Prices of homes in Sacramento County have been on the rise, and have recently hit the highest mark since before the crash in 2007.
According to CoreLogic, the average resale price of a family home in the area was $340,500 in July. In August 2005, when housing prices were at their peak, the average price was $374,000, whereas prices in October 2011 dropped as low as $155,000.
The latest increase in prices, which is 10% higher than last summer’s, has been driven by a small market and high demand.
“New home sales were on the rise in Sacramento County, with a 29 percent increase since July 2016,” CoreLogic reported. “That’s partly the result of a resumption of construction in North Natomas, after federal authorities lifted a de facto building moratorium they’d imposed because of flood risks.”
Some experts believe the new developments in the resale market will make new homes a more viable option for buyers. As a result, housing construction may pick up; a critical improvement to the Sacramento economy.