Real Estate News

Sacramento housing market still gaining strength

People looking to purchase homes in the Sacramento region are increasingly pushing up prices, new statistics show.
People looking to purchase homes in the Sacramento region are increasingly pushing up prices, new statistics show. Sacramento Bee file/2012

Home prices in much of greater Sacramento continue to improve steadily, if not spectacularly.

Median prices for all houses and condos sold in Sacramento County increased to $275,000 in May, market researcher CoreLogic said Thursday. That represents a 1.8 percent increase over April, and a 5.4 percent increase from a year ago.

Placer County prices rose 2.2 percent in a month, to $398,000. That was a 6.3 percent rise from last year.

The hottest market in the region? Clearly that’s El Dorado County, where prices had been relatively flat for the past year. Last month the median sale price soared to $420,000, up 12 percent from the month before and 12.6 percent from a year ago. El Dorado had the region’s highest median sale price last month.

The latest CoreLogic figures show a market making progress in the climb out from the depths of the housing crash. Prices in Sacramento County are the highest they’ve been since December 2007, but still well below the peak of $387,000 recorded in August 2005.

“It all adds up to a market that’s getting closer to normal,” said CoreLogic analyst Andrew LePage.

He said sales volume remains relatively low. One reason is that potential sellers are still shy on equity and reluctant to put their home on the market. Another reason is that potential buyers remain cautious.

“There are still a lot of people repairing their finances,” LePage said.

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