The Sacramento Business Review, produced by the Sacramento State College of Business, is the annual guide to statistics and emerging trends throughout the Capital city’s economy. Along with providing detailed local statistics from 2012, the Review forecasts continued improvement in the region’s housing market this year.
According to the report, the median home price through the 3rd quarter of 2012 reached $206,750, up 11.2% year over year from $185,000. Interestingly, this price still remains almost 50% below the peak levels we saw in 2005. Price per square foot in the region rose by approximately 6.5%, led by Placer County at over 8%.
Sales volume, while still low, rose modestly compared with 2011. Existing home sales, which represented 94% of all sales transactions, increased by 5% in the year. New home sales are rising off their 20 year low in 2011. Numbers last year account for less than 20% of the levels experienced from 2003 to 2005. The slight increases and quality statistics has gaged interest from major homebuilders, who have begun to purchase large amounts of finished lots in the region.
For 2013, The Review expects continued growth, assuming job growth doesn’t loses its current momentum. With rising demand and declining bank-owned properties on the market, home sales and prices should experience continued gains in 2013.
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