The data from research firm Clear Capital show double-digit increases in California home values over the past year.
“We have that rate of growth at 19.5%. And our projection is for the rest of the year…actually forecast for things to continue going up albeit at a much more moderated pace.”
That’s Alex Villacorta with Clear Capital. “Moderated pace,” Villacorta explains, means about a 6% increase through the end of 2013. He says one major factor driving up home values continues to be the shrinking REO saturation rate which is currently at 15.4%. This is the rate of closed sales of bank-owned properties compared to total sales.
“For historical context, during the height of the downturn that rate reached as high as about 38% - so still less than half of where it was back in the crash days.”
Villacorta says prices are still down about 40% from where they were at the peak of the housing boom circa 2006.
Currently, Sacramento's REO saturation rate is at 15.4%. This is the percent of closed REO sales to total sales. It does not reflect the rate of inventory or supply of REOs on the market.