaning adjusted for inflation,” he said.