Prices Still on the Rise Despite Surging Sacramento Home Foreclosure

California Association of Realtors, research firms and Sacramento Association of Realtors reported that though the number of Sacramento foreclosed homes are surging, the prices of these properties are still on the rise. In January 2009, from a level of 7.64 percent, the percentage of mortgage defaults rose to 12.29 percent in January 2010 in the counties like - Placer, Sacramento, Yolo and El Dorado. It marked a jump to 11.99 percent from December last year. It was even higher than the rate of 8.66 percent across the country and the rate of 11.64 percent across the state.

Unemployment rate surpassed the 12 percent level from about 6 percent. Chaptered Financial Analyst Institute-Sacramento and California State University-Sacramento reported that in 2010 it is expected that the rates of joblessness will rise further and reach the 13.5 percent mark.

In the year-over-year period, the average sales prices of the homes reached to $174,830 in the 4-county Sacramento area, rising by three percent In January this year. El Dorado posted the highest average sales price with $310,000. This rate varies in different counties. Despite the surging foreclosure rates across the state of California, the average price was still reported at $287,400, which was very high. In Sacramento, area the total sales of home fell by 29.5 percent compared to December last year and compared to January last year it was fell by 24.9 percent.

In the city of Sacramento the median price level of homes were still at $193,425   as it was dominated by foreclosure sales. It was based on a report of an online real estate firm.

The increasing number of lenders with negative equity and increasing job losses are the main reasons behind the rising foreclosure rates in the Sacramento area. According to the reports of the final quarter of the last year, 229,417 units were under the foreclosure filings, which consist of over 46 percent of the total mortgaged homes.

In February this year, 45 percent were in the range of $300,000 to $400,000; 41 percent houses were priced below $300,000 and around 90 percent of the total new home sales were below the price range of $400,000. No new homes were priced over $600,000 and only 12 percent of the homes were come under the price range of $400,000 and $500,000. These new house prices and the sales prices of the homes in the area were affected by the increasing rate of foreclosure.