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Life at the bottom
In Sacramento County, the housing market is suddenly booming again. All that was required was for prices to come down -- a lot.
Andrew Leonard [2008-05-19]

  • Wouldn't Count On This Being The End, Even In Sacramento

    Prices probably still have a ways to fall in Sacramento. There's still an inventory glut in the market, even with the recent uptick in sales, and foreclosure activity could actually pick up next year, when another wave of rate resets hit higher-value mortgages. That means in addition to all of the (generally) cheaper subprime properties sitting on the market, there will be higher-end homes with declining values. That'll further suppress the value of the subprime properties - why buy Velveeta when you can get caviar for 10-20% more?

    And if layoffs continue to mount you're going to find fewer and fewer folks even qualify for a mortgage, on any property. That could be a real issue in Sacramento, as the California state government needs to trim billions from its budget.

    The fat lady hasn't sung yet.

    -- sunspot
    [Read sunspot's other letters]
    Monday, May 19, 2008 02:07 PM
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