“Under normal market conditions you’ll have a healthy balance of first-time home buyers and investor buyers. Certainly to have investors dominating the market is a little unusual. But now it seems to be a common place and at this point any buying activity is welcome.”
Almost four-in-ten homes sold in the Sacramento area last month were bank-owned foreclosures.
Villacorta says the $10,000 homebuyer tax credit that Governor Schwarzenegger recently-signed could help spur new home sales. But he says it could also encourage homebuilders to release additional inventory into an already saturated market.