Area Home Prices Can Only Go Up After Hitting Bottom

Zillow reported Tuesday that Sacramento-area home prices hit bottom in the first quarter of 2012, and predicted a 2.5 percent increase over the next 12 months. That is greater than the national average of 1.1 percent.

That report follows one earlier in which the Sacramento Association of Realtors said the median house price in Sacramento County was $170,000 in June, up 3.2 percent a year earlier, and that the total supply of homes last month equaled 24 days, meaning it would take that long to sell all available properties if no more came on the market. That is down from 2.4 months only a year ago.

In another report, the California Association of Realtors said distressed sales in Sacramento County fell in June to 53 percent of total transactions, down from 64 percent a year earlier. In Placer County, the percentages were 41 percent and 53 percent respectively. Distressed sales were 44 percent of total deals in El Dorado County in June compared with 54 percent in June 2011. In Yolo County, they were 51 percent and 46 percent respectively.

Statewide, the continued shortage of inventory and slowing economy sent California pending home sales lower in June, but they were still higher than the previous year for the 14th straight month ...

http://www.bizjournals.com/sacramento/news/2012/07/24/report-sac-home-prices-expected-to-rise.html